Bangalore, June 19, 2012. For the internationally active Freudenberg Group, the 2011 financial year was yet another successful year in India. At year-end 2011 sales had risen to 956 Rs. crores (2010: 794 Rs. crores), equivalent to an increase of more than 20 percent compared with the previous year. In the first quarter of 2012, sales in India rose by almost 15 percent compared with the same period of the previous year. In 2011 the number of employees in India rose by 20 percent from 2,508 to 3,007. "The consistently very good performance of our Indian Business Groups was a significant factor in the above-average growth rates achieved by the entire Freudenberg Group," Dr. Joerg Matthias Großmann, Regional Representative of the Freudenberg Group in India and Chief Financial Officer of Freudenberg Chemical Specialities, said at the press conference in Bangalore. "The Freudenberg Group will consistently develop its activities in India and support its strategic objectives with appropriate investments. We are especially proud that we have been able to strategically expand our portfolio through the acquisition of Pyramid Filters Pvt. Ltd. in Pune."
The internationally active Freudenberg Group reported global sales of around 39,396 Rs. crores in the 2011 financial year. Adjusted for exchange rate effects, this represents a rise of around 9.6 percent compared to 2010 (33,109 Rs. crores). Consolidated profit increased to 2,348 Rs. crores (2010: 1,943 Rs. crores). The 2011 financial year was therefore Freudenberg's most successful year ever for sales and earnings. Profit from operations (EBIT) rose from 2,601 Rs. crores in the financial year 2010 to 3,315 Rs. crores in 2011, an increase of 27.5 percent - also adjusted for exchange rate effects. To support business success, the total amount invested in research and development rose from 1,061 Rs. crores in 2010 to 1,322 Rs. crores in 2011.
New state-of-the-art production site for future-oriented markets
"The above-average growth of the past few years highlights the prospects of Freudenberg in India. The Group has adopted a targeted approach to investment in both existing and new markets," Dr. Großmann explains. One of the largest current investments by Freudenberg in India is the new plant at Mysore. The Freudenberg Group companies, Chem-Trend Chemicals Co. Pvt. Ltd. and Klüber Lubrication India Pvt. Ltd. are headquartered in Mysore and manufacture speciality lubricants, release agents and maintenance products under the Klüber Lubrication, Chem-Trend and OKS brands for the local and regional markets. By 2016 Freudenberg will have invested around 130 Rs. crores in the new production plant, which covers an area of 40,000 m2. An additional 9,000 m2 plot of land was acquired specifically for the new plant. The two companies at this location supply customers from a wide range of industries, including the automotive, energy and food industries, as well as wind energy. The Indian wind energy sector is one of the largest world-wide.
Technological know-how developed in India for India
A further significant investment is being made in Pune. EagleBurgmann Pvt. Ltd. is expanding its production plant built in 2009 to include a new R&D center. A fully-automated, computerized state-of-the-art test center will be built to test seals for refineries, petro-chemical and chemical plants, as well as power stations and numerous other industries. Additional production facilities are also in the pipeline. The building is scheduled for completion in the fall of 2012.
Strategic Investment in Pharmaceuticals and Medical Technology
The acquisition of Pyramid Filters Pvt. Ltd. of Pune by Freudenberg Filtration Technologies in April represents a significant investment in a strategic future market. Pyramid Filters develops air filter elements and systems for cleanroom applications in the pharmaceutical, medical, food and chemical industries. The company employs a total of 60 people at its manufacturing site in Pune.
The existing Management Board members of Freudenberg Technologies India Pvt. Ltd., Gnanasekharan Ramesh and Rakesh Nathwani, are to be joined by Dr. Kirti Kelkar, founder of Pyramid Filters India Pvt. Ltd. Dr. Kelkar will be responsible for the cleanroom business area.
Freudenberg Filtration Technologies India provides highly-efficient industrial and automotive filter elements and systems, as well as system solutions for the capacity and efficiency enhancement of gas turbines and compressors. The acquisition of Pyramid will allow the Business Group to expand its portfolio in India, not only offering the customer a comprehensive range of filters for suspended particles but also outstanding services and solutions for which Pyramid enjoys an excellent reputation in India. Customers will also benefit from Freudenberg's expertise in applications technology and its position as one of the market leaders in filtration technology world-wide.
About Freudenberg in India
Freudenberg has held business ties with customers and partners in India for almost 100 years. The Group has a workforce of more than 3,007 employees at 28 locations. Freudenberg generated sales in India of 956 Rs. crores in the 2011 financial year.