Though gross sales in 2020 was at Rs. 75,305 cr (8.8 billion Euro), it was considerably beneath the determine of Rs. 80,646 cr (9,467 million Euro) for the earlier 12 months, the corporate reported a revenue from operations of Rs. 5,706 cr (669 million Euro) (earlier 12 months: Rs. 6,984 cr (820 million Euro). The impression was seen in India in addition to gross sales confirmed a 16% dip to shut at Rs. 2,130 cr in 2020 as in comparison with Rs. 2,532 cr final 12 months. Regardless of the results of the pandemic, the worldwide ranking company Moody’s Deutschland GmbH, Frankfurt am Important, confirmed its credit standing of Freudenberg at A3, with a secure outlook, as within the earlier 12 months. The Group subsequently continues to carry a superb single A ranking.
Along with stringent value administration, the numerous enchancment within the financial atmosphere firstly of the fourth quarter of 2020 helped Freudenberg obtain these monetary outcomes. Moreover, the Group reacted quickly within the disaster and carried out focused measures that took impact.
Freudenberg globally continued to put money into future progress. Freudenberg performed analysis and growth actions amounting to Rs. 3,799 cr (446 million Euro) (earlier 12 months: Rs. 4,096 cr (480 million Euro) . This represents 5.0 p.c of gross sales (earlier 12 months: 5.1 p.c). Analysis and growth expenditure remained at a excessive stage.
Particularly for the Enterprise Teams producing for the automotive, textile and mechanical engineering sectors, the financial atmosphere globally and in India, firstly of the 12 months was extraordinarily difficult. “Along with the pandemic, the transformation in mobility (particularly automotive sector which is our key business) has led to seven of our ten Enterprise Teams having to take care of, in some instances, sizeable losses. In distinction, three Enterprise Teams have skilled a optimistic impression on their enterprise. Freudenberg Residence and Cleansing Options (FHCS) is benefiting from extra stringent hygiene measures, Freudenberg Filtration Applied sciences (FFT) from the launch of masks manufacturing and Freudenberg Medical (FM) from a optimistic demand for brand spanking new merchandise. To sort out the disaster, we’re persevering with to stick to our strict value administration and the associated measures. Investments are being lowered to as low a stage as potential with out jeopardizing future progress, and we now have averted making cuts to our analysis and growth actions. These totally different, and in some instances divergent, developments present simply how necessary its broad-based positioning is for Freudenberg,” mentioned Georg Graf, Freudenberg Regional Consultant, India assessing the Freudenberg efficiency in 2020. “We’ve additionally made good progress with our strategic focus subjects of e-mobility, digitalization and sustainability. Moreover, we now have continued a excessive stage of analysis and growth actions as an revolutionary know-how group globally,” he added.
Freudenberg’s seven Enterprise Teams in India have a complete workforce of some 2,852 workers at round 50 areas – working six R&D facilities and 15 manufacturing websites with state-of-the-art store flooring in India.
Analysis and growth
Analysis and growth expenditure remained at a excessive stage. Freudenberg continued to put money into future progress. In 2020, Freudenberg performed analysis and growth actions spending to the quantity of Rs. 3,799 cr (446 million Euros) (earlier 12 months: Rs. 4,096 cr (480 million Euros)). This represents 5.0 p.c of gross sales (earlier 12 months: 5.1 p.c). Freudenberg generates greater than a 3rd of its gross sales (34.1 p.c; earlier 12 months: 34.7 p.c) with merchandise which might be lower than 4 years previous.
One instance: As demand for face masks rose in 2020, the Freudenberg Enterprise Teams began to develop varied supplies for protecting masks. Freudenberg Filtration Applied sciences started manufacturing of licensed medical face masks with a filter effectivity of over 98 p.c. As well as, filter media for FFP2 face masks offering high-level safety towards viruses had been developed. These masks have now additionally been licensed by the FDA (Meals and Drug Administration) within the USA.
Sustainability: 25 p.c much less CO2 by 2025
The sustainability of merchandise and processes has been a part of Freudenberg’s company accountability for a few years. In 2016, the Group developed a Group-wide sustainability technique. As well as, sustainability was made an integral a part of the technique course of. Within the “Sustainability Drives Local weather Motion” venture, the Group is growing a place with respect to the challenges and alternatives of local weather change. Firstly, Freudenberg intends to cut back CO2 emissions by 25 p.c by 2025. Secondly, the alternatives and prices of local weather neutrality for Freudenberg are to be recognized in 2021. On this context, Freudenberg has adopted a four-stage technique. The highest precedence shall be to cut back vitality consumption. The second stage shall be to cowl the remaining vitality demand utilizing electrical energy to the best extent potential. Thirdly, the Group’s vitality steadiness is to be improved by buying inexperienced electrical energy. Fourthly, Freudenberg is dedicated to offsetting CO2 emissions.
Sustainability has two dimensions for Freudenberg. Firstly, the sustainability technique is worried with how Freudenberg develops its personal processes and makes use of crops to preserve assets. Secondly, Freudenberg develops merchandise and options that make clients’ manufacturing extra environment friendly and sustainable or enable merchandise to be manufactured with higher useful resource effectivity. Two examples: Whether or not it’s lowering utilization of water, making manufacturing processes leaner or a reforesting venture across the Blue Mountain within the outskirts of Mysore, sustainability is a key matter for Klüber Lubrication India. With 300 sunny days, Mysore was an ideal place for establishing a photovoltaic system. The photo voltaic panels spanning an space of 5,000 sq. meters are setup on the roof high of the manufacturing website at Mysore. The photovoltaic system considerably reduces smog-causing NOx emissions by 3.5 tons, SOx emissions, which immediately lead to acid rains, by 3.2 tons and in addition lower asthma-causing particulates by 0.2 tons. As well as, the venture has scale back CO₂ emissions by roughly 1,110 tons, which may mathematically be compensated by greater than 88,000 timber.
Comfortemp Tencel padding from Freudenberg Efficiency Supplies stays distinctive within the market: the high-performance thermal insulation for sport and outside clothes is the primary absolutely biodegradable padding created from sustainably produced cellulose fiber that utterly degrades in soil inside slightly below 60 days. When the garment has reached the top of its helpful life, microorganisms within the soil degrade the padding utterly in about 60 days with out polluting the soil. That avoids waste and helps defend the atmosphere.
Freudenberg Group portfolio improved by means of acquisitions on the premise of our technique and strengthened our enterprise. In Could, Freudenberg acquired one hundred pc of the shares in Low & Bonar PLC, London, United Kingdom, now Low & Bonar Restricted, Edinburgh, United Kingdom. Low & Bonar is a world producer of technical textiles with few department places of work current in India. The corporate shall be built-in within the Freudenberg Efficiency Supplies Enterprise Group. Via this acquisition, Freudenberg is strengthening its enterprise with efficiency supplies and can additional develop its technical know-how with the revolutionary know-how of Low & Bonar.
On the finish of December 2019, Freudenberg Efficiency Supplies had already acquired the Filc Group, Škofja Loka, Slovenia. Filc produces needle punch nonwoven textiles and laminated supplies. Regardless of the restrictions as a consequence of COVID-19, excellent progress has been made with the combination of the 2 acquisitions.
Moreover, Klüber Lubrication, München SE & Co. KG (a part of Freudenberg Chemical Specialities), Munich, Germany, acquired Traxit Worldwide GmbH, Schwelm, Germany, in January 2020. This firm is without doubt one of the world’s largest producers of wire drawing lubricants and has equipped a full vary of lubricants for all functions to the wire drawing business for about 140 years.
To be able to mitigate the results of the COVID-19 pandemic on the world’s poorest individuals, Freudenberg reacted instantly and supplied funds of Rs.19 cr (2.25 million Euros) globally. Freudenberg donated Rs.12 cr (1.5 million Euros) for meals and thousands and thousands of masks to greater than 100 assist organizations within the neighborhood of Freudenberg crops. These included colleges, pupil organizations, senior residents’ properties, voluntary fireplace companies and lots of different charitable establishments – particularly in socially disadvantaged areas. In India, nearly 400,000 masks had been donated by way of Enterprise Teams and by way of NGO’s corresponding to Rotary Membership, Parikrma Humanity Basis, Terre des Hommes and members from the German Consulates in India. This fashion, charitable organizations and their companions can cowl their masks necessities. In lots of locations, individuals had the chance to guard themselves and others towards the virus utilizing high-quality masks for the primary time. Masks had been additionally distributed to the scholars from the Freudenberg Coaching Centre in Nagapattinam each day. Within the ultimate spherical of meals package donation, Indian meals banks and assist organizations had obtained Rs. 90 lakh (105,000 Euros) from Freudenberg to assist individuals going through starvation. In collaboration with Freudenberg, the Rotary Membership in Bangalore concluded the distribution of 4,000 rations of dry meals to households of senior residents from slums, previous age properties, orphanages, rural and tribal village members and every day wageworkers from city areas. Along with rice, lentils and flour, the packages additionally include oil, sugar, turmeric and washing powder. The crew additionally managed to donate medical kits consisting of reusable masks, hand wash, multivitamin dietary supplements all put right into a pouch distributed to assist the needy in Bangalore. All households of the Freudenberg Coaching Centre college students in Nagapattinam had been additionally recipients of meals kits.
Freudenberg additionally donated to the “Terre des Hommes” group in India: The quantity donated has been utilized to purchase and distribute meals to individuals in want round Delhi, Pune, Chennai and Ahmedabad.
For 2021, Freudenberg as soon as once more expects a typically difficult total financial atmosphere. Following a big downturn on this planet economic system in 2020, particularly due to the unfold of COVID-19, financial progress is anticipated to recuperate in 2021. Regardless of the challenges of working in India, German corporations are nonetheless very satisfied of the long-term Indian alternative, with its younger effectively educated and linked inhabitants and its evolution as an IT and R&D powerhouse for international gamers. “India is the youngest-connect-democracy” on this planet and is more and more being thought of a most popular accomplice in manufacturing throughout industries with corporations realizing that India is greater than a consumption market however can be a producing and R&D hub that enables international corporations to create and export merchandise to different markets on this area. Whereas Ease of Doing Enterprise, transparency and e-governance has proven appreciable enchancment, expertise growth and technical coaching wants additional funding. Nevertheless, it is going to in all probability take just a few years to achieve the pre-crisis stage. The geopolitical and financial uncertainties confronted in 2021 are particularly extreme. One main uncertainty is the additional growth of the COVID-19 pandemic and its results on the worldwide economic system and on the markets of the Freudenberg Group, particularly within the automotive business.
In opposition to this backdrop, Freudenberg is planning cautiously for the 12 months forward and count on a slight restoration of enterprise within the markets related for the Group. Freudenberg will proceed to put money into long-term tasks. Key strategic subjects will stay the transformation in mobility, digitalization, and sustainable options. Freudenberg growing its portfolio selectively and in a focused manner and can strengthen it with extremely promising applied sciences by means of acquisitions.
About Freudenberg in India
Freudenberg has held enterprise ties with corporations in India for greater than 90 years. The Group has 15 manufacturing websites round India and employs round 3,000 individuals at 50 areas.
Concerning the Freudenberg Group
Freudenberg is a world know-how group that strengthens its clients and society long-term by means of forward-looking improvements. Along with its companions, clients and analysis establishments, the Freudenberg Group develops modern applied sciences and wonderful services for about 40 markets and for 1000’s of functions: seals, vibration management parts, technical textiles, filters, cleansing applied sciences and merchandise, specialty chemical substances and medical merchandise.
Innovation power, robust buyer orientation, variety, and crew spirit are the cornerstones of the Group. The greater than 172-year-old firm lives by its core values: a dedication to excellence, reliability and pro-active, accountable motion. In 2020, the Freudenberg Group employed some 48,000 individuals in round 60 nations worldwide and generated gross sales of greater than 8.8 billion Euros. For extra info, please go to www.freudenberg.com.
Freudenberg Regional Company Middle India Pvt. Ltd.
SOURCE Freudenberg Group