Freudenberg Group invests over 130 crores in India
In partnership with Thermax to deliver out of India, patented new system for turbine and compressor filtration & cooling, to the world
Investments, plans and initiatives reinforce Group‘s long-term commitment to India
Bangalore, September 16, 2010 - India remains a cornerstone of success for the Freudenberg Group. The internationally active family group of companies today shared a slew of information and announcements that reiterate the Group‘s long-term and growing commitment to India. The Group announced that it recorded healthy growth in the Indian market net sales in the country for the Group rose by 33.6% to ` 558 crores (2008: ` 417 crores). The growth was even more significant in the first half of 2010 wherein sales grew by 80% compared with the first half of 2009. The Group expects well above-average growth and market share for its Indian companies in this financial year. The Group is continually investing in India and its recent investments in factories and its sales organization totaled over ` 130 crores. The number of associates rose to 2,000 in 2009 (2008:1,322). In the first half of 2010, there were 2,301 associates. Freudenberg has been active in the Indian market since the 1920s when it started importing raw materials from India. The sale of Freudenberg products in India began in 1974, followed by the first brand offices about 20 years ago. Freudenberg now has nine operating business units in India with over 26 facilities in ten cities and regions spread across the country.
"We are investing steadily in this key market to which we are committed for the long-term. The accelerated growth of the various Freudenberg Group companies in India will have a sustained positive effect on the entire Group," said, Dr. Jörg Matthias Grossmann, Regional Representative of the Freudenberg Group in India and the global CFO of Freudenberg Chemical Specialities.
A strategic partnership with Thermax to deliver out of India innovative solutions to the world:
Freudenberg Filtration Technologies has established a promising partnership with Thermax, an Indian energy and environmental technology company to jointly offer innovative filtration and cooling solutions for large gas turbines and compressors for the energy, petrochemical, iron, steel and other sectors. Jointly Thermax & Freudenberg Filtration Technologies have developed an entirely new system-Viledon eee.Sy (energy efficiency enhancement system) that cools the intake air of a turbine up to the ideal value of 15â€c allowing an improvement of up to 25% in energy efficiency and reducing CO2 emissions.
Other added benefits of the new system are reduced maintenance expenses due to the longevity of Freudenberg filters, reduced stress on turbine blades besides extension of service lives of turbines and compressors. The partnership has since completed several implementations including one at a Tata Chemicals fertilizer plant. The new system/set of solutions would be of high relevance for plants in tropical and subtropical zones where high humidity and temperatures severely impair efficiency of gas turbines and compressors.
Scholarships for the Indian Institute for Management (IIM)
To maintain its innovative capabilities in the long term, Freudenberg relies on the support of its Indian associates and is laying the foundations for the future with targeted recruitment and human resources development work. The Group partners a number of universities and research institutes like Indian Institute for Management (IIM)-Bangalore. The objective is to train students in an international environment and to add practical experience to their theoretical education. As part of the partnership, Freudenberg awards scholarships to two best students in the first year at IIM-Bangalore.
Joint venture between Vileda and Gala Brush Limited:
As in other regions of the world, the Group works closely with local partners in India as well. The joint venture between Freudenberg and SIGMA in the field of seals and vibration control technology was established ten years ago. Another important partnership was signed at the end of 2009, when Freudenberg Household Products (FHP) and Gala Brush Limited, a leading manufacturer of cleaning products under the brand name of Gala®, formed a sales and production joint venture. With 2009 sales of `18 crores and 100+ employees the JV is already growing. Freudenberg Household Products is a division of the Freudenberg Group active in key regions of the world with its brands vileda®, O´Cedar® und Wettex®. Sales in 2009 of this division were ` 4,230 crores, with over 2,300 associates globally. Freudenberg holds a 60% stake in the JV with Gala®, which aims to serve the Indian market effectively and successfully. The JV, managed by a highly experienced team of Gala family members and Freudenberg associates, develops and manufactures household products for daily use and also for the highly sensitive professional cleaning sector. "It is our belief that the partnership between two successful family-driven companies will enable us to reach a leading position for the Gala® and vileda® brands in the fast growing household cleaning market in India,†added Dr. Grossmann.
Largest social project in the history of Freudenberg to help tsunami victims:
Freudenberg has been committed to its locations around the world for 160 years and takes its social responsibility seriously. Following the catastrophic tsunami in 2004, it established a training center for up to 145 young people at Nagapattinam in Tamilnadu, the region which was hit hardest. The group‘s largest aid project outside of Germany to date, the training center was officially inaugurated last year. Depending on the vocations of the individual trainees, the course lasts from one to two years. Outside classes, the young people can pursue their training in greater depth using the library and computer room at the center. Following their training, they have good prospects of earning a living in the area affected by the tsunami and improving the infrastructure in their region. There are now 120 students at the training center 39 completed their training in the past few weeks and have since found work; 32 are due to follow this year. They work as welders or fitters or are employed as mechanics by major companies in the region.
About Freudenberg in India:
Freudenberg has held business ties with customers and partners in India for nearly 100 years. The Group has a workforce of 2300 employees across 10 locations. The combined sales of its nine operating business units in India stood at ` 558 crores in 2009. The Group operates at over 26 facilities across regions in India and is committed to the Indian market long-term.
About Freudenberg Group:
The Freudenberg Group is a family company offering its customers technically challenging product solutions and services. The Group is a leading global supplier specializing in seals and vibration control technology, nonwovens, filters, lubricants and release agents as well as mechatronic products. Consumers can find modern Freudenberg household products in the shops under the brand names of vileda®, O´Cedar® and Wettex®. Freudenberg develops software solutions and IT services particularly for small and medium-sized companies. In 2009, the Freudenberg Group employed around 32,000 people in 55 countries and generated sales of ` 28,300 crores. More information about Freudenberg group is available at www.freudenberg.com.
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