Mun/Com/201/1/2010
Monthly Economic and Commercial Report
CGI, Munich, Germany: July 2010
(Consular Jurisdiction: Bavaria & Baden-Wurttemberg)
Executive Summary

German GDP is expected to have grown faster in the 2nd quarter of 2010

Bavarian economy recovers from crisis

Baden-Wuerttemberg economy is expected to grow by 2% in 2010

Indo-Bavarian trade during Jan-May 2010 at € 770 million (8.91% change)

Indo-Baden-Wurttemberg trade Jan-May 2010 at € 887 million (22.68% change)

Indo-German trade during Jan-May 2010 at € 5.8 billion (12.81% change)

Meeting with executives of Siemens AG: July 1, 2010

Meeting at University of Hof regarding Bavaria-India Cooperation in Vocational
Training: July 2, 2010

Meeting at Vocational Training School Landsberg: July 15, 2010

German-Indian Round Table (GIRT) Meeting at Roethenbach: July 6, 2010

“Indian Summer”, at Stuttgart: July 19-25, 2010

Indo-German Business Network (IGBN) Meeting: July 21, 2010

Meeting with executives of IHK Freiburg and Solar Company Mirroxx GmbH:
Freiburg: July 23, 2010

Performance of Mercedes-Benz, BMW and Audi in India

Siemens India registers growth in third quarter

Siemens to build combined cycle power plants in Gujarat

Continuing success of ‘Bayern-Fit For Partnership’ programme of Bavarian Economic
Ministry

Bavarian export booms

Continuous Growth in the number of SMEs in Baden-Wuerttemberg

Increase in Baden-Württemberg’s Industrial Order
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
1
I)
Economic Outlook Germany
German GDP is expected to have grown faster in the 2nd quarter of 2010
1.
After registering a somewhat slow growth in the winter half-year 2009/2010, the German
economy appears to have enjoyed solid growth in spring 2010. According to a report published by
the German Economic Ministry in July 2010, the German GDP is expected to have grown at a
faster rate in the second quarter of 2010 than in the first quarter. German GDP grew by 0.2 % in
the 1st quarter of 2010, compared to the previous quarter. The current growth is the result of a sharp
expansion in industrial output on the one hand and due to the better seasonal weather conditions on
the other hand. German industry is benefiting from external economic stimuli as well as a revival
in domestic investment activity. According to the report, overall industrial output rose sharply by
3.4%. Compared to the previous year, production continued to rise, particularly in industry
(+13.7%) and also in the construction (+3.8%). Foreign trade once again marked strong growth,
German exports in May 2010 rose by 9.2% and imports increased at an even faster pace (+14.8%).
The economic recovery is also having an increasingly positive impact on the labour market.
Unemployment declined substantially in June 2010.
Bavarian economy recovers from crisis
2.
State Statistical office of Bavaria reported that the turnover of the manufacturing industry
increased in May 2010 by 12.9 % compared to May last year. Out of the total turnover of €23.8
billion, 12.5 billion Euros were achieved through exports. The export share in May 2010 reached
52.5%. The number of incoming orders increased by 30.5% in the same period, out of which
domestic orders increased by 36.6% and the foreign orders increased by 26.6%. However, the
number of employees in the Bavarian manufacturing industries declined by 2.4% compared to
previous year. Inflation rate in Bavaria was 1.2% in July, compared to previous year, the price for
heating oil increased by 23.8%, food by 2.9% and petrol by 11.6%.
3.
Bavarian Economic Minister Mr. Martin Zeil said that the results of the Ifo Bavarian
Business Climate Index for the month of July 2010 is a further sign for the strong and continuing
recovery of the Bavarian Economy. ‘The Bavarian business mood barometer has strongly increased
in summer, the companies assess their actual business situation and the future business prospects
noticeably better than it was in previous month, the economic upswing is speeding up and more
and more industrial sectors are recovering’, commented Mr. Zeil. According to Mr. Zeil, Bavaria
has faced the economic crisis well and is now better positioned for the future. The capacity
utilisation of Bavarian manufacturing industry increased in July to 81% compared to 2009. Mr.
Zeil has expressed optimism that the economic upswing will continue in the coming months. He
added that many banks and economic institutes have recently revised their GDP forecast for
Germany for 2010 upwards and now forecasts a GDP growth of 2.5 %. He mentioned that thanks
to its strong export sector and innovative industry, Bavaria foresees at least the same percent
growth like that of Germany. Mr. Zeil expects that by autumn this year the total number of
unemployed persons in Bavaria will come down to less than 250000.
Baden-Wuerttemberg economy is expected to grow by 2% in 2010
4.
The economy of the state of Baden-Wuerttemberg is also reviving, on the expected lines.
According to the latest report published by the State Statistical Office, the economy is expected to
grow by 2% in 2010, 0.5% more than it was predicted earlier after a decline by 7.4% in 2009.
Industry is the growth motor for the expected better performance in 2010, with Industrial turnover
increasing by 14% during the first half of the year. The foreign business of industry is the most
decisive impulse generator for the expected economic growth. The exports increased in the 1 st
quarter of 2010 by 17% and in the 2nd quarter by 29%. Automobile industry performed particularly
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
2
well, the turnover through exports increased during the initial months of the year by 60% compared
to the previous year. The machinery manufacturing sector also performed well, the foreign trade
orders in this sector in the initial months increased by 36% compared to the same period of the
previous year. However, the situation in the labour market is yet to improve. On an average over 1
million people were employed in the State industry in the first half of the year, this was 49200
fewer jobs, compared to the same period of the previous year. The unemployment rate in June was
4.7%. Given the dynamism that is resulting from the ongoing recovery of the global economy,
exports are expected to see tangible growth in the coming months.
II)
GDP Figures 2009
5.
German Economy shrank by 5% in 2009. In value terms, GDP of Germany at current prices
in 2009, amounted to Euro 2407 billion. The shrinking of German economy in 2009 had a direct
bearing on the highly globalised States of Bavaria and Baden-Wuerttemberg. According to the
German Statistical Office, the Bavarian GDP declined in the year 2009 by 5% and the GDP of
Baden-Wuerttemberg declined by 7.4%. In value terms, GDP of Bavaria at current prices in 2009
amounted to Euro 429 billion and GDP of Baden-Wuerttemberg amounted to Euro 343 billion.
Comparative GDP figures along with growth rates of Bavaria, Baden-Wuerttemberg and Germany
are given below.
GDP Grwoth Rate
2.9 2.7 2.5
1.6
2
0.7
GDP (at current prices)
3000
1.3
In %
0
Year 2007
-2
Year 2008
Year 2009
-4
-6
-5
-8
-5
-7.4
In billion Euros
4
1500
1000
500
434 352
III)
445 364
429 343
0
Year 2007
Bavaria
Baden-Wurttemberg
2407
2000
Period
Bavaria
2489
2423
2500
Year 2008
Period
Baden-Wurttemberg
Year 2009
Germany
Germany
Inflation rate
6.
Inflation rate in Bavaria during July 2010 amounted to 1.2%, compared to July 2009.
Compared to previous year, the price for heating oil increased by 23.8% and petrol by 11.6%. The
Gas prices, however, decreased by 4.2%. The food price in July 2010 increased by 2.9% compared
to July 2009.
7.
Inflation rate in Baden-Wuerttemberg during July 2010 figured to 1.3%, compared to July
2009. Here again, the reason for the increase in inflation rate was the increase in heating oil (28%)
and petrol (11.7%) prices.
Sr.
No
States
Inflation rate (% change over same period in previous year)
1
Bavaria
July 2009
-0.2
July 2010
1.2
2
Baden-Wurttemberg
-0.6
1.3
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3
IV)
Trade figures
Value in billion Euros & change in % over same period of previous year
2008
%
Change
2009
%
Change
Jan-May
2010
%
Change
Bavarian Export
Bavarian import
Total Trade of Bavaria
155
129
284
1.31
4.88
2.9
123
109
232
-20.65
-15.5
-18.31
55.5
50.9
106.4
14.2
15.42
14.78
Export of Baden-Wuerttemberg
Import of Baden-Wuerttemberg
Total Trade of Baden-Wuerttemberg
151
130
281
0.67
5.69
2.93
125
109
234
-17.22
-16.15
-16.73
59.2
50.1
109.3
20.57
10.84
15.91
German Exports
German Imports
Total Trade of Germany
994
823
1817
2.58
6.88
4.49
807
673
1480
-18.81
-18.23
-18.55
371.1
311.2
682.3
14.86
12.18
13.62
V) Trade with 10 major Countries and India
The trade figures of Bavaria along with the rankings and value of trade for the year 2009 are given
in tables below. The trade figures for Baden-Wurttemberg for the year 2008 are also given below.
(*Figures of Baden-Wuerttemberg for 2009 are expected soon)
Bavarian Exports (In million Euro)
Bavarian Imports (In million Euro)
Rank
Country
1
2
3
4
5
6
7
8
9
10
Austria
China
Italy
USA
Czech Republic
France
Russia
Netherlands
Hungary
UK
Total Imports
2009 % Change
12126
-13.3
11373
-5.8
8540
-12.7
7737
-15.5
7452
-14
5636
-20.2
5533
-14.7
5418
0
4049
-18.9
3558
-19.6
109943
-15.4
Baden-Wuerttemberg’s Imports
(In million Euro)
Rank Country
1
2
3
4
5
6
7
8
9
USA
France
Switzerland
Ireland
Italy
China
Netherlands
Belgium
Austria
10 Czech Republic
Total Imports
Rank
1
2
3
4
5
6
7
8
9
10
Country
Austria
USA
Italy
France
UK
China
Spain
Netherlands
Belgium
Switzerland
Total Exports
2009 % Change
11938
-13
11130
-25.2
10141
-18.8
10072
-13.2
8556
-22.2
7800
4.1
4861
-26.3
4829
-11.1
4481
-11.1
4315
-15.5
123991
-20.4
Baden-Wuerttemberg’s Exports
(In million Euro)
2008 % Change
11461
0.32
11283
-0.42
10771
-3.66
9966
2.05
9811
-9.9
6451
13.2
6450
23.14
5366
9.91
5203
8.42
4765
130293
5.58
5.18
Rank
1
2
3
4
5
6
7
8
9
10
Country
France
USA
Netherlands
Italy
Switzerland
UK
Austria
Spain
Belgium
China
Total Exports
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
2008 % Change
13802
2.03
13230
-12.49
10654
6.26
10019
-4.78
9624
9558
8239
6603
6370
6165
151229
5.07
-8.01
2.25
-10.43
-8.53
25.89
0.46
4
VI)
Indo-Bavarian/Baden-Wurttemberg/German Trade
8.
Indo-German trade continued to recover in the first five months of the year 2010. For the
first time in 2010, Indian exports to Bavaria, Baden-Wuerttemberg and Germany also witnessed
notable growth. During the period Jan-May 2010, Indian exports to Bavaria, increased by 8.17 %
to €278 million, Indian exports to Baden-Wuerttemberg, increased by 6.14% to €311 million and
Indian Export to Germany as whole, increased by 4.6% to €2.38 billion, compared to the same
period of the previous year.
9.
India’s total trade with the State of Bavaria increased during January-May 2010, by 8.91%
to Euro 770 million compared to same period of the previous year. The two-way trade with BadenWuerttemberg also increased during January-May 2010 by a substantial 22.68% to Euro 887
million, compared to the same period of the previous year. Indo-German trade as a whole followed
the growth trajectory during Jan-May 2010, marking a growth of 12.81% to Euro 5.89 billion,
compared to the same period of the previous year.
Value in million Euros & change in % over same period of previous year
2008
%
2009
%
JanChange
Change May
2010
665
26.67
567
-14.74
278
Indian Exports to Bavaria
1342
22
1132
-15.65
492
Indian Imports from Bavaria
2007
23.51
1699
-15.35
770
Total Trade
%
Change
8.17
9.33
8.91
Indian Exports to BadenWuerttemberg
Indian Imports from BadenWuerttemberg
Total Trade
715
18.57
672
-6.01
311
6.14
1480
18.68
1210
-18.24
576
33.95
2195
18.65
1882
-14.26
887
22.68
Indian Exports to Germany
Indian Imports form Germany
Total Trade
5252
8154
13046
11.25
10.88
11.02
5104
7997
13101
-2.82
-1.93
-2.28
2389
3510
5899
4.6
19.19
12.81
Value in Million Euros
Evolution of India's Trade With Bavaria
2500
2000
2007
1500
1000
500
1699
1504
591
731
954
0
2000
2002
2004
2006
2008
2009
Year
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Value in Million Euros
Evolution of India's Trade With Baden-Wuerttemberg
2500
2195
2000
1882
1591
1500
1000
500
663
753
952
0
2000
2002
2004
2006
2008
2009
Ye ar
Value in Million Euros
Evolution of India's Trade With Germany
15000
13406
10000
5000
13101
10539
4548
4965
6223
0
2000
2002
2004
2006
2008
2009
Year
Major 10 Indian Exports to Bavaria
Sy.Co
Product category
Apparel of silk or man-made fibres, excl. Of knitted
804 or crocheted fabrics
Electronic valves and tubes and other electronic
865 components
734 Paints, varnishes and mastics
844 Bearings, gears, gearing and driving elements
809 Textile products n.e.s
Machinery & Apparatus for electricity production
861 distribution and control
Apparel of cotton, excl. of knitted or crocheted
806 fabrics
803 Apparel of knitted or crocheted fabrics of cotton
811 Footwear
Articles of leather and leather clothes (excl.
812 footwear)
Total Imports of Bavaria from India
Year 2008
Euro
%
Change Year 2009
Euro
%
Change
10955846
3.52
14791268
35.01
61388908
27525619
55372613
29919424
307.67
87.59
66.37
19.74
19654244
25607313
27353014
27666243
-67.98
-6.97
-50.6
-7.53
42066076
35.39
37527582
-10.79
35668877
-5.82
37934123
6.35
40763835
39605787
-8.09
3.68
40910184
45589380
0.36
15.11
49282449
665635707
12.37
26.83
52540360
567126214
6.61
-14.8
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Major 10 Indian Imports from Bavaria
Sy.Co
Product Category
885 Automobiles
852 Machine Tools
Measuring and automatic control instruments and
872 appliances
Chassis, bodies, engines, parts and accessories for
884 motor vehicles, etc
851 Machinery for working rubber or plastics
Medical and surgical equipment and orthopaedic
871 appliances
859 Machinery, n.e.s
844 Bearings, gears, gearing and driving elements
891 Industrial plants
Machinery and apparatus for electricity production,
861 distri. & Cont.
Total Exports of Bavaria to India
%
%
Year 2008
Change Year 2009
Change
Euro
Euro
19923516
-19.06
33431234
67.8
62986420
-44.69
41987493
-33.34
47614508
16.45
43810370
-7.99
52263379
49300573
28.72
158.43
52919832
68455781
1.26
38.85
80465722
100990935
115324687
15333182
0.22
17.46
16.37
904.9
71158628
73074911
74903212
96995666
-11.57
-27.64
-35.05
532.59
50.08 150522287
21.98 1132607686
-23.9
-15.61
197803780
1342130382
Major 10 Indian Exports to Baden-Wurttemberg
Sy.Co
Product category
Television and radio receivers, sound or video
864 recording or reproducing appar. & associated goods
Year 2008
Euro
%
Change Year 2009
Euro
%
Change
25584607
28.37
20684670
-19.15
806 Apparel of cotton, excl. Of knitted or croche.fabrics
Machinery & Apparatus for electricity production
861 distribution and control
13030214
9.57
24618767
88.94
20501276
119.9
24889613
21.41
878 Jewellery, goldsmith's or silversmith's wares
36235104
-5.02
27397890
-24.39
803 Apparel of knitted or crocheted fabrics of cotton
27808545
1.86
34259157
23.2
812 Articles of leather and leather clothes (excl. footwear)
Chassis, bodies, engines, parts & acce. for motor
884 vehicle .etc
31012628
20.21
37066247
19.52
75098609
9.89
45092638
-39.96
740 Basic pharmaceutical products
829 Articles of metal, n.e.s
885 Automobiles
54875359
48704075
64869424
30.81
28.11
313.8
47807316
49472113
70331529
-12.88
1.58
8.42
715045442
18.42
672751487
-5.91
Total Imports of Baden-Wuerttemberg from India
Major 10 Indian Imports from Baden-Wurttemberg
Sy.Co
Product category
845 Lifting and handling equipment
Motors and engines (excl.engines for
841 agri.tractors,aircraft,road vehicles)
847 Machinery for Textile Apparel and leather Production
Medical and surgical equipment and orthopaedic
871 appliances
Chassis, bodies, engines, parts and accessories for
884 motor vehicles, etc
854 Machinery for paper production and printing
Measuring and automatic control instruments and
872 appliances
Machinery and appara. for electricity production
861 .distribution & Control
859 Machinery, n.e.s
852 Machine Tools
Total Exports of Baden-Wuerttemberg to India
%
%
Year 2008
Change Year 2009
Change
Euro
Euro
69268991
131.96
33796880
-51.21
80744367
51004965
111.73
-38.85
33917289
35006947
-57.99
-31.37
42798205
16.28
47134631
10.13
56730245
107317463
18.5
129.05
55875990
72974135
-1.51
-32
77076835
15.81
78387455
1.7
13.39
80150351
29.77 117713047
20.88 127969000
18.69 1210790994
-11.55
-20.7
-20.8
-18.23
90613536
148434223
161573025
1480731072
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
7
VII) Five principal export commodities
Value in million Euros
S.
Name of Export
Bavaria
S.No Name of Export
No
Commodity
Year
Commodity
2009
1.
Motor Vehicles and
37711
1.
Machinery
Parts
2.
Motor Vehicles and Parts
2.
Machinery
20678
3.
Chemical Products
3.
4.
Electrical Products
Chemicals &
Pharmaceuticals
5.
Food Products
Total Exports
4.
14087
11450
6574
123991
Manufacture of equipment
for electricity generation
and distribution, etc
5.
Medical , measuring
control, regulating and
optical products
Total Exports
BadenWurttemberg
Year 2008
35816
34067
17630
8712
8602
151229
(* Figures for Baden-Wuerttemberg for 2009 are expected soon)
VIII) Five principal import commodities
Value in million Euros
S.No Name of Import
Commodity
1.
Motor Vehicles and
parts
2.
Electrical products
3.
Machinery
4.
Chemicals &
Pharmaceuticals
5.
Food industry
Bavaria
Year 2009
16272
17166
11642
8656
S.No Name of Import
Commodity
1.
2.
3.
Chemicals
Machinery
Motor Vehicles and Parts
4.
Office Machines, fax,
modem etc
6218
7388
5.
Iron & steel/ Non ferrous
metals
Total Imports
(* Figures for Baden-Wuerttemberg for 2009 are expected soon)
Total Imports
BadenWurttemberg
Year 2008
26633
13199
10948
8563
123951
130293
IX) Top 5 export and import items in India-Bavaria and India-Baden Wurttemberg trade
EXPORTS TO INDIA
Top export items of Bavaria
to India - Year 2009
Medical & surgical
equipment and
orthopedic appliances
Top export items of BadenWuerttemberg to India. Year 2009
Machinery, n.e.s
Measuring & automatic
control instruments and
appliances
6%
6%
6%
6%
7%
9%
59%
13%
Bearings, gears,
gearing & driving
elements
7%
Machinery for
electricity production &
distribution
Machinery, n.e.s
Industrial plants
Machinery for
electricity production
& distribution
Machinery for paper
production & printing
10%
Machine Tools
60%
11%
Others
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
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Others
8
IMPORTS FROM INDIA
Machinery for
electricity production
& distribution
Top Bavarian import items
from India. Year 2009
7%
7%
7%
Apparel of cotton,
excl. of knitted or
crocheted fabrics
Apparel of knitted or
crocheted fabrics of
cotton
Top import items of
Baden-Wuerttemberg from
India. Year 2009
Articles of leather and
leather clothes (excl.
footw ear)
Chassis, engines,
parts & acce. for
motor vehicle
6%
7%
7%
Footw ear
7%
8%
62%
9%
Articles of leather and
leather clothes (excl.
footw ear)
Articles of metal,
n.e.s
Automobiles
63%
10%
Others
X)
Basic pharmaceutical
products
Others
India-Related Events
Meeting with executives of Siemens AG: July 1, 2010
10.
Consul General met Mr. Stephan Schneider, Senior Vice President of Siemens AG, along
with officials heading their India operations over dinner on July 1, 2010. Mr. Schenieder briefed
Consul General on their operations in India and expressed satisfaction over the fact that their
businesses in India had successfully faced the impact of the global economic crisis. Consul General
underlined the longstanding business relations with Siemens and expressed hope that their
engagement with India continues to grow in the coming years. The Siemens Group India,
comprises 22 companies, operates in core business segments of industry, energy and healthcare.
Siemens Group in India provides direct employment to over 17000 persons. Currently, the group
has 18 manufacturing plants, a wide network of Sales and Service offices across the country as
wells as over 500 channel partners.
Meeting at University of Hof regarding Bavaria-India Cooperation in Vocational Training:
July 2, 2010
11.
Consul General attended the consultation meeting on Indo-Bavarian cooperation in the area
of vocational training hosted by the Bavarian-Indian Centre for Business and University
Cooperation (BayIND) on July 2, 2010. Extensive deliberations on starting a pilot project on
vocational training in India were discussed among senior representatives of PSG Institutions,
Coimbatore (Shri C.R. Swaminathan, CEO and Dr. R. Nandagopal, Director), Bavarian Ministry of
Education and Culture (Mr. Thomas Schlutsmeier), University of Applied Sciences, Hof (Prof. Dr.
Stefan Wengler, Head of the Business Administration Department and Prof. Dr. Franz-Xaver Boos,
Head of the Pubic Management Department), M/s GDW Werkzeugmaschinen Herzogenaurach
(Mr. Hermann F. Weiler, MD, Geedee Weiler Group). From the BayIND, Prof. Dr. Juergen
Lehmann, President and Dr. Daniel Werner, MD, attended.
12.
Prof. Boos and Mr. Schlutsmeier made interesting presentations on the dual system in
Germany - its advantages, strengths and challenges. They also offered all possible assistance in the
BayIND’s endeavour for collaboration with the interested Indian institutions in this regard. Shri
Swaminathan, CEO of PSG Institutions who also chairs CII Southern Region briefed the local
participants about the growing needs of the Indian industry for appropriate skills and gave an
overview of the existing system in India. Shri Swaminathan also recognized the evident strengths
of the German system and saw merit in greater collaboration with Germany in this area. PSG
Institutions Coimbatore has an existing cooperation MoU with BayIND for academic collaboration
and Shri Swaminathan promised to explore the possibility of cooperating in vocational education
with the Coimbatore-based textiles cluster. They have agreed to conduct a survey of precise skill
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
9
requirements with this cluster for the next 10 to 15 years and based on that develop a suitable
programme with the support of BayIND. Mr. Weiler who does have some experience of skill
development in India through his tool engineering training centre in Coimbatore has also offered
assistance by way of sharing experience and expertise.
Meeting at Vocational Training School Landsberg: July 15, 2010
13.
With a view to have a better understanding on the functioning of the Bavarian vocational
training schools, Consul General and Consul (PIC) visited the vocational training institute at
Landsberg (Berufsschule Landsberg) on July 15, 2010. Mr. Oswald Kurr, head of the institute,
introduced the courses conducted by vocational training school Landsberg and organized a visit to
the class rooms/workshops of vocational training departments like Electronics for devices and
systems Mechatronics and Motor vehicle mechatronics. The faculty and students updated the
Consul General on their training projects. Mr. Thomas Schlutsmeier, Pedagogy Department,
Bavarian Ministry of Education and Art also attended the meeting. Mr. Oswald Kurr in his
presentation briefed Consul General on the functioning of the two schools viz, a technical
secondary school and an upper technical school with a total of 1300 students getting trained at 40
different trades, trained by 70 teachers and 7 teacher trainees. The duration of the courses vary
between 2 to 3.5 years. Mr. Kurr said that before developing the curriculum the school periodically
checks with the relevant companies in the region/industry leaders/representatives of local
Chambers of Commerce and Industry about the exact skill requirement of the local industry and
then develop a curriculum which matches the requirement of the local industry. Mr. Kurr further
spoke on the advantage and strength of the dual vocational training system and mentioned that the
students attend theoretical/practical training at the school and focused practical training at the
respective companies. Consul General spoke on the huge requirement of skilled employees in the
coming years in India and expressed hope that the Indian vocational training system will ensure the
involvement of companies/Industry so that the training schools could produce skilled trainees
matching the exact requirement of the Indian Industry.
German-Indian Round Table (GIRT) Meeting at Roethenbach: July 6, 2010
14.
The 3rd meeting of the German-Indian Round Table (GIRT) of the year 2010 was held at
Diehl BGT Defence GmbH, Roethenbach, near Nuremberg on July 6, 2010. The meeting was
attended by around 30 prominent business leaders from the region besides representatives from
German Centre Delhi.Gurgaon, Bavarian Business Association (VBW) and Bavarian-Indian Centre
for Business and University Cooperation (BayIND). In an interesting presentation, Mr. Claus
Guenther, President Corporate Division Board of Diehl Defence dwelt on the activities of the Diehl
Group with special focus on the products and services offered by Diehl Defence. He mentioned
that Diehl Group has a liaison office in Bangalore and the company has a Joint Venture with Forge
India Ltd and is currently in the process of setting up a presence in Delhi. Diehl Group, a family
owned company since 1902, employs around 12150 people and generated sales of € 2.1 billion in
2009.
15.
Mr. Atul Khanna, founder of Tooltech Global Engineering Pvt. Ltd based in Pune in his
presentation ‘India Goes Global’, spoke on the growth story of Indian economy, the rapidly
growing Indian manufacturing industry, increasing Indian outward investments, etc. The event also
included a factory visit to the Diehl Defence facility. Copies of the latest publication ‘India
Dynamic Business Partner: Investor Friendly Destination’, published by ITP Division, MEA were
distributed among the participants. The event ended with a question and answer session followed
by a reception.
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
10
“Indian Summer”, at Stuttgart: July 19-25, 2010
16.
The week long annual event “Indian Summer”, formerly known as India week, was
organised successfully in Stuttgart from 19-25 July 2010. The Federation of Indian Export
Organisations (FIEO) organised an ‘Indian Village’ at the “Indian Summer”. Fourteen Indian
companies participated in the Indian Village and showcased a wide range of products such as
handicrafts, imitation jewellery, madeups, handmade fashion accessories, household items, leather
goods, garments, perfumes, agro products, decorative items and crafts, etc. The FIEO Indian
Village was a major attraction of “Indian Summer” celebrations. A meeting of the German-India
Round Table (GIRT) Stuttgart was also conducted on July 21, 2010, on the sidelines of “Indian
Summer” celebrations in Stuttgart. The GIRT meeting was attended by around 25 prominent
businessmen from Stuttgart region. Ambassador of India to Germany, Shri Sudhir Vyas spoke at
the GIRT meeting. Bollywood and Beyond the largest film festival of Indian films outside India
continued to be the main attraction of ‘India Summer’ celebrations. This year’s selection of some
60 contemporary Indian films was impressive, representing both popular cinema in India and a
wealth of documentaries on important themes.
Indo-German Business Network (IGBN) Meeting: July 21, 2010
17.
The 4th meeting of the Indo-German Business Network (IGBN) was held on July 21, 2010,
at ‘Royal India Restaurant’ in Munich. The meeting was attended by around 20 businessmen,
representing German companies with business interests in India, representatives of Indian
companies located in Bavaria and media. Mr. Karl Nestmeier, board director, Smiles AG gave a
presentation on the electric car from India Reva i. Mr. Nestmeier informed that his company has
entered into a deal with REVA Electric Car Company (RECC) Bangalore in 2009 for importing of
Reva i cars in Germany and the first Reva i electric cars are expected on the German roads by end
of this year. Smiles AG is one of the leading electro car manufacturers based in Bavaria and the
company has a market share of 50% in Germany. Mr. Gunter Benthaus, CEO of Green Rent
GmbH, the Bavaria based importer of Tata Cars in Germany spoke on their project to bring Tata
Nano car to Germany. The event ended with a question-answer session.
Meeting with executives of IHK Freiburg and Solar Company Mirroxx GmbH: Freiburg:
July 23, 2010
18.
Consul General accompanied by Consul (PIC) visited Freiburg on July 23, 2010, to meet
the executives of Freiburg Chamber of Commerce and Industry (IHK Freiburg). The focus of the
visit was on the latest technologies/products being developed by the solar companies in Freiburg
and to create awareness amongst the solar companies in the region about the upcoming business
opportunities in India in connection with the Jawaharlal Nehru National Solar Mission. The
programme at the Chamber included a presentation by Mr. Andreas Kempff, the CEO of IHK
Freiburg on the activities of the Chamber and a presentation by Mr. Werner Reif, Executive
Director, Environmental, Energy and Regional Planning Management, IHK Freiburg on the solar
air-conditioning system installed at the Chamber. Mr. Kempff in his presentation mentioned that
IHK Freiburg has 58,000 registered members and it ranks 17 amongst the leading Chambers in
Germany. He said that the popular Fraunhofer Institutes for Solar Energy Systems (Fraunhofer
ISE) who are engaged in the research and development of scientific and technological
fundamentals for solar energy applications is also located at the Solar Info Center in Freiburg,
which is home to 45 companies, dealing with solar technologies. Freiburg, located close to the
French border in southwest Germany, has acquired a leading position in recent years in solar
energy applications. The Solar Region Freiburg is a long term development vision that the city of
Freiburg has embraced since 1986, which has contributed to the growth of the city as a centre of
expertise.
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
11
19.
A visit was organised to the solar company Mirroxx GmbH Freiburg, where Mr. Christian
Zahler, Managing Director, Mirroxx GmbH, introduced their ongoing and upcoming projects and
the technology options provided by the company. Mirroxx is the world leader in solar Fresnel
collector systems technology for on-site production of solar process heat which could be ideally
suited for production processes in the food, textile industries, solar cooling, air-conditioning etc.
Mr. Zahler argued that with around 300 days of clear sky, some of the regions in India offer
optimum conditions for the Frensel Collector systems and his company has already started
business discussions with Indian companies. Mr. Zahler gave a presentation of their roof-top
Frensel Collector system which according to him has a life of approximately 20 years and a pay
back period of ten years.
Performance of Mercedes-Benz, BMW and Audi in India: First half of 2010
20.
Press reports indicate that the Bavaria and Baden-Wuerttemberg based automotive giants
Mercedes Benz, BMW and Audi have clearly benefited from the worldwide recovery of the
automotive industry, particularly from the increasing sales in India and China. During the first six
months of the year 2010, the sales of Mercedes Benz India increased by 79% to 2402 vehicles, that
of BMW India, subsidiary of the Munich based luxury car manufacturer, increased by 25% to 2183
vehicles and the sale of Audi India, subsidiary of the Ingolstadt (Bavaria) based Audi AG increased
by 71% to a record of 1400 cars.
Siemens India registers growth in third quarter
21.
Siemens India reported a substantial increase in sales by 17% in the third quarter ending
June, 2010. Sales for the first nine months increased by 7%, driven by the divisions of the Industry
and Healthcare Sectors as well as Distribution and Oil & Gas divisions of the Energy Sector.
During the period, the company’s new orders are also reported to have increased by 52% over the
same period in 2009. Siemens Ltd, in which Siemens AG holds 55.18% of the capital, is the
flagship listed company of the Munich based engineering major Siemens AG in India. Siemens in
India, which comprises 19 legal entities, is a leading provider of industry & infrastructure solutions
with a business volume aggregating about Rs. 12,000 crore and the company operates in the core
business areas of Industry, Energy and Healthcare. It has nation-wide Sales and Service network,
21 manufacturing plants, a network of around 500 channel partners and employs about 16,800
people.
Siemens to build combined cycle power plants in Gujarat
22.
Siemens are reported to have won contracts for the turnkey construction of two combined
cycle power plants, namely UNOSUGEN and DGEN by Torrent Power Ltd and Torrent Energy
Ltd, respectively of the Ahmedabad based Torrent Group. According to reports, Siemens will erect
the DGEN power plant, comprising three combined cycle units with a total installed capacity of
1200 MW in Dahej Special Economic Zone in Gujarat. The UNOSUGEN combined cycle plant
will have an installed capacity of approximately 400 megawatts (MW) and will be built in the
vicinity of the city of Surat in Gujarat. In addition to turnkey construction, Siemens Energy will
also supply the main components for the two plants; gas turbines, steam turbines, generators, and
the entire electrical and instrumentation & control systems. For Torrent, Siemens has already built
the power plants Paguthan with a capacity of 655 MW and SUGEN with a capacity of 1150 MW.
The Siemens Energy is the world’s leading supplier of a complete spectrum of products, services
and solutions for the generation, transmission and distribution of power and for the extraction,
conversion and transport of oil and gas.
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
12
XI)
General Economic News
Continuing success of ‘Bayern-Fit For Partnership’ programme of Bavarian Economic
Ministry
23.
With 11 projects in the first half of the year 2010, ‘Bayern-Fit For Partnership’ programme
enabled to support many Bavarian companies by their export activities and provided training to a
number of leading international managers. ‘Bayern-Fit For Partnership’ programme of the
Bavarian Economic Ministry provides opportunity to investors/companies to have insight into the
technical solutions offered by number of Bavarian companies. Through the 11 projects in the first
half of the year 2010, a total of 213 Bavarian companies met with 174 top executives representing
various sectors such as environment, machinery and construction. Another 8 projects are planned
for the second half of the year 2010, according to Mr. Martin Zeil, Bavarian Economic Minister.
24.
‘Bayern-Fit For Partnership’ is organised by the State supported business association
‘Bayern International’ on behalf of Bavarian Economic Ministry. The programme enables
Bavarian companies to get in contact with potential business partners from abroad.
Bavarian export booms
25.
Bavarian exports increased in April 2010 by 20% to Euro 11.5 billion (58% of the exports
went into EU countries) and imports increased by 21.2% to Euro 10.5 billion. The total Bavarian
exports during January-April 2010 amounted to €43.8 billion (+11.3%) and imports €39.7 billion
(+11.2%). Major exporting goods in April 2010 were automobiles (Euro 2.3 billion), machineries
(Euro 1.7 billion) and automobile components (Euro 842 million) whereas the major imports were
crude oil and gases (Euro 1.5 billion), machineries (Euro 1 billion) and Electronic components
(Euro 790 million). Bavarian foreign trade suffered heavy loss in 2009 when exports decreased by
20% to Euro 123 billion and imports decreased by 15% to Euro 109 billion.
Continuous Growth in the number of SMEs in Baden-Wuerttemberg
26.
At the presentation of the SME report 2010, Mr. Stefan Mappus, Minister President of
Baden-Wuerttemberg commented that the guarantee for the better economic performance of the
State is its SME sector. During the period 2005 to 2009, a total of 7200 new Small and Medium
Sized Enterprises with less than 500 employees (SMEs) were newly started in BadenWuerttemberg, according to the report published by the State Government in July 2010. The
number of employees in SMEs increased by 105000 persons during the same period. The total
number of SMEs in the State in 2009 amounted to 477153 whereas the total number of employees
at these SMEs figured to 2.3 million people. The total turnover of SMEs amounted to 773 billion
Euros; this was 57.9% of the total turnover generated in the State. According to the report, during
the period 2005 to 2009, a total of 560 million Euros were spent for promotion of the SME sector.
Increase in Baden-Württemberg’s Industrial Order
27.
The demand for industrial goods from the export giant Baden-Wuerttemberg is reported to
have increased in 2010. During the first half of the year 2010, the orders for industrial goods in the
State increased by 29%, wherein the domestic orders increased by 22.5% and the foreign orders
increased by 34.5%. Almost all major industrial sectors in the State received increasing orders
during January-June, the industrial orders in electronic industry increased by 35%, the electrical
industry by 33.5%, automotive industry by 33%, the metal processing industry by 32.5% and the
machinery manufacturing industry by 30%.
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
13
XII)
Publicity of Trade Fairs/Events Conducted in India
28.
During the month, CGI Munich gave wide publicity among the German industrial
associations, business federations and chambers of commerce & industry to the following trade
fairs/events in India to encourage German participation:
29.
A.
INDIASOFT 2011- 11th annual global IT event (www.indiasoft.org). Organised by the
Electronics and Computer Software Export Promotion Council (ESC), India. Scheduled
to be held at Pune, from March 25-26, 2010.
B.
CONNECT 2010-10th edition of India’s premier Information and Communication
Technology annual Conference and Exhibition (www.ciiconnect.com). Organised by
Confederation of Indian Industry (CII) and Government of Tamil Nadu. Scheduled to
be held on 8th and 9th September 2010 at Chennai Trade Center, Chennai.
C.
Madhya Pradesh-Global Investors Summit-II (http://www.mptrifac.org/Khajuraho.htm).
Organised by the State of Madhya Pradesh. Scheduled to be held from October 22-23,
2010, at Khajuraho, Madhya Pradesh.
The report issues with the approval of Consul General.
(Dr. Binoy George)
Consul (PIC)
August 25, 2010
Consulate General of India, Widenmayer Strasse 15, Munich D-80538
e-mail: com.munich @mea.gov.in
14