German marine equipment firms are keen on partnering with the Indian shipping and shipbuilding industry to exploit growth opportunities.
BS reported that German marine equipment firms are keen on partnering with the Indian shipping and shipbuilding industry to exploit growth opportunities. As per report specifically, small and medium sized companies are looking for long term collaborations with domestic firms for establishing facilities here to service the growing demand for marine and offshore equipment in India as well as to cater to other markets in the region.
Facing a retracting market in Europe, German firms looking to capitalize on emerging economies in south and East Asia initially zeroed in on China as a possible manufacturing hub. However, after being confronted with a variety of difficulties, including technological imitation by Chinese companies, the German maritime industry now wants to intensify business relations with India.
Mr Hauke Viktor Schlegel MD of VDMA Marine and Offshore Equipment Industries said that ?When compared to China, it is easier to do business in India. Apart from the language problem, we had issues regarding intellectual property rights in China. We do not like partners who take our technology.?
He said that the German maritime industry, which is the largest exporter of high tech marine equipment worldwide would not only look at the private sector in India but is also hopeful of increasing its participation in naval projects.
Mr Rajesh Nath MD of VDMA India said that ?German companies view India as a growing and sustainable market. There is substantial interest in outsourcing certain functions, such as component manufacturing, to firms here as there is a cost advantage of at least 20% compared to Germany.?