Syed Shazil Hussain
Last Update:
October 16, 2024
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Freudenberg Group expands in India with new manufacturing facilities in Punjab, invests INR 385 crore

The expansion aims to strengthen the company's production capabilities in India.
Germany-based Freudenberg Group, one of the global leaders in seals, vibration control, and other industrial products, has inaugurated two new manufacturing plants in Morinda, Punjab. With an investment of INR 385 crore (€42 million), this expansion consolidates the company’s existing operations from Basma and Mohali and strengthens its commitment to the Indian automotive and general industrial sectors.

The new facilities, which span over 40,000 square meters, are operated by Freudenberg-NOK India Pvt. Ltd. (FNI) and Vibracoustic India. They are equipped to enhance production efficiency and support the group's long-term growth plans in India while aligning with the country’s "Make in India" initiative. These facilities will manufacture a range of sealing products and vibration control systems, serving key sectors such as automotive, construction, and general industrial manufacturing.

The expansion aims to strengthen the company's production capabilities in India, addressing both the automotive and general industry sectors, which together make up a portfolio of over 40 different markets.

Dr. Mohsen Sohi, CEO of Freudenberg Group highlighted the company's strategy of maintaining a diverse market presence, with 40% of revenue coming from the automotive sector and 60% from other industries. The new facilities are expected to increase employment by 20% to approximately 200 new jobs in Morinda.

Logistical advantages, proximity to customers, and the availability of skilled workers drive the location of the plants in Morinda. Some employees from the group’s previous facilities in Punjab have been relocated to the new site to retain talent and ensure a smooth transition.

Focus on sustainability

The new plants have been designed with sustainability in mind, incorporating energy-efficient machinery, photovoltaic cells that meet 15% of the plant’s energy needs, and water treatment systems that enable 90% of the water to be reused.

The company is optimistic and expects India to play a key role in its future growth, with an annual revenue increase of 5-8% over the next five years. The group's client base in India includes major automotive manufacturers such as Maruti Suzuki, Daimler India Commercial Vehicles, and Skoda Auto Volkswagen India, among others.
"While the primary focus remains on the domestic market, Freudenberg may also export products from these new plants in select cases," said Dr. Sohi.

Dr. Sohi also highlighted Freudenberg's broader ambitions in India, stating that the country is poised to become a hub for research and development (R&D) within the company. This aligns with Freudenberg’s strategy of expanding technical capabilities to meet growing demand across various market segments.

Freudenberg Group is celebrating 175 years of operation, with 52,000 employees worldwide and nearly €12 billion in sales.