The Pune-German relations have never had it so good. The city that already boasts of over 250 small and big German business collaborations and a recently instituted direct Frankfurt-Pune flight now attracted the attention of the North Rhine-Westphalia. Known as Germany’s economic powerhouse the state, that has some business hubs like Cologne and Dusseldorf, is making attempts to directly woo Indian investors.
On August 29, NRW.Invest GmbH, the economic development agency of the Federal state of North-Rhine Westphalia, will officially open shop and the headquarters will be in Pune.
“The idea is to encourage more and more Indian investment in the state. Bharat Forge is not the only Indian company to take over a German company. Recently Metalink/Tulsi of Belgaum bought out Moenchen Gladbach, a foundry that was on the verge of closure. Ashok Leyland has come there in a big way. The German government now wants to take this further and make it more easy and convenient for investors to come to Germany by providing them with a service that would be a point of contact for all their investment needs,” said Dusseldorf-based Golak C Misra, their chief representative in India who is currently in Pune scouting for staff and office space.
“Here in India we are looking at all sectors - from automotive to pharma. I have been meeting up with many business houses here in India and all of them are keen on the idea, especially when it comes to takeover bids. Of course the German government is more keen on collaborations. Pune is big as far as German companies are concerned. Volkwagon itself is planning to invest 500 million euros in the next two years at its establishment here. So having our headquarters here made sense,’ added Misra.
Zubin Kabraji regional director Indo-German Chamber of Commerce, Pune said that given the quantum of German investment in India, it’s only natural that they would be looking at some reciprocity, which is also good for India. “I am sure they will get a good response as an Indian presence is already there in Germany and many other small and medium companies are looking for a buy-out,” said Kabraji.
Growing Indian presence in Germany
* Kanpur-based MKU Pvt Ltd acquires AST Security GmbH for Rs 20 crore
* Kirloskar Electric Co. mounts a bid to acquire Germany’s Lloyd Dynamowerke GmbH and Co. with an estimated enterprise value of $ 100 million
* IFGI Refractories Ltd has entered into an “in-prinicpal agreement” for purchase of 96.6% of share capital of Hofmann Ceramic GmbH for 7 million Euros
* Ashok Leyland has invested in group firm Albonair GmbH for developing vehicle emission treatment systems and products
* Kolkatta-based Arya Tea Compnay to open 150 tea bars in Germany
(Source: Indo-German Chamber of Commerce)