Germany-based global technology conglomerate, Freudenberg Group, has inaugurated two state-of-the-art manufacturing facilities in Morinda, Punjab, representing its largest financial commitment in India to date with an investment of €42 million.
These new factories, which include advanced machinery, will house operations for Freudenberg-NOK India (FNI) and Vibracoustic India (VI), both of which were previously operating from leased sites in Basma and Mohali. These facilities will specialise in sealing and vibration control products for both automotive and general industrial applications. The company also envisions making India a hub for some of its global R&D activities, reflecting its confidence in the country’s engineering talent.
According to Dr Mohsen Sohi, CEO of Freudenberg Group, this strategic move is aimed at enhancing production efficiency and supporting the company's long-term growth plans in India. Currently the group operates 25 sites in India, 15 of which are dedicated to production. In CY23 Freudenberg India’s revenue grew by 10.8% to INR 3,803 crore, against CY22, and the operating revenue increased by about 18.3% to INR 695 crore against INR 568 crore registered in CY22.
These cutting-edge zero-discharge plants, powered by solar energy up to 32%, are designed to serve both domestic and international markets, aligning with India’s 'Make in India' initiative. The facilities will cater to key sectors, including automotive and industrial manufacturing, while optimising material flows and leveraging modern equipment to boost competitiveness. He emphasised that producing locally while maintaining close proximity to customers creates a 'win-win' scenario, ensuring agility and responsiveness to market demands.
'This expansion not only aligns with our global growth strategy but also boosts our ability to serve customers with greater efficiency, innovation, and quality. As we celebrate 175 years of Freudenberg’s legacy of excellence, we are proud to further strengthen our presence in India,' Dr Sohi said.
Evolving Changes
While acknowledging the evolving challenges within the automotive industry and the growing role of software and electronics, he noted that Freudenberg’s core strengths in mechanical solutions remain essential, regardless of advancements in automotive software. While the industry has seen increased interest in autonomous driving and advanced driver-assistance systems (ADAS), these innovations have not evolved as rapidly as once anticipated. Safety concerns and regulatory requirements have caused a pullback in investments in these areas, with consumers hesitant to pay a premium for additional features, he said.
Promising Future
Freudenberg, which generates about 40% of its revenue from the automotive sector and 60% from other industries, remains well-positioned due to its diversified market reach. The company continues to see strong demand for its mechanical products, including dynamic seals and air filtration systems, which remain indispensable regardless of how much software or digital content is integrated into vehicles, he pointed out.
Looking ahead, the company is cautiously exploring opportunities in emerging areas like battery systems and hydrogen, while staying true to its core competencies in mechanical solutions. This approach has proven successful, allowing Freudenberg to maintain steady growth while adapting to market shifts without compromising its long-term strategy, he explained.
Talking on FNI, he said, in partnership with NOK, Freudenberg is bringing cutting-edge technology to its new facilities, which have been built from the ground up to match the quality and technology standards of its plants in Germany, North America, China, and Japan.
Human Resource
The new plants will benefit from proximity to technical universities in the region, providing access to a skilled workforce of engineers. Currently employing around 2,000 workers, the company expects to add 600 to 800 as production scales up to full capacity.
Addressing the automotive industry’s shift toward electromobility, Dr Sohi said the group remains well-positioned with a product portfolio that caters to all powertrain types, from internal combustion engines to plug-in hybrids, battery-electric vehicles, and even fuel cells. Freudenberg’s core mechanical products, such as dynamic seals and vibration control systems, are essential across all types of vehicles and cannot be replaced by digital solutions, he pointed out.
Currently, the company supplies to almost all the OEMs in India with a broad range of products, he said. With a current revenue of around €75-80 million (around INR 687 crore), FNI and VI anticipates growing this to between €100 and €130 million at full capacity. Over the next three to five years, the company expects to achieve annual revenue growth of 5-8%, which aligns with India’s overall economic growth trajectory of around 7%, he said.
By integrating local expertise with global standards, Freudenberg India is poised to strengthen its leadership in India’s automotive and industrial sectors, driving innovation, technology and growth in the years to come.
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