Germany-based global technology group Freudenberg is investing ₹210 crore in greenfield production unit near Chennai to manufacture sealing products for automotive and other sectors.

The new facility is part of the group’s long term growth strategy in the Indian market and also its plans to tap the emerging opportunities in the automotive sector.

The unit, which is being built on a 13-acre site at Vallam Vadagal near Chennai, is expected to be ready by the first quarter of 2019.

“We have secured all the necessary support from the State government agencies. This project will supply sealing solutions to all major auto units in this region,” George Graf, Regional Representative India, Freudenberg, said here.

For the €9.3-billion Freudenberg Group, automotive is a major business segment in the country which accounts for over 60 per cent of its total revenue in the country. In 2017, Freudenberg India’s revenue grew by 25 per cent at ₹2,768 crore. It has been growing at 20 per cent over the past five years and expects to record higher growth rate in the next few years, supported by strong growth outlook in its existing businesses and also by entering into new business segments. Graf said the Group was aiming to balance its portfolio further towards generating one-third of sales each in Asia, North America and Europe. The Indian market is expected to play a significant role in terms of sales and strategic growth in the region.

The Group has 14 production sites and six R&D centres in India with staff strength of about 2,700.

source: http://www.thehindubusinessline.com / Business Line / Home> News / Chennai – May 31st, 2018