Freudenberg Group, a global technology conglomerate that commemorates its 175th anniversary year in 2024, reported record growth in revenues and operating profits for the financial year 2023.
Freudenberg achieved sales of €11,902.8 million, 1.3 per cent higher than the previous year's figure of €11,753.1 million. The operating profit of €1,081.6 million showed a significant increase of about 15 per cent, compared to the previous year's €941.8 million. The profit margin also improved to 9.1 per cent from the previous year's 8.0 per cent. Freudenberg Group attributed its growth globally to innovative product lines, customer focus, and flexible problem-solving across various industries.
Freudenberg India also announced significantly high sales at Rs 3,803 crore. The operating result for 2023 has been robust, and the group has announced investments close to Rs 350 crore in CY 2024 across facilities in Punjab, Karnataka, and Tamil Nadu. In Morinda, India, Freudenberg has invested in a new production facility for its Vibracoustic Business Group and its Freudenberg-NOK India joint venture. The company exports close to Rs 800 crore from India.
Freudenberg Group has 11 companies operating across diverse segments such as automotive, chemical, energy, technical textiles, and cleaning products in the country. Earlier in 2023, the group announced the appointment of G. Sivasailam, Managing Director of the group company Freudenberg Performance Materials, as the new Director & CEO of Freudenberg Regional Corporate Centre, India. Sivasailam took over from Georg Graf, who had served in the role since 2016, when the Regional Corporate Centre was set up to further the group's continued commitment and growth plans for India.
Commenting on the group's annual results and its financial figures made public, Dr. Mohsen Sohi, CEO, Freudenberg Group, said, "Numerous records were set during fiscal year 2023. We achieved the highest figures ever for sales and operating profit. When we look over the past 10 years, it becomes clear how impressive these figures are. Within a single decade, we have roughly doubled our sales and operating profit, with an average annual growth rate of 6 and 7.7 per cent, respectively. Our investments in research and development have grown by 9.4 per cent annually, even more strongly, almost tripling. I would like to thank all our employees worldwide. Their commitment enabled us to achieve these historic results".
"As Freudenberg commemorates 175 years of operations globally this year, it is indeed a proud moment for Freudenberg India to be part of the continued growth journey. Freudenberg Group has been committed to its growing operations in the country, across diverse domains, and across the group companies. We are continuing to invest in the expansion of our facilities, and 2024 promises to be another year of key milestones we will achieve in India," remarked Sivasailam.
The Freudenberg Group is driving the energy transition with its products and its ambition to become CO2-neutral by 2045. Sustainability is a priority for Freudenberg. For the company, this mainly involves efficiency in the use of its energy and material resources. Freudenberg wants to reduce its CO2 emissions to zero by the year 2045, mainly through energy conservation, electrification, purchasing, and its own generation of green electricity. Keeping in mind the rapid urbanisation in India, Freudenberg's new initiative also aims to reduce carbon emissions.
Freudenberg has been sourcing green electricity from photovoltaic and wind power systems for years, including from its own facilities. Around 20 new photovoltaic systems have been installed worldwide, with approximately 60 more in various planning and execution stages.
