German Tier 1 major Freudenberg Group, has commissioned two new plants in Punjab’s Morinda, for around Rs 385 crore (over Euro 42 million). These will primarily cater to demand from the domestic market, while eyeing international supplies.
Freudenberg Group is a manufacturer of automotive seals under its business entity Freudenberg-NOK India and noise and vibration control (NVH) components under Vibracoustic India.
The company has inaugurated these state-of-the-art facilities spread over a combined area of over 40,000 square metres, to consolidate its manufacturing operations in the State by relocating the two plants from their erstwhile leased locations within Punjab – in Basma and Mohali, respectively.
The two facilities in Morinda also aim to grow the local workforce by 20% by adding approximately 200 new positions across various roles. The Vibracoustic India plant also houses an Engineering Support Resource (ESR) division for undertaking engineering and research activities for global markets.
According to Dr Mohsen Sohi, CEO, Freudenberg Group, “Our investment in the new facilities in Morinda reflects Freudenberg’s strong commitment to the Indian market and the ‘Make in India’ vision.
This expansion not only aligns with our global growth strategy but also boosts our ability to serve customers with greater efficiency, innovation, and quality. As we celebrate 175 years of Freudenberg’s legacy of excellence, we are proud to further strengthen our presence in India.”
While it manufactures automotive gaskets, seals, and O-rings under Freudenberg-NOK, the Vibracoustic arm produces vibration-dampening mounts for vehicle chassis and drivetrains, including engines, transmissions, and struts, as well as bushings. The company, thus, is a key player in the sealing systems and NVH domains, and has customers of the likes of Daimler India Commercial Vehicles, Maruti Suzuki India, Toyota Kirloskar Motor, Skoda Auto Volkswagen India, and Hyundai Motor India, among others.
In line with its global roadmap of achieving net-zero emissions by 2045, energy-efficient machinery, and reliance on solar energy to cater to around 15% of the energy requirements, have also been incorporated as key sustainability measures to reduce the environmental footprint od the two plants.
Setting up local R&D
Freudenberg Group is also betting big on the competencies of local engineering talent in India and is consolidating its global technology footprint by increasing the technical capabilities in the country.
At the Engineering Support Resource or ESR division inside the new Vibracoustic India facility in Morinda houses an Engineering Support Resource (ESR) division that employs 40 engineers engaged in CAD, FEA, and technical research and aims to grow the number in the coming years to support the Group’s global R&D.
“We are increasing the technical capabilities from this centre. India produces outstanding engineers and we will make India the site for global technology development at Freudenberg Group,” Dr Sohi pointed out.
In terms of revenue, Freudenberg India clocked Rs 3,803 crore in CY23, registering an 11% year-on-year growth. The Vibracoustic India facility in Morinda is capable of clocking annual revenues in the range of Euro 80-90 million or roughly Rs 750-850 crore at full capacity.
“The Indian economy has grown by 7% per year over the last 10 years and globally, all our businesses grow more than the market. Therefore, if we grow in the region of 8-10% in India in the next 4-5 years, that would be outstanding,” he added.
However, Dr Sohi cautioned, that with global automotive markets such as the US, Europe and China to some extent, experiencing a downturn, a 5-8% annualised growth in revenue would be a more realistic expectation by the turn of the decade.