LAPP Fiscal Year 2024: Slight Decline in Sales, but Strong Investments

By Staff Report February 4, 2025 6:44 pm IST

LAPP Group has not been spared from the weak global economy. It recorded a slight decline in the past fiscal year 2024. The reason: the family-owned company was able to cushion declines in sales in its European home markets with large gains in Asia. Despite the difficult market environment, LAPP is sticking to its investment program.

LAPP provides integrated solutions to the field of cable and connection technology. It generated sales of 1.82 billion euros in fiscal year 2024 (October 1–September 30; fiscal year 2023: 1.92 billion euros). The family-owned company thus remained slightly below the previous year’s level, with a decline of 5.3 percent. The number of LAPP employees worldwide rose slightly to around 5,700 as of September 30, 2024.

Matthias Lapp, CEO of LAPP Group, said, “It was a challenging fiscal year. Nevertheless, we are looking courageously to the future and are sticking to our global investment program. Continuous digitalisation, increased production capacities, and expansion of logistics. That’s what will ensure future growth. What we urgently need from politics now are reliable framework conditions, an end to over-regulation, and more trust in domestic companies. We know how to compete and to succeed in the global economy. But for that we need more air to breathe.”

LAPP in India

LAPP in India has existed since 1996 and is headquartered in Jigani, Bengaluru. In 2012, the company set up its second manufacturing unit at Pilukedi, Bhopal. Besides the offices in Delhi, Mumbai, Kolkata, Chennai, Pune, and Bangalore, over 430 employees work in India for the global LAPP Group.

Sumit Mitra, Managing Director of Lapp India, said, “LAPP’s strength results from our close customer relations and tailor-made connectivity solutions. More than 60 percent of the products that we sell in India have been designed for the Indian market as per the Indian specifications. And thanks to the compounding plant in Bhopal, we can fulfil highly individualised customer requirements. By investing in new capabilities in terms of instrumentation, control, data and power cable, and by expanding capacities and nurturing talent, we aim to meet the evolving needs of one of the world’s fastest-growing economies.”

Growth only in Asia

In detail, LAPP’s regions developed very differently in fiscal year 2024. The EMEA region (Europe, Middle East, Africa), which continues to generate the largest share of LAPP Group’s sales, recorded a decline in sales of around 9 percent. In Germany, the decline was particularly high due to the weakness in the mechanical and plant engineering sector. The Americas region (North, Central and South America) remained only slightly below the previous year’s level, with a sales reduction of approximately 3 percent.

“In the US in particular, we sensed a certain reluctance to invest among many customers before the presidential election. Right now, orders are picking up again. Due to the threat of tariffs, many companies are deciding to invest more locally in the US. And for new production machines, connection solutions are needed to supply the systems with power and data,” said Matthias Lapp.

The Asia-Pacific region has grown strongly. The increase in sales of over 10 percent was mainly due to business success in India and South Korea. But China also developed positively despite a difficult market environment.

“India and Southeast Asia are the big winners in the current geopolitical environment. The figures here are also positive for the current fiscal year. This makes me very optimistic that we will be able to counteract the ongoing economic downturn in Central Europe again this year,” said Matthias Lapp.

Business with battery storage, data centers and robotics is growing

For many years, LAPP Group has been committed to consistent internationalisation. The family-owned company manufactures at 26 international locations and is active in over 80 countries. This has enabled the company, based in Stuttgart (Germany), to compensate for regional declines in sales. In addition, LAPP relies on diversification and supplies connection solutions to almost all industries. There is strong demand in areas such as battery storage, data centres, robotics, and renewable energies, as well as in the fields of intralogistics, mobility, and food. LAPP is also setting standards in innovation, having presented the first cable with a bio-based sheathing and connectors made from sustainable materials.

Investments in digitisation, logistics and production

LAPP is adhering to its investment program. For example, the company is expanding its logistics and service centre in Ludwigsburg, Germany, which is the largest single investment in the company’s history. In the US, production capacities for the manufacture of ÖLFLEX® power and control cables are being massively expanded. And in India, too, large-scale capacity expansions are currently underway. Worldwide, the LAPP Group invested a total of almost 66 million euros in the past fiscal year.

“In economically challenging times, it is particularly important to be close to the customer and to push ahead with investments to achieve this. If you want to grow, you have to invest. The answer to the decoupling of markets is “local for local”—in” other words, developing and producing locally to supply local markets. This is how we make ourselves more independent of geopolitical and economic developments and can optimally serve customers in the respective country”, said Matthias Lapp.

Threat of deindustrialisation: hope for new momentum

For the current fiscal year, LAPP is expecting a single-digit increase in sales again. In particular, successes in Asia and the US should contribute to this.

Matthias Lapp added, “Problem child remains Europe, especially Germany. Due to the threat of deindustrialisation, demand for our connection solutions is also dwindling. We very much hope that the upcoming federal elections in Germany will give us entrepreneurs new momentum to strengthen the business location. Germany is a home. It is an attractive country with many talents and a great inventive spirit. And we are happy to take responsibility for our employees and their families here. But the government also has to show family businesses that they are truly wanted and welcome in Germany. A stable government that makes quick and pragmatic decisions would be an important first step in this direction. This is the only way we can remain competitive in Germany and Europe.”