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A century of business partnership between India and Germany

The Indo-German Chamber of Commerce(IGCC) has existed almost from the very beginnings of Germany’s trade with post-independence India. The Chamber has played an exemplary role in promoting and shaping business relations between the two countries. Business World speaks to Dirk Matter, Director, of the IGCC in Duesseldorf. Excerpts:

PKB: Can you share something about the history and development of the IGCC?

DM: The IGCC was founded in 1956 in Mumbai, making us the first bilateral German Chamber of Commerce in Asia, some years before Japan and other countries.

Some Germany firms have a relationship spanning over 100 years with India. For example, Krupp had sold locomotives over a hundred years ago, Bayer has been in India for over a century and bought natural dye in those days. Siemens had laid telegraph lines from Kolkata to London in 1875 and it was the Germans who built the famoussteel plantin Rourkela.

IGCC’s most popular service is business partner search. In the last eight years we have set-up about 200 companies for German enterprises in India. Closely connected with company formation is HR recruitment; when an SME has a small production or distribution subsidiary,an Indian managerisemployed.

We have sponsored trade fairs and the Indo-German Training Center offers dual education for Indian postgraduates in business administration.

PKB: In your 23 years of experience at the IGCC what impressions have you gathered of doing business in India?

DM: The Indian market is an interesting market where industry sectors are still being built—new factories for the car industry and even steel plants—something which is not happening in Germany any more. But there are many companies in Germany that have good expertise in these sectors.

Though India retains the image of a low cost country,
this is no longer true especially in real estate and energy. Wages are still low, but that only for unskilled workers; salaries of highly qualified people have risen significantly in the last few years.The business mentality is different and both sides sometimes find it difficult. We, as a Chamber, try to give a little support in that we offer intercultural training not just to the Germans but also the Indians.

PKB: What’s your vision of the future?

DM: We hope that economic growth will increase again because only that can guarantee that the situation for people will improve. We hope that Mr. Modi’s visit to the HanoverTrade Fair will be useful in putting India in focus in the German media which will help attract more trade with India. The substantial barriers for foreign investors need to be reduced and this will lead to more job creation.This is my great vision for the future.

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Die WEBER-HYDRAULIK Gruppe ist

spezialisiert auf kundenspezifische und zuverlassige Hydrauliklosungen. Mit Hauptsitz in Deutschland und Standorten in der ganzen Welt entwickelt undproduziert das Unternehmen Zylinder, Steuerblocke, Ventile, Elektronik und Aggregate fur Erstausruster und Industrie in Europa, Nord- und Sud Amerika und Asien.

 

Mato an Jndto Calls For Innovation

Materials and optimized product design. “Keep this in mind.

If you look at trends in the automotive industry, you will see many possibilities, but the metal part of the car becomes smaller and lighter.

We saw it much earlier and worked in two ways. We started working on aluminum instead of steel.

We have been working with CSR for over twenty years. One of our long-standing programs is organized in cooperation with the NGO Pratham, which allows children from disadvantaged families to attend school.

We can implement that for 18,000 to 20,000 children over the course of a year and our children now have a college diploma. We recently started installing a bath under the Swachch Bharat Abhiyan.

We realize that health and education have an impact on people’s lives and that’s what’s really important. A few years ago, we also founded an industrial technical institute (ITI), which became a model.

After more than three years of sustained economic recession in the Indian economy, the Indian economy is beginning to be cyclical as well as structural.

The government’s performance over the past ten months has led to more optimism and sensitivity.

Prime Minister Modi gives the industry a very important leadership because every leader in this country has demanded more work in the last 20 to 30 years and said it was used for manufacturing.

But no one could figure out how to do it. Prime Minister Modi has a clarity regarding the manufacture and revolution “Make in India”. It has a lot of progress before doing so and makes a lot of progress – and that in a nation of almost 1.3 billion

People with different ways of thinking.

Question. What do you think of the “Make in India” campaign?

Bharat Fdrge has long been a protagonist of ‘Make in India’. The “Making in India” campaign is a major problem and participation is what we do in India in terms of defense, aerospace and aerospace.

This initiative is an excellent opportunity for the Indian industry, but the industry needs to understand that it has the innovation and the competition to create. Then this opportunity will come to you.

We still import a lot of material into the defense, although many of them can be made here.

The train is another similar area. We have recently opened railway components for a high-tech locomotive installation.

Under “Make in India”, emphasis is placed on import substitution.
Perhaps the first is that the processing industry receives the kind of attention it considers as a catalyst for investment and job creation in the country.

But our goal should be to achieve not only 25 percent of GDP, but also India as the country with the most advanced production potential.

There is some similarity between SMEs in India and Germany, most of them are influenced by entrepreneurs who, with passionate companies, develop dominated technical skills.

In recent years, with the expansion of the Indian economy, many Indian SMEs have experimented several times.

Bharat Forge also used its strength in domestic markets to apply first to the export and then to acquire Vermogen around the world.

Materials and optimized product design. “Keep this in mind.

If you look at trends in the automotive industry, you will see many possibilities, but the metal part of the car becomes smaller and lighter.

We saw it much earlier and worked in two ways. We started working on aluminum instead of steel.

We have been working with CSR for over twenty years. One of our long-standing programs is organized in cooperation with the NGO Pratham, which allows children from disadvantaged families to attend school.

We can implement that for 18,000 to 20,000 children over the course of a year and our children now have a college diploma. We recently started installing a bath under the Swachch Bharat Abhiyan.

We realize that health and education have an impact on people’s lives and that’s what’s really important. A few years ago, we also founded an industrial technical institute (ITI), which became a model.

After more than three years of sustained economic recession in the Indian economy, the Indian economy is beginning to be cyclical as well as structural.

The government’s performance over the past ten months has led to more optimism and sensitivity.

Prime Minister Modi gives the industry a very important leadership because every leader in this country has demanded more work in the last 20 to 30 years and said it was used for manufacturing.

But no one could figure out how to do it. Prime Minister Modi has a clarity regarding the manufacture and revolution “Make in India”. It has a lot of progress before doing so and makes a lot of progress – and that in a nation of almost 1.3 billion

People with different ways of thinking.

Question. What do you think of the “Make in India” campaign?

Bharat Fdrge has long been a protagonist of ‘Make in India’. The “Making in India” campaign is a major problem and participation is what we do in India in terms of defense, aerospace and aerospace.

This initiative is an excellent opportunity for the Indian industry, but the industry needs to understand that it has the innovation and the competition to create. Then this opportunity will come to you.

We still import a lot of material into the defense, although many of them can be made here.

The train is another similar area. We have recently opened railway components for a high-tech locomotive installation.

Under “Make in India”, emphasis is placed on import substitution.
Perhaps the first is that the processing industry receives the kind of attention it considers as a catalyst for investment and job creation in the country.

But our goal should be to achieve not only 25 percent of GDP, but also India as the country with the most advanced production potential.

There is some similarity between SMEs in India and Germany, most of them are influenced by entrepreneurs who, with passionate companies, develop dominated technical skills.

In recent years, with the expansion of the Indian economy, many Indian SMEs have experimented several times.

Bharat Forge also used its strength in domestic markets to apply first to the export and then to acquire Vermogen around the world.

Chairman & Managing Director Bharat Forge Limited

President and CEO of Bharat Forge Limited (BFL), Baba N. Kalyani, CEO of the US $ 2.5 billion Conglomerate

(Billion) of the Kalyani group. BFL is the largest forging company in India and exporter of components for the automotive industry worldwide.

With manufacturing facilities in India and Europe, Bharat Forge produces a wide range of sophisticated safety components for the automotive and automotive industries including aerospace, rail, marine and conventional and non-conventional power.

Supported by several decades of experience in the production of components and metallurgy, the company

The automotive industry and embarked on an ambitious and exciting journey to expand its presence in other demanding industries such as energy, oil and gas, aviation, rail and navy.

The Kalyani Group has joint ventures with global companies, including Meritor, USA, Carpenter Technology Corporation, USA, Lochpe-Maxion, Brazil and Alstom, France.

Bharat Forge, under the leadership of Flerrn Kalyani, increased from $ 1.3 million in 1972 to about $ 1.2 billion.
In an exclusive interview with the World Business, M. Kalyani appear to be the prospects of India’s economy under the new direction and investment in India’s manufacturing industry in the world order. Excerpts from the interview:

Question. Can you give us a brief overview of your contribution to the trade relationship between India and Germany and the importance of the “Federal Service Cross”?

German companies have been represented in India for over a hundred years, but it was a one-way street.

I think we were the first Indian company to take over production in 2003. We were the pioneers, and now we have four works, including the Saxons.

We have excellent relationships with the government and with companies that have helped us grow.

In this case, this led to the bullet for other Indian companies to take Europe as an investment target.

We are honored by the Order of Merit and I believe this is due to the contribution of a few thousand people who work in the company.

I have the rare opportunity to get a company like this to drive and have always used me as boss:

Mentor. Hard and hard work was done; but carried out by the employees.

Our new factory in Saxony, in eastern Germany, will produce lightweight aluminum components for motor vehicles. It is a so-called “green technology”, which we have brought to the series.

Consume little energy to produce; of these parts. It is a unique technology that includes closed circuit hardware.

The global warming potential (GWP) with effect on the client’s products is reduced by at least 40% with additional benefits, such as weight, weight and cost reduction.

We have decided to be one of the top five in the world and this should be possible through three things.

The point was that we wanted to provide our employees with skills and a special focus on training and qualification; Ninety.

Secondly, we must be experts in technology and innovation.

Thirdly, we wanted to promote the development of our technology and not lend it, because it would become a self-propelled engine.

By International Germany

Baba N. Kalyani, heads the flagship US $2.5 billion Kalyani Group. BFL is India’s largest forging manufacturer and exporter of components to the global automotive industry. Not just that, with manufacturing facilities based in India and Europe, it also manufactures various equipment and components for non-automotive industries including aerospace, railways, marine and conventional & non-conventional energy.

The Kalyani Group has joint ventures with global MNCs including Meritor, USA, Carpenter Technology Corporation, USA, Lochpe-Maxion of Brazil and Alstom, France. Under his leadership, Bharat Forge has grown from US $1.3 million in 1972 to about US $1.2 billion now. In an exclusive interview to Business World, Mr Kalyani talks about the prospects ofthe Indian economy under the new leadership and the place enjoyed by the Indian manufacturing in the global order. Excerpts from the interview:

  1. Can you give an overview of your contribution towards Indo-German business ties and how significant is ‘Bundesverdienstkreuz’ – Germany’s prestigious Order of Merit?

German companies have been in India in manufacturing for over a hundred years and it has been a one-way street. I think, we were the first Indian
company in 2003 to go and set up manufacturing there We were the pioneers and now have four plants including one coming up in Saxony. We have exceller relations with the government and also with companies which has helped us grow our trade there. This, in fac: set the ball rolling for other Indian companies to star looking at Europe as an investment destination.

We feel good about the award and I think it is the contribution of a few thousand people who work in the company. I have had the rare opportunity to lead such s company and I had done my job as a leader and mentc But the heavy lifting and hard work has been done : the employees.

  1. Can you tell us more about your Saxony plant?

Our new plant in Saxony, in eastern Germany, v. produce light weight aluminium components for car This is a green technology that we have innovated a”: uses very little energy to produce these parts.

It is a unique technology comprising closed-mater; cycle that reduces the Global Warming Potential (GV\: impact of customer products at least by 40% with adder benefits of reduced material weight and costs.

  1. How have you reached this pinnacle of success?

We decided to make ourselves one ofthe top five in re I world and that could be done with three things. One was that we will provide skills to our people and put tremendous emphasis on training and skilling people in the nineties itself.The second was to drive our business with technology and innovation. The third was to develop our technology ourselves, and not to borrow, because then it becomes a self-driving engine.

  1. Your website says, “Our strong presence in the passenger car segment is guaranteed by innovative light weight solutions with application of advanced materials and optimised product design.” Please elaborate.

If you look at the trends in automotive-making, you will see that there is a lot of connectivity, a lot of gadgetry but the metal part in the car is getting smaller and is light-weight. We spotted this much earlier and started working on it by two ways. We started using aluminium instead of steel. Second was to reduce the weight of existing components using the desired engineering and technology. So, if you reduce just 10 per cent of the weight of a car, it is a lot of efficiency in terms of fuel efficiency and lower emission levels. The car is greener and less polluting.

  1. Could you please elaborate CSR initiatives undertaken by your Group?

We have been doing CSR for over twenty odd years now. One of our long-running programmes is with the NGO called Pratham which puts children from disadvantage families into school. We are able to do this for almost

  • to 20,000 children in a year and our children are now graduating. Recently we have started building toilets under the Swachch Bharat Abhiyan. We realise the health and education make an impact on people’s lives and this is what matters. A few years back we had also built an Industrial Technical Institute (ITI) which finally became a model ITI.
  1. What do you think about the government’s initiatives?

After more than three years of prolonged economic slowdown, the Indian economy has started to turn around both cyclically and structurally. The performance of the government in the past ten months has created greater optimism and a heightened sense of expectancy.

Prime Minister Modi has given a very important direction to the industry because every leader in this country in the last 20-30 years has said we need to create more jobs and need to have more manufacturing. But nobody could figure it out how to do it. But Prime Minister Modi has a lot of clarity in terms of manufacturing and ‘Make in India’ vision that he has. He
has a lot of steps clear before him and is driving those with a lot of horsepower in a nation of nearly 1.3 billion people with such different kinds of thinking.

  1. What do you feel about the ‘Make in India’ campaign?

Bharat Forge has been a flag bearer of ‘Make in India’ since a long time.The big thing is the ‘Make in India’ campaign and the implication is what you can do in India in terms of defence and aerospace. This initiative will give a huge opportunity to the Indian industry but the Indian industry will have to understand that it will have to create that innovation, the skillsets and then that opportunity will come to you.

We still import a huge amount of hardware in defence while a lot of that can be made here. The railway is another similar area. We have recently inaugurated a high-tech locomotive factory for making railway components.

Under ‘Make in India’, the emphasis would now shift towards import substitution. It is perhaps for the first time that the manufacturing sector has received the kind of attention that it deserves both as a catalyst for investments and to generate employment in the country. But our goal should be to not only achieve 25 per cent share in GDP but also position India as a country with the most advanced manufacturing capabilities.

  1. Would you describe yourself as an industry major that is encouraging SMEs from Indian to invest in Europe.

There is a certain similarity between Indian and German SMEs – most of them are led by technocrat entrepreneurs who are passionate about building strong businesses around a few technical capabilities that they have mastered. Over the last few years, with the Indian economy expanding many Indian SMEs have grown multifold in their operations. Bharat Forge has also leveraged its strength in domestic markets to first promote exports and then acquire assets globally.

One of our major acquisitions abroad was Carl Dan Peddinghaus (CDP), Ennepetal, which even now is the largest among all our European plants. Running plants closer to our customers, in Europe and in particular in Germany has been a pleasant and very enriching experience for us.

We have benefitted immensely by people exchanges and sharing of best practices between our European and Indian manufacturing locations.

 

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