Financial and press releases
Ensuring future viability: INDUS continues to promote innovation
- Liquidity secured – R&D continues
- Completed projects deliver incoming orders amounting to EUR 20 million
- Funding volume in Q1 at the same level as in the previous year
Innovation and adaptability have been an integral part of the medium-sized DNA for more than 150 years. This also applies to the companies of the INDUS Group, which as hidden champions are often world market leaders in their niche: Despite the uncertain global economic situation and the significant effects of the corona crisis, the development and market launch of innovative products and processes is progressing. INDUS supports the companies of the Group methodically and financially through the so-called innovation development bank. Each year, the holding company provides up to 3 percent of the Group’s EBIT for the promotion of innovation. The aim is to secure the future viability of the associated companies and to open up new product fields and markets. “INDUS continues this commitment without interruption”, says Dr. Johannes Schmidt, Chairman of the Management Board of INDUS. “We see a special opportunity for innovation in the period after the crisis.”
Last year, the innovation development bank supported 22 innovation projects with a total project volume of more than EUR 9 million over the entire term. More than a third of this was accounted for the development of sustainable products or resource-efficient processes. 16 projects are currently running through the development bank, 14 have already been completed. At the end of the 2019 financial year, the completed development bank projects alone accounted for incoming orders totalling EUR 20 million. “INDUS is well positioned, this also applies in current times”, emphasizes Dr. Johannes Schmidt. “Thanks to our high liquidity, we do not need to put the brakes on our strategic goal of firmly establishing innovation as a sales driver within the Group”. The funding volume in the first quarter of 2020 was at the same level as in the same quarter of the previous year. The INDUS Innovation development bank provides the portfolio companies with the necessary resources to drive forward long-term and cost-intensive innovations.
The topic of innovation is an important focus of the PARKOUR strategy program and is being vigorously pursued within the INDUS Group. There are examples of innovative developments from all segments:
BUDDE Fördertechnik, through its subsidiary Comsort, has succeeded in developing a compact and modularly expandable sorting system. It carries out the automatic sorting of light small goods with high precision, making it significantly more efficient than before. Such systems are used, for example, in the e-commerce sector or in parcel centres. MBN Maschinenbaubetriebe Neugersdorf was also able to raise the bar for efficiency in the automotive series production of electric vehicles with the help of the development bank: They developed an adaptive and flexible screwing system with integrated magazine loading for the screwing of battery boxes.
HAUFF-Technik provides for less work and costs in the expansion of the fibre optic network with its new “G-Box”, a supply point for fibre optic house connections. The technological innovation was successfully brought to market last year. More efficiency and lower costs for the customer were also the goals of the Dessauer Schaltschrank- und Gehäusetechnik: At the beginning of 2018, the company began developing a battery underfloor container for the ICE 4 according to the highest railway standards. The new steel container withstands accelerations between 3 and 5 g in high-speed operation.
In future, the success of the innovation development bank will also be transferred to the area of sustainability: In April, INDUS launched the sustainability development bank. It provides financial support to the portfolio companies for the implementation of environmental efficiency measures such as conversion to energy-efficient systems, improving heat efficiency or the use of renewable energies. “Part of our sustainability strategy is to reduce the greenhouse gas emissions of the INDUS Group by using energy and resource-efficient technologies. For this we take money in hand and support our portfolio companies in combining sustainability and profitability in a meaningful way,” said Dr. Johannes Schmidt.
About INDUS Holding AG:
Established in 1989 and headquartered in Bergisch-Gladbach, INDUS Holding AG is an SME holding company which concentrates on the long-term development of its portfolio companies. The industry focus is on construction and infrastructure, automotive technology, mechanical and plant engineering, medical engineering / life sciences as well as metals technology. As a leading specialist for sustainable corporate development, INDUS attaches great importance to the operational autonomy of its 47 portfolio companies. Since 1995, INDUS Holding AG has been listed in the Prime Standard of the Frankfurt Stock Exchange (DE0006200108); in 2019, the Group generated revenues of around EUR 1.74 billion.