Hamburg and India: Facts and Figures

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Status: 20.04.2012
Indian life in Hamburg

Population: Hamburg is the home to 2,666 persons of Indian nationality (figures from 31/12/2011); with an average of 50 Indian men and women obtaining German citizenship each year (source: Statistical Office North). In the year 2011, a total of 6,092 Indian tourists visited the Hanseatic City of Hamburg (19,676 overnight stays; source: Hamburg Tourismus GmbH.)

Hamburg-based organisations and associations relating to India:

  • Consulate General of India, including department of trade
  • German-Indian Round Table (GIRT)
  • Deutsch-Indische Gesellschaft in Hamburg (DIG)
  • Kerala Samajam Hamburg
  • Indian Festival Committee Hamburg
  • Indisch-Deutsche Gemeinschaft
  • Bharatiya Kala Kendra Indische Vereinigung Hamburg
  • Naya Bharat Gemeinschaft Hamburg
  • Deutsch-Indisches Kulturforum
  • Institut für Klassische Indische Musik
  • Deutsch-Indische Marwari-Gesellschaft
  • Bhakti-Yoga-Zentrum
  • Dewi Saraswati (primarily involved in development co-operation)
  • H.E.L.G.O. (educational programmes regarding child labour in Kolkata)
  • Afghan Hindu temple in Hamburg Rothenburgsort
  • Cricket clubs in Hamburg: Alster Cricket Club, Hamburg International Cricket Club, Pak Alemi Cricket Club, Hansa Cricket Club, and the cricket division of HSV

Intercultural exchange
In the field of arts and cultural production, a whole range of connections and collaborations exist between Hamburg and India. Hamburg’s Ministry of Culture continually promotes intercultural exchange with India, e.g. by inviting Indian artists to the Hanseatic city. The Hamburg Cultural Authority is supported by partners and hosts, among them Hamburg-based associations such as Deutsch-Indische Gesellschaft, as well as other stakeholders from the cultural scene, such as Kampnagel, Metropolis cinema, as well as KinderKinder e.V. Since 2007, India Week Hamburg takes on the role of focussing these activities.

Economic and commercial relations with India
Trade relations between Hamburg and India can be traced back to the 16th century. Due to India’s dynamic economic growth, trade with India has increased considerably in the course of the last few decades. One of the major factors in this regard is the port of Hamburg. While Germany’s export to India increased by 160 percent between 2005 and 2011, the volume of export conducted via Hamburg increased by as much as 272 percent. Hamburg’s share of exports to India amounts to 4.3 percent; the city’s import share lies at 10.6 percent. The port trade volume increased from 240,000 standard containers (TEU) in 2010 to 275,000 standard containers 2011, which equals a growth of 14.5 percent
(Sources: Statistical Office Hamburg Schleswig-Holstein / Port of Hamburg Marketing market research)

Foreign trade between Hamburg and India
Volume Import Export
Volumen 2009: 1.483 bn Euro 2010: 1.260 bn Euro 2011: 1.260 bn Euro
Import 2009: 646.0 m Euro 2010: 815.1 m Euro 2011: 793.5 m Euro
Export 2009: 837.4 m Euro 2010: 45.2 m Euro 2011: 466.2 m Euro
(in 2012, export figures are due to rise considerably because of new orders for Airbus)
Indian enterprises in Hamburg
More than 35 Indian companies have branches in the Hamburg Metropolitan Region, among them renowned players such as Tata Consultancy Services Deutschland GmbH and Mahindra Satyam from the IT and engineering industry. Indian steel giant Laxmi Mittal acquired Hamburger Stahlwerke, and Suzlon Energy Ltd, Indian manufacturer of wind turbines, has a majority share in the Hamburg-based manufacturer Repower Systems. In addition to that, Hamburg is home to textile and spice importers such as Seth, BOOM and H.A.N.S. Spices.

Hamburg enterprises in India
More than 570 Hamburg companies are involved in foreign trade with India. Almost half of these companies run export businesses, the other half import goods from India. Approximately 120 companies from Hamburg have a representative office, a branch, a share or a production plant in India, among them Biesterfeld International GmbH, Mumbai, Eppendorf AG, Chennai, Evotec AG / Research Support International Pvt. Ltd (RSIPL), Thane/Mumbai, as well as C. Illies & Co.,Mumbai.
Industries
Aviation Airbus, Lufthansa Technik, et al.
Export trade Machinery, chemicals, iron/steel/metal goods
Import trade Textiles, machinery, chemicals, oil
Renewable energy Wind energy, solar power plants
Port, transport, logistics Export of services
IT / media Import of services
Water supply Export of services
Life sciences Biotechnology and pharmaceuticals

Points of contact for businesses from India and Hamburg

German Indian Round Table (GIRT): GIRT is an association of individuals who have business interests and a general interest in India. The overall aim is to promote economic relations between Germany and India. GIRT facilitates the exchange of information between German and Indian entrepreneurs, hosts events on economic topics and organises trips to India.
Hamburg Representation Mumbai: To strengthen relations between the two countries, the Free and Hanseatic City of Hamburg, the Hamburg Chamber of Commerce, and Hamburg Marketing e.V. have established an official representative office at the German-Indian Chamber of Commerce (IGCC). The Hamburg Representation Mumbai was opened in January 2011 and is managed by Mr Peter Deubet. www.hamburgmumbai.com
HamburgAmbassador: Mr Frank König, ILLIES Engineering (India) Pvt. Ltd, Mumbai, India. The aim of this honorary office is to set up an international network to promote the City of Hamburg in the respective country. HamburgAmbassadors are appointed by Hamburg’s First Mayor.
HWF Hamburg Business Development Corporation: Advisory services and support for Indian companies that settle in the Hamburg Metropolitan Region. HWF India representative is Mr Amal Mukhopadhyay (founder and director of ElGa Biotech), who is active in the field of life sciences.
Hamburg Chamber of Commerce: Responding to an increased interest in India, the Hamburg Chamber of Commerce launched an India Desk in 2007, a unit that closely collaborates with the Indo-German Chamber of Commerce. The main task is to advise Hamburg-based businesses and Indian businesses regarding import and export and on establishing branches and production plants. The India Desk also provides information on India’s economy and arranges business contacts.
Consulate General of India: Established in June 1952, the Consulate General of India in
Hamburg features its own commercial department. Consul General is Ms M. Subashini, who has been in office since 2010.
GIGA Institute of Asian Studies at the GIGA German Institute of Global and Area Studies: This research centre focusses on analysing political, economic and social developments in South East Asia, China, Japan, North Korea, South Korea and India.
OAV German Asia-Pacific Business Association: For 111 years, OAV has been involved in
organising specialist seminars, public workshops and information events. OAV organises business trips to the Asia-Pacific region and offers advice and support to its member companies. Being one of the sponsor organisations of APA Asia-Pacific-Committee of German Business, OAV plays a major role in representing the concerns of German businesses that are active in region.
Service point for SME – market access India: Since October 2010, small and medium- sized enterprises from Hamburg can receive specialised support for accessing the Indian market. The service point is operated by the HWWI Hamburg Institute of International Economics in collaboration with the IGEP Indo-German Export Promotion Foundation. The project initially runs until 2013 and is funded by the Free and Hanseatic City of Hamburg and the European Social Fund (ESF).

Exchange in science and research
Several Hamburg universities and research centres offer scholarships for Indian students and maintain exchange programmes and joint projects with Indian universities and research bodies. In the winter semester of 2010/2011, a total of 125 Indian students were enrolled in one of Hamburg’s many universities and polytechnics. 88 of these students, i.e. approximately 70 percent, were enrolled in engineering degrees at the Hamburg University of Technology (TUHH). The University of Hamburg, the TUHH, the Hamburg University of Applied Sciences (HAW), the GIGA German Institute of Global and Area Studies, the GKSS Research Centre Geesthacht, and DESY Deutsches Elektronen-Synchrotron collaborate with India’s high- ranking Central Universities, the Indian Institutes of Technology (IIT) and Indian Institutes of Management (IIM). Co-operation partners include the following:

  • University of Delhi Indian Institute of Technology, Delhi
  • National Institute of Science, Technology and Development Studies (NISTADS), New Delhi
  • Indian Institute of Management, Ahmedabad
  • Indian Institute of Technology, Chennai/Madras
  • Indira Gandhi Institute, Mumbai
  • Central University of Hyderabad
  • National Law School of India, Bangalore
  • Jawaharlal Nehru University, New Delhi
  • Filmschule Roopkala Kendro in Kolkata
  • Hemwati Nandan Bahuguna Garhwal University, District Garhwal
  • Kalinga Institute of Industrial Technology, Bhubaneswar/Orissa
  • Institute for Defense Analysis and Studies (IDSA) Delhi
  • Observer Research Foundation, Delhi
  • National Institute of Oceanography, Goa.

The Institute for Technology and Innovation Management (TIM) at the TUHH in particular maintains a very close relationship with India. Current projects include the collaboration agreement between TUHH and the Council for Scientific and Industrial Research (CSIR), as well as the “Global Innovation” project that addresses research and development in India. Many of the above mentioned Indian institutions are co-operation partners of TIM/TUHH.
South Asia Day at the University of Hamburg: Since 2003, the Department for Indian and Tibetan Culture and History at the Asia Africa Institute (AAI) hosts an annual South Asia Day. The event focusses on recent economic, political and cultural developments in the region. The South Asia day is frequented by diplomats from South-Asian countries, economists, political scientists, as well as media representatives; however the event is also open to a general audience.
Contact: Hamburg Messe und Congress GmbH, Press and Public Relations
Saskia Jöhnk, Tel.: +49 40-3569-2445, e-mail: saskia.joehnk@hamburg-messe.de
Press texts, photos and poster motif for download, and current ship list at www.hamburg.de/hafengeburtstag

GIRT supports study on negotiation strategies and tactics in the Indo-German Context

Dear friends of India,
Dear friends of Germany,

IIM Bangalore together with University of St. Gallen is conducting a study with an online-questionnaire regarding „Negotiation Strategies & Tactics in the Indian-German Context“. The study addresses an important business matter and is undertaken with support of GIRT. It is unique in that it attempts to bring face to face the „German“ view and the „Indian“ view of a number of important points during a typical business negotiation. Hence, the results can be very helpful – both retrospectively and forward looking. I request your support of this study, which will also promote GIRT’s visibility in the field.

The same team of scientists has already published an interesting study (http://www.sicc.ch/documents/120109-SMEPlatformStudyExecutiveSummary.pdf ) on „Market Entry Challenges for Swiss Companies“ with interesting results.

Prof. Roger Moser, who supervises the study, has told me that he believes it will take half an hour of your time to run through the online-questionnaire. The attached e-mail gives you two links to select from: one, if you want to contribute from a „German“ point of view, the other one, if you want to participate from an „Indian“ point of view.

Prof. Moser has also offered to present the results at one of your GIRT meetings.

Best regards,

Dr. Andreas Waldraff
Chairman, German-Indian Round Table
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Study: Negotiation Strategies & Tactics in the German-Indian Context / Verhandlungsstrategien und -taktiken im Deutsch-Indischen Kontext
Dear Sir or Madam
Negotiations have always been a critical part when doing business. In a globalized world, however, business negotiations enter a new dimension. This makes negotiations even more complex. Our study examines which negotiation strategies and tactics in the Indian-German context work best, integrating experiences and perceptions from Indian and German/Swiss managers.
We therefore would like to invite you to participate in this study reflecting upon your expertise and experiences in the Indian-German business context.
The questionnaire takes around 25-35 minutes. It covers the brief evaluation of four basic negotiation strategies and in more detail the appropriateness of five out of ten randomly assigned negotiation tactics in the Indian-German context in order to minimize your time investment.
All participants receive an exclusive summary of the study results not only for five but all ten evaluated negotiation tactics!
This is a joint research project of the University of St. Gallen, EBS Business School and IIM Bangalore kindly supported by the German-Indian Round Table.
For any questions, please feel free to contact Mr. Carl Cohrssen (carl.cohrssen@ebs.de).
The online survey is accessible until April 27th, 2012 through one of the following two links:
https://qtrial.qualtrics.com/SE/?SID=SV_575oDIanvfwoel6   (Link zur Studie in Deutsch mit Deutscher/Schweizer Perspektive)
http://survey.qualtrics.com/SE/?SID=SV_6WjTcscTdDeIo0Q   (Link to Study in English evaluating the Indian Perspective)
Each participant only needs to fill in one of the two questionnaires based on her/his origin.
We thank you very much for your support.
Kind regards

Dr. Roger Moser
India Competence Center, University of St. Gallen, Switzerland
Strategy & SCM, Indian Institute of Management Bangalore, India
Roger.Moser@unisg.ch
Roger.Moser@iimb.ernet.in

Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products

New publication from the Institute for Technology and Innovation Management, Hamburg University of Technology (TUHH)

Title: Frugal Innovations for the ‘Unserved’ Customer: An Assessment of India’s Attractiveness as a Lead Market for Cost-effective Products
Authored by: Rajnish Tiwari and Cornelius Herstatt
Publication date: March 2012
Download: http://www.global-innovation.net/publications/PDF/Working_Paper_69.pdf

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Abstract

This study builds on the authors‘ previous work, which had questioned the validity of certain assumptions of the lead market theory in the face of changing ground realities in a globalized world. Sustained economic growth and proven technological capabilities in some “emerging economies” like China and India call for a reassessment of the appropriateness of the “conventional wisdom” that had held true until recently. While our previous study had built a theoretical background the lead market model by introducing new elements, and doing away with certain others, with the help of two in-depth case studies, the purpose of the present study is to specifically assess India’s potential as a lead market for cost-effective frugal innovations.

The study crystallizes the inherent characteristics of frugal innovations, their development process and market success in the domestic and overseas markets by analyzing four successful product innovations from selected industries in India. The factors identified thus are then incorporated in the theoretic model to derive propositions about India’s lead market potential. Whereas affordability and economies of scale have traditionally constituted the primary concern for frugal innovations, an increasing shift towards “value proposition” is identified. Intensifying competition and growing customer aspirations are changing the nature of frugal innovations. The hitherto unserved customer demands attractive designs and modern technologies to come out of his shell of “non-consumption”. Our research confirms that frugal innovations can benefit end-consumers and firms, simultaneously. Better-designed products also have positive impact on the lead market potential, creating a virtuous cycle. The study also discovered that the increasing need for sophistication coupled with continued cost pressures is shifting the product development processes into the domain of “open global innovation”, which also helps reduce the negative country-of-origin effects faced by developing countries. The research would have implications for location decisions in setting up global innovation/R&D activities.

Keywords: Lead Markets; Frugal Innovations; India; Bottom of the Pyramid; Global Innovation; Open Innovation; Emerging Economies.

The Hindu Business Line recommends reading „GIRT“ article

In an article titled „The horizon vocabulary“ journalist D. Murali of The Hindu Business Line, a renowned newspaper from India, recommends reading an article („Investment Destination Germany: Chances & Challenges for Indian Firms„) written by Rajnish Tiwari, Head of German-Indian Round Table in Hamburg:

Investment opportunities in Germany

In a significant contrast to their Chinese counterparts, Indian firms have so far tended to prefer developed Western countries for their investments, notes Rajnish Tiwari, Head of the German-Indian Round Table (GIRT) in Hamburg. Germany, along with the US and the UK, has emerged as a primary target for Indian FDI, he adds, in Investment destination Germany: Chances & challenges for Indian firms (www.ssrn.com). “With its established technological prowess, high-quality infrastructure and reliable institutional set-up, Germany is regarded as an excellent investment target by many Indian firms in their pursuit of newest technologies and commercially viable cutting-edge innovations,” Tiwari reasons.

The paper concedes that, since many Indian companies prefer to channelise their FDI projects to Germany through their existing domestic subsidiaries or through their daughter concerns in other European countries, the official data fail to capture the true extent of Indian engagement in Germany.

Tiwari urges Indian firms, therefore, to take advantage of Germany’s excellent physical infrastructure and technological know-how, including in the eastern part, while combining it with their own strengths in production, marketing, low-cost engineering, and business model innovations. Provides pointers that you may like to explore in detail.

Source: The Hindu Business Line, 11.02.2012

Direct link to the paper in question:
http://www.global-innovation.net/team/tiwari/PDF/Tiwari_BusinessGuide_2011.pdf

Book Review: The Rise of Indian Multinationals: Perspective of Indian Outward Foreign Direct Investment

In its publication „Reserve Bank of India Occasional Papers“ (Vol. 32. No. 1, Summer 2011) India’s central bank has published a review of the book „The Rise of Indian multinationals: Perspective of Indian Outward Foreign Direct Investment“, edited by Karl P. Sauvant and Jaya Prakash Pradhan with Ayesha Chatterjee and Brian Harley (Palgrave MacMillan: New York), 2010; pp 284, £90.

The review also includes a chapter on Indian investments in Germany. The reviewer Arvind K. Jha (Assistant Adviser, Department of Economic and Policy Research, Reserve Bank of India, Mumbai) writes:

„Chapter 8 on ‘The Emergence of Indian Multinationals: An Empirical Study of Motives, Current Status, and Trends of Indian Investment in Germany’, by Rajnish Tiwari and Cornelius Herstatt, presents the results of a empirical survey conducted among Indian subsidiaries operating in Germany. Survey brings out the fact that the majority of Indian companies investing in Germany are from service sectors like software and IT industry (more than half of Indian companies), pharmaceuticals and the automotive industry. Important factors behind the Indian OFDI to Germany are long tradition of economic relations between these two countries, proximity to their customers and suppliers, large access to German market and availability of skilled labour. Another interesting finding of this survey study is that Indian MNEs are net job creators in the Germany. The study also finds that Indian subsidiaries have generally performed well and look forward to strengthen their operational presence in Germany, including research and development activities. However, the survey also highlights the challenges, including cross-cultural issues, being faced by Indian MNEs in Germany.“

Source: Reserve Bank of India
http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2490