How does the old saying by one of the world’s most famous Germans go: “In the midst of every crisis, lies great opportunity!” or – quoted just as often, but less clear in origin – “There are no problems, only challenges!”.
I think we can all agree that for the past two years, as well as in this very moment, we had and have plenty of the above mentioned – crises, problems, challenges, but also opportunities – a fact which also became very clear during this year’s Annual Meeting for our German members (“Traditionelles Jahrestreffen”) in Dortmund on the 21st of June 2022.
After two long years of absence, we were finally able to meet again in person and food for thought and discussion was not in short supply!
After greeting our members and guests from all over India and Germany, Stefan Halusa, IGCC’s Director General, welcomed our first speaker, Dr. Ansgar Fendel, Vice President of IHK Dortmund and Managing Director of Remondis Assets & Services GmbH & Co. KG.
In his welcome address Dr. Fendel highlighted some of the many challenges that even traditionally strong economies such as Germany are currently facing: war and supply chain disruptions are currently undeniable. But also, developments such as demographic change and water scarcity prove to be challenging to many economies – both challenges where Indo-German collaboration can play an important role.
Next up was a man well versed with both, India and Germany, and no stranger to challenges of many kinds: Puneet Chhatwal the Managing Director & CEO of the Indian Hotels Company and the current President of the Indo-German Chamber of Commerce. Mr Chhatwal commenced his welcome by outlining some of the similarities and joint challenges that both, the German region of North Rhine-Westphalia – home to the city of Dortmund – and India, are sharing: both are no stranger to socioeconomical changes, both are very dense with a high concentration of political power. Political and economical power are also the main drivers of now more than 70 Years of diplomatic relations between India and Germany. But Mr Chhatwal rightly pointed out that it’s not just political and economic forces that are connecting India and Germany but that the shared values such as the rule of law, good governance and federalism are the foundation of this successful partnership.
Our next speaker, Dr. Amit Telang, Consul General of India in Frankfurt, wholeheartedly seconded the importance of freedom, democracy and rule of law and had the pleasure to introduce us to today’s guest of honour, a gentleman who spent his life and career supporting, protecting, and applying the rule of law in the world’s biggest democracy: The Chief Justice of India, Hon'ble Mr. Justice N.V. Ramana.
Speaking on the topic of “Arbitration in a Globalised World – The Indian Experience” he commenced by pointing out that in the same way in which economic crisis in one part of the world often causes disturbances and hardship in other parts of our interconnected world, a violation of rights or injustice in one part of the world affects the entire system of human rights. Saying that therefore “creation of wealth must be done in a humane manner, ensuring that no individual, community or country feels exploited or that their resources are being taken away unduly” and aptly pointing out that these dependencies must be considered by today’s business leaders. The topic of arbitration in a globalized world is of great significance for businesses and investors worldwide because only a country with a strong legal framework, able to protect investments and resolve disputes, is an attractive investment destination. But even legal conflicts that arise in developing countries such as India are still predominantly resolved in resolution centers in the business hubs of the developed world and therefore the geography of international arbitration is presently not as balanced as it should be. Initiatives such as the newly created International Arbitration and Mediation Center in Hyderabad or the Dispute Resolution Services (Mediation and Arbitration) provided by IGCC are therefore steps in the right direction. Still more needs to be done to make arbitration equal and equally accessible and Justice Ramana summed it up nicely but quoting one of Germany’s most well-known poets: “Knowing is not enough; we must apply. Willing is not enough; we must do”. To read Justice Ramana’s full speech, please click here.
Besides arbitration there is another topic of conflict which concerns the globalized world and where a lot of action is needed. It’s a resource which mostly gets our attention if we have either too little or too much of it, and which is crucial to our well-being and survival: water. However, as with many things, distribution is key and our next speaker, Jens Dallendoerfer from the Dortmund-based and globally active pump manufacturer Wilo SE, knew this better than everyone else in the room and outlined Wilo’s impressive growth story in Asia and India: half of the company’s 1.65 billion turnover is now achieved in Asia, where also 50% of Wilo’s 8200 employees are based, among others in the cities of Pune and Kolhapur in western India where Wilo is currently based. This enables the company to improve access to clean water for more than 100 million people, for example by installing smart irrigation systems which transport and store water during times of excess supply such as the Indian monsoon season and enable water usage at a later point during times of scarcity. One example of the successful implementation of such systems is the Narmada-Malwa-Gambhir Link project which will provides irrigation to 158 villages on an area of 50,000 hectares in Madhya Pradesh, northern India.
Mr Dallendoerfer was also part of the panel discussion, moderated by Stefan Halusa, which gave us the opportunity to hear first-hand the thoughts of Indo-German business leaders on recent developments and business opportunities in Indo-German cooperation:
Kaushik Shaparia, CEO of Deutsche Bank India aptly likened India to a famous American pop song from the 70s: “India is like Hotel California, difficult to check-in, impossible to check out but once you’re in, you do well!” I think any member of IGCC, reading this article, will second these words.
Andrea Hendrickx, the Country Head of Infosys Germany continued with another very interesting assessment regarding the perception of India in Europe and North America: even though the “heart of IT beats in India”, India is still not perceived as the groundbreaking innovator that it truly is, so a change of perception is duly needed. Mr Dallendoerfer equally singled out the innovative spirit that is characterizing work force and doing business in India.
Dr. Georg Hüthwohl, Managing Director of the German company Albonair GmbH, active in India since 2007, is well versed with the opportunities and challenges of India’s transition towards a more sustainable mobility landscape, including the shift from traditional fuel powered vehicles towards less polluting electrical vehicles, which according to him, are an ideal solution for the Indian market - especially within cities, where travel distances are usually very short and the need for cleaner air is very acute. That said, when asked about the biggest challenge he, along with Tapan Singhel, CEO of Bajaj Allianz General Insurance Company Limited steered our attention towards one factor which tends be overlooked by many, even though it usually turns out to be critical for long-lasting business success: the importance of keeping in mind the cultural specifics of each working culture such as very different attitudes to planning and the observation that a German “not bad” translates to an Indian “super great”, which not seldomly creates raised eyebrows (or worse) on both sides. However, according to Mr Shaparia from Deutsche Bank - while admitting that the challenge of delivering high volumes while having to navigate very low profit margins in the Indian market sometimes keeps him up at night – despite their differences, the discipline of Germans in combination with the innovativeness of Indians are ideal complements for successful Indo-German cooperation. Or, as Ms Hendrickx put it, if you trust the people then they will deliver – in India and Germany alike!
Of course, doing business in India comes with its very own set of challenges. In recent years an increased focus by Indian policy makers on local content and domestic production is surely one of the challenges that India-bound businesses and investors have to consider. But Martin Wörlein, Partner at Rödl & Partner, pointed out that government programmes such as Make in India Mittelstand (MIIM), now implemented by Rödl & Partner, are designed to support foreign companies with the regulatory and administrative challenges that come with doing business in India to make sure that foreign and Indian companies alike can profit from the huge potential, skilled labour and high productivity that the Indian market offers.
In his welcome address Consul General Dr. Telang mentioned that it’s always a good idea to reach the minds through the stomach, and now it was time to follow his advice: after plenty of food for thought we were looking forward to the more tangible pleasures in life, and lunch on the sunny porch of the IHK Dortmund finally gave us the long-awaited opportunity for some networking – the real deal without headphones, black squares and mute buttons. Business cards, smiles and new ideas were exchanged, and plans were taking shape: the focus shifted from crisis to opportunity. Or, as our president Puneet Chhatwal put it: “After crisis comes growth, let’s grow together!”. We wholeheartedly agree and IGCC is and will be there to support you and your business during this journey through challenge and growth!
Real growth is always a team effort and we would like to extend a big thank you to our sponsors Roedl & Partner, Techniker Krankenkasse and Leue & Nill, without whom this event would not have been possible.
