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India has become a Tiger of a Partner
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01-2005/1205
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Source: Germany
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India as a procurement country - India has become a target for global buyers. *
The world's largest democracy shows impressive growth figures and has become a buyers' eldorado and place of production for Western enterprises. India has become so attractive because of her training to western standards, the English language and the neighbourhood to European cultures. Yet, her infrastructure leaves wishes open. India has become procurement's desire since approx. the mid 1990s widening her competences for quality, delivery times, keeping of agreements , widening of capacities and acceptance of international standards. India has gained experience with Global Players through her "Silicon Valley" in Bangalore, one knows about the requirments of European partners. For centuries, India has been known as supplier of finest silks. Numerous tea grades, cultured herbs and plants are found to produce natural pharmazutica products. India has to offer approx. 45,000 different plants in her 16 different agro-climatic zones. India is also rich in natural stones (granite, marble, limestone) of which today they export approx. 600 million square metres; in 20 years this figure is forecast to 3 billion square metres. India will soon become a procurement paradise and those foreign companies getting there now will not be too early at all. Today, North American, European and Japanese enterprises are procuring exlusively priceworthy technical and other items and accessories in India. Many Western Joint Ventures produce not only for their own requirements but especially also for exports. We ourselves are just starting the production of so called Fixators (machine fixing elements) in Bangalore with the assistance of the Indo German Chamber of Commerce (IGCC) and the Indo German Institute of Technologies at VTU (IGIT). All signs for good future success are there in India. The expectations are accordingly high. The "Big Ones" from abroad have settled. They have pulled the "Medium Ones" with them and the "Small Ones" are coming in now - or it will be too late for them. Occupational training in India is very good. The Visveswaraiah Technological University (VTU) with its 120 faculties offers excellet opportunities to study in all areas. Exceptionally good are the ties with foreign Technological Universities all over the world in nearly any field and have pushed the market place Bangalore to top position. A strong middle class has been formed which is ready to consume also Western style articles. Bangalore is on the best track to start with BioTechnology the next revolution. The are many very good brains in this field. Motorway and railroad networks are underdeveloped But one needs to know also the following facts: India's infrastructure needs to be modernized very strongly and quickly. Unfortunately, there are not enough roads where you can drive at a speed of 50 km/h. Indian Highways do not compare with European or US-American motorways, Autobahnen or highways. The railroad network was made for Britain's requirements then. The electrification is in many an area very bad. Pros and Cons of procurements abroad and especially in India have to be weighed with care. Finally, the decision is made under the aspects of quality, market segment, total costs and last not least business situation. To find articles in India is easy: today, there are more than enough offers through internet and other contact which will lead quickly to a goo9d survey. Internet tells very little about quality. This needs to be checked in place, first during exhibitions, then by personal visits of the production places. There are many organisations which can assists like e.g. the IGCC - become a member and make use of their services! Moreover, you will find in India companies like TUV and other quality testing parties The market segment means the industrial branch. India has been famous for textiles in any quality and kind for centuries, like handicraft items. Modern machine tool making is relatively new but has made enormous progress in the past 15 years in nearly all segments. Many German, British, American and Japanese machine tool makers have in India either Joint Ventures, porduction partners or own affiliations. Indian mould and die makers are also on a good path through international cooperations. The automotive industries has arrived. BMW, Daimler, Porsche, nearly all Japanese companies, Delphi and other subsuppliers are represented on the sub continent. With approx. 6% industrial growth, India has become a Tiger of a Partner. The country has very good future expectations being confirmed by all parties. The total costs arising from procurement, transportation, importation and stocking are favourable. Achim Schulz, Mangaging Partner, Diamanr The Metalplastic Co., Moenchengladbach, and initiator and German Partner of the Indo German Institute of Technologies at VTU. http://diamant.ph |
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