September 2008

GermanyContact INDIA
Magazine on Indo- German Economic Relations

The German Automotive Industry in India

Stepping Up
the Commitment

• Niedersachsen-India Business Relations

• Family-Owned Firms in Germany

Partners:
INDIEN CONTACT
www.owc.de
Publisher:

GC India_3_VW.indd 1 24.09.2008 17:10:53 Uhr

GC India_3_VW.indd 2 24.09.2008 15:41:05 Uhr
 Editorial

Dear Reader,
Current economic conditions do not create the ideal climate for
German-Indian trade relations. The economies in both countries are
experiencing a noticeable slowdown. There has been a sharp down-
ward correction on the Mumbai stock market since the beginning
of the year, and the Reserve Bank of India has been battling to keep
inflation under control. Since June, the Business Climate Index in
Germany has fallen three times in succession (see our report on page
CHRISTIAN MÜLLER 18). So far, these events have had little impact on German-Indian
Member of editorial staff, trade. Imports of goods into India reached 4.1 billion euros in the first
Foreign Trade Institute half of 2008, an increase of 22.5 per cent year-on-year. Exports also
increased by an impressive margin, rising by 9.2 per cent to 2.6 billion
euros. However, the positive figures cannot hide the difficult cur-
rent situation. In addition to weakness in the international economy,
trade is also overshadowed by the failure of the Doha talks and the
postponement of the free trade agreement between India and the
European Union. The German government may create yet another
obstacle. If the amendment to the Foreign Trade law is approved by
the German Parliament, the government would have the right to
prohibit foreign investors from acquiring a German company, if the
investor targets a share of more than 25 per cent. This takes place at
a time when an increasing number of Indian companies are becom-
ing aware of Germany as an M&A market. In addition, the problems
in the German-Indian business relationship are not limited to the
economic downturn and trade policy issues. The high-profile legal
dispute between the German company Putzmeister AG and Aquarius
Engineers Pvt. Ltd. which is based in Pune (see page 22) is a good
example. Initial highly emotional press reports painted a very nega-
tive picture of the German “Goliath”. It now turns out that one of the
core issues in this drama is the Indian government’s decision to issue
Press Notes which significantly restrict the rights of foreign inves-
tors. It comes as no surprise that in a study conducted by the Indo-
German Chamber of Commerce and the WHU - Otto Beisheim Scholl
of Management, more than 60 per cent of the Managing Directors in
Germany, Austria and Switzerland who were included in the survey
recommended against entering into a joint venture in India.
However, some of these issues could certainly be resolved. A mutual
understanding of the factors which motivate a business partner to
act in a certain way and knowledge of market conditions in the two
countries are absolutely essential, and we take another look at these
topics in this issue. The article “M&A in Germany: The legal inside
view” explains how the proposed amendment to the German Foreign
Trade Law might affect Indian investors. The lead story in this issue
contains a report on joint projects in the German and Indian automo-
tive industry, showing how German and Indian companies can work
together to develop new synergies.
It is now up to you to make your contribution to the successful
development of German-Indian relations.

Yours sincerely,

Christian Müller

Germany Contact India September 2008 3

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 Contents

6 News
Editorial details
6 Investment: Changes expected to German foreign trade law
6 Trade with Germany continues to expand Publisher:
6 Investment Subsidies Act Foreign Trade Institute, Ltd.

7 Germany as a location for innovation: Competitiveness threatened in the long
term

8 Niedersachsen Special
8 Niedersachsen and India: Vigorous trade development
10 Itinerary for the visit of the Lower Saxony delegation to India

12 Automotive Industry
12 The German automotive industry
steps up its commitment in India
13 News: Indo-German cooperation
in the automotive sector
14 German automotive industry:
Investment abroad generates
increased employment in Germany
IfAD - Foreign Trade Institute
Managing director: Norbert Mayer
Hohenzollernstraße 11-13
40211 Düsseldorf, Germany
Phone: +49.211.550426-0
Fax: +49.211.550426-55
info@ifa-d.com
www.germanycontact.com
Editorial office:
OWC Foreign Trade Publishing House Ltd.
Managing editor: Christian Müller
Design: Birgit Meyer
Graphics and photos: Udo Zelmer
Translations:
allan.brown@browntranslations.de
Ritterstr. 2B
10969 Berlin, Germany
Phone: +49.30.615089-0
Fax: +49.30.615089-29
redaktion@owc.de
www.owc.de

Jurisdiction: Düsseldorf

All rights reserved. The editorial content

16 Economy and Business
16 Deepening relations: Recent
developments in the Indo-German
economic relationship
of GermanyContact India is prepared in
accordance with the highest standards of
journalistic accuracy. IfAD does not assume
any legal liability or responsibility for
the accuracy, completeness, or quality of
translation of any information.

18 Business climate worsens again: Cover picture:

Results of the August 2008 Automobile logistics in the port of Duis-
Ifo Business Survey burg. Photo: duisport/Köppen

19 Germany: Location study by E&Y

20 Winning strategy times three –
Indian SMEs discover Luckenwalde
22 David vs. Goliath? – Legal dispute
between Putzmeister and
Aquarius Engineers
24 The backbone of the German economy – Family-owned firms in Germany

26 Law
Photos: Photos: Audi AG, duisport/von Kaler

26 M&A in Germany: The legal inside view

28 Company News

30 Last Page

30 A helping hand for the poorest – Andheri aid in India

INDIEN CONTACT
www.owc.de

4 Germany Contact India September 2008

GC India_3_VW.indd 4 24.09.2008 15:41:07 Uhr GC India.indd

 The Mayor City of Cologne
© Paulo dos Santos

6cYl]ZcXVclZlZaXdbZ
ndjid8dad\cZ4
The key success factor for the economic location of Cologne is its central situation at the heart of the European single market. Within
a radius of 100 kilometres of the city, you can reach 17 million potential customers and thus far more than in most of the other
European metropolises. Whether by land, on water or in the air – Cologne offers the fastest possible connections in all directions. For
example, with the airports in Frankfurt and Düsseldorf, as well as Cologne Bonn Airport, no less than three international airports can be
reached in less than an hour. Cologne Bonn as a hub of the low-cost airlines is particularly interesting for cost-conscious companies.
Cologne’s infrastructure, its balanced mix of industries and its higher education scene, as well as its art and culture, have already
convinced companies like Microsoft, MindTree or Wipro.
As a multicultural metropolis in which over 30 percent of the men and women who live here have other national backgrounds, Cologne
makes it easy for people and companies from all over the world to quickly feel at home. See for yourself.
The India Desk would be delighted to help you.

Office of Economic Development, Willy-Brandt-Platz 2, 50679 Cologne, Fax: +49/221/221-26686, www.stadt-koeln.de

Ms Menge, Tel.: +49/221/221-25367, Katharina.Menge@stadt-koeln.de
Ms Göttgens, Tel.: 49/221/221-23878, Brigitte.Goettgens@stadt-koeln.de

GC
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India.indd 1 5 24.09.2008
19.09.2008 15:41:10
10:25:59 Uhr
Uhr
 News
Investment
Changes expected to German foreign trade law
At a meeting held on August 20th, the German government approved
changes to the Foreign Trade Law (AWG). The new rules would allow
the government to prevent a foreign investor from acquiring more
than a 25 per cent stake in a German company. The amendment still
has to be passed by the German Parliament before it takes affect.
The Managing Director of the German Federation of Industries (BDI)
Schnappauf voiced serious concerns about the proposed changes.
“The restrictions proposed by the government send out the wrong
economic policy message about Germany as an attractive place to
invest. As the world’s leading export nation and a major source of
foreign investment, Germany is heavily dependent on open markets.
Consequently, the country must be very open and attractive to for-
eign investors.” Foreign investment in Germany currently stands at
439 billion euro. “This investment creates value-add and jobs in Ger-
many. More than two million jobs in Germany are directly dependent
on foreign-owned companies”, said Schnappauf.
According to the BDI, the government’s plan to impose restrictions
on foreign investment violates European law, and this claim has been
substantiated in a report issued by the law firm Freshfields Bruckhaus
Deringer. “The EU Treaty guarantees free movement of capital within
the European Union and between member countries and third coun-
tries as well. The European Court has imposed strict limits on restric-
tive regulations,” explained Schnappauf. The restrictions proposed
in the current amendment to the Foreign Trade Law are based on the
need to protect “the public order or safety of the Federal Republic of
Germany”. It is the view of BDI that this form of government review
and restrictions goes too far. “These terms are open to a wide range
of interpretation, and they do not give companies sufficient legal
Indo-German trade
Trade with India continues
to expand – Machinery still tops
the export list
According to information published by the German Federal Statistical
Office, German exports to India more than tripled between 2003 and
2007. Preliminary figures indicate that 7.4 billion euros worth of goods
were exported to India in 2007 compared to 2.4 billion euros in 2003.
Machinery accounted for 35 per cent of exports (2.6 billion euros),
making it by far the largest category.
The steep increase in exports continued unabated in the first half of
2008. Compared to the same period in the previous year (3.3 billion
euros), exports to India were up by 22.5 per cent to 4.1 billion euros.
The positive trend was evident across all major categories of goods.
Imports from India also grew markedly in 2007 and were nearly double
the 2003 level. The total value of imports increased from 2.6 billion
euros in 2003 to 4.7 billion euros in 2007. The leading categories of
imported goods were apparel (786 million euros, 16.6 per cent share)
and chemicals (694 million euros, 14.7 per cent share).
Imports were up 9.2 per cent year-on-year in the first half of 2008.
There was a significant increase in imports of apparel (507 million
euros, +12.3 per cent) and chemicals (397 million euros, +19.0 per
cent), while textile imports were down 3.7 per cent.
Following a trade deficit of 0.2 billion euros in 2003, the trade surplus
in goods with India reached 2.6 billion euros in 2007. There was a trade
surplus of 1.5 billion euros between January and June 2008.
India is ranked 26th in the list of Germany’s major trade markets.
6 Germany Contact India September 2008
GC India_3_VW.indd 6
Indian acquisitions, such as Suzlon’s takeover of the German
wind turbine firm REpower, might be subject to the Governments
approval in the future. Pictured: REpower engineer at the pro-
duction site in Husum
certainty. An additional review of ownership issues costs time and
money without any obvious value-add,” claimed Schnappauf.
“In recent months, employment and social policy issues have played
a role on several occasions during the review of foreign investment.
This is clearly in violation of European law,” said Schnappauf.
According to the terms of the EU treaty and decisions handed down
by the European Court of Justice, general economic interests by the
member states must not play any role in the imposition of restric-
tions on the free flow of capital.
Investment
Government finalises draft 2010
Investment Subsidies Act
On 23rd July 2008, the German cabinet adopted a bill to extend
investment subsidies for business investments in East Germany
through 2013. The subsidies would otherwise have terminated in
2009.
Investment subsidies are available in the new German states and the
City of Berlin for qualifying investments in businesses that engage
in manufacturing, render certain production-related services, or
are part of the hotel trade. Resident and non-resident taxpayers for
purposes of personal and corporate income tax laws are entitled to
receive subsidies.
The investment subsidy is calculated on the basis of the total cost
(cost of purchase and production) of qualifying investments com-
Photo: REpower Systems AG (Ralf Grömminger )
pleted in a particular fiscal or calendar year. The current subsidy
rates (12.5 per cent for large businesses, 25 per cent for small and
medium-sized businesses) would decline from 2010 to 2013 by 2.5
percentage points per year for large businesses and 5 percentage
points per year for small and medium-sized businesses.
Investments extending over several years are subsidised at the rate in
force in the year in which the investment is commenced. Companies
that commence investment projects by the end of 2009 can thus
benefit from the subsidy rates currently in effect.
24.09.2008 15:41:11 Uhr
 News

Germany as a location for innovation

Competitiveness threatened in the long term
A location analysis reveals considerable innovation weaknesses in
research- and knowledge-intensive sectors in Germany. Enormous
potentials could remain unexploited in the future, warns the Fraun-
hofer ISI.
Research- and knowledge-intensive sectors such as pharmaceuti-
cals, vehicle construction and mechanical engineering or computer
services are vital for a country like Germany with few raw materials
in order to bolster growth and employment. Many of these sectors
are well positioned at present: In the pharmaceutical industry, for
example, Germany has become more attractive as a research loca-
tion and German pharmaceutical companies have become even more
competitive since 1995. However, a recent location analysis reveals
considerable innovation weaknesses which could significantly lower
Germany‘s international competitiveness, especially in the future. This
is the result of a study by the Fraunhofer Institute for Systems and
Innovation Research conducted for the German Bundestag.
“We must take urgent action if we don‘t want to lose ground,“ warns
Dr. Michael Nusser, head of the project at the ISI and says that systemic
thinking is required rather than selective measures here and there. A
lack of qualified personnel is one of the most important risk to com-
petition, especially for the future. The lack of scientists, engineers and
technicians is already lowering competitiveness. “By 2020, Germany
could be missing hundreds of thousands of qualified workers – not
only in research and development but along the entire value added
chain, even in production and sales,“ emphasises Nusser. The study
shows that especially small and medium-sized companies are having
increasing difficulties in recruiting qualified personnel. In the least
favourable case, as well as production, their research and develop-
ment departments may then relocate abroad, for example in Eastern
Europe.
This problem could be remedied only by the better integration of
highly qualified women and older workers, young people from socially
disadvantaged backgrounds and qualified personnel from abroad.
The potentials for further training and education are also not being
sufficiently exploited. In addition, investments and quality improve-
ments in education are necessary, especially in early childhood (in
pre-schools and primary schools) in order to remain competitive in
the long term.
There is also a need to catch up in the expenditure on research and
development. Spending on R&D has indeed been rising over the last
few years but other countries, for example in Asia, are investing sub-
stantially larger amounts in this area. China‘s spending on R&D, for
instance, quintupled between 1995 and 2004. Positive developments
in Germany may therefore not be enough to be able to keep pace with
the international dynamics in research and development.
In their innovation report for the Bundestag, the experts at the ISI
describe possible options of action for policy makers including strate-
gies for a coordinated innovation policy or for augmenting the exist-
ing knowledge base, clusters and networks. The ISI experts also list
innovation strategies for industry (e.g. early integration of users into
industrial R&D processes) and science.
The complete study “Research- and knowledge-intensive sectors:
Options to strengthen their international competitiveness“ commis-
sioned by the German Bundestag is available (in German) for down-
loading from: www.isi.fhg.de/t/projekte/d-MN-TAB-Pharma.htm

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Germany Contact India September 2008 7

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GC India_3_VW.indd 7 24.09.2008 15:41:13 Uhr
 Niedersachsen Special

Vigorous trade
development
Hannover, the capital of Niedersachsen,
has the biggest exhibition ground
in the world.

Niedersachsen focuses on business relations with India

By Dirk Hertrampf Since embarking on a process of liber-

alisation more than 15 years ago, India
For a number of years now, business relations between the German federal has exhibited an impressive economic
state Niedersachsen (Lower Saxony) and India have displayed impressively performance. Annual growth rates of
9 per cent, the supply of software and
high rates of growth, illustrating the great potential for trade between provision of IT services to countries all
the north German state and the Asian emerging market. The increasing over the world, the rise of Indian com-
interdependence of Niedersachsen and India as business locations and panies to world leadership in the fields
the constantly growing importance of the subcontinent in the matrix of of biotechnology, pharmaceuticals,
international trading relationships are factors that confirm how bright the chemicals, steel and automotive compo-
overall outlook is for further cooperation. nents, an increasingly knowledge-based
industrial sector, a stable framework of
political and legal institutions and the
high availability of well-trained human
Photo: Deutsche Messe AG

re-sources – all these things make

India a weighty player in the world
economy, and a market that continues
 About the author
to be extremely attractive and to offer
Dirk Hertrampf is Counsellor Asia/Pacific in the outstanding business opportunities, to
Ministry of Economics of the federal state of companies from Niedersachsen as much
Niedersachsen as from elsewhere.

8 Germany Contact India September 2008

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Record-breaking trade growth
Accordingly, not only has trade between
Germany and India developed in a
gratifying man-ner over recent years,
exceeding the 12 billion euro mark for
the fi rst time in 2007, but the same is
also true for trade between Nieder-
sachsen and India, the volume of which
increased for the fourth time in suc-
cession in 2007. After record-breaking
results in 2006, in which year growth
amounted to over 50 per cent, a further
increase of 6.5 cent to 730 million euro
in 2007 represented the attainment of
another new peak. Exports from Nie-
dersachsen to India amounted to almost
360 million euro, representing growth
of just under 13 per cent, whilst Nie-
dersachsen’s imports from India rose to
a good 371 million euro. These figures
represent shares of 0.5 per cent of both
Niedersachsen’s exports and imports.
The best-known current example of
investment in India by a Niedersach-
sen company is the construction of the
new Volkswagen factory in Pune, which
is to produce up to 110,000 vehicles a
year, starting in 2009. A manufacturing
facility complete with press shop, body
shop, paint shop and assembly shop is
currently under construction on a 2.3
million square metre site, representing
capital expenditure of some 580 million
euro.
Other well-known companies such
as the wind turbine manufacturer
Enercon and the fragrances and fla-
vourings company Symrise have long
been represented in India. Further ex-
amples are Sartorius, which produces
laboratory and process technology
equipment, and the Hannover-based
chemical company Hüttenes-Alber-
tus: these fi rms have production facil-
ities of their own in Bangalore and
Mumbai respectively. Sartorius alone
has 400 employees in India, which
makes that country the Göttingen-
based group’s second biggest location.
Promoting business relations
In order to be able to provide even
more effective support to companies
from Niedersachsen seeking to enter
the Indian market, the State Govern-
ment opened a representative office in
Mumbai in the autumn of 2007. There,
a interlocutor is available in the person
of Sudhir Patil, who, wearing his other
hat, is also General Manager of Han-
nover Fairs India; he is able to assist
Niedersachsen companies making their
fi rst moves in India, while at the same
time making Niedersachsen better
Germany Contact India September 2008
GC India_3_VW.indd 9
GC India.indd 1
Niedersachsen Special
known in India and pro-
moting it as a location for
direct invest-ment. In par-
ticular, his dual function as
the representative of both
Deutsche Messe AG and the
Niedersachsen State Gov-
ernment enables him to
bring together effectively
partners from two differ-
ent networks, and so to offer
small and medium-sized
enterprises from Nieder-
sachsen outstanding oppor-
tunities to obtain good
advice in India.
Furthermore, the Ger-
man-Indian Round Table
has long provided a reg-
ular meeting point in
Hannover where entrepre-
neurs and managers from
Niedersachsen and India
can get together every two
months. The aim of this
Round Table is to promote business account of the increasing requirement
relationships between Germany and among companies for information about
India, and to assist SMEs seeking to do India, Hannover Chamber of Commerce
business in India by enabling them to and Industry, in cooperation with the
exchange experience with people who Indo-German Chamber of Commerce,
know the country and with represent- has set up an “India Desk”. The aim is
atives of companies that are already to enable companies from Niedersach-
established there. In order to take sen that are seeking business contacts
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24.09.2008 15:41:18 Uhr
12.09.2008 13:05:23 Uhr
 Niedersachsen Special
The good contacts between India and Nie-
dersachsen are also apparent in the field of
trade fairs. Pictured: CeMAT India orga-
nised by Hannover Messe.
in India, and also Indian companies
that wish to invest in Niedersachsen, to
obtain the most up-to-date information
about India and Niedersachsen respec-
tively more quickly than in the past,
thanks to improved networking, and to
Itinerary for the visit of a
delegation led by Nieder-
sachsen Prime Minister
Christian Wulff and Minister
for Science and Culture Lutz
Stratman to India on
October 2nd-6th, 2008*
October 3rd (Mumbai)
 Discussion with the Chief Minister of
Maharashtra, Mr. Vilasrao Deshmukh
 Visit to the IMCARES slum project in
Dharavi
 Reception and press conference at the
opening of the Nord/LB Bank office and
the Niedersachsen office in Mumbai
October 4th (Pune)
 Visit to Volkswagen AG in Chakan
 Opening of the University of Göttin-
gen’s office at the University of Pune
 Discussion with Indian students who
will be taking part in IdeenExpo 2009
in Hannover
 Visit to the Faurecia car seat production
plant
October 5th (New Delhi)
 Discussions with Mr. Tulsi R. Tanti, Chair-
man of Suzlon Energy Ltd., Chairman of
the Supervisory Board at REpower Sys-
tems AG
October 6th (New Delhi)
 Visit to IBM subsidiary
 Political discussions with the Foreign
Minister or the Prime Minister
 Opening of Nya Nordiska product exhi-
bition
*Itinerary subject to change
10
GC India_3_VW.indd 10
further widen the scope of the assist-
ance that can be given to those looking
for partners.
Trade surplus for India
The fact that business relations bet-
ween Niedersachsen and India are not
a one-way street is made clear not only
by India’s slight trade surplus but also
by the great interest shown by Indian
fi rms in cooperating with companies
here and in making direct investments
in Nieder-sachsen. TUI Infotech GmbH,
a joint-venture between India s leading
IT Consulting and Services company
SONATA and the Hannover-based TUI
AG, can serve as an example. Also the
fi rst Indian IT fi rms have now located in
Hannover.
Against this background, a variety
of Niedersachsen companies and insti-
tutions have joined with the State Gov-
ernment to launch an initiative through
which we hope to make Hannover, the
location at the heart of Europe, into the
point of contact for Indian companies in
Germany through the establishment of a
German Indian Business Center (GIBC).
This Business Center was set up last
year with the aim of bringing together
and coordinating all areas and activities
that are important in relations between
Niedersachsen and India, and of offer-
ing Indian companies a comprehensive
range of services precisely tailored to
their needs through a central initial point
of contact. In this way, we have created
an ideal platform here in Niedersachsen
for the establishment and expansion
both of long-term business alliances
between Indian and Niedersachsen
companies and also of direct investment
projects by interested Indian fi rms. The
GIBC, as a fi rst stop agency, actively
assists Indian businesses with the proc-
ess of locating in the Hannover Region.
The trade fair connection
The good contacts between India and
Niedersachsen are also apparent in
the field of trade fairs. Last year, for
example, Deutsche Messe AG grasped
a favourable opportunity and launched
three fairs in Bangalore, through its
newly established subsidiary Hannover
Fairs India, simultaneously in December
2007: Cemat India, Industrial Automa-
tion India and Motion, Drive & Automa-
tion India. Almost 10,000 trade visitors
ensured that these internationally ori-
entated fairs were successes right from
the start. In addition, Deutsche Messe
AG has taken on the task of marketing
the Bangalore International Exhibi-
tion Centre (BIEC) internationally, thus
impressively exploiting the opportu-
nity to extend its worldwide activities
to the second biggest growth market in
the world.
As a corollary, India also plays a
major role in trade fairs in Niedersach-
sen, Germany’s most important trade
fair state. India was the Partner Coun-
try at the Hannover Fair in 2006, and
the country’s importance was duly
acknowledged once again this year
through the series of events constitut-
ing the Indian Business Days at CeBIT,
the biggest computer fair in the world,
and at the 5th Foreign Trade Forum at
the Hannover Fair, the most important
indus-trial fair in the world.
India will also be at the centre of
the automotive industry’s 5th Interna-
tional Suppliers Fair (IZB) in Wolfsburg
from 29 to 31 October. Many well-
known automotive component suppli-
ers from both Germany and abroad use
the IZB as a communication platform,
in order to establish links with repre-
sentatives of other domestic and for-
eign suppliers and with carmakers.
Business delegations to India
There are however not only close busi-
ness contacts between India and Nie-
dersachsen, but very good political
relations as well: a delegation headed
by Economics Minister Walter Hirche
went to India in 2006, and in October
of this year Prime Minister Christian
Wulff will also be touring the country
with a business delegation, in order to
intensify existing contacts and build
up new ones. The delegation will visit
Mumbai, Pune and New Delhi. A B2B
contact event in Mumbai will provide
plenty of opportunities for Indian and
Niedersachsen companies to make ini-
tial approaches to each other.
In the other direction, there have also
been numerous visits to Niedersachsen
by Indian business delegations over the
past few years.
In addition, Niedersachsen is delib-
erately pursuing the intensification of
its relations with Indian partners in
certain particular areas of technology.
For example, a Memorandum of Under-
standing is shortly to be signed between
Photo: Deutsche Messe Hannover
Niedersachsen and the Indian State of
Kerala on more intensive cooperation in
the IT field.
CONTACT
German-Indian Business Center Hannover
c/o HannoverIT e.V.
Tel.: +49.511.4374796
frank.steinlein@gibc-hannover.org
Germany Contact India September 2008
24.09.2008 15:41:19 Uhr
JOST_k.indd

JOST opens new
factory in India
The new JOST factory in Jamshedpur,
Jharkhand will produce 50,000 fifth
wheel couplings annually.
In the midst of a festive ceremony, JOST India Auto
Component inaugurated its new production plant in Jamshed-
pur, a city west of Kolkata, on 25th July, 2008. Here, around
100 employees will be producing fifth wheel couplings for the
Indian market.
At this celebratory opening of the new JOST plant
in Jamshedpur in the north eastern state of Jharkhand, JOST
CEO Lars Brorsen was impressed with the rapid growth on the
Indian subcontinent, emphasizing the significance of the new
plant for company’s global strategy. “Thanks to the production
of our technologically leading products here, we can now serve
the Indian market better and more quickly. At the same time,
we wish to take advantage of the resources of this extraordi-
nary country. This is why we are very deliberately counting on
qualified, highly-motivated local employees.”
As previously done with other important markets
such as China, the USA or South Africa, JOST decided last year
to invest in its own production plants in India. After fewer
than 14 months of construction time, production of fifth wheel
couplings has now begun. At the inauguration, the India CEO
Amarjeet Singh said: “As an integral part of the JOST group,
we at this new plant will contribute to the success and growth
of the JOST World. The top quality, well engineered technology
and the title ‘Made in India’ will all guarantee a high level of
acceptance for JOST products from the very outset.”
Further information about JOST is available under
www.jost-world.com
and www.jost-india.com
GC India_3_VW.indd 11
JOST_k.indd 1
ADVERTISEMENT
The JOST plant in India was constructed on a 60,000
square meter green field site. The modern production plant in
Jamshedpur is located in close proximity to the largest Indian
truck manufacturer, Tata Motors. JOST India Auto Compo-
nent had already signed an agreement with Tata for long-term
supply of fifth wheel couplings. Peter Ormond, JOST Asia Presi-
dent said, “We aim to equip many generations of new trucks
and trailers in India with our safe, reliable systems.”
Production in the new JOST factory meets the highest
industrial standards and is the fi rst direct 100% foreign invest-
ment in Jamshedpur. In this modern manufacturing facility, the
employees will be producing JOST fifth wheel couplings for the
Indian market. After a brief start-up period, they will be able to
manufacture up to 50,000 fifth wheel couplings annually in the
new plant. The new factory also has an ultra modern plant for
e-coating (KTL). This process, which is used to lastingly, reli-
ably protect JOST products against corrosion, is absolutely free
of solvents and therefore particularly health and environment
friendly.
JOST is the only supplier of fifth wheel couplings and
telescopic landing gear that can provide its products and serv-
ices throughout the world. With production plants in Germany,
Spain, Hungary, the USA, Brazil, South Africa, China and now
India, JOST is the global partner of choice for the commercial
vehicle industry. JOST is today the leading producer of connec-
tion components for truck & trailer.
Production in the new JOST factory meets the highest industrial standards.
24.09.2008 15:41:24 Uhr
12.09.2008 12:19:34 Uhr
 Automotive Industry
New cooperation
arrangements
The German automotive industry
steps up its commitment in India
By Matthias Wissmann
Investments in India by the German automotive indus-
try have risen steeply in recent years. This is all the
more surprising considering that some of our compa-
nies have been represented on the Indian market for a
very long time already. For example: Bosch kicked off
its first activities in India more than 80 years ago in
1922, Mercedes entered a cooperation arrangement
with an Indian manufacturer 50 years ago, and Skoda
of the VW Group has links to the Indian market going
back decades. This long-term strategy pays off. Today
the German automotive industry is building more than
ever on India as a dynamic market of the future, with
high investments by car and truck manufacturers and
many suppliers. German automotive production facili-
ties are being developed in India, and suppliers are
producing parts and assemblies jointly with Indian
partners for the world market.
 About the author
Matthias Wissmann is President of the German
Association of the Automotive Industry (VDA)
12
GC India_3_VW.indd 12
About ten years ago a survey conducted by the German Asso-
ciation of the Automotive Industry (VDA) counted 34 produc-
tion plants set up in India by German automotive companies.
By 2004 the figure had already risen to 54, and many more
investments have been made since then. A current survey
conducted by our association revealed that ten large German
supplier companies alone employ more than 25,000 em-plo-
yees in India. Together they achieve a turnover of 1.2 billion
euros a year, have already invested over 380 million euros in
India, and are planning further investments worth over 250
million euros in the near future.
Not included in this figure are the investments planned by
vehicle manufacturers determined to multiply their local pro-
duction capacities. The cooperation between MAN and Force
Motors, BMW's start-up in Chennai, the decision taken by VW
and Audi to establish a production base in India, Daimler's
decision to establish a joint venture with the Hero Group in
order to enter the Indian commercial vehicle and bus market
– all these investments offer additional opportunities for the
German supply industry as well as for Indian fi rms.
Photos: BMW
The success of German manufacturers is reflected by a
surge in exports to India. German car manufacturers increa-
sed their exports of light vehicles to India by a remarkable 37
Germany Contact India September 2008
24.09.2008 15:41:26 Uhr

per cent in 2006, and in 2007 they did even better by doubling
the figure. Exports of German commercial vehicles to India
also doubled in 2007. Admittedly, at just under 6,000 vehicles
the total volume is modest, but the commitment reflected in
the upward trend is significant.
New cooperation arrangements
The same applies to India as an export base. It is not only
German exports to India that are growing. Trade in the other
direction has also risen sharply, underlining the growing sig-
nificance of India as a production and export location. New
cooperation arrangements between Indian manufacturers
and European partners also mean a step forward for India’s
industry in terms of quality. In only the fi rst five months of
2008, India exported cars worth 23 million euros to Germany.
The supply industry in India also increased its exports to Ger-
many substantially, with the upward trend continuing. Part
supplies in the fi rst five months of 2008 reached over 87 mil-
lion euros – a record level up more than 15 per cent on the
figure for the year before. The signs are that German compa-
nies will want to buy more in India in the future.
Similarly, German suppliers can point to a growing volume
of deliveries to India. While their deliveries to India were
worth only about 30 million euros a year at the beginning
of the millennium, by 2007 the figure had multi-plied more
than seven times to a volume of 208 million euros. Exports of
parts in the fi rst five months of this year totalled 96 million
euros, up 13 per cent year-on-year. Interest in products made
in the German supply industry remains high and we expect
a further rise in deliveries to India as well as purchases from
India. The free trade agreement currently being negotiated
between India and the European Union will further promote
and increase trade.
Facing global challenges
The automotive industry is faced with major challenges all
over the world. People's wish for individual mobility goes hand
in hand with the question of environmentally sound techno-
logy and global reduction of CO2 emis-sions. Infrastructures
must be improved further, and we must be able to rely on
the framework conditions. Global economic networking calls
for global solutions, for example in the economically efficient
harmonising of technical regulations. Here we are working
together on solutions to the challenges that are facing both
Germany and India.
One encouraging result of the joint activities conducted so
far by Indian and German companies and associations in the
automotive industry is that the automotive industries of both
India and Germany are ideal partners in securing sustainable
mobility.
Especially in the technological area, the German Clean
Diesel Technology offers a pathway to the future for efficient
and environmentally sound mobility. Compared with equi-
valent internal combustion engines, the Clean Diesel saves
25 per cent more fuel and thus makes an active contribution
to climate protection as well. Together with our partners we
are promoting the economical, clean, quiet and high-perfor-
ming Clean Diesel in India too. India, with its great potential
for growth, is an excellent market for advancing this techno-
logy further.
CONTACT
info@vda.de
www.vda.de/en/
Germany Contact India September 2008
GC India_3_VW.indd 13
Automotive Industry
Wolfsburg AG
India focus in Wolfsburg
Wolfsburg AG is hosting the “Indian-German Automotive Congress” on
28th October and the International Suppliers Fair (IZB) between 28th
and 31st October 2008 in Wolfsburg, home of the German Volkswagen
AG. The Congress on 28th October will be attended by experts from
leading German and Indian OEMs and suppliers, providing best-prac-
tice examples and discussing the opportunities offered by bilateral
partnerships. At the International Suppliers Fair from 29th to 31st
October 2008, supplier companies from Germany and abroad will have
the chance to showcase their products and services on 33,000 square
metres of exhibition space in Wolfsburg. A focal point of the IZB 2008
will be the presentation of this year’s partner country India. Among
the exhibitors are more than 40 suppliers from India which will show-
case their products and services on about 750 square in Hall 2.
Ashok Minda Group, Noida/Schenk Plastic
Solutions GmbH, Esslingen
Indian component manufacturer
acquires German interior supplier
Ashok Minda Group, a Noida-based auto component manufacturer,
has acquired specialist interior component supplier, Schenk Plastic
Solutions in Germany, for an undisclosed amount. The latest aquisi-
tion will help the group to strengthen its already significant presence
in Europe.
Schenk is a leading supplier of plastic parts and components for the
automotive and technical parts industries with plants in Esslingen and
Bretten in Germany and Liberec in the Czech Republic. Schenk has
annual sales of 75 million euros with 500 employees. The company has
a patented “skinform“ technology which produces high-value inte-
rior surfaces at a lower cost than previously possible. Schenk‘s top
customer is Daimler, which accounts for around 60 percent of the
company’s business. Daimler’s support to Minda for current and future
business will be crucial for the deal.
Commenting on the aquisition, Ashok Minda, Chairman of the Minda
Group said, “This acquisition is another step in our strategy to become
an important global player in the high-end plastic interior parts.
Schenk’s technical leadership and Minda’s management competence
will offer tremendous advantage to existing and new customers in
Europe and the rest of the world.”
The AK Minda Group will use Schenk as a platform for expanding its
business in Europe. This is the group’s second acquisition in Europe
after taking over another plastic interior plant in Pirna, Germany, last
year.
BMW India Pvt. Ltd., New Delhi
BMW plans to introduce a hybrid
car in India in 2 years
After the global launch of its hybrid car, which is expected in the
next 18 months, BMW is planning to introduce it in India within the
next two years. In its Efficient Dynamics programme, BMW has been
working on the development of hybrid vehicles and showcased the
ConceptX6 ActiveHybrid at the 2007 Frankfurt Motor Show.
BMW Senior Vice-President, Asia Pacific (except China) and South
Africa, David Panton revealed, “In the next 18 months the hybrid
vehicle from BMW will make its international debut. There is a pos-
sibility that it could find its way to India.“ >>>
13
24.09.2008 15:41:29 Uhr
 Automotive Industry
German automotive industry
Investment abroad generates
increased employment in
Germany
It was widely feared that the shifting of production by German car
makers to Central and Eastern Europe would cause a decrease in
employment in Germany. The opposite is the case, however. Since
1995, 160,000 new jobs have been created in the German automo-
tive sector. This is the main finding of a study by Henning Klodt that
was recently published in the List Forum.
Klodt states that this finding, which is surprising in the light of the
current globalisation debate, is due to the investment motives of
multinational companies. Recent studies have shown that multina-
tional companies are not primarily interested in taking advantage
of lower labour costs in particular countries, but rather in estab-
lishing global value-added networks that they can use to better
exploit their superior technological know-how. If a German car
maker develops a technology in Germany that enables it to produce
>>>
The German carmaker has made a good start in India, and has
increased its sales target by 40 per cent to 2,800 units this year.
Panton further added that BMW has been able to perform better
than its expectations in India, saying that in the initial six months of
2008 BMW has already sold 1563 units compared to a total of almost
1,400 units in the whole of 2007. “In fact, we have upped our sales
target for 2008 from 2000 to 2800 units,“ said Panton.
When questioned about the tentative launching date of the hybrid
vehicle in India, BMW India President Peter Kroncshnabl replied, “It
could be between 18-24 months.“ Lately, Honda had initiated the
introduction of hybrid vehicles in India with its Civic Hybrid, which is
priced at 50,259 US dollars (ex-showroom, Delhi).
Source: IBEF
Daimler Hero Motor Corporation Ltd.
Daimler Hero Commercial Vehicles
production plant to be located in
Chennai
The Indo-German joint venture Daimler Hero Commercial Vehicles
(DHCV), which was founded in April this year by Hero Group and
Daimler AG, concluded negotiations concerning its production loca-
tion. In July, the company decided in favour of the city of Chennai.
The key factors leading to the choice of the Chennai site for the
future production plant were proximity to important suppliers,
the city‘s infrastructure, transportation connections and the large
number of well-qualified skilled workers in the region.
The plant site, which measures 1.6 square kilometres (approx 400
acres), is located at Oragadam, District Kanchipuram, in direct prox-
imity to several supplier parks where Daimler Hero Commercial Vehi-
cles could also secure sites for future suppliers.
The Indo-German joint venture will soon begin the construction of
a new factory in Chennai, where it will produce commercial vehicles
under a new brand name for the Indian volume market and exports.
Starting in 2010, the plant is to produce up to 70,000 trucks in its
initial phase of operation. At a later point, the production of trucks
14
GC India_3_VW.indd 14
at a lower cost, this technology can be used in its foreign sub-
sidiaries at virtually no extra cost. As a result, development costs
per each car sold are lowered, which in turn creates incentives to
increase R&D activities in Germany, and this creates new jobs.
Over the last ten years, the number of people employed by Ger-
man car makers in Central European, Eastern European, and Asian
reforming countries has increased from 38,000 to 100,000. Dur-
ing the same period, the automotive sector’s import and export
trade with these countries has also developed much more dynami-
cally than with other countries. This is due to the intensive mutual
trade in preliminary products that is characteristic of value-added
networks. As a result, 160,000 new jobs have been created in the
German automotive sector since 1995, which is an increase of more
than 20 per cent.
Klodt emphasises that “it makes little sense to cry over jobs that
have been shifted to other countries, because their being shifted is
a major precondition to be able to make employment in Germany
more profitable.”
IfW – Kiel Institute for the World Economy
Daimler Buses in India: Launch of new Mercedes-Benz coach in
cooperation with Sutlej Motors: Harald Landmann, Head of Daim-
ler Buses, and Dr. Wilfried Aulbur, Managing Director and CEO
for export markets whose product requirements are similar to those
of the Indian market is planned.
DHCV is aiming to achieve a localization rate of up to 80 per cent
in order to optimally utilize cost advantages. The proximity of the
Chennai plant to the local supplier industry will help greatly to utilize
these cost advantages and will also help the local industry and com-
munity.
Daimler AG and the Hero Group signed the contract establishing the
Photo: Daimler AG
joint venture in Delhi on April 21st. Total investment in the Indo-Ger-
man joint venture will amount to over 700 million euros over the next
five years. The equity capital brought in by Daimler and the Hero Group
will amount to 360 million euros. Daimler will contribute 220 million
euros of this amount as a direct foreign investment in India.
Germany Contact India September 2008
24.09.2008 15:41:30 Uhr
 www.adrei.de
The Chemical Company

A passion for coatings

Coatings by BASF protect surfaces and give them
color and luster. For automotive OEM coatings,
automotive refinish coatings, industrial coatings
and decorative paints our customers rely on our
ability to provide intelligent solutions that will
improve their products. Whether it is research
and development or production and service –
you can depend on BASF Coatings worldwide.

BASF Coatings AG
+49 2501 14-0
www.basf-coatings.com

GC India.indd
GC India_3_VW.indd
1 15 24.09.2008 11:40:01
12.06.2008 17:00:58 Uhr
Uhr
 Economy & Business

Deepening relations
Recent developments in the Indo-German
economic relationship
By Ernst Stöckl-Pukall

The ties between Germany and

India have never been so strong
as today, and the prospects for
the future look even better. Trade
and investments are growing fast
in both directions. The volume of
bilateral trade has doubled in the
past three years, reaching about
12 billion euros in the year 2007.
Germany‘s exports to India grew to
7.3 billion euros, in line with its role
as the world’s number one exporter.
India’s exports to Germany totalled
4.7 billion euros, reflecting India’s
high demand for German machin-
ery and equipment, which is needed
for the country‘s rapid process of
industrial modernisation to world
standard.

In the field of investments we have been

witnessing great activity among Indian
companies to acquire foreign compa-
nies. Besides the widely publicised major
takeovers effected by Indian companies
there are many acquisitions of small
and medium sized enterprises (SMEs).
Germany has a huge number of SMEs in
leading positions on the world market
which are attracting more and more
interest from Indian companies looking
for know-how and technologies. With
its infrastructure and its location in the
centre of Europe, Germany is an ideal
investment location. Indian green field
investments in Germany are still low
however. Indian companies wishing to
move to Germany are welcome and can
approach “Invest in Germany” for assis-
tance in issues related to their invest-
Trade between India ment plans. In September the Indian
and Germany is growing Minister for Commerce and Industry
fast in both directions. will be visiting Germany together with
Pictured: Container almost hundred Indian SMEs. This is
handling in the port of
Photos: duisport/Felden, ILA

another sign that the Indian economy is

Duisburg.
going global.

Investment at high pace

 About the author Many German companies such as Sie-
Ernst Stöckl-Pukall is Counsellor Economic & Com- mens, ThyssenKrupp and Bosch etc.
mercial at the German Embassy in New Dehli. have long been investing in India and

16 Germany Contact India September 2008

GC India_3_VW.indd 16 24.09.2008 15:41:32 Uhr


have developed a visible presence in the
market. The majority of theses busines-
ses are progressing at a high pace and
with considerable commercial success.
They foresaw the huge market poten-
tial which could be tapped once India
embarked on the path of economic libe-
ralisation, which materialised in 1991.
In 2007/08, German companies inves-
ted 514 million US dollars in India. The
cumulative investment since 2000 is 1.5
billion US dollars. This figure does not
include reinvestments and is therefore
an undervaluation of real activities.
With an average economic growth
rate of 8 per cent over the last five
years, the Indian market has increas-
ingly appeared on the screen of German
companies. In the last few years we have
witnessed the positive development that
more and more small and medium sized
companies are entering India or at least
are deliberating plans to do so. This
is also reflected in the large number
of delegations visiting India to gather
information about market opportuni-
ties or to fi nd partners for cooperation.
The German Embassy, German Consu-
lates and the Indo-German Chamber of
Commerce, mostly in cooperation with
local partners, help them to meet with
the appropriate partners. Business dele-
gations are regularly accompanying
high level political visitors to India.
For example, later this year the Federal
Minister for the Environment, Nature
Conversation and Nuclear Safety or
the Chief Ministers from Lower Saxony
(Niedersachsen) and Baden-Württem-
berg are planning to visit India.
German automotive and aviation
industry in India
Despite the recent slowdown of econo-
mic growth to around eight per cent due
to a weaker than expected expansion of
the industrial sector and a high infla-
tion rate which climbed above 12 per
cent, the basic economic environment
remains conducive for investors. Experts
estimate the sustainable growth rate for
India at close to eight per cent. One main
sector of growth will be the automotive
and commercial vehicle sector. Almost
all auto majors consider Asia as the
fastest growing market for cars in the
world. They are foraying into the Indian
market with the mid-term objective that
India will become an international hub.
Best example is Volkswagen, which is
currently setting up a manufacturing
unit with an annual capacity of 110,000
cars. Around the rapidly growing faci-
lities in the sector, a competitive land-
scape of car component manufacturers
Germany Contact India September 2008
GC India_3_VW.indd 17
is also taking shape. Almost all German
companies in this sector have set up
subsidiaries or joint ventures in India.
This is for example a great advantage for
Volkswagen, which intends to source up
to 80 per cent of the required compo-
nents from India. To tap the promising
market for commercial vehicles, Mer-
cedes Benz and MAN have entered into
joint ventures for large-scale produc-
tion. The Indian market is still highly
protected against the import of vehic-
les – an issue that was controversially
discussed at the WTO negotiations in
Geneva recently. But irrespective of
this issue, there should be no doubt that
India with its huge internal market will
become competitive.
Another sector with immense growth
potential is civil aviation and aero-
space. Despite rising fuel prices, India
will purchase about one thousand pas-
senger and cargo aircraft over the
next decade. At the same time India is
modernising its defence sector by going
ahead with the necessary acquisition of
military aircraft. Currently a tender for
126 multi-role combat aircraft is being
processed, with participation of the
European company EADS, the parent
company of Airbus. With respect to the
offset requirements set by the Indian
government and to the fact that India
is a key client in the aviation sector, it
goes without saying that India wants to
get its share of that market and deve-
lop and transform its own industry into
an internationally competitive one. No
wonder that all aerospace majors are
already looking for partners and are
investing in India to develop a strong
market position. As such, this sector is
one of the best examples of how coope-
ration and transfer of technology bet-
ween India and Germany can be of great
mutual benefit. India’s strong interest in
cooperation with Germany was reflec-
ted in India’s role as Partner Country in
this year‘s Berlin Airshow ILA.
Science and environmental tech-
nology
There are many other fields where coo-
peration between Germany and India
has been deepened over the last few
years. One of them is science, techno-
logy and education. During the visit to
India of Chancellor Angela Merkel in
October 2007, the Federal Minister for
Education and Research Dr. Annette
Schavan signed a Memorandum of
Understanding with her Indian coun-
terpart Mr. Kapil Sibal concerning the
creation of an Indo-German Science
and Technology Centre to be estab-
Economy & Business
India was the Partner Country at the Berlin
Airshow ILA 2008. Pictured: The booth of
the Defence Research and Development
Organisation (DRDO)
lished soon in New Delhi. This comes at a
time where the well established network
of scientific cooperation between the
two countries is expanding and many
German science organisations such as
Max Planck or DFG are active in India.
The new centre aims at linking research
institutions and companies, thus reflec-
ting the increasing number of foreign
companies which are setting up R&D
facilities in India and Indian companies
which are now attributing more impor-
tance to R&D than in the past.
Other markets with big growth
potential are environment technology
and renewable energies. Federal Minis-
ter Sigmar Gabriel will visit India with
a high ranking business delegation to
open the Indo-German Environment
Forum in November this year. The two-
day forum will focus on its fi rst day on
environmental technologies for water
management, sewage treatment, sani-
tation and waste management and on
its second day on energy efficiency,
renewable energies and CDM. Demand
in these sectors is constantly rising in
India. Since German companies are
amongst the best suppliers of techno-
logy in these areas, the scope for coope-
ration looks immense.
Compared to China, India is still
lagging behind in terms of per capita
income, the quality of infrastructure
and other aspects. But despite of its
many problems, the country has proved
to be a market with its own strength
and potential which cannot be neglec-
ted. There can be no doubt that India is a
rising star with many facets.
17
24.09.2008 15:41:36 Uhr
 Economy & Business
Business climate
worsens again
Results of the August 2008 Ifo Business Survey
The Ifo Business Climate Index for
industry and trade in Germany has
fallen in August, the third decline
of the index in succession. The cur-
rent business situation has been
assessed clearly more unfavour-
ably than in the previous month.
In addition the firms also expect a
further negative business develop-
ment in the coming half year. The
German economy is encountering
an increasingly more difficult situ-
ation.
In manufacturing the business climate
has cooled off further. The survey par-
ticipants are noticeably less satisfied
with their current business situation
than in July. Moreover, they are mark-
edly more sceptical with regard to the
six-month outlook. The survey respon-
dents again expect weaker support from
export business, and they plan to exer-
cise more caution in hiring additional
staff.
The business climate in construc-
tion has worsened somewhat, with con-
The Ifo Business Climate Index is compiled
by the Ifo Institute for Economic Research
at Munich University and is considered one
of the significant leading indicators of the
business cycle in Germany.
The index is based on approx. 7,000
monthly survey responses of firms in ma-
nufacturing, construction, wholesaling and
retailing. The firms are asked to give their
assessments of the current business situa-
tion and their expectations for the next six
months. They can characterise their situa-
tion as “good”, “satisfactory” or “poor” and
their business expectations for the next six
months as “more favourable”, “unchanged”
or “more unfavourable”.
For more information, visit
www.cesifo-group.de.
18
GC India_3_VW.indd 18
Ifo Business Climate Germany,
Trade and Industry1)
1)
Manufacturing, construction, wholesaling and
retailing
Source: Ifo Business Survey September 2008
Ifo Business Climate Germany
by Industry
Source: Ifo Business Survey September 2008
Ifo Business Climate in the
Services
Source: Ifo Business Survey September 2008
tractors appraising both their business
situation as well as the six-month out-
look more unfavourably. In retailing
the business climate index fell slightly.
Retailers are less dissatisfied with their
current business situation but their
expectations for the coming half year
are again more sceptical than in the pre-
vious survey. In wholesaling, however,
the business climate has brightened: The
current situation is still seen as slightly
positive and the outlook is assessed less
critically.
Renewed clouding in the service
sector
The Ifo Business Climate in the German
service sector has worsened again in
August. The indicator has thus fallen for
the third time in succession. Behind this
decline are two countervailing tenden-
cies: The service providers are some-
what more satisfied with their current
business situation than in July, but they
are clearly more sceptical regarding the
six-month outlook. They plan to exer-
cise more caution in hiring additional
personnel.
Clear weakening in the willingness
to hire additional staff
The Ifo Employment Barometer for
German industry and trade fell per-
ceptibly in July after having worsened
already in the previous month. The
increase in employment will thus pro-
ceed at a clearly weaker pace.
Firms in manufacturing are planning
fewer new hirings. Technical capacities
in manufacturing are being utilised less
intensively on the whole in comparison
to the fi rst quarter of the year or to all
of last year. For this reason, the need for
additional personnel is weakening. Nev-
ertheless, there are still complaints of a
lack of skilled personnel especially from
capital goods producers. Retailers and
wholesalers expect weaker business in
the coming half year, and for this reason
their personnel plans are more cautious.
In construction, the survey responses
indicate a fairly stable employment sit-
uation.
Ifo Business Survey
Ifo Employment Barometer for the Financial
Times Germany
Germany Contact India September 2008
24.09.2008 15:41:38 Uhr
 Economy & Business

Established as a top
investment location
Germany under the scrutiny of international managers
In contrast to other countries in
Western Europe, Germany has
clearly established itself as a
top player in the global league.
However, the pressure from the
up-and-coming BRIC countries is
enormous. In order to obtain a more
country’s infrastructure – both in terms
of transport networks and telecommu- Comparison of the devel-
opment of unit labor costs
nications.
between 1997–2007 across
The appraisal of workforce qualifica-
tions is down slightly overall in com- the European Union
parison to the previous year, which is a
worrying trend particularly when seen Germany 0,3
in a more long-term context – in 2006 Austria 0,6

accurate picture of the opinions of the number of positive appraisals was Finland 1,2
Belgium 1,4
managers outside Germany, deci- still 89 per cent, while the current figure
Sweden 1,4
sion makers at 205 companies from is down to just 76 per cent.
France 1,6
The subject of “sustainable corpo-
outside Germany were asked to give rate governance" is still seen by most EU27 1,8
their views about the attractive- of the respondents as one of Germany’s
Italy 2
Poland 2
ness of Germany as a business and strengths. In fact, German companies Netherlan 2,3
investment location. – both large companies and small/ Spain 2,5
medium size enterprises – have engaged Great 2,8
The USA is still the key rival to Ger- very intensively with this subject – and Portugal 2,9

many as a potential investment loca- not only in recent years since it became Greece 3,1

tion, but the trend is waning. At present,
21 per cent of the people asked identi-
fied the USA as German’s main com-
petitor – in 2007 this figure was still 35
per cent. The UK and China are in joint
second place with 16 percent each. The
numbers clearly show that these inter-
national companies recognize Germany
as a global player.
Germany’s strengths
After establishing Germany’s posi-
tion among the global competition,
the survey was interested to fi nd out
which individual aspects are the most
important for companies from outside
Germany. The most important point
in favour of Germany remains the
About the study:
As part of a survey conducted across the
whole of Europe, in which 834 internation-
al decision makers expressed their views on
the attractiveness of Europe as a location,
205 decision makers from non-German
companies were asked for their appraisal
of Germany as a location. The study was
published by Ernst & Young under the ti-
tle „Location Germany 2008: Germany and
Europe – International Manager Assess-
ment“.
trendy to do so.
Germany’s weaknesses
At the same time, the results from other
parts of the survey pointed at a major
weakness of German as a location: the
general lack of a culture of independence
or entrepreneurship. Only 65 per cent of
the respondents gave Germany a positive
mark for “entrepreneurial spirit".
Overall, it can be concluded that Ger-
many has seen no improvement since
2007 in any of the areas – in fact, quite
the opposite: as a location, Germany is
evidently under pressure in a number of
areas.
From the point of view of the manag-
ers of the companies in the survey from
outside Germany, the high labour costs
in Germany and the over-regulation of
German labour laws are the biggest dis-
advantages of Germany as a location.
However, the labour cost argument has
clearly become less important in recent
years – in 2006, 78 per cent of the for-
eign decision makers still felt that this
factor was an obstacle to investment,
while this has dropped to just 65 per
cent today. Indeed, labour costs have
been quickly catching up in the East-
ern European countries in particular.
For example, between 2000 and 2007
the labor costs in Hungary increased
by a total of 95 per cent, in the Czech
Czech Rep. 3,3
Ireland 3,4
Slovak Rep. 4
Slovenia 4,6
6,2
Bulgaria
Hungary 6,3
Rumania 29,6
Source: EU Commission, Eurostat
Republic and Poland by 64 and 63 per
cent respectively (data supplied by the
Federal Office of Statistics) – while the
increase in Germany for the same period
was just 13 per cent, a figure which rep-
resents a lower increase in labour costs
than any other European country during
the same period. On average, the (nomi-
nal) unit labour costs in Germany have
risen by 0.3 per cent in the last ten years.
The rates of increase are much higher in
the countries which are German’s main
rivals in Western Europe (see graphic).
In fact, the real labour unit costs in Ger-
many have actually been reduced in
recent years: by 11 per cent over the last
five years. In France they rose by three
per cent during this period, while they
remained constant at the 2002 level in
the UK. In recent years, Germany as a
location has therefore gained compet-
itiveness in comparison to the other
large European national economies in
terms of labour unit costs.

Germany Contact India September 2008 19

GC India_3_VW.indd 19 24.09.2008 15:41:38 Uhr

 Economy & Business
Winning strategy times
Future bridge to India: the Luckenwalde Biotechnology Park continues to expand
The big players are not the only
Indian companies which are gain-
ing a foothold in Germany. SMEs
are also making their way to Central
Europe to gain access to the sales
market and to acquire know-how.
Compared to the large companies
however, SMEs find market entry
more challenging. A marketing
campaign by a local region in Ger-
many shows how the obstacles can
be overcome and how to make it
easier for German companies to
find their way to India.
“Win-win situation” is one of the most
overused phrases which crop up during
investment discussions, business loca-
tion presentations and more gener-
ally in international business jargon.
The term was heard once again on a
humid afternoon in May of this year
at an industrial estate in Luckenwalde,
Germany. The words were uttered by
Ramini Dorai who acts as a business
consultant on behalf of Indian compa-
nies in Germany. “The UK market has
20
GC India_3_VW.indd 20
become more difficult. However, Indian
companies benefit from a win-win situ-
ation when they come to Germany.” Two
Indian companies are already located
in Luckenwalde. Dorai brought another
eight companies, which are interested
in entering the European market, along
for investment discussions, because he
believes that Luckenwalde is the ideal
place to locate.
Indian SMEs discover Germany
Reports of investment projects by Indian
companies have become more frequent
in recent times. Big names like Suzlon,
Wockhardt, Voltas (Tata Group), Bharat
Forge and Viraj appear regularly in the
business news. Only this year ICICI,
which is India’s largest private market
bank, entered the market. The bank got
its initial start in this part of the world in
Belgium, and the new office represents
the company’s next attempt to gain a
foothold in continental Europe. In con-
trast to the industrial heavyweights,
ICICI’s decision is an indication that
SMEs are now venturing into the
German market. “We are seeing an
increasing level of investment by Indian
companies in Germany. The investors
tend to be Indian SMEs rather than large
companies, so we have decided to open
an office in this country,” said Hitesh
Sethia, the head of the new branch in
Frankfurt/Main. Dorai knows why
SMEs are now discovering Germany.
“There is now a lot of competition bet-
ween Indian companies in the US and
the UK.” Growth opportunities are more
lucrative in Germany. The cultural and
language barriers and the initial invest-
ments are higher than in the English-
speaking countries, but long-term ROI is
significantly better in Germany.
Know-how, sales market and trai-
ning centres
The business leaders who accompanied
Dorai to Luckenwalde in March are
looking for different types of ROI. Micro
from Bangalore is considering using
Luckenwalde as a base for entry into the
European market. Newtech Software
Ltd., which is also based in Bangalore,
established a presence in Luckenwalde
in July of this year and plans to purchase
biotech software technology from the
Fraunhofer Institute which is the lar-
gest applied research and development
Photos: OWC
services organisation in Europe. The
third potential investor to accompany
Dorai was the business development
Germany Contact India September 2008
24.09.2008 15:41:39 Uhr

s three Indian SMEs discover Luckenwalde
manager M.S. Ganesh from Firepro Sys-
tems Pvt. Ltd., India’s largest building
management fi rm. The company inte-
grates, installs and operates fi re pre-
vention systems. Ganesh describes the
company’s role as “making buildings
intelligent”. Firepro also has offices
in Australia, Singapore and Dubai.
However, the company needs partners
to remain competitive and head off
the challenge of foreign competitors.
German expertise is part of the equa-
tion. “The leaders in the field are located
in Germany,” said Ganesh, and this is
one reason why the company decided to
set up a training centre in Luckenwalde
in September. Employees from India
will receive training here, and this will
enable them to apply German enginee-
ring expertise in their work on building
projects in India.
The company intends to comply with
ISO 9000 quality standards in the near
future. However, know-how is not the
only issue. Christoph Weber, Direc-
tor of the Biotechnology Park in Luck-
enwalde, is convinced that having a
German subsidiary enhances the image
of Indian companies. “We can offer that
here,” said Weber. However, it is impor-
tant that Indian companies make the
Germany Contact India September 2008
GC India_3_VW.indd 21
Luckenwalde:
22,000 inhabitants
> County: Teltow-Fläming
> Distance from Berlin: 50 km
Biotechnology Park Luckenwalde:
> Number of companies: 38
> Employees: approx. 500
> Industries: Biotechnology,
medical technology, life sciences
> Size: 28 hectares
> Certification: ISO 9001, GMP
> Established: 1997
> Address:
Biotechnologiepark Luckenwalde GmbH
Im Biotechnologiepark, TGZ 1
14943 Luckenwalde
Germany
Tel.: 0049/3371/681-100
bio-luck@bio-luk.de
www.bio-luck.de
decision to come to Germany in the
fi rst place. “People coming here from
India do not know anybody,” explained
Weber. To make things easier, the park
management team organises discus-
sions with potential collaboration part-
ners, provides access to legal assistance
and helps companies apply for govern-
ment subsidies before they even begin
to think about setting up a subsidiary.
Management consultant Dorai supports
this approach. “Trade shows are a good
opportunity to gather general infor-
mation about the state of technology
in German industry, but they have not
proven to be very helpful in establish-
ing B2B contacts.” Joining forces with
a knowledgeable partner at the site is
more likely to lead to success.
Indian investors help revitalize
German industry
The Indians are not the only ones who
benefit. The Luckenwalde strategy is also
designed to boost the local economy. In
the wake of German reunification, the
city’s importance as a manufacturing
centre declined, and this led to unem-
ployment and a population exodus.
The Biotechnology Park was opened
Economy & Business
in 1997 in an attempt to attract major
new technologies. 38 SMEs in the bio-
technology, medical technology and
life sciences industries have located at
the park including two companies from
India. Luckenwalde and five other bio-
technology parks in the greater Berlin
area collaborate with the academic and
research community. Greater Berlin is
one of nearly 30 biotechnology regions
in the country, which generate around
one third of patent applications in
the industry worldwide. Berlin along
with Munich and Heidelberg is one of
Germany’s largest biotechnology clus-
ters.
Weber pointed out that it is difficult
to attract biotech companies from other
European countries to Luckenwalde.
The Biotechnology Park management
team hopes to have more success with
Indian companies, because the indus-
try expanded by more than 30 per cent
between 2007 and 2008. As soon as a
critical mass of Indian companies has
been reached in Luckenwalde, the Park
management team will not hesitate to
present the site to the outside world as
a springboard to develop the Indian
market. This in turn should entice
German companies, which are targeting
the rapidly expanding Indian market, to
locate at the Park. However, the man-
agement team remains low-keyed. “We
do not want to create unrealistic expec-
tations. This is going to be a long pro-
cess,” said Weber, keeping his feet
fi rmly on the ground. There is however
an initial success story to report. At the
Park, an Indian company has become
aware of German expertise in field of
tumour analysis. The German com-
pany is now represented in India and
is making use of the Indian partner’s
sales channels. Weber is convinced that
the German company would otherwise
never have established the Indian con-
nection. According to Firepro’s Ganesh,
now that the company has a presence in
Luckenwalde, German companies will
be involved in mega projects in India
which Firepro hopes to acquire with the
aid of German know-how. At any rate,
one thing is clear. The Indian compa-
nies, the city of Luckenwalde and the
German companies which locate at the
Park will all benefit. Business jargon
already has the fitting buzzword: a win-
win-win situation.
Christian Müller
21
24.09.2008 15:41:43 Uhr
 Economy & Business
David vs. Goliath?
Legal dispute between Putzmeister and
Aquarius Engineers
Site of Putzmeister Group’s wholly-owned sub-
sidiary in Goa, India. The Indian joint venture
partner Aquarius were convinced that the Ger-
mans had acted in bad faith.
In July of this year, reports
appeared in the Indian press that
an Indian company had won a
major legal battle between against
a German joint venture partner. The
case appeared to be clear-cut. The
High Court in Delhi set a precedent
which strengthens the position of
Indian companies in their relation-
ships with foreign companies. How-
ever, closer scrutiny reveals that the
judgement is not as straightforward
as the press reports imply. The only
thing that is certain is that India
will lose significant investment,
and foreign investors will have to
continue to live with a gray area of
Indian law.
22
GC India_3_VW.indd 22
The events at the end of July in the legal
dispute between Aquarius Engineers
Pvt. Ltd. in Pune and the German con-
crete pump manufacturer Putzmeister,
which is based in Baden-Württemberg,
Germany, show clearly that German-
Indian cooperation is not always a suc-
cess story. In the legal battle between
the two companies, the High Court in
Delhi handed down a decision relating
to the wholly-owned subsidiary Dyna-
jet Machinery India Pvt. Ltd. which
the Putzmeister Group set up in Goa in
2005 and which now operates under the
name Putzmeister Concrete Machines
Pvt. Ltd. Aquarius claims that Putz-
meister failed to comply with Press Note
1 which stipulates that foreign inves-
tors who entered into joint ventures
prior to 2005 must obtain consent from
their Indian partner if they intend to set
up another company in the same field.
Aquarius and Putzmeister agreed to set
up a 76:24 joint venture under the name
Putzmeister India Pvt. Ltd. The Indian
partner believes that Putzmeister acted
in bad faith by setting up a new subsid-
iary.
Emotions rather than facts
The Indian press also strongly disap-
proved of the way in which Putzmeis-
ter has treated Aquarius. The reports
claimed that the German company
wanted to sideline its Indian partner
once its products and brand had been
successfully established in the Indian
market. Following the pronouncement
of the judgement by the High Court on
July 1st, the press reported that justice
had been done in this “David vs. Goli-
ath” legal wrangle. This at any rate was
the view which was expressed in some of
the Indian daily newspapers. The actual
judgement is however far less clear-cut
than some of the reports would lead us to
Photo: Putzmeister
believe. Contrary to what has been writ-
ten in the newspapers, no penalty was
imposed. Putzmeister merely has been
required to pay the court costs amoun-
ting to 100,000 Indian rupees, half going
Germany Contact India September 2008
24.09.2008 15:41:44 Uhr

to the Indian government and the other
half to German-Indian joint venture.
The court also did not make a fi nal deci-
sion relating to the Putzmeister Group’s
subsidiary which is the source of the
controversy. The judgement only makes
it clear that the automatic approval
route for investment, which was used by
the Indian authorities, did not conform
to the legal requirements laid down in
Press Note 1 and was thus in violation
of regulations governing direct foreign
investment. Instead, approval to set up
the company should have been obtai-
ned fi rst from the Foreign Investment
Protection Board (FIPB) and the Project
Approval Board (PAB), which is a more
lengthy process. This led the Times of
India on July 29th to shift the main
criticism to the Reserve Bank of India
which according to the paper had been
too lax in its scrutiny and has failed to
use its authority to bring foreign inves-
tors before the FIPB.
Endless legal wrangling with win-
ners and losers
However, Putzmeister did suffer a set-
back in one major point. The company
had argued that at the time when the
application was submitted, the joint
venture has already been dissolved
and Press Note 1 (January 12th, 2005)
was therefore not applicable because
the joint venture no longer existed. The
verdict states that “Putzmeister engaged
itself in ill-advised litigation”. In Point
1 of the judgement, the Court points
out that it is not prepared to allow itself
to be drawn into a re-interpretation of
Press Note legislation. “There is no sug-
gestion that the interpretation adopted
by the government is discriminatory, or
male fide, or in any manner illegal, as
opposed to provision of law.”
At Putzmeister headquarters, which
is located near Stuttgart in Germany,
company officials do not see the verdict
as a major setback. Ralf von Baer, Man-
aging Director of Putzmeister Holding,
takes the following view: “The current
legal proceedings have made it clear
that the Indian government has not ade-
quately reviewed our multi-million euro
investment.” The outcome of the actual
disagreement surrounding the wholly-
owned subsidiary is still open. Putz-
meister is currently involved in nine
legal disputes with Aquarius. Among
other things, Aquarius does not accept
the decision by the German company to
sell its stake in the joint venture, even
though Baer claims this was covered by
the joint venture agreement. The two
parties also disagree whether the new
Germany Contact India September 2008
GC India_3_VW.indd 23
subsidiary is actually selling the same
products as the former joint venture.
This in turn determines whether Press
Note 1 even applies. The July judgement
does not clarify any of these issues, so
there can be no question of victory or
defeat.
Penalized for early market entry
However, Putzmeister’s image has taken
a significant hit. von Baer rejects allega-
tions which appeared in the Indian press
that Putzmeister abandoned its Indian
partner after the German company had
improved its market position. “To serve
its own interests, our Indian partner
blocked investment and the further
development of the joint venture.” In the
meantime, a German competitor was
massively ramping up its market share
in India. Moreover, since the dissolution
of the joint venture, Aquarius has incre-
ased its turnover despite competition
from Putzmeister and the other compe-
titor. The German company’s Managing
Director believes that the underlying
issue behind the current litigation is the
strict and unreflective interpretation of
Press Note 1. “The Indian government
is trying to attract foreign companies
and expertise and ensure fair treatment
in compliance with WTO rules. At the
same time, however, early entrants to
the Indian market, who are now ready to
make major additional investment, are
being penalized.” Press Note 1 applies
to investors who signed a joint venture
agreement prior to 2005. “Once a foreign
company is involved in a joint venture,
according to the current interpretation
of Press Note 1 the Indian partner can
decide whether the foreign investor will
ever be able to operate independently in
the Indian market.” von Baer is not alone
in voicing this criticism. In its online
edition of July 21st, the Economic Times
India argued that Press Note 1 could
potentially be abused by the Indian joint
venture partner. It is questionable whe-
ther the government would approve the
establishment of a new company. The
newspaper argues that “foreign part-
ners should be free to go ahead with the
new joint venture.”
Drinking tea is better than asser-
ting your rights
Jörg Podehl from the solicitors fi rm
Peters Rechtsanwälte is the author of
a standard text on the legal aspects of
doing business in India. He believes
that Press Notes 18/1998 as well as 1
and 3/2005 still severely restrict the
rights of foreign investors. In his opi-
Economy & Business
nion, the verdict in the Putzmeister case
shows that decisions made by the Indian
authorities will only be subject to judi-
cial review in extreme cases. According
to Podehl, the courts give the authori-
ties plenty of discretion. There are also
a number of legal terms which are not
clearly defi ned. Even a term like “joint
venture” is not precisely defi ned in law.
In Podehl’s opinion, previous decisions
made by the authorities (FIPB) do not
bode well for Putzmeister as the legal
battle unfolds. The case of the Indian
company Modi Rubber Ltd. vs. Guardian
Industries Corp. of the US shows that
engaging in litigation in India is not a
rewarding experience.
Podehl regards this whole issue as
a gray area of Indian law and advises
foreign companies to seek out-of-court
settlements and engage in patient nego-
tiations with their Indian partners. “No
Objection Certificates” (INOCs) can help
improve the negotiating position when
the joint venture agreement is drawn
up. At any rate given the current situ-
ation, the David vs. Goliath analogy is
hardly appropriate for the legal battle
between Aquarius and Putzmeister, at
least not until further judgements have
been handed down.
Christian Müller
Putzmeister Holding GmbH
> Founded: 1958
> Company headquarters: Aichtal, Baden
Württemberg, Germany
> Employees worldwide: 3,871 (2007)
> Turnover: 1,009.7 million euros (2007)
> Products: concrete pumps, mortar
machines, high density solids pumps
& pipelines; during construction of the
world’s tallest building in Dubai, a
Putzmeister concrete pump achieved
a world record delivery height of
601 meters.
Aquarius Engineers Pvt. Ltd.
India
> Founded: 1981
> Company headquarters: Pune
> Employees: 115
> Turnover: 4.65 million euros (2007)
> Products: concrete pumps,
batching plants; Aquarius supplies the
Indian market and exports to neigh-
bouring countries. The largest projects
which the company is involved in are
the the Delhi Metro Rail Project, the
Mumbai Pune Expressway and a number
of construction projects in the energy
23
24.09.2008 15:41:49 Uhr
 Economy & Business

The backbone of the

German economy
Family-owned firms in Germany

By Frank Wallau EU uses different criteria. Since Janu-

The vital importance of SMEs and
family-owned companies to the
German economy is well known.
Particularly in the age of the global
economy and large multinationals,
firm roots can be a distinct advan-
tage. Managers of family-owned
Proportion of family-owned
ary 1st, 2005 SMEs have been defi ned
as companies which: companies in Germany 2005
a) do not have more than 250 em- Companies Turnover Employees
ployees
b) do not have more than 50 million euro
annual turnover or which have total
assets less than 43 million euro.
c) are (largely) independent. Family-owned companies in %

companies have the flexibility Companies which belong to corporate

to respond quickly as the world
around them continues to change.
The German term “Mittelstand” is often
used as a synonym for SMEs (small
and medium-size enterprises). It is true
that many SMEs are also family-owned
(Mittelstand) companies, but the actual
defi nitions differ. The term SME is
based on quantitative criteria. A com-
pany is assigned to a particular cate-
gory based on the number of employees
groups are not SMEs, because they fail Source: German Federal Statistical Office, various
to meet the independence test. statistics, IfM estimates
In contrast to SMEs, the defi nition
of family-owned companies is based
on qualitative criteria without refer- Proportion of SMEs in
ence to size. The convergence of own- Germany 2007
ership and management characterizes
this group of companies. The owner or Companies1)2) Turnover1)2) Employees3)
a member of the owner’s family man-
ages the company. Because the same
person is making the management and
ownership decisions, the company can
respond quickly to the changing busi- Company Net value add
ness environment. trainees3) by the companies1)2)

and/or the size of the company’s turn-

over. Other criteria including value-add,
total assets or equity capital could also
be applied. In contrast to this defi nition,
ownership structure is the differentiat-
ing feature of family companies, creat-
ing a distinction between SMEs and this
type of company.
The IfM institute in Bonn defi nes
SMEs as companies with fewer than 500
employees or 50 million euro turnover.
However based on a recommendation
issued by the European Commission, the
 About the author
Dr. Frank Wallau is Managing Director of the
The economic importance of
family-owned companies
Data which is currently available based
on the German Registry of Companies
shows that there were about 3.47 mil-
lion companies in the country in 2005.
These companies had a total turnover of
4.4937 trillion euro, and the 3.46 SMEs
accounted for 1.8186 trillion euro of that
figure. According to IfM estimates, the
number of companies has now risen to
3.6 million, primarily because in recent
years the number of new company reg-
istrations has exceeded the number of
companies that have shut their doors. 95
per cent of these fi rms have the conver-
gence of ownership and management
which is characteristic of family-owned
companies. Only 0.3 per cent of compa-
nies in Germany are large companies.
Around 99.7 per cent of all companies
Percentage SMEs
1)
SME definition based on turnover
2)
2006 figures
3)
SME definition based on number of employees
Source: German Federal Statistical Office, German
Labour Market Authority, IfM figures 08-2008
of all persons who were are required
to pay social insurance contributions.
Family-owned companies are particu-
larly diligent in meeting their respon-
sibility to provide vocational training.
83 per cent of vocational training in
Germany is provided by SMEs. These
companies also accounted for 47.2 per
Photo: OWC

IfM institute in Bonn, which conducts research

on SMEs and family-owned companies in Ger- in Germany were SMEs. These fi rms cent of total net value add.
many. He is also a professor at the University of accounted for 38.3 per cent of total According to IfM estimates, 95.1
Business Studies (FHDW) in Paderborn. turnover, and they employ 70.6 per cent per cent of all companies in 2005

24 Germany Contact India September 2008

GC India_3_VW.indd 24 24.09.2008 15:41:51 Uhr

 Economy & Business

were family-owned companies. They whereas the total number of VAT-regis-

employed 57.3 per cent of the total work-
force nationwide, and they accounted
for 41.5 per cent of total turnover.
Internationalisation of German
family-owned companies
SMEs tend to have a regional horizon.
An analysis of VAT statistics provides
detailed information about the export
activities of German companies. In 2006,
345,000 SMEs (turnover less than 50
million) were active in export markets.
This means that 98 per cent of expor-
ters are SMEs. It is also remarkable that
even small companies are very active in
international markets. There are around
257,000 exporters which have a turn-
over of less than two million euro. One
out of nine companies in Germany is
active in the export market. This figure
may at fi rst not seem very high, but it is
important to remember that these stati-
stics include all companies in the coun-
try including pubs, restaurants, beauty
salons, car repair shops, small retailers,
etc. which are normally only active in
local or regional markets. A ten-year
comparison between 1996 and 2006
shows clearly that the number of VAT-
registered SMEs which are active in the
export market has risen by 21 per cent
tered SMEs only increased by twelve per
cent during the same period. This means
that an increasing number of SMEs have
expanded their activities beyond the
country’s borders during the past ten
years. The VAT statistics also provide
information about SME export turnover
in 2006. Exports by the approximately
353,000 companies amounted to 920.9
billion euros, which is equivalent to
about 18.7 per cent of total turnover by
all companies. 345,000 SMEs achieved One out of nine companies in Germany is
an export turnover of 185.4 billion euro, active in the export market. Pictured: Feig
which was 9.8 per cent of total SME tur- Electronic Ltd. based in Weilburg.
nover. To put it another way, one six of
total turnover by all companies and one
tenth of total turnover by SMEs is achie- ny’s borders including company sales/
ved in export markets. Many family- service centres, equity holdings, joint
owned companies, especially those in ventures or company production facil-
the industrial sector, are export cham- ities. Direct investment is often made
pions meaning that their export quota is to protect existing export markets or
greater than 50 per cent. to penetrate new markets. This means
Unfortunately, government statis- that exports are an important economic
tics do not provide any information factor for German family-owned com-
about other forms of internationalisa- panies. Many of these companies have
tion apart from exports, for example already taken up the challenge of pro-
contract manufacturing, international gressive globalisation and are actively
partnerships or company service/pro- exploiting their opportunities in world
duction facilities outside the country. markets.
According to IfM estimates, more than
100,000 family-owned companies have CONTACT
made direct investment beyond Germa- www.ifm-bonn.org

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info@imove-germany.de | www.imove-germany.de/english

Germany Contact India September 2008 25

GC India_3_VW.indd 25 24.09.2008 15:41:52 Uhr

 Law
M&A in Germany: The
Legal key aspects for successful public and privat M&A
By Stephan Ulrich
In anticipation of the continuing
increased interest of Indian com-
panies in investing in the German
market and in German companies,
it is essential to be familiar with the
different possibilities and the legal
circumstances of acquisitions in
Germany.
The German legal system is based on
the freedom of trade doctrine, which in
principle enables foreign investors to
acquire and operate businesses in Ger-
many without a licence (except in spe-
cial cases such as lotteries etc., which
are regulated in the Industrial Code).
The legal framework of mergers and
acquisitions contains some specific fea-
tures, especially in the sector of public
M&A, in order to assure the effectual
and comprehensive protection of con-
sumers and minority shareholders. The
European Union does not yet provide for
a common European Contract Law, but
only for punctual unification due to the
implementation of the EU directives into
the national legislations. Therefore it is
indispensable to consider the national
regulations of the member states in case
of any investment within the European
Union.
Options for investments in Ger-
many: Private M&A
The takeover of private companies in
Germany is not restricted, apart from
merger control regulations and acquisi-
tions in the defence and cryptographic
systems sector. German corporate law
 About the author
Dr. Stephan Ulrich is a partner of Simmons &
Simmons in Düsseldorf, Germany, in the area of
mergers and acquisitions (M&A) and corporate
law, with particular expertise in advising Indian
investors in respect of their German and Euro-
pean acquisitions.
26
GC India_3_VW.indd 26
provides a fi xed number of corporate
forms, such as the German Limited
Liability Company (Gesellschaft mit
beschränkter Haftung, GmbH), the
German Stock Corporation (Aktienge-
sellschaft, AG), the Limited Partnership
(Kommanditgesellschaft) and various
other forms of partnership. In addition,
since October 2004 the European stock
corporation (Societas Europea, SE) has
been accepted throughout the Euro-
pean Union. All forms of company may
become the target of a private share or
asset deal.
More and more, sellers tend to struc-
ture a disposal of a company like an
auction sale. The competitive situation
is assumed to maximise the sales pro-
ceeds for the seller, to accelerate the dis-
posal process and to reduce the risk that
a potential buyer loses interest in the
target at a late stage.
When contemplating an acquisition
of a company domiciled in Germany or
Europe, it must be considered that such
a transaction may require approval by
the cartel authorities, i.e. either the
European Commission (“Commission”)
or an authority of an EU Member State
(e.g., the German Federal Cartel Office
(“FCO”)). Concentrations which are
notifiable may not be implemented prior
to the clearance decision. Early imple-
mentation can result in severe fi nes. The
timing of any transaction has to pro-
vide sufficient time to prepare the rele-
vant fi lings by the parties and take into
consideration the relevant authorities
deadlines for decision-making. As a rule
of thumb, the FCO will clear unproblem-
atic cases within one month of notifi-
cation, whilst problematic cases can
require an investigation of four months
The German govern-
ment may create an
obstacle for inves-
tors from countries
outside the EU if
they target a share
of more than 25
per cent. Pictured:
Precision Forge in
Duisburg acquired by
Sona from Thyssen-
Krupp in 2007.
from notification. The Commission will
clear unproblematic cases within 25
working days from notification, whilst
in problematic cases it requires an addi-
tional period of 90 working days. Usu-
ally, cartel clearance is requested in an
interim period between signing and
closing of a transaction, although pre-
signing clearance is available.
Public M&A
If the target company is a German or
European stock corporation and is pub-
licly listed, it is necessary to comply
with the regulations of the German
Takeover Act (Wertpapiererwerbs- und
Übernahmegesetz) in addition to the
aforementioned aspects.
Certain requirements for public
tender offers will apply, such as formal
requirements for the offer document,
the acceptance period for the offer and
the rules of conduct for the management
board of the target company. The Take-
over Act also regulates tender offers
aimed at gaining control over the target
company (i.e. the acquisition of 30 per
cent of the voting rights of the target
company). The consideration for these
offers has to meet the average stock
Photo: Sona BWL Präzisionsschmiede GmbH
market price of the last three months.
Additionally, the Takeover Act obliges
every shareholder gaining control over
the target company to make a manda-
tory offer vis-à-vis the other sharehold-
ers. Potential buyers have to be cautious
in respect of confidentiality when con-
templating public takeovers, as the deci-
sion to make a public tender offer will
have to be immediately made public by
the bidder, and as further insider rules
may require the disclosure. As this will
Germany Contact India September 2008
24.09.2008 15:41:53 Uhr

legal inside view
impact the stock price and, therefore,
the economic rationale of the deal, this
aspect is of predominant importance.
Where the shareholdings of an inves-
tor in a listed company exceed certain
thresholds (3, 5, 10, 15, 20, 25, 30, 50,
75 per cent), the investor is subject to
notification duties. It should be noted
that these obligations are in the pro-
cess of becoming even stricter. Under
a new law, not only shares but fi nan-
cial instruments such as options shall
be taken into account for calculating
whether the respective thresholds are
met (in force from March 2009 on). Fur-
thermore, a shareholder whose share-
holdings in a listed company exceed
certain thresholds shall be obliged to
disclose his economic aims connected
with the acquisition of these shares (in
force from 31st May 2009 on).
Currently, violations of notification
duties result in the loss of the sharehold-
er’s voting rights only until the inves-
tor rectifies the position. From March
2009 on, the loss of voting rights will
in many cases continue for a further six
months.
A shareholder holding at least 95
per cent of the registered share capital
of an AG is entitled to squeeze out the
remaining shareholders in return for an
adequate cash compensation. Following
a successful public tender or mandatory
offer, a simplified squeeze-out mecha-
nism may apply.
Distressed M&A – private acqui-
sition of an insolvent company
The takeover of a distressed company is
in many ways different from the invest-
ment in a profit-making company.
Beside the general conditions of an
acquisition, there are additional aspects
to be considered, as for example the
position of the insolvency administra-
tor, time pressure as well as the difficult
valuation.
The takeover of a distressed company
by a foreign investor is a frequently used
constellation. The company’s value is
low, the insolvency proceedings offer
the possibility to accomplish necessary
reorganisations straightforwardly and a
foreign strategic investor might be able
to restructure the business on a global
scale even better then a local partner.
The German Insolvency Law (Insol-
venzordnung) provides certain privi-
leges for the acquisition of a company
Germany Contact India September 2008
GC India_3_VW.indd 27
during the insolvency process, but the
success of the takeover depends on an
effective and well-structured prepara-
tion of the deal.
Depending on the timing, the best
legal structures of the acquisition of a
distressed business might be an asset
deal, a share deal or even the acquisition
of debt followed by a debt-equity swap.
However, unlike in other jurisdictions, a
debt-equity swap requires the approval
of the shareholder, which may not easily
be obtained.
The adequate moment for the acqui-
sition of a distressed company depends
on the circumstances of each case. It is
possible to manage the takeover in the
pre-insolvency situation. Both asset
and share deal may not be without risk,
as the buyer might assume unwanted
liability. The acquisition after fi ling the
insolvency petition but before the com-
mencement of the formal proceedings
is a second possibility. The responsible
court announces a provisional insol-
vency administrator, who is empowered
to manage the company until the formal
proceedings commence. The provisional
insolvency administrator is not entitled
to sell the company, except on the basis
of special powers granted by the court.
The latter may be an option to consider,
as the business of insolvent companies
suffers the longer the process takes.
During the formal proceedings, the
insolvency administrator is entitled to
sell the company or parts of it (“Cherry
Picking”). The purchaser is not liable for
claims against the insolvent business.
Certain restructuring measures, includ-
ing the reduction of workforce, could be
already completed by the insolvency
administrator before the takeover.
An insolvency plan is a possibility to
deviate from the formal insolvency pro-
ceedings on the basis of an agreement
between the creditors and the insol-
vency administrator. The parties may
agree upon different criteria for the dis-
tribution of the remaining capital or
upon specific reconstructive measures.
In conjunction with the acquisition
of debt, the insolvency plan is also an
option for the foreign investor to con-
sider.
Upcoming restrictions on foreign
investment in Germany
At the moment the existing limita-
tions of foreign investment in Germany
Law
have a very narrow scope. The Law on
Foreign Trade and Payments (Außen-
wirtschaftsgesetz) and the Regula-
tion on Foreign Trade and Payments
(Außenwirtschaftsverordnung) pro-
vide that participation of 25 per cent
or more in certain enterprises requires
prior notification of the German fed-
eral government. This requirement
applies exclusively to participation in
enterprises producing or developing
goods listed in annex B to the Law on
the Control of Weapons for War (Weap-
ons for War List), enterprises produc-
ing or developing motors and gears for
tanks and enterprises developing cryp-
tographic systems. The authorities are
entitled to prohibit participation only
where necessary to protect the essential
security interests of the Federal Repub-
lic of Germany.
The German federal government
has prepared a draft law regarding the
more comprehensive control of foreign
investments which was approved by the
federal cabinet for submission to parlia-
ment in August 2008 and which might
come into force in early 2009. This draft
law aims to make foreign participa-
tion in German enterprises which affect
“public safety and order” subject to gov-
ernmental control and potential prohi-
bition. Contrary to present provisions,
the scope of the proposed restrictions is
not limited to certain business sectors
and may apply to any foreign invest-
ment from countries outside of the EU
or EFTA with an interest in excess of 25
per cent in German enterprises.
The draft law does not require prior
notification of foreign investments,
but provides for a general three-month
review period after the signing of a
transaction. Investors will have the
opportunity to apply for an approval of
the investment upfront.
One should not assume that this law
will change the openness of the German
market for foreign investors. I assume
that the government will make use of
this new instrument in some strategic
and prominent cases, but overall in a
very limited number of instances. Most
M&A transactions will remain unaf-
fected.
CONTACT
Dr. Stephan Ulrich
Simmons & Simmons
+49.211.47053-81
stephan.ulrich@simmons-simmons.com
27
24.09.2008 15:41:55 Uhr
 Company News
BASF Coatings AG, Münster
BASF Coatings to expand
capacities in India
BASF Coatings is strengthening its range of automotive industry
products for India’s high-growth market. With further invest-
ment in production and development work and the expansion of
its capacities at the Mangalore site, the company plans to supply
its customers promptly with locally manufactured, high-qual-
ity products and to meet the growing demands of this industry.
This was announced by N. J. Raju, the new head of BASF Coatings
(India) Private Limited.
BASF Coatings’ India operations are headquartered in Mumbai,
with a state-of-the-art production facility in Mangalore. In addi-
tion, distribution and sales centers are located in Pune, Chennai
and Delhi. BASF Coatings will enhance capital investment into
its Mangalore production facility, which was opened in 2004.
The plant for manufacturing state-of-the-art electrocoat paints
(Cathodic Electro Deposition paint materials) was commissioned
as recently as June 2007. Further expansions are planned.
Beginning 2008, BASF Coatings also opened a new color lab for
automotive refinish systems at the Mangalore site. With its Glas-
urit paint brand, BASF Coatings was the first manufacturer to
launch an environment-friendly, waterborne automotive refinish
paint in India.
The automotive industry partners of BASF Coatings in India
include TATA, Ford India, Renault Nissan, Honda Siel, Mercedes,
Maruti and Mahindra. Motorcycle industry customers include
Honda, Yamaha, Suzuki, the truck manufacturer clients are Tata
Motors and Ashok Leyland.
Lupin, Mumbai/Hormosan Pharma, Frankfurt M.
Lupin enters German market with
acquisition of Hormosan Pharma
In July, pharma major Lupin Limited acquired Hormosan Pharma, a
Germany-based company engaged in development, licensing and
marketing of a range of generics in Germany. Hormosan, which is
also a major supplier of medicines for nerve-related illnesses (CNS)
in Germany, hit a sales figure of 10.59 million US dollars for the year
ended December 2007.
Seeing the acquisition as a major opportunity for synergies, Lupin
Chairman, Deshbandhu Gupta, said the company expects new impe-
tus from “its strengths in research and development and strong com-
plementary pipeline.“ He added, “This is in line with our M&A strategy
to harness the potential of the leading global pharma markets. It is
our first acquisition in the important European market.“
With this acquisition, Lupin, which clocks annual sales of 651.49 mil-
lion US dollars, also hopes to get around the issue of high overhead
costs which the top five dominant generic drug companies in the
German market have been grappling with.
“We do not have the high costs that big companies have, and with
Hormosan we expect to get a good number of our products onto
the list of drugs recognised by insurance companies in Germany,“
explained Kamal Sharma, Managing Director, Lupin.
The German pharmaceutical market is segueing from a high-cost,
patented or authorised generic market to a low-cost model.
Lupin acquired a significant majority stake in Kyowa Pharmaceutical
Industry, a leading Japanese generics company in October 2007.
Source: IBEF
28
GC India_3_VW.indd 28
Jenoptik, Jena/Francis Klein
Metrology joint venture established
In June, the Jenoptik Group established a joint venture with Francis
Klein, a long.standing distribution partner of the Etamic Group, which
Jenoptik acquired in the year 2006. The registered offices of the joint
venture HOMMEL-ETAMIC Metrology India Pvt. Ltd., in which Jenop-
tik has a majority stake, are in Bangalore. Within the Jenoptik Group
the Industrial Metrology division is paving the way for the develop-
ment of the Indian market. According to company statements, other
divisions are to follow, if appropriate.
The industrial metrology joint venture will initially specialise on
the product portfolio of the Industrial Metrology division, which is
focused primarily on the global automotive industry. It will begin
operating as a sales company with five employees. Over the years it
will be further expanded and local added value assimilated.
Mindset Germany, Mumbai
Cultural training for Indian
companies
Mindset Germany started as sibling of Berlin-based Mindset India
this year in Mumbai. Mindset Germany offers cross-cultural training
and coaching for Indian companies who are investing in Germany or
are starting joint ventures with German companies. Together with its
partners, Mindset Germany helps Indian companies to develop new
business areas in Germany, designs tailor-made market entry strate-
gies and accompanies post-merger integration.
“We started training and consulting German companies for India with
great success. Now as the tide is turning and more and more Indian
companies are investing in Germany, we simply had to enter the
Indian market. Having teamed up with Oban (India) located in Mum-
bai, we are now offering our services in India,” says Sascha Bosetzky,
managing director of Mindset Germany. “Global competition is tight.
It is the soft skills that can set Indian companies apart. Cross-cultural
competence is an important skill because it harmonises different
mindsets and makes entering the German market easier.”
(www.mindset-germany.in)
Hannover Re/GIC Re
Cooperation between Indian and
German reinsurer
Hannover Re has reached an exclusive cooperation agreement with
India‘s government-owned reinsurer GIC Re regarding the joint devel-
opment, marketing and underwriting of life reinsurance business in
India. The agreement came into force with retroactive effect as from
1st April 2008. The goal of the cooperation, which is initially planned
for a period of five years, is to jointly build up a profitable portfolio
with strong growth potential in the highly promising Indian market.
„We are delighted that we are now in a position to maximise these
market opportunities jointly with GIC Re and are pleased to have
reached an agreement that is very fruitful for both parties,“ stated
Wolf S. Becke, CEO of Hannover Life Re. „While Hannover Re will
enjoy faster access to the vigorously expanding Indian market, GIC
Photo: Hamburg Süd
Re – which has its roots in non-life reinsurance – will profit from our
long-standing expertise in life reinsurance and can utilise Hannover
Life Re‘s international network.“ The two companies will operate on
the Indian market as equal partners and will underscore their coop-
eration with joint marketing activities.
Germany Contact India September 2008
24.09.2008 15:41:56 Uhr
 Company News

By way of further support, Hannover Re is also planning to establish
a service company in Mumbai, although Indian business will continue
to be underwritten from the company’s Home Office in Germany.
The representative office, which is currently still in the establishment
phase, is expected to commence its business activities in the autumn
of this year. It is intended to enhance Hannover Re‘s sales prospects
and client support capabilities in the Indian insurance market.
“Our aim at SMM India is to give our customers from the shipbuild-
ing and marine equipment industry concentrated access to the Indian
market,” says Bernd Aufderheide, Chairman of the Management Board
of HMC, explaining the brand extension of the SMM, “and at the same
time it should give regionally active Indian companies easier access to
the global market for shipbuilding and marine technologies”.

Hamburg Süd
Jaya Hind Industries Ltd., Pune/KS Aluminium- Hamburg Süd with new liner
Technologie AG, Neckarsulm
service between Asia and
KS Aluminium-Technologie to
India/Pakistan
operate on the Indian market
Jaya Hind Industries Ltd in June. The deal covers the development
and production of cylinder heads, engine blocks, bedplates and other
castings destined for national and international auto manufacturers
and auto industry suppliers.
A prototype aluminum engine block for Ford is the first order to be
shipped out as early as the latter half of the year. The two partners
will be supplying the engine block, the cylinder head, and the bed-
plate. Additionally, the two companies are currently working together
on engine blocks for a variety of other customer projects.

Piramal Healthcare/PlasmaSelect AG, Munich

Piramal Healthcare acquires
Haemaccel brands group of
PlasmaSelect AG
Piramal Healthcare Limited and part of the Piramal Group signed a
definitive agreement with PlasmaSelect AG, Germany (“PlasmaSe-
lect”), to acquire PlasmaSelect’s polygeline-based blood plasma
products marketed under the brand name “Haemaccel” in over 38
countries. The deal was complete in July this year. In addition, Plas-
maSelect also markets the product under the brand name “Emagel”
in Italy and “Solucel” in Venezuela. This acquisition is intended to
bring global leadership to Piramal Healthcare’s polygeline-based
blood plasma expansion products. Piramal Healthcare currently mar-
kets the products under the brand name “Haemaccel” in India and
under the brand name “Haemageline” in 17 other countries.

HMC, Hamburg
SMM in India for the first time in
2009
HMC (Hamburg Messe und Congress GmbH) will launch its flagship
fair SMM, the world’s premier shipbuilding exhibition, in India from
2009 onwards. That is the second SMM event abroad, following the
introduction of SMM Istanbul (21st to 23rd January 2009). The first
SMM India will be held at the Bombay Exhibition Centre in Mumbai
from 28th to 30th October 2009. The new shipbuilding fair is ac-
companied by a conference. HMC has enlisted the support of two
partners – E. J. Krause & Associates, Inc., the American events special-
ist, and INTER ADS Exhibitions Pvt. Ltd., one of the largest Indian fair
organiser. The two partners will jointly organise the first Port & Ship
International India 2008 (PSI) from 23 to 25 October 2008 in Mumbai,
with the support of HMC for a delegation and national pavilion for
German companies. Next year PSI will be combined in the concurrent
fairs SMM India and Port International India.
Hamburg Süd launched a new service between Asia / Far East and
India / Pakistan with simultaneous sailings from Port Kelang and
Shanghai on 11 July 2008.
The new, weekly fixed-day service comprises two slings and provides
direct connections between PR China / Hong Kong / Taiwan and India
Subcontinent. At the same time, this means that, with the recently
restructured EPIC Service (Northern Europe – Mediterranean Region,
Middle East, India / Pakistan), the shipping group‘s links from and to
India are being further expanded. In addition, this new service also
ensures good onward connections to Australia, New Zealand and the
Pacific coast of South America.
Sling 1 has the following port rotation: Shanghai – Ningbo – Hong
Kong – Singapore – Port Kelang – Nhava Sheva – Port Kelang – Sin-
gapore- Hong Kong – Shanghai.
In Sling 2 the port rotation reads: Port Kelang – Singapore – Colombo
– Karachi – Mundra – Tuticorin – Port Kelang.
In this sling Hamburg Süd is providing one vessel with a slot capacity
of 1,500 TEU.

Germany Contact India September 2008 29

GC India_3_VW.indd 29 24.09.2008 15:41:58 Uhr

 Last Page
A helping hand for
the poorest
The German Andheri-Hilfe Organization offers
development aid in India
Nearly every other person in India
and Bangladesh is classified as
poor. The impact is far-reaching:
low and unsteady income, wide-
spread illness, low levels of edu-
cation, low self esteem, social
isolation, insufficient/insecure
assets and very high susceptibility
to crises. However, poverty is not a
destiny – poverty can be overcome.
This basic belief drives the work of
the Andheri-Hilfe Organization,
which has been active as a non-
government organization in India
since 1967.
It developed out of a private initiative
to help needy and suffering children
in Andheri near Bombay, and has been
operating as a non-profit organization
since 1967. The aid focuses mainly on
social work, education and health as well
as agricultural and rural development.
The Andheri-Hilfe Organization tries to
give ‘help to self-help’, in order to avoid
establishing new dependencies or pre-
serving old ones. Our work is funded by
around 20,000 private donors, groups
and companies, along with public fund-
ing from the budget of the German Fed-
eral Ministry for Economic Cooperation
and Development and the Commission
of the European Union.
The aim of Andheri-Hilfe is to make
a contribution to the improvement of
the economic, social and ecological sit-
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30
GC India_3_VW.indd 30
Andheri-Hilfe gives out microcredits as well as working to implement and accompany aid
projects. In the picture: a girl with her own sewing machine financed by a microcredit.
A boy training to be an auto mechanic.
uation and the recognition of human
rights in India and Bangladesh, regard-
less of religion or caste. To ensure that
this development is sustainable, great
value is placed on the ability of people
to help themselves.
Andheri sponsors projects in social
work, education and health, as well as
agricultural and rural development.
Our main target groups are children,
women, socially disadvantaged fami-
lies and rural communities, indigenous
groups and people who are ostracized
because of disability.
Our projects bring together a wide
range of different sectors. We place par-
ticular emphasis on basic education,
vocational training, health, rural devel-
opment, protection of resources, social
development in urban areas and rede-
velopment/reconstruction projects. The
work of the organization is character-
ized by close partnerships with local
organizations and self-help groups.
Target groups
As well as providing help to the origi-
nal inhabitants (the Adivasi), disabled
people and the Dalits, the Andheri-Hilfe
Organization focuses particularly on
children, of whom it is estimated that
between 40 and 100 million have to
work hard to provide their own living on
the Indian subcontinent. The Andheri-
Hilfe Organization sponsors projects
for street children and children’s work-
ers. Wherever possible, children should
grow up in their family, attend school
and learn a trade in order to improve
their prospects. Their parents are helped
to fi nd alternative sources of income,
so that they are no longer reliant upon
their children’s work for survival.
Andheri-Hilfe also supports women
in their attempts to improve living con-
ditions, achieve social recognition and
fi nd a voice in their family and society,
as they still form the largest underprivi-
leged part of the population in India and
Bangladesh. Andheri campaigns partic-
ularly strongly for school and vocational
education and training for girls. Net-
working of women’s groups strengthens
the self esteem of the women and boosts
their influence right up into the political
arena. In the process, the involvement
of men is also an important prerequisite
for lasting social change.
CONTACT
Photos: Andheri-Hilfe/Richter
Andheri-Hilfe Bonn e.V.,
Bonn (Germany)
Tel.: +49.228.671586
info@andheri-hilfe.de
Andheri-Trust, Tiruchirapalli
Tel.: +91.431.2403965
andhilfe@eth.net
www.andheri.org
Germany Contact India September 2008
24.09.2008 15:42:00 Uhr
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GC India_3_VW.indd 31 24.09.2008 15:42:02 Uhr

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