German SMEs (Mittelstand) commits over Rs. 3000 crore investments under MAKE IN INDIA MITTELSTAND Initiative

Under Indian Embassy Berlins Investment Facilitation Programme - MAKE IN INDIA MITTELSTAND (MIIM) initiative, the German SMEs (Mittelstand) have committed an investment of over Rs. 3000 crores for MAKE IN INDIA. This was announced by Indias Ambassador to Germany Mr. Gurjit Singh in a business event held at the Indian Embassy in Berlin on 16th March 2016.

MAKE IN INDIA MITTELSTAND is an investment facilitation programme being implemented by the Indian Embassy in Berlin with the support of Department of Industrial Policy and Promotion (DIPP) and Investment and Technology Promotion (ITP) Division of the Ministry of External Affairs to attract investments by German Mittelstand (SME) companies. The MAKE IN INDIA MITTELSTAND initiative had been launched in September 2015 to help attract investments German Mittelstand and Family Owned Enterprises.

During the first six months of the MAKE IN INDIA MITTELSTAND Programme, about 26 German companies have committed to MAKE IN INDIA with the support of the MAKE IN INDIA MITTELSTAND Programme. These investments will result in setting up of 15 new manufacturing plants, 6 expansion projects and 2 pilot projects covering the states of Maharastra, Gujarat, Karnataka and Tamil Nadu. In the last six months, three companies from the area of wind turbine technology, consumer appliance and have announced their entry into India with significant investments. Five companies have been successfully formed their Joint Ventures (JVs) and incorporated their Wholly Owned Subsidiaries (WOS) in India during. Five more companies are in the process of setting up their JVs/WOS in the coming months.

Mr. Dirk Wiese, member of German Parliament and Member of the Indo-German Parliamentary Friendship Group said that the MAKE IN INDIA MITTELSTAND Programme was the perfect complement for the Mittelstand-driven German economy. He also highlighted the role played by the MAKE IN INDIA Programme in strengthening the Indo-German economic partnership. Mr. Mario Ohoven, President of the German Association for Small and Medium-sized Businesses, was also present during the occasion. He promised support of his association towards the MIIMProgramme.

Mr. P. S. Gangadhar, First Secretary at the Embassy and Head of the MAKE IN INDIA MITTELSTAND Project Team added that the results achieved by the MAKE IN INDIA MITTELSTAND initiative in the first six months is quite significant as the Mittelstand companies are known to be highly conservative and cautious in their approach investing in new markets. The early results shows their confidence in the MAKE IN INDIA MITTELSTAND initiative and the significant impact that the MAKE IN INDIA programme has had in improving the investor perception in Germany. Indias participation as Partner Country in Hannover Messe in 2015 in which Prime Minister Narendra Modi had taken the message of MAKE IN INDIA to German investors enabled in generating significant interest among German companies to invest in India. MAKE IN INDIA MITTELSTAND Programme is helping translate that intent into investments through its facilitation efforts.

The MAKE IN INDIA MITTELSTAND programme has undertaken significant confidence and capacity building exercise to convince German SMEs to Invest in India. Working with Consulting firms, Tax & Legal Firms, Banks, Chambers, Industry Associations, State Governments in India the MAKE IN INDIA MITTELSTAND programme is offering comprehensive support to the investors to translate their intent into investments on the ground. In pursuance of governments commitment to improving the ease of doing business in India, the MAKE IN INDIA MITTELSTAND Programme has offered support to the companies on matters such as land allotment, company registration and liaison with government authorities etc. Under the MAKE IN INDIA MITTELSTAND Programme companies are also being adequately equipped and briefed about different aspects of doing business in India through specialized workshops on topics such as Company Incorporation, Taxation, Location Assessment, Logistics and Supply Chain, Sourcing and Localization. This support being offered by the Programme has been critical to speeding up the investment decisions of the German SME companies. MAKE IN INDIA MITTELSTAND is a novel approach to investment facilitation by Government of India to be implemented in any country.

With 23 companies already being mobilized in the first six months, the initial target of 30 companies will be achieved well before the completion of the one year of the Project. In the coming months MAKE IN INDIA MITTELSTAND programme will mobilize more German companies to invest in India with an offer to extend all the necessary support in executing their investments.

MAKE IN INDIA MITTELSTAND Programme achievements during first six months

Highlights:

• 43 German Mittelstand and family owned companies are now part of the MIIM programme, of which 26 companies have declared concrete investment plans for India.

• Investments are strategically spread with Industrials and Environment sectors leading with 55% share (24 companies) followed by Mobility and Consumer goods sectors (6 companies each).

• Key German technologies of the Mittelstand which are finding their way into India are in the sectors of Renewable Energy; Engineering Technologies; Construction Technologies; Agricultural Mechanisation; Water Technologies and Waste Management.

Support:

• Four capacity building workshops have been held on different aspects of doing business in India. The topics include localisation and sourcing; location assessment; logistics and supply chain; HR management; best manufacturing practices, company incorporation and direct & indirect taxes.

• The MIIM programme has facilitated specific requests of companies pertaining to land allotment and location analysis; liaison with Government authorities / industry stakeholders; market assessment and strategy formulation; transparency on tax & legal topics and IPRs.

Key Results:

• The volume of investments being facilitated under the MIIM programme in the last six months is about Euro 400 million (approx. INR 30 billion). This includes investments for setting up 15 new manufacturing plants, 6 expansion projects and 2 pilot projects. About 3500 new jobs will be created under the planned investments by the companies.
• Some of the key milestones achieved by the MIIM member companies during the last six months are as follows:
• 5 Companies have been incorporated / set up JVs
• 3 Companies have announced their market entry with significant investments
• 2 Companies have acquired new land for expansion
• 2 Companies have already started the process of identification of locations for their plants
• 1 Company will start construction of their manufacturing plant next week
• 5 Companies will be setting up their JV / Company Incorporation in 2016

Figure 1: Ambassador Gurjit Singh addressing the gathering.

Figure 2: Mr. Dirk Weise, Member of German Parliament and Member of the Indo-German Parliamentary Friendship Group addressing the gathering.

Figure 3 : Panel discussion titled "How is MIIMsupporting us in our approach to enter the Indian Market - Advantages and further wish List". The panelists included Ms. Samriddhi Sharma - HabermaaGmbH, Mr. Carlo Graepel - Friedrich Graepel AG , Mr. Abhishek Singh- Grimme GmbH, Mr. Volkmar Klaus-FlanschenwerkThal GmbH:, Mr. Dennis Geers-Senvion AG and Mr. Oliver Mler, Moderator

Figure 4: Mr. Mario Ohoven, President of the German Association for Small and Medium sized Businesses addressing the event.

 

MAKE IN INDIA MITTELSTAND INITIATIVE (MIIM)

MIIM Facilitates Investment and Market Entry for German Mittelstand and Family Owned Enterprises

Make in India Mittelstand!(MIIM) is an Investment Facilitation Initiative of Indian Embassy in Berlin being implemented with the support of Department of Industrial Policy & Promotion (DIPP) and Investment & Technology Promotion (ITP) Division of Ministry of External Affairs to attract German Mittelstand (SME) companies to MAKE IN INDIA.

In order to facilitate the investors, the MIIM programme offers a wide range of business support services under a single platform. Services include strategy consulting, M&A advice, operational market entry support, tax & legal support, financial services, project financing, location services, technology collaboration, facilitation of approvals from central & state agencies and access to government agencies.

MIIM is a highly innovative, integrated platform for investor services which corresponds to the complex requirements of first time investors. It is truly unique in combining services rendered by Government, not-for-profit and private entities. It is a one-stop source for companies requiring market entry support services with the additional benefits of special workshops, networking, information exchange etc. MIIM Programme has a built-in network or Programme Partners to support the participating companies with their services. Best-in-class partners have been selected after extensive due diligence and each of them brings a unique value into the MIIM Programme. MIIM Programme Partners include the MIIM Knowledge Partner (EAC-Euro Asia Consulting) for strategic, M&A, operational market entry support; MIIM Facilitation Partners (Invest India, Governments of Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan and Tamil Nadu); MIIM Tax & Legal Partners (Khaitan& Co. and Rodl& Partner) for legal & tax support; MIIM Technology Partner (Global Innovation & Technology Alliance - GITA) for technology collaboration services; and MIIM Incubator Partner (German Centre Delhi.Gurgaon) for location support, MIIM Banking Partners (State Bank of India, LBBW and DEG) for financial services support and MIIM Partner Chamber (Indo-German Chamber of Commerce-IGCC).

MIIM is another milestone in improving the Ease of Doing Business in India. MIIM is designed to attract more German companies to India since it will make the entry of the Mittelstand companies into India a smooth process. MIIM is geared to address the divergent requirements of manufacturing, technology and service sector companies.

For more details on the MIIM Programme please visit
www.makeinindiamittelstand.de