FP: Mr. Wiemann, what kind of chances does a European foundry supplier have in India? Wiemann:
The outlook for good business in India is very positive. Only recently has the entry into the Indian market simplified, as the previous necessary clearance certificate (NOC) has been dropped. The prospects are favorable for investment and ownership.
FP: What companies are already active in the Indian market?
Wiemann:
Currently, mostly-corporate suppliers are active in the market and the so-called midsize companies, which I think have good opportunities. European midsize companies supply OEMs in the automotive industry and mechanical engineering, so why not in India? It could be that more consultation and information is needed.
FP: What opportunities do you see in the Indian market in order for production to take a foothold?
Wiemann:
Generally, interested companies submit a non-binding Tie Up in respect to a company law contract. This can eventually develop into a franchise, distribution agreement or a contractual technology transfer. I see three possibilities for production in India.
- In the form of a permanent establishment under the cloak of the European GmbH
- In a joint venture, an Indian corporation (P) Ltd.
- In the form of a 100% foreign subsidiary, as an Indian corporation (P) Ltd.
FP: Why India now, and how can midsize companies benefit?
Wiemann:
- India is an absolutely booming industrial nation of the future, with excellent growth rates in the B2B
- European OEMs (Automotive and Mechanical Engineering) are already on site and require suppliers at the European level and know-how
- India has a large potential of skilled employees
- Universities have an excellent reputation worldwide for IT and Engineering
- 2 million university graduates per annum in all fields
- Graduates have excellent English skills
- Workplace costs "blue collar" up to 20 times lower
- Workplace costs "white collar" up to 15 times lower
- The entire Southeast Asian market is on the doorstep.
Middle size companies in India are looking to connect to European business where win / win situations can be developed. The focus is on technology transfer and organizational skills for a licensing or equity investment in the foreground, as Indian companies have generally a good capital backing. Another tip, dealing with authorities and licensing authorities can be sped up when done together with Indian partners.
FP. Mr. Wiemann, do you advise companies who want to get involved in India?
Wiemann:
INDIA EUROPE AL mediates these partnerships between manufacturing companies in Europe and India in the following areas:
- Die casting, permanent mold casting, sand castings
- Forging
- Extrusion
- Component manufacture
- Gray and ductile iron
- Cast steel
- Stainless steel casting
- Investment Casting
We have an office in Bangalore and an office in Europe in order to bring potential partners together. INDIA EUROPE AL works strategically in research, discovery, call handling, negotiation support, MOU, and from tie up agreements to JV agreements. Administrative matters and legal advice is done on site at our Indian office. We have been in business for 20 years and have gained much confidence. There is a lot to do, so please get in touch with us.
www.india-europe-al.eu
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