Orten, a 100-year-old car supplier from the rhineland-palatinate region of Germany, was recently acquired by the Trentar Group from Mumbai, India, in a new move by an Indian company to invest in Germany that caught the attention of the German media.
Orten, founded in 1925, is a manufacturer of rotating wheels, sliding tarps and other automotive parts. Trentar hopes to enter the German market with the acquisition. The group also wants to buy more future mobile travel manufacturers in Europe.
German“Frankfurt Allgemeine Zeitung” reported that Indian companies as early as 15 years ago began to move to the west. In 2020 alone, more than 200 Indian companies have set up branches in Germany, investing more than $6.5 bn, according to known figures. The figure is expected to rise further.
In general, Indian companies prefer to buy German companies in high-tech sectors such as autos and engineering. For example, HCLTech, an Indian technology company, bought ASAP, a German firm. German wind turbine maker Repower was acquired by India’s Suzlon. Wipro, an Indian IT services provider, has acquired Cellent, a German IT services and consulting company.
Several Indian business people have previously said that Germany’s security and stability have added to its appeal. At the same time, the weak euro, good research and development capabilities and experienced staff are giving investment in Germany points. Buying small and medium-sized German companies is a quick way to compete.
But not all are successful in Germany. TEKFOR, a German car supplier, was acquired by Indian Group AMTEK Auto in 2013 but has since fallen on hard times. TEKFOR split from Amtek in 2017, and two other German companies Amtek acquired went bankrupt. Indian companies, meanwhile, are finding increasing resistance to investing in Germany. Previous Confederation of Indian Industry and Ernst & Young studies have identified immigration restrictions for staff, regulatory requirements and the German tax and customs system as the main problems.