Nokia may no longer remain the only Finnish company that closely touches the lives of Indians. A slew of other Finnish firms present in India are scaling up their operations, while a few others are readying for venturing into the world?s second-fastest growing economy to tap opportunities in oil and gas field services, power generation, municipal water management and large scale industrial effluent treatment, the firms confirmed to FE.

Higher levels of urbanisation associated with India?s 8-9% economic growth coupled with an expanding population and climate change are set to increase pressure on water resources in the country.

This would create a robust market for water treatment services for human and industrial consumption. India has already delayed its shale gas exploration plans by an year due to the impact chemicals used in flushing gas out of underground rocks could cause on ground water safety. Finnish companies are also eying the opportunity in restoring India?s polluted rivers.

Sensing the opportunity, Kemira, a 2 billion-euro water chemistry company, is setting up a large chemical manufacturing plant in Vishakapatnam together with India?s IVRCL. These chemicals are used in recycling water. Once the plant becomes operational later this year, Kemira would work on setting up a new research and development centre in India. ?Businesses must be localised with local manufacturing, technology support and local research because different countries have to tackle different sets of problems. Therefore, we have to have a separate research and development centre in India,? Kemira?s chief executive Harri Kerminen said at an interaction with reporters here.

The company has set an immediate target of raising its India turnover to 300 million euros, which will be a thirty-fold jump. ?We have tried to be very pragmatic (about this target) and this is what we could achieve right away,? said Kerminen. Kemira now supplies chemicals to global oil and gas field services firms like Halliburton and Schlumberger, that have set their eyes on India?s potential shale gas exploration market.

Shale gas exploration involves hydraulic fracking, a process of pumping water into shale formations and extracting gas. The resultant water contamination necessitates intervention by water chemistry companies to protect the environment. Many of the Finnish companies planning to enter India would bring their design and technical expertise, while a large part of engineering work would be left to Indian firms. Nasdaq-listed 700 million euros consulting and engineering company Poyroy, which has opened its Indian headquarters in Kolkatta, has now bagged contracts from various state departments and municipal corporations in J&K, Rajasthan, Delhi, West Bengal, Rajasthan, Madhya Pradesh, Kerala and Tripura for design of urban transportation as well as water and sewage networks. The projects will be executed with aid from ADB, World Bank and Japan International Cooperation Agency (JICA). The specific projects include ensuring 24-hour water supply in the Indian capital and private sector participation in Bangalore?s water supply. ?Our sales estimate for India for this year is one million euros. We are working on new projects and we expect an order book of 2 million euros by the end of the year,? said Markku Oksanen, Poyroy?s president, water & environment, Asia. Econet, a Finnish design, engineering and construction company in water management sector, is also keen on the Indian market. ?Our (machinery supplier) subsidiary ? Oy Slamex Ab ? is interested in establishing a business in the Indian market,? said Esa Raivio, vice-president, Econet Group. Slamex is a small-sized company with 30% share in the 8.3 million euros Finnish equipment market and is now looking at other markets for growth, of course, with local partners. Representatives of Finnish Water Forum, a public-private networking body to promote Finnish technology in the sector, said India?s environment minister Jairam Ramesh wants to see Finnish firms restore rivers in India.

(Travel for the report was sponspored by Finnfacts)