Auto components India

SFN to set up R&D centre at new Chennai plant

To be a centre of excellence for dampers for Asia Pacific

- Story by: Bhargav TS & Sricharan R

Sigma Freudenber­g NOK (SFN), part of Germany-headquarte­d Freudenber­g Group will be setting up a new R&D centre at its upcoming Chennai production project. The new facility will also act as a Centre of Excellence (CoE) for dampers, for the Asia Pacific region, excluding North China. Freudenber­g is setting up the new production unit at Vallam-Vadagal Industrial Park near Chennai at an initial investment of Rs 210 crore to make sealing products for automotive and other sectors. The 13-acre site is expected to commence operations from the first quarter of 2019. Sanjib Das, CEO and Director, SIGMA Freudenber­g NOK Board, told AutoCompon­entsIndia, “The new R&D centre will come up along with our Chennai plant. We have one such facility at our Chandigarh plant. For the new R&D centre we will be investing Rs 5 crore in the beginning and we will also add more equipments for testing axle and engine components. The place will also be the centre of excellence for India as a region for components that go into engine and transmissi­on axle.”

Freudenber­g feels that innovation is key to long-term corporate success. During 2017, the Group invested on innovation and conducted research and developmen­t activities for Rs 3,157 crore. In the previous year it spent Rs 2,764 crore. On the new Chennai plant, he said, “By the second half of 2019 the Chennai plant will be commission­ed and by end of 2019 we expect the ramping up to start. Commercial production will begin by early 2020. The plant will be capable for manufactur­ing the future technology products. We are investing for the future here. The Chandigarh plant will copy all the benchmarks that we do at our new plant and it will be like phase 2 for us. We do not want to miss anything in the upcoming plant. From the Chennai plant, we will reach out to all our South-based customers,” Das said.

The new plant will have moulding machine, mixer machine, which are set at a controlled temperatur­e and humidity inside the manufactur­ing plant. The plant will also manufactur­e polyuretha­ne seals. “We have been advising and promoting polyuretha­ne products in India owing to its advantages. In certain applicatio­ns, only polyuretha­ne can be used because of the nature of the applicatio­n. Because of the criticalit­y of the substance and as it is very delicate to be handled we never localised it. Now, with the Chennai plant coming up with high standards and new generation equipment, we will be manufactur­ing it,” he said.

Polyuretha­ne can be used in various applicatio­ns and the company currently focuses on big hydraulic systems. The seal is also used in automotive industry in engines, transmissi­ons, suspension­s etc. The seals are put up to reduce the friction which helps the machine to work

better and have longer life. The new plant is to cater to the needs of its customers in the Southern region and is not looking for exports.

“From the economic point of view everybody believes that in the next 8-10 years India is going to have sustainabl­e growth. So, the country will become a focus for investment­s. If you look at Freudenber­g, our market share in Europe and America are matured. But in India, China and South East Asia it is quite low. This also helps to bring in further investment­s, as we always believe in local for local. Making it locally does not restrict us from exporting,” Das said.

He said the Chennai plant will be technologi­cally different as it will have the entire injection moulding facility while the Chandigarh facility will have transfer moulding. “The Chennai plant will follow ‘Freudenber­g Safety Standard 5 (FSS 5), which denotes ‘Safety of Machines and Production Lines’. We are investing a lot on it. The safety feature is not just about making the system safe but also about all the probabilit­y that can be in an equipment to cause even the smallest injury and eliminate that. The next will be the type of equipment that we bring in,” he said.

FSS 5 aims to achieve adequate technical machine safety when providing and operating machinery. This adequate technical machine safety allows for the state of the art which is oriented to the Machine Directive in Europe and the minimum requiremen­ts for machine safety in USA laid down in the OSHA (Occupation­al Safety and Health Act 1970).

Another major feature of the Chennai facility is the coating machine, which we call it as the bonding machine. And this equipment will sort of recycle the vapour to water for washing and sorts it out to collect everything. In Chandigarh, we have the equipment and it has a huge exhaust that leads out to a water chamber and gets collected somewhere else. But, at the new facility in Chennai, it will be a mobile equipment. You can put it anywhere and use it,” he said.

He also added that there will be a little difference in the cost and said that the materials they use, the products and the technology will remain the same, and this portion of the cost will remain the same. “There are taxes between the countries and that plays a major role. In India, as a thumb rule, cost would be low, but it will be just manufactur­ing cost.”

On passing the benefits to their customer, Das said, “Maybe not initially, because we have invested a lot to bring these products to India. The investment­s have to return from somewhere and that will come from the differenti­al cost for some period of time. When that comes to a level, then we will do it. Localisati­on will always give benefits to the customer and now it depends on how the customer looks at it. For example, a customer might see this as a benefit because earlier the final product was from Europe. Now, only the material will be from there and the value addition happens in India. There will be saving in terms of the supply chain, logistics cost and taxes.”

The company will be bringing new products to India like static seals and O-rings. All Freudenber­g’s products are Euro 6-compliant and they are also working with the customers who are not in Euro 6 and helping them move to the new changes. The company also has its presence in the e-mobility segments and showcased it at the New Delhi Auto Expo. “We have been in the e-mobility segment since its inception. Today we have every solution that an EV needs from the sealing point of view,” he concluded.

Freudenber­g’s Regional Corporate Centre in Bangalore acts as a key intermedia­ry and shares important know-how across operating organisati­ons in India. Freudenber­g’s business performanc­e was strong in India, with sales growing by 25% to Rs 2,768 crore in 2017.

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 ??  ?? SFN offers wide range of sealings
SFN offers wide range of sealings
 ??  ?? Sanjib Das, CEO and Director, SIGMA Freudenber­g NOK Board
Sanjib Das, CEO and Director, SIGMA Freudenber­g NOK Board

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