Saturday, April 12, 2008

India Inc heading eastern Germany

India''s booming companies are scouring the world to invest and the latest destination is eastern Germany. A recent KPMG report suggests that eastern Germany is emerging as a potential investment destination for India Inc.

Seeing the potential in these sectors, some Indian companies that could be making their foray into eastern Germany are SAIL, NTPC, Unitech, IL & FS and Cairn India.Some of the companies that already have a strong foothold in eastern Germany and are looking to expand are RIL, Suzlon, Voltas, Wockhardt and Bharat Forge.

The driving force for these companies to Eastern Germany are 30-40 per cent lower labour costs compared to western Germany and a relatively enterprise friendly political system. In addition, Germany is the largest consumer market in Europe with 80 million consumers. Indian companies are finding eastern Germany a lucrative investment destination. Indo -German trade has grown by 23 per cent in last two years and analysts say post Tata-JLR deal, they anticipate more big Indian acquisitions in the European market.

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