German companies in Gujarat get drawn to Pune
Several German companies based in Gujarat seem to be swimming against the current tide, and setting up shop in Pune.
Helping attract German investment, as Zubin Kabraji, regional director of Indo-German Chamber of Commerce reads it, is the presence of a strong German community in Pune and the city’s image as an educational hub.
Kabraji, citing an example, said German ball bearing manufacturer Schaeffler has a unit in Vadodara in Gujarat but decided to expand operations to Talegaon in Pune. Other than Schaeffler, automobile giant Volkswagen will expand their training and manufacturing facilities in Pune, he said.
The automobile giant has already invested $800 million in Pune and the estimated expansion plan is pegged at $200 million.
Most companies that have a presence in Pune are from the automobile and heavy engineering sectors. Kabraji said there are around 300 German companies, large and medium, operating from Pune. The cumulative investment by German companies in Pune in the last 30 years is pegged at around $7 billion.
Talking about companies preferring Pune over Gujarat, Kabraji stated that although establishing units is easier in Gujarat it is not a “tested destination. Other than presence of education institutions and a large and vibrant German community, Pune has of late emerged into a large melting pot of culture, a major attraction for the companies,” he said.
Keeping up with the trend, Kabraji stated that automotive