Freudenberg Group, a renowned global technology corporation marking its 175th anniversary in 2024, revealed today a significant upsurge in its operational profits and revenues for the fiscal year 2023. The company’s sales soared to €11,902.8 million, showcasing a 1.3% increase from the previous year’s €11,753.1 million. Notably, the operational profit skyrocketed to €1,081.6 million, a substantial 15% surge from the €941.8 million reported in the prior year.
Moreover, the profit margin witnessed a commendable rise from 8.0% to 9.1% compared to the preceding year. Freudenberg Group attributes its remarkable global growth to its adaptable problem-solving approaches across various industries, innovative product portfolios, and unwavering customer focus. Particularly, Freudenberg India reported robust sales of INR 3803 crore, underlining the company’s strong operational performance in 2023.
Looking ahead, Freudenberg plans to invest approximately INR 350 crore in calendar year 2024 across its facilities in Tamil Nadu, Punjab, and Karnataka. Notably, the company has made significant investments in a new production facility in Morinda, India, for its joint venture, Freudenberg-NOK India, and its Vibracoustic Business Group. Remarkably, from India alone, Freudenberg exports goods worth approximately INR 800 crore, highlighting its global reach and impact.
The Freudenberg Group encompasses a total of eleven entities within the country, operating across diverse sectors such as automotive, energy, chemical, technical textiles, and cleaning products. In a significant development earlier in 2023, G. Sivasailam, the managing director of Freudenberg Performance Materials, was appointed as the new director and CEO of Freudenberg Regional Corporate Centre India by the group.
This change marked the succession of Georg Graf, who had held the position since the establishment of the Regional Corporate Centre in 2016. The move reflects the organization’s steadfast commitment to India and its ambitious expansion plans for the region. Commenting on the company’s performance for fiscal year 2023, Dr Mohsen Sohi, CEO of the Freudenberg Group, expressed his satisfaction, noting that numerous records were achieved.
Both revenue and operational profit figures reached their highest levels ever, showcasing a remarkable growth trajectory over the past decade. The company has nearly doubled its operating profit and sales with an average annual growth rate of 6% and 7.7%, respectively, over the last ten years. Additionally, R&D investments have increased by over three times annually in the last three years, reflecting Freudenberg’s commitment to innovation.
Dr. Sohi extended his gratitude to the global workforce, acknowledging their dedication as instrumental in achieving these historic milestones. He highlighted Freudenberg India’s integral role in the company’s growth journey, particularly as it commemorates 175 years of global business operations this year. Sivasailam reiterated the company’s commitment to India, emphasizing ongoing investments in expanding facilities and anticipating another significant year in 2024.
Moreover, the Freudenberg Group’s products and its target to achieve CO2 neutrality by 2045 are driving the energy transformation. Sustainability is a key focus for the company, primarily centered around the efficient use of material and energy resources. By 2045, Freudenberg aims to achieve zero CO2 emissions, primarily through strategies such as electrification, energy conservation, and the production of green electricity on-site.
The company has already made significant strides in this direction, sourcing green electricity from photovoltaic and wind power systems. Globally, Freudenberg has deployed approximately 20 new solar systems, with around 60 more in various stages of design and construction, further highlighting its commitment to sustainability and reducing its carbon footprint, particularly in rapidly urbanizing regions like India.
The Freudenberg Group is a global technology company with a strong presence in various industries, including automotive, energy, chemical, and textiles. With a history dating back to 1849, Freudenberg has established itself as a leader in innovation and sustainability. The company is committed to achieving CO2 neutrality by 2045 and focuses on efficient use of resources. Freudenberg’s diverse portfolio and dedication to sustainability make it a key player in driving the energy revolution and addressing global challenges.