German technology firm, Freudenberg is looking to further its growth in India. The company has announced it will invest close to Rs 350 crore in 2024 across facilities in Punjab, Karnataka and Tamil Nadu. In Morinda, India, Freudenberg has invested in a new production facility for its Vibracoustic Business Group and its Freudenberg-NOK India joint venture.
The Group operates 11 companies across diverse segments and is now eyeing newer opportunities in the electric vehicle segment, fuel-cell, commercial vehicles and aftermarket space.
Interestingly, the automotive industry makes up for over 50 percent of the company’s revenue in India. In CY2023, Freudenberg India clocked Rs 3,803 crore of revenue, of which over Rs 1,500 crore came from the automotive business.
Sivasailam G, Director & CEO, Freudenberg Regional Corporate Center India & MD at Freudenberg Performance Materials India stated, “As Freudenberg commemorates 175 years of operations globally this year, the Group has been committed to its growing operations in India, across diverse domains. We are continuing to invest in the expansion of our facilities and 2024 promises to be another year of key milestones.”
He attributed localisation as one of key factors for the strong financial performance, “ It has helped us to not only be competitive, but also allowed us to pass on the cost benefits to customers. Operational excellence is a key area which we are focusing on and has helped us.”
The company has also started working on supplying some components for EV battery, where it has started “some joint development happening in India,” but didn’t share details of the projects as part of “NDAs”.
Sivasailam added, “We are also working on surface finishes in the automotive. We will also be launching new products after the investments are made, and will look to expand offerings for new products.”
“We are already working on fuel cells in Europe and US, we are also modifying products to meet needs of electric vehicles in Europe, and already collaborating with OEMs in India,” he pointed out while highlighting the growth avenues.
In the EV space, the company globally counts the likes of Mercedes-Benz, BMW and Volkswagen among others as customers and is looking to support their EV plans in India too. It has also started working on some products with Tata Motors and Mahindra & Mahindra.
“We are already working on fuel-cell products in Germany and US, also working with some manufacturers in India who have stepped up their game. But how much the industry is able to adapt and invest in green hydrogen is something we have to wait and watch,” said Sivasailam.
