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Hamburg
An Emerging
Leader in
Wind Power Generation
Both India and Germany are better
positioned than most other countries
in the world to get over the current
financial crisis, thanks to the robust
banking system and higher domestic
savings rate. That's what Senator
Axel Gedaschko, Minister for Economics
& Labour of the Free and Hanseatic
City of Hamburg says. Speaking to
Open Trade here during the 'India
Week'.
All countries including Germany is
eventually getting affected by the
current economic meltdown and liquidity
crisis. We are in a better position
to combat the crisis, thanks to our
strong banking system and a very high
domestic savings rate. He further
adds, We had meetings with the leading
bankers and insurance companies in
Germany and got the feeling that there
is no reason to press the panic button.
And my knowledge is that the same
is true with India.
We should go ahead with our development
plans.
At this time when Tulsi Tanti-owned
Suzlon Energy GmbH is well set to
raise its stake in RE Power from 75
per cent to 100 per cent in order
to fortify its European design and
development center even further, which
is already dedicated to the design
and development of state-of-the-art
Wind Turbine Generator, Hamburg -
An emerging leader in wind power generation
model to the rest of the world, particularly
India, the Minister for Economics
said.
Hamburg-based companies are also keen
on developing major ports in India
and discussions are on to this effect
between different Indian and German
companies. "Hamburg being one
of the largest ports in the world,
we just have the right expertise and
technical knowledge base to offer
such services. Hamburg Port Consultants,
the largest company, has already initiated
moves to mark its presence in India.
But what is standing in the way is
lack of co-ordination among various
ministries and also lack of linkages
among railways, roadways and waterways,"
Gedaschko said.
More than 35 Indian companies in various
sectors like IT, energy, trading and
bio-chem, are present in Hamburg while
nearly 500 Hamburg companies are active
in India. But the potentials are much
more and to tap the potentials, Hamburg
Senate Hamburg Business Development
Corporation, Hamburg Chamber of Commerce,
KPMG and the German Indian Round Table
have been organizing India Week since
last year.
Indian Indusry should explore possibilities
to tap the large European market through
Hamburg, as Hamburg is the gateway
to Europe. |
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Great
Scope for Mid-Sized Companies
Providing Specialized Services
In 1942, Subhash Chandra Bose escaped
his Elgin Road residence in Kolkata
(where he was under house arrest)
to reach Germany. With cooperation
of Germany and Japan against British
Empire, he began his regular broadcasts
from Radio Berlin, which aroused tremendous
enthusiasm in India. Bose also founded
the Free India Centre in Berlin, and
created the Indian Legion (consisting
of some 4500 soldiers) out of Indian
prisoners of war who had previously
fought for the British in North Africa
prior to their capture by Axis forces.
Sixty six years down the line, Netaji's
grand nephew is also building his
business empire, seeking German cooperation.
Meet Surya Bose (59), grand nephew
of Netaji and Founder and Managing
Director of Bose Information Technologies.
Bose's Hamburg-based company happens
to be the first set of companies,
which designed and developed the initial
processing system of the Airspares
division of Airbus. Airbus has its
Airspares divisions in Washington,
Tokyo, Tullos and Hamburg. "There
have been many other companies including
some of the IT biggies, which have
designed and worked on this system
since then. But our system is still
in place at Airbus and they are quite
happy with it," says an upbeat
Bose.
Quite like his grand uncle, Surya
Bose is also facilitating and fostering
Indo-German cooperation, albeit in
the field of business (and also in
cultural areas, the junior Bose hastens
to add). He is one of the men instrumental
in organizing India Week in Hamburg,
Germany.
Bose, who has led several business
and particularly IT delegation from
Germany to India, feels that there
is enormous scope for mid-sized Indian
IT companies to set up shops in Hamburg.
"Most of the IT biggies including
Infosys, Wipro, Satyam and TCS had
preferred to acquire smaller and mid-sized
IT companies here to start off their
German operations. They are mostly
into body leasing and look at mass
market business. But I think there
are some mid-sized IT companies in
India, which offer outstanding specialized
services. There is a great scope for
company providing specialized IT services
here and these mid-sized companies
can come and team up with their counterparts
here. Geological System, for one,
is one such area," Bose added.
"SME is the backbone of the German
economy and Indian small and mid-sized
companies can actually infiltrate
into the German economy with some
quality products and services if there
is a proper coordination among the
front-end, back-end and customers-end.
Indian IT companies have technical
know-how in abundance but in order
to acquire the right user knowledge
or particular domain knowledge of
a particular industry, they have to
be here," adds Bose.
Hamburg government knows that offshore
works, if done properly and in a planned
manner, can actually generate jobs
locally and there it is not and will
not be a contentions issue here, Bose
assures.
By R. Mukherjee |
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India,
an Important Strategic Partner
for Airbus Industry
The current economic challenges notwithstanding,
the leading aircraft maker Airbus
has identified India as "Strategically
Important Country" for its business
growth, which means India has been
projected as one of the fastest emerging
markets in world for the French aircraft
maker. Airbus customers in India include
Air India, Kingfisher Airlines, Jet
Airways, GoAir and Indigo Airlines.
Airbus, which has a large assembly
line set up in Hamburg, Germany, is
keen on leveraging the "India
Week" conference in the harbour
city of Germany to strengthen its
position further in India.
Speaking to Open Trade Magazine, the
Airbus spokesman said, “Aviation
Sector is growing in India adding
to the growth of economy, which in
turn, is expected to foster our growth
further. And mind you that the latest
Airbus Global Market Forecast predicts
that India would have an average annual
passenger traffic growth of 7.7 per
cent until 2025, against a world average
of 4.8 per cent over a 20 year period."
"The projected passenger traffic
growth then translates into a demand
for around one thousand aircraft from
Indian carriers worth $105 billion
over the next 17 years or so. More
significantly, Indian carriers will
also need nearly 40 large aircraft
like A 380, which are high value products".
Airbus' association with India dates
back 35 years ago when the first A300B2
from the Airbus' stable was delivered
to Indian Airlines. Currently, Airbus
has a market share of 70 per cent
of all commercial aircraft in India
with a delivery figure of atleast
one aircraft per week to any International
based carrier. "The best year
in terms of orders received by Airbus
was in 2005 when the French aircraft
manufacturer bagged 229 orders from
India, the spokesman said.
He further added that Airbus' partnerships
in India covers various areas including
engineering, IT services, training,
technical publications, R&D and
even manufacturing parts and sub-assemblies.
More than 1000 Indian engineers chip
in some contributions or the other
in virtually all Airbus aircraft programmes,
he mentioned.
The other reason for identifying India
as a strategically important country
has been that with a population of
over a billion, India has around 80
fully functional airports, which regularly
handle scheduled and charter flights.
There are nearly seven major aviation
gateways: Mumbai, Delhi, Kolkata,
Chennai, Bangalore, Hyderabad and
Pune and all of them are either already
or will soon be ´made A380 compatible.
Besides there are emerging gateways
like Amritsar, Guwahati, Jaipur, Kochi
and Nagpur he mentioned. |
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Hamburg,
a Gateway to
European Market
RA Heinrich Lieser
For the State authorities, Hamburg
is not just a city state but a brand,
which they are keen on building and
promoting and marketing to the rest
of the world.
"For us Hamburg is a brand, which
we are very carefully promoting, quite
like any other strong brand. Hamburg
has a positioning as a destination
of civil aviation, logistics industries
and port related business, anyways
and now we are planning to position
it as an ideal destination for SME
sector, particularly the Indian SME
sector," RA Heinrich Lieser,
Chief Executive Officer (CEO), Hamburg
Marketing GmbH, owned by the Hamburg
Mayor and the State, told Open Trade.
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“India
Week 2008 in Hamburg”
India is a fast growing economy
and an increasingly interesting
trade partner for Hamburg.
The attractiveness of the
Indian domestic market is
as much important as the cost-reducing
advantages for the international
buying markets. The Indian
economy boasts of financially
highly potential and innovative
companies, who are global
players on the world's markets.
In total, approximately 35
Indian companies are present
in the Hamburg Metropolitan
Area, with figures rising.
In return, some 500 Hamburg
companies are active in India.
To strengthen these business
ties and to broaden the bilateral
contacts the Hamburg Senate,
HWF Hamburg Business Development
Corporation, Hamburg Chamber
of Commerce, KPMG, the German
Indian Round Table, the Technical
University Hamburg-Harburg,
ELGA Biotech, and other institutions
and organizations dealing
with India launched ;last
year the first “India
Week” in Hamburg.
Last year the second “India
Week”, took place on
November 9-16, which offered
manifold business options
between Hamburg and India. |
"We know that the Indian SME
sector is growing and has tremendous
potential. If some of them are looking
at the European markets, Hamburg
is the gateway to European market
and will be the best location for
them to set their shops. We had
an excellent response from the first
India calling week and the second
India calling week has evoked equally
good response. There are more than
35 Indian companies which are already
operating out of Hamburg like TCS,
Satyam Computers, Teekay Marine,
FSL Germany, Intrakonti etc.”
Leiser mentioned.
“We have set up a single-window
facilitation centre for foreign
companies and investors. Hamburg
is a nice city with excellent cosmopolitan
work culture. There are excellent
education and healthcare facilities
available geographically and historically
it is the gateway to the European
markets and the government doesn't
stand in the way. So you have everything.
Hamburg's other strong points is
its scientific research and innovation.”
Leiser added while promoting a brand
called Hamburg.
Science and technology institutes
'The Hansatic City of Hamburg has
been the right place for research
and development as industry strives
to introduce new products, processes
and services. And we are also keen
on drawing more and more Indian
students to these institutes and
that too on a regular basis. Indian
talent pool is in much demand here.
As many as 200 Indian engineers
are already working with Airbus
here," he said.
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Hotel
Atlantic
Hospitality at its best
The Hotel Atlantic Kempinski Hamburg
is beautifully located on lake Alster
and is right in the heart of Hamburg.
The high-ceilinged bedrooms and suites
are exquisitely furnished with the
needs of today's luxury traveller
in mind, reflecting a new approach
to elegant service.
Hotel Atlantic opened its doors almost
a century ago in 1909, discerning
travellers have appreciated the great
Hanseatic tradition of the Hotel Atlantic
Kempinski Hamburg.
An unique blend of classical cuisine
and modern elements in the Atlantic
Restaurant, genuine Chinese and Continental
cuisine and other unique delicacies.
‘Private Max’ is a private
cinema with original cinema technique
and equipment available for installation
in rooms from 12 square meters.
Movie pleasure in a completely equipped
cinema that ranks a modern multiplex
or a cinema centre. Its main difference
to commercial movie theatres is its
size, as it has been installed in
a room of approximately 30 square
meters and features the latest video
techniques and premium DVD with the
experience, the atmosphere and the
technique of modern, big cinemas in
an unique private setting. It is available
24 hours a day and can also play host
to corporate presentations and any
kind of television broadcasts.
September 11, 2006 will remain of
special importance to the hotel as
it is the date when the hotel's quality
management system has been certified
to DIN EN ISO 9001:2000. The famous
hotel in Hamburg is the first German
grand hotel with ISO 9001:2000 which
is the standard for quality management
systems (QM System) and defines the
basic requirements expected in a QM
System throughout the world and covering
every type of industry. It applies
to the processes that the hotel accomplishes
its work and meets the customers'
requirements.
“The way to certification meant
an enormous challenge to us, but at
the same time it was a kind of adventure
with a lot of things to learn for
our daily work and many opportunities
to go from strength to strength”,
says Sebastian Heinemann, Managing
Director of the Hotel Atlantic Kempinski
Hamburg.
Hotel Atlantic and BMW Group Niederlassung,
Hamburg have presented the BMW Suite
in an exclusive world premiere. The
BMW Suite is located on the third
floor of the hotel, directly under
the suite known as the 'James Bond
Suite', in which scenes from 'Tomorrow
Never Dies' were filmed.
The extensive list of prestigious
guests includes eminent leaders like
Vladimir Putin, the Shah of Iran,
Rabindranath Tagore and stars like
Michael Jackson, Sean Connery, Kim
Basinger, and Madonna to name a few.
The hotel has witnessed shootings
of famous films like the James Bond
movie “Tomorrow Never Dies”
including many German and European
films.
Ultimate comfort, perfect service
and uncompromising culinary excellence:
tradition demands efforts to result
in nothing less. The fact that perfection
often lies in the little things, even
the smallest detail is considered
important. |
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Engineering
Technology Offers
Tremendous Scope for
Indo-German Collaboration
India and Germany have been enjoying
great bilateral trade ties over the
years and Engineering Technology Industry
can be one of the major focus areas
in which Germany has tremendous strength.
Rajesh Nath, Managing Director of
German Engineering Federation (VDMA),
representative office in India, takes
us through the significant features
for this collaboration in an interview
with Tripti Chakravorty.
What are the steps that India
needs to take to come up to International
standards in the Engineering Technology
Industry as commanded by the present
German market? How can India compete
with China which is far ahead?
The Indian Manufacturing sector has
huge potential. The growth can be
accelerated by favourable government
policies, infrastructure development,
reforms in labor laws, easing out
of bureaucracy and regulatory burdens.
The Manufacturing Industry should
leverage on the advantage of low-cost
qualified work force. However to be
global players and to cater to the
international market, issues like
productivity and quality have to be
sorted out.
Alongside investment in modern technology
and best practices in manufacturing,
it is also necessary to make products
of international standards.
In the automobile components sector,
India is seen as a favourable outsourcing
destination. We should use this advantage
to make the world look favourably
at India as a source for machine building
and quality production.
The Manufacturing Industry is like
a ball which has started rolling.
If the government agencies and industry
best practices can provide it with
a favourable incline, the ball can
only gain momentum.
In future, India should develop itself
as a hub for advanced manufacturing,
requiring engineering inputs and technical
skills in comparison to China which
has its strength in bulk manufacturing
and economies of scale
What are the risks and opportunities
that German companies have when investing
in the Indian market and vice versa?
Instead of the terminology ‘risks’
I prefer to mention ‘challenges’.
Some of the major challenges faced
by German companies in India:
• Approaches to Indian Markets:
Whether to look out for Partners or
to set up own subsidiary
• Optimal location within the
country due to the geographical and
cultural diversity
• Flexible concept of time and
lack of commitment to time bound projects
• Infrastructure hurdles and
logistic challenges
• Bureaucracy, complex taxes
and duties structure
Opportunities for German Companies
in India
• Availability of qualified
technical manpower
• Low-cost production
• Increased requirement of specialized
machinery
• Outsourcing and vendor development
for global requirement
• Structured legal and patent
system
Presently, which are the areas
where German Engineering Technology
is being put to use in India and how
can this gamut be stretched to areas
that have not ever been explored before?
There is good demand for German Technology
in sectors like Mechanical Power Transmission,
Textile Machinery, Machine Tool and
Construction Equipment.
The growth in automotive and automotive
component industry will trigger the
demand in Automation and Robotic sectors.
Application of industrial robots will
expand beyond automotive industry
to sectors such as Steel and Metallurgy,
Glass and even heavy engineering.
Due to the government incentive and
support, the Food Processing Sector
is considered as a sunrise industry.
Here, I foresee increased cooperation
among German Technology Providers
and Indian Industry. This will in
turn lead to requirement of better
and healthier packaging and improved
logistic. Since German Machinery Manufacturers
are the world leaders in Packaging
Technology, they can offer the Indian
Industry optimal and economical solutions
to meet the increasing demand.
Presently, which way does
VDMA foresee the future of bilateral
trade relations between both countries
and what role can VDMA and such organizations
play in stepping it up further?
The bilateral trade between India
and Germany has been experiencing
a dynamic growth in the past few years.
It recorded a growth of about 15%
to reach 12.07 billion euros in 2007
against 10.54 billion euros in 2006.
In 2007 exports to Germany grew by
13% to reach 4.72 billion euros while
imports from Germany stood at 7.34
billion euros which increased by 15.5
%
In future years also, we expect the
rising trend to continue.
With around 3000 members divided into
38 industrial sectors, the German
Engineering Federation (VDMA) is the
largest industrial association not
only in Germany but in the whole of
Europe.
The Indian office of VDMA acts as
a bridge-head between the German Machinery
Manufacturers and the Indian Industry.
We help our German member companies
in identifying Indian partners, be
it for manufacturing, service, sales
or marketing. On the other hand we
support the Indian companies looking
for German technology.
Besides this, VDMA is instrumental
in participation of German companies
in the Industrial fairs in India through
the German Pavilion.
We also organize business meets among
the German and Indian Industry which
helps in closer interaction and enhances
the business relation between the
two countries in the Industrial sector.
Further there are the bilateral groups
which are coordinated by VDMA such
as Indo-German Working Group on Coal
and Indo-German Energy Forum.
Which are the sectors that
Germany is strong in and how can India
benefit from it and vice-versa?
The strength of the German Industry
lies in the machinery manufacturing
industry. The total turnover of the
German mechanical and plant engineering
sector in 2007 was a whooping 191
billion euros. Out of this more than
77% was exported making Germany the
market leader in export of plant and
machinery.
The robust growth in India generates
substantial demand for modern investment
good for manufacture of capital and
consumer goods. Looking to the future,
this means increased opportunity for
imports of plant and machinery. Modern
and specialized 'Made in Germany'
systems and technology are increasingly
finding acceptance in Indian plants
for good and high quality products
which are suitable for domestic market
and the competitive international
markets.
In 2006 of the almost 11 billion euros
worth of machinery and plants imported
by India, Germany was the market leader
with a share of 21% followed by China
with 13% and Japan with around 10%.
Are there strategic partnerships
or technological co-operations between
India and Germany with special reference
to institutes and universities? How
do they translate to the industrial
levels?
Although there has been technical
co-operation between Indian and German
institutes and universities, however
there is certainly scope for closer
interaction and exchange in the future.
Within the framework of Indo-German
bilateral Science and Technology Cooperation
(STC), the Federal Ministry of Education
and Research (BMBF), Germany, and
the Department of Science and Technology
(DST), India, there has been an interest
to promote project based application
oriented / technology development
/ R&D proposals involving both
scientific and industrial partners.
Proposals should help to stimulate
new collaborations, e.g. the preparation
of joint project proposals supplementing
or complementing under national funding
programmes as well as European research
programmes, wherever mutual interest
exists. Proposals can address the
preparation of joint research project
proposals, the organization of bilateral
(or multilateral) workshops/seminars,
exploratory visits of scientists,
scientific delegations and composite
(scientific and industrial) delegations.
Nodal Implementing Agencies
Department of Science & Technology
(DST), Government of India, New Delhi
and the International Bureau of the
Federal Ministry of Education and
Research (IB-BMBF), Bonn are the nodal
implementing agencies from the Indian
and German sides respectively.
Areas of cooperation
Proposals submitted in national priority
areas would be preferred:
• Nanotechnologies, intelligent
materials and new production technology
(new production processes) and other
innovative physical and chemical technologies
leading to wide technical and commercial
utilization
• Information and communication
technologies
• Environmental research and
sustainability research
• Disaster and security research
• Other promising fields (depending
on the total number of applications
received)
Why is German technology sought
after worldwide? What is so specific
about them?
The most important features of the
German manufacturing industry which
gives them the cutting edge in technology
are as follows:
• Intelligent Products: Future
products will provide cognitive aspects
and will be able to receive and handle
manifold information.
• High Performance: Integration
of highly dynamic components into
the production facilities and the
maximisation of performance, flexibility
and quality of the associated production
equipment.
• Energy Efficiency: Alternative
technologies to generate, distribute
and use energy.
• Product Design and Configuration:
Product designs with half of the development
time and directly resulting in the
construction of customer-specific
products with highest reliability.
• Adaptive Production: Adaptive
production systems will continuously
adapt their structure and configuration
to their tasks and environment.
You would agree that the SME
sector is the backbone of every economy
and therefore cannot be overlooked.
How can this sector come together
from both the Indian and German sides
and rise up to the occasion of further
improvement and strengthening?
The Small and Medium Enterprises (SME)
play an important role in the economic
progress of not only the developing
countries but also for the developed
countries. This holds true for the
manufacturing Industry in Germany
and India.
Successful SMEs drive inclusive growth
resulting in overall prosperity and
balanced development. Certainly, the
strength of both German and Indian
Manufacturing industries lies in the
SMEs.
SMEs sector in India contribute around
38% of the nations manufacturing output
and 35% of the exports. Even within
the 6000 odd German Mechanical and
Plant Engineering companies, predominant
are the SMEs.
Further, both German and Indian manufacturing
industry boasts of the availability
of well-qualified technicians and
engineers.
The difference in the Manufacturing
Industry in both the countries lie
in the economies of scale, investment
in research & development and
labour productivity. Whereas Germany
has one of the highest productivity
rates in the World, India lags below
the world average in productivity.
However the Indian SMEs are gearing
up their technologies and production
capacities and are keen to provide
a sourcing hub to their German counterparts.
An increasing number of Indian SMEs
are showing keenness for strategic
tie-ups with German firms for technology
transfer as well as joint ventures
to set up manufacturing facilities
in India |
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