Despite COVID, Freudenberg registers a global profit Rs. 5706cr FY20-21

Registers a 16% dip in profits in India, in line with the global dip in profits.

Freudenberg, the German conglomerate with roots in India dating back 90 years, has registered a global profit of Rs 5706cr in financial year 2020-21 as against the Rs 6,984 crores profit in FY20. Though the dip in profits is significant, maintaining profitability in the face of the pandemic is an achievement in itself. The overall sales, globally, also dipped from Rs 80,646 cr to Rs 75,305 cr. The impact was visible in India as well as sales showed a 16% dip to close at Rs. 2,130 cr in 2020 as compared to Rs. 2,532 cr last year.

In addition to stringent cost management, the significant improvement in the economic environment at the beginning of the fourth quarter of 2020 helped Freudenberg achieve these financial results. Freudenberg globally continued to invest in future growth and conducted research and development activities amounting to Rs. 3,799 cr.

Especially for the Business Groups producing for the automotive, textile and mechanical engineering sectors, the economic environment globally and in India, at the beginning of the year was extremely challenging. "In addition to the pandemic, the transformation in mobility (specifically the automotive sector which is our key industry) has led to seven of our ten Business Groups having to contend with, in some cases, sizeable losses. To tackle the crisis, we are continuing to adhere to our strict cost management and the related measures. Investments are being reduced to as low a level as possible without jeopardizing future growth, and we have avoided making cuts to our research and development activities. These different, and in some cases divergent, developments show just how important its broad-based positioning is for Freudenberg," said Georg Graf, Freudenberg Regional Representative, India assessing the Freudenberg performance in 2020. "We have also made good progress with our strategic focus topics of e-mobility, digitalization and sustainability. Furthermore, we have continued a high level of research and development activities as an innovative technology group globally," he added.

In the "Sustainability Drives Climate Action" project, the Group is developing a position with respect to the challenges and opportunities of climate change. Firstly, Freudenberg intends to reduce CO2 emissions by 25 percent by 2025. Secondly, the opportunities and costs of climate neutrality for Freudenberg are to be identified in 2021.

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