Minister Schultz Van Haegen: “Dutch expertise in India well renowned”
Dutch-Indian trade deficit only part of the story
ING Vysya: accelerated growth
INGReporter
India
“DUTCH EXPERTISE IN INDIA WELL RENOWNED” Interview with Minister of Infrastructure and Environment Melanie Schultz Van Haegen 4ECONOMIC OUTLOOK: DUTCH-INDIAN TRADE DEFICIT ONLY PART OF THE STORY 6NO DAY WITHOUT COFFEE 8PETER STAAL: ACCELERATED GROWTH IN INDIA 9VISION EXPRESS: AN OPTICAL CHANGE 10MA FOI RANDSTAD: A NEW WORKFORCE STRATEGY 11FOODTECHHOLLAND: DUTCH FOOD FOR THOUGHT 12
ColophonColophon
ING Reporter is a publication by ING Trade Affairs
Issue September 2011
Editing:
JansenJager, communicatietrajecten, De Meern, www.jansenjager.nl
Design & Production:
JansenJager, communicatietrajecten, De Meern, www.jansenjager.nl
Final editing:
Peter Verheij, Head ING Trade Affairs, ING Bank, PO Box 1800
1000 BV Amsterdam, the Netherlands, e-mail: [email protected]
Contents
2
Dear reader,Welcome to the latest edition of ING Reporter India which aims to stimulate
discussion about interesting business opportunities in India and to promote an
entrepreneurial spirit in forging stronger trade links with the country.
India is an economic powerhouse. The country attracts the attention of many
entrepreneurs and investors, particularly now in a turbulent world economy. We
know India as one of the BRIC countries, which are fast growing emerging markets.
India is expected to record GDP growth of 7.8% for this year. According to ING’s
economists, the prospects for future growth are very encouraging with expected
GDP growth of 8% in the coming years. How Dutch entrepreneurship can contribute
to, as well as benefit from this economic growth will be discussed throughout this
edition of ING Reporter India.
A deep analysis of the trade figures by ING’s economists reveals the real story behind
the Dutch-Indian trade deficit. Globalisation of supply chains and cross border
specialisation have stimulated trade between India and The Netherlands, but the
advantages of these factors remain hidden behind so called re-exports and indirect
exports.
Figures do not tell the entire story. It is always worth seeing how business achieves
profits abroad. In an interview with Minister Schultz van Haegen, the supporting
role of the Dutch government in exporting Dutch knowledge and expertise on
infrastructure, transport and logistics through economic diplomacy is discussed.
We also learn that you must come well prepared, if you want to do business in the
largest democracy of the world.
The growth figures explain why entrepreneurs and investors are keen to tap into
the Indian market, but they face a number of barriers along the way. This year’s
Netherlands India Business Meet with the theme ‘ Entrepreneurship and Investments’
will be useful in understanding this. It will not only focus on the opportunities in
the Dutch-Indian business relationship, but will also take a close look at becoming
a successful player in the Indian market. Together with KPMG and the NICCT, ING
will organize the NIBM (21 September, ING House Amsterdam) for the sixth time.
During this event the NICCT India Business Award will be presented to a company
that has distinguished itself in the Dutch-Indian business community. ING is proud
to be the main sponsor of this award.
I invite you to read this edition of ING Reporter India and wish you success in
discovering new opportunities in the Indian market. If you have any questions,
please contact us. ING is there for you!
Eli Leenaars
Member Management Board Banking
and CEO Retail Banking Direct & International, ING
3
Last April, Dutch Minister of Infrastructure and Environment, Melanie Schultz Van Haegen, paid a working visit to Delhi
and Mumbai. She was accompanied by representatives from around sixty companies from various sectors, such as air cargo,
airport development, maritime transport, logistics and traffic management. The main aim of the mission was to reinforce the
position of Dutch industry and to introduce Indian partners to opportunities offered by the Dutch market. Schultz Van Haegen:
“Considering the current economic developments in the world, it is necessary for Dutch companies to place greater emphasis
on the emerging markets.”
Dutch expertise in India well renowned”
The current developments in India offer extensive
opportunities to Dutch industry to market and export
knowledge, products and service. Schultz Van Haegen
looks back, but also ahead: “As an open economy
with a trading tradition, the Netherlands has relied on
foreign markets for many centuries. In the future, I
expect more and more people in the Netherlands to
earn a living by doing business with companies from
these emerging markets. India is undeniably one of
them.”
In years to come, the economic growth in India is
expected to be around 10% per year. “However”, the
Minister continues, “in order to realise this huge
growth, a good local knowledge-infrastructure is very
important. The Indian government is working
intensively to create conditions for further economic
growth. They are convinced that Dutch industry can
play an important role in this.” International
entrepreneurs who are interested in India can count on
support from the Dutch government: “Economic
Interview Minister Schultz Van Haegen:
Minister Schultz
Van Haegen
“
4
Dutch expertise in India well renowned”
For further information:
www.agentschapnl.nlwww.internationaalondernemen.nl
diplomacy, as the cabinet calls it, is an important
aspect of my ministry's international activities.”
Sustainability as underlying theme
The visit to India in April took place under the heading
“Smart and sustainable solutions in transport and
logistics” and is an example of this economic
diplomacy. Sustainability was the underlying theme for
the various represented sectors. The meetings with
Indian officials and representatives from local industry
presented an excellent platform to once again place
Dutch entrepreneurial spirit in the spotlight. One of
the main projects currently being developed in India is
the construction of a second airport in Mumbai. “The
commercial heart of India is suffering from a chronic
shortage of space, while there is a need to expand air
traffic”, explains the minister, “and this is a situation
that we are familiar with in the Netherlands.” The
Indian delegation was therefore keen to learn more
about a possible Dutch role in the project. The
discussion with chief minister Chavan, from the state
of Maharashtra, was one meeting that stood out.
Chavan stated that there are many opportunities for
Dutch companies to participate in infrastructure
projects like Navi Mumbai, in Mumbai and his state,
Maharashtra. “He appeared to be well aware of the
knowledge and expertise that the Netherlands has
established in the field of sustainability”, states Schultz
Van Haegen. “A cooperative of Dutch companies is
currently being formed in the field of airport
development, soil research and hydraulic engineering.
The aim is to compete for future tenders relating to
Navi Mumbai.”
Dutch vision in Indian ports
The future involvement in infrastructure projects was
one of the milestone in the working visit, that overall
had a clear commercial profile. Travelling companies
had the opportunity to present themselves at seminars,
round tables and workshops in Delhi and Mumbai.
And with great success too, because the results were
immediate. “The traffic management cluster ITS/
Connekt signed a collaboration agreement with ITS/
India. STC Rotterdam also established an agreement
with the Indian Maritime University”, states the
minister proudly. The reputation of logistic links from
the Port of Rotterdam and Schiphol Airport appears to
have created a commercial beeline for Dutch
entrepreneurs over the years. And that is not surprising,
states Schultz Van Haegen, if one looks at the
collaborations in recent history. India has dozens of
ports, which vary greatly in capacity and transhipment
loads. In addition, a number of ports are being
managed by the Indian government while others are
under private management. The harbours have a
distinct Dutch blueprint: “In the past, the Port of
Rotterdam was involved in establishing an integral
vision for Indian ports. As part of the 2g@there
programme by the Dutch government, officials and
companies on both sides have worked intensively
throughout the entire maritime cluster over the years.
Thus not only collaboration at ports, but also in inland
navigation, ship-building and maritime training.” The
programme is currently in its final phase, but has
already helped to create structural cooperation
between numerous Indian and Dutch companies.
Schultz Van Haegen adds: “Rotterdam is currently
examining possibilities to increase its presence in India.
The Port of Amsterdam is also looking at India with a
great deal of interest.”
Joining the mission
The fact that Indian counter parties greatly appreciate
the Netherlands does not mean entrepreneurs can go
to the largest democracy in the world without being
prepared. Schultz Van Haegen advises entrepreneurs
to thoroughly study the Indian market, using
opportunities like the sixth Netherlands-India Business
Meet (NIBM) on 21 September: “India is a very diverse
country and thus has many local differences.
Considerations that buyers make around price and
quality differ from those in the Netherlands, thus be
prepared to produce locally. Successful Dutch
companies implement a modified strategy in India.
Secondly, it is very important to establish a long-term
relationship. Ensure that you not only contact people
when trying to do business, but also when you stand
to make no personal gain. In addition, I advise
entrepreneurs to primarily use our points of contact
in India. Embassies, consulates and economic support
offices will help you to establish or expand your
network.” And she adds firmly: “I advise Dutch
companies in the transport sectors, which are not yet
participating in the collaboration and were not part
of the mission last April, to contact my ministry. I can
inform you that I intend to pay another working visit
to India in 2012.”
5
Almost 58% of the Netherlands’ trade deficit with India
is due to re-exports. As with other Asian and European
countries, the Netherlands acts as an important gateway
to Europe. Machinery, miscellaneous manufactured
goods and mineral fuels are imported from India into
the Netherlands and exported to other European
countries. As a consequence, the Dutch trade deficit
with India has increased. Dutch imports from India for
domestic consumption almost amount to the same
value as imports for re-export (figure 2).
There is, however, a substantial difference in Dutch
imports from India intended for Dutch consumption
and imports that will be re-exported to other countries.
The surprisingly high share of mineral fuels dominates
imports for domestic use in the Netherlands. Mineral
fuels are still the second most important goods category
in imports from India that will be re-exported, but the
category has a much less significant share in the total
percentage of re-exported products. Other important
categories are manufactured goods and machinery and
equipment (figure 3).
The bilateral goods trade balance with India shows an increasing deficit
for the Netherlands. But trade performance is not as bad as it looks.
In 2010, the deficit almost doubled from EUR 0.9 billion in 2009 to EUR
2 billion. On the one hand, this development reflects the increasing
role of the Netherlands as a Gateway to Europe for India. On the other
hand, it neglects the specialization in the supply chain and the offshore
outsourcing of production that has stimulated trade, particularly Dutch
re-exports and Dutch indirect exports to India. Statistics often only tell
part of the story.
Dutch-Indian trade deficit only part of the story
Figure 1
Figure 2
By Robert Rühl, ING Economics Department
Trade Balance on Re-exports
in E
UR
Bln
0.5
0.0
-0.5
-1.0
-1.5
-2.0
-2.5
Domestic Trade Balance
1996 - 2000 2001 - 2005 2006 2007 2008 2009 2010
annaverage
annaverage
Value Imports for Domestic Consumption
in E
UR
Bln
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Value Imports for Re-exports
1996 - 2000 2001 - 2005 2006 2007 2008 2009 2010
annaverage
annaverage
6
Dutch-Indian trade deficit only part of the story
Dutch re-exports
Dutch domestic imports for export packages compared
% o
f to
tal i
mp
ort
s an
d im
po
rts
for
re-
exp
ort
s
Goods not separately mentioned
Misc manufactured goods
Machinery & transport equipment
Manufactured goods
Chemical Products
Mineral fuels
Inedible raw materials
Beverages & Tobacco
Food & live animals
Dutch domestic
0% 5% 10% 15% 20% 25% 30% 35%
Domestic ExportsDomestic Exports plus Indirect Exports
in E
UR
Bln
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Re-exports
1996 - 2000 2001 - 2005 2006 2007 2008 2009 2010
annaverage
annaverage
Hidden export performance
The Dutch role as European gateway to India is of less
importance. Dutch exports to India of products
produced outside the Netherlands only amount to EUR
0.6 billion. Dutch domestic exports are dominated by
chemical products, machinery and equipment and
inedible raw materials. 50% of the products produced
outside the Netherlands but exported via the Dutch
Gateway to India, involve machinery and transport
equipment, followed by 17% involving miscellaneous
manufactured goods.
However, this is not the whole story. Specialization
within the supply chain and offshore outsourcing of
production have stimulated trade, particularly Dutch
re-exports and Dutch indirect exports. As a result,
Dutch products exported to countries like Germany
are included in German products that are shipped to
India. If this flow of Dutch products destined for India
is taken into account, our export performance with
India improves substantially and allows us to add EUR
0.7 billion to total direct exports to India. The first bar
in 2009 and 2010 in figure 4 includes indirect exports
to India.
As a consequence, the deficit in domestic exports
turns into a trade surplus in 2009 and a much smaller
deficit in 2010. In turn, the indirect exports included in
Dutch exports to India will result in a lower export
figure for exports to countries like Germany.
Nevertheless, the Dutch-Indian trade balance improves
in favour of the Netherlands when indirect exports are
included.
Conclusion
The Dutch trade performance reflected in the bilateral
trade balance in goods is not as bad as it appears.
Statistics often only tell part of the story. The important
role of the Netherlands as a Gateway to Europe,
especially the Port of Rotterdam and Schiphol Airport,
will facilitate larger flows of imports from India into
the rest of Europe, via the Netherlands. On the other
hand, the growing internalisation of production chains
will contribute to further growth in indirect Dutch
exports to India. What type of goods have contributed
to higher Dutch export figures? The most significant
contributions came from agrifood products, fuels,
chemicals and technological products.
Figure 3
Figure 4
7
For further information:
www.cafecoffeeday.com
Café Coffee Day (CCD) is an Indian café concept that can be defined as a friendly and stylish hangout where youngsters (18 to
30 year-olds, SEC A and B) gather to socialize over a great cup of coffee and snacks. The chain recently expanded to the Czech
Republic. The brand hopes to use Prague as a springboard to increasing its foothold at worldwide level. President of International
Business Shweta Shetty: “We are great believers in our brand and the product itself. We do not want to restrict ourselves to India.
Cafes allow us to establish our brand in markets with high ‘at-home’ coffee consumption.”
No day without coffee
attraction. ‘Out of home’ coffee consumption in India is
growing rapidly and will undoubtedly result in more ‘at-
home’ coffee consumption in the non-traditional markets
in our country. It is fast becoming the beverage of choice
for young India”.
International Coffee Day
The promising market figures in India have not kept CCD
from exploring the international stage. In the Czech
Republic, CCD has acquired the local café chain Café
Emporio. The acquisition signifies the café’s intention to
increase its international presence, especially in the
Central and Eastern European regions, which are seen as
attractive emerging economies. Shetty: “Large
investments over the past decade, together with the birth
of a strong private sector, have had a positive impact on
Central and Eastern Europe. These are potential markets
for us, because their per capita consumption of coffee is
very high.”
Shetty is clear on why the brand is not considering
penetration into Western Europe as well. “Although the
immediate reason would be that the economic situation
in these countries is not conducive for investment in the
near future, our broader view is that there is also less
opportunity for higher and faster growth in mature
economies. Besides that, these markets are already
flooded by large international café chains with an already
established market share”.
Thanks to this acquisition, CCD now has twenty cafes
overseas: fifteen in Czech Republic, four in Vienna and
one in Karachi. To oversee the transition and
implementation of company-specific systems and
standards, only one manager from the Indian operations
was transferred to Prague. He will soon have his hands
full: “We will consider our European foray to be successful
once we have a presence in at least five or six countries in
the region, with at least 200 operational cafes”, states
Shetty.
Café Coffee Day (CCD) is a division of India's largest
coffee conglomerate, Amalgamated Bean Coffee Trading
Company Ltd. The conglomerate grows coffee on its
own 10,000-acre estates and is the largest producer of
Arabica beans in Asia. It is one of India’s leading coffee
exporters with clients across the USA, Europe and Japan.
Café Coffee Day pioneered the café concept in India in
1996 by opening its first café in Bangalore, which was a
coffee shop/cyber cafe. “At that time, internet was just
finding its way into India. The café was thus opened to
cater to the novelty value offered by the internet, rather
than as a place for people to relax and pass time,” admits
Shetty. The brand soon increased in popularity: “Our
chain of cafes is the largest meeting point for youth in the
country. It is a place that strives hard to understand
and reflect the needs of its target group, and to
be forward-thinking in generating and floating
ideas that may be acceptable in the future”.
Per capita consumption
There is enormous potential in India. The
country currently has around 1200 cafes. The
President of International Business states that
there is scope for a further 5,000 outlets strategically
located close to offices, colleges and shopping malls. Per
capita consumption is also showing encouraging figures.
“In advanced markets like Austria, per capita
consumption of coffee is approximately ten kilos,”
summarizes Shetty. “In India, it is currently around 600
grams.” The manager believes that coffee consumption
has grown steadily since the introduction of the first
coffee shops. So it’s no surprise that this has been
accompanied by a lucrative climate for new business: “In
the 90s, India encountered a growth in its economy,
growth in disposable income and low dependency ratios.
A climate with so many positives was certain to aid the
growth of new business”. The young population has
done the rest since then: “The café culture is a huge
8
The growth of ING Vysya Bank in India is
remarkable. Can you pinpoint some of the
bank’s recent milestones?
“In recent years, we have put great emphasis on
strengthening the fundamentals of ING Vysya Bank in the
Indian domestic market. This has helped us to prepare for
the accelerated growth we are currently experiencing. ING
Vysya Bank welcomes over 35,000 new clients every
month. The bank’s pre-tax profit almost tripled between
2007–2010. The bank is historically active in the four
southern Indian states, particularly in Karnataka and
Andhra Pradesh. The bank’s recent focus has been to
expand with branches in both the northern and western
parts of the country. In the next couple of years, we plan
to open at least 50 new branches every year. In addition,
we also expect to roll out 100 off-site ATM Cash Machines
each year.”
Your growth has also had an impact on your
international business team?
“India as a country is growing, and as a result so is its
international business volume. It is a key target to ensure
that Indian clients are served efficiently in the international
network and in home-markets of ING. Vice versa, our
domestic and European clients need to be served efficiently
in India. Therefore, we rebranded our European Business
Desks to global International Business Clients desks. In
India, this team has representatives in all quarters of the
compass: in New Delhi, Bangalore and Mumbai. It focuses
on both ‘inbound’ and on ‘outbound’ business and is
headed by Amit Bagri. He unites business disciplines like
Lending, Legal and Risk Management and brings our
international network together in order to efficiently
support the investments of our clients. He also acts as an
intermediate for the Indian domestic network of ING Vysya
Bank, consisting of our nine regional Commercial Banking
offices and 515 domestic branches.”
What can we expect from this new team
during the Netherlands India Business Meet?
“It is very rewarding to be at such an event because it
enables us to share best practices or meet companies with
similar interests. This year’s NIBM focuses on the theme of
‘Entrepreneurship and Investments’ , which will discuss the
opportunities India offers to entrepreneurs and investors
and the conditions for becoming a successful player in the
Indian market. We would like to emphasize the top sectors
in the Dutch corporate environment and let these sectors
flourish in India. A quick win is not something you can
easily accomplish and entrepreneurs will definitely need to
consider ‘what’s in it for them’ and ‘what’s in it for India’.
ING is also interested in Indian companies wanting to
invest in the Netherlands and in Europe. Our European
branch network is very valuable to Indian businesses.
Whether it concerns Dutch businesses and entrepreneurs
in general, or ING or ING Vysya Bank domestically, the
Indian growth story is omnipresent. Even with the
uncertainty in global markets, the window of opportunity
in India is still wide open. It’s time for Dutch entrepreneurs
to benefit from the country’s accelerated growth.”
For further information:
www.ingvysyabank.com
Peter Staal (purple tie)
and Uday Sareen (left with
red tie) open an ATM-service
in Bangalore.
Interview Peter Staal:
No day without coffee Accelerated growth in IndiaING Vysya Bank’s recent focus has been on obtaining a more balanced footprint in the country and
building a more efficient bank. On the other hand, ING is leveraging international clients to offer a more
efficient global banking service to these clients. Peter Staal is a member of the Bank Management Team
and Regional Head of Banking for Asia, America’s and UK. He oversees Commercial Banking operations
in these three regions and is also responsible for Retail Banking activities in India, Thailand and China.
Amit Bagri
9
For more information:
www.visionexpress.in
elsewhere and, if necessary, adapt them to the local
market.” The targets are demanding, but manageable.
He concludes: “Our mission is to be the number one
optical chain in the country in terms of sales and
customer satisfaction. Thereafter, we need to continue
building a profitable chain of optical stores that offer
the highest customer satisfaction – the key factor in
long-term growth.”
Lowest price claim
The success behind the formula is easy, states
Ackermans. Vision Express offers high quality products
and the most extensive services in India, at the lowest
price. The company positions itself below the organized
high-end retail chains and slightly above the
independent optical stores that offer low quality. “Our
tagline is ‘India’s lowest prices from Europe’s largest
optical chain’. The high quality does not only relate to
our products. The warranty, exchange policy and the
free eye tests are also part of the high quality range”,
states the Sales and Marketing Director. “Our staff is
highly trained and our optometrists are certified at
renowned institutes, which ensure that we can deliver
the same quality standards in all our stores. They work
in a very professional environment with top-notch
equipment, not something you find easily in other
Indian optical stores. Together with affordable
European quality products, this has enabled us to
establish a trustworthy name in a short time span.”
The company is so convinced of its strategy that it
frequently performs research on similar quality products
to ensure that it can honour its ‘lowest price’ claim.
“We want to make high quality eyewear and services
available to a large share of the population.”
Vision Express is an optical retailer that sells spectacles,
sunglasses and contact lenses. It is the result of
Grandvision’s aggressive approach to acquire strategic
companies all over the world. In India, the Dutch
company needed help from a local partner in order to
comply with foreign direct investment regulations.
Reliance Industries was the perfect solution. Their
division, Reliance Retail, is a major player in India and
has over a thousand stores nationwide. With a solid
back office infrastructure and considerable knowledge
about the local retail market and legislation,
exploratory talks between the two companies in 2007
soon resulted in the first store being opened.
Becoming number one
Adding India to the mix is a no-brainer if you consider
the statistics. First of all, there is a lower rate of optical
stores per inhabitant in India than in Europe: in India,
there is a store for every 75 thousand inhabitants,
while in Europe there is a store for every 7.5 thousand
people. “In addition, around 97 percent of the optical
market in India is dominated by independent stores.
They sell spectacles at very low prices, often
compromising on quality or services”, Ackermans
acknowledges. “Of the huge population of around 1.2
billion people, just 10% wears spectacles while 30%
needs them.” And then there is the purchasing cycle,
which is two to three years in India. This is remarkably
shorter than the European cycle for eyewear, which is
every three to four years. “It is obvious that India is one
of the biggest growth markets in the world.”
Ackermans can rely on experience in over 40 countries
worldwide for the operation in India: “In India, we
implement the knowledge and best practices used
Netherlands-based GrandVision is a leading
global specialist in Optical Retailing and is
represented in over 40 countries worldwide. Since August
2008, the company has also been represented in India via Vision Express, which is a joint venture
with the largest public company in India, Reliance Industries. This has resulted in rapid expansion
in the Indian market. Marketing & Sales Director Gijsbert Ackermans oversees a chain of 115 Indian
retail outlets: “Since being founded, the company has opened stores at a rate of approximately
one a week. It is our intention to maintain this pace.”
Vision Express: An optical change
10
ICT etc.) to the country’s GDP and the labour pool.
According to the latest METS report, the organized sector
in India is set to create around 1.6 million new jobs in
2011. The Healthcare sector will continue to top the
table and is expected to generate 248,500 new jobs.
Besides top performers like Hospitality (218,200) and
Real Estate (144,700), the Manufacturing Non-Machinery
Products sector is expected to perform well and create
223,400 new jobs. “It is no surprise that the Indian job
market is growing and continues to further integrate
with the global economy by the day”, says Mishra. “The
growing economy has opened up numerous business
opportunities resulting in job growth.”
Road to ambition
The economic surge has already paved the way for
employees to capitalize on the opportunities coming
their way. Mishra: “The socio-economic fibre of the
country has undergone changes that have had a positive
impact on people’s ambition and confidence to find
jobs.” One segment of the working class that has been
particularly affected by the growth is women. Their
participation in the corporate world is growing rapidly,
according to Mishra: “More and more women are using
their talent and emotional intelligence to manage
responsibilities at home and in the workplace.”
The growing economy does not only benefit employees.
The rapid expansion of the Indian economy across all
sectors has also created huge opportunities for foreign
companies to establish a foothold in India. Mishra
points out: “There are a few Dutch companies operating
in India that have highly reputable employer brands. In
the future, we hope more Dutch companies will look to
expand their market in India.”
Ma Foi Randstad offers the broadest HR services
portfolio, which includes services like Executive Search,
Temporary Staffing, Recruitment, Specialists on contract,
Consulting, Outsourcing and Training and Assessment.
The combined synergies of Randstad and Ma Foi
Randstad have helped the partnership to cater for the
latest requirements, thanks to extensive reach and an
even wider search map. “Ma Foi Randstad has sustained
its growth by investing in new locations, people,
operating systems, information technology and quality”,
according to the manager. “Being part of a team, we
also get to share many best practices on regular basis.
There is a significant amount of knowledge-sharing on a
daily basis, between teams across various countries
throughout the world.”
The employee-market in India is enormous, but does not
differ much from the Dutch model. The penetration of
flexible work into the organized sector is not far behind
that of the Netherlands. The significant difference is the
participation of organized labour in the overall labour
pool. “The total working population is estimated to be
around 520 million people, but only around 10% of this
pool is involved in organized labour”, states Mishra.
Employment Trends Survey
Ma Foi Randstad not only offers products and services,
but it is also a regional knowledge centre. The
Employment Trends Survey (METS) is a nationally-
recognized survey that is conducted every quarter. It
covers the organized sector in the Indian labour market
and highlights cross-sector growth in Indian job markets,
while highlighting employment trends and opportunities.
A visible trend in India in 2011 is the growing contribution
of the services sector (Banking, Healthcare, Hospitality,
Ma Foi Randstad: a new workforce strategy
For more information:
www.randstad.nlwww.mafoirandstad.com
In 2008, Indian Human Resource company Ma Foi became a Randstad group company, through the Dutch HR
giant’s merger with Vedior. The merger established the second largest Human Resource Services company
in the world and created a larger candidate base for its customers, a more balanced geographic spread
throughout 43 countries and a wider range of services. Head of Marketing Aditya Narayana Mishra sees a
bright future ahead: “The changing global market and the growing significance of emerging markets have
led to many global corporations taking India seriously in their growth and workforce strategies.”
11
WWW.ING.COM
As a consultancy agency in the field of emerging
markets, Larive has been present in India since 1985. In
the last quarter of a century, the company has seen
many Dutch entrepreneurs arrive in India and fail –
leading to the understanding that a more structured
and organized approach was necessary. With help from
the Dutch government’s 2getthere programme, a
unique three year public-private cluster was initiated.
“The approach of our cluster has been different. The
companies in FoodTechHolland are from complementary
sectors in the food processing industry”, says Van Vliet.
“Instead of companies competing with each other
within the cluster, every lead is now shared because it is
bound to generate more orders.” FoodTech consists of
companies from sectors such as bakery, meat,
vegetables and fruit, cooling and storage.
Overcoming sanitary barriers
The main goal of the three-year public-private
programme is to give companies a solid position in the
Indian market by branding the cluster as a credible
partner in total chain solutions. Van Vliet: “Dutch
people are world leaders in innovative chain concepts.
Three of the world’s largest bakery equipment
companies are Dutch, for example. They are often
successful family companies that can compete with the
rest of the world.” Van Vliet explains that it is essential
for the credibility of the sector that its members actually
invest in local projects in India: “We want them to lead
by example. Bringing your expertise into practice is
important to Indian entrepreneurs. Investments in the
local context are essential.”
FoodTechHolland is doing its part. It is currently
conducting a feasibility study for a fully-automatic
bakery in India and is working on three projects that
showcase the cluster’s ability to add value to products
via food processing. The projects are necessary because,
in India, only three percent of all food gets processed –
making it one of the world’s worst performers.
FoodTechHolland can play an instrumental role in
changing the food processing culture in India, but first
needs to convince the Indians. “India is not a market for
quick wins. In order to succeed, you need a long-term
approach to establish your credibility”, Van Vliet states.
Full-time in branding
Branding has been important since the day the cluster
was introduced during a high-end food convention in
Mumbai, Food Forum India 2011. “Larive has thirty
offices worldwide that signal trends and possess strong
local expertise. Three full time employees from our
Indian office spend a large part of their day marketing
the cluster”, reveals the associate. And one of the most
important steps in realizing greater credibility was
realized through support from the Dutch Ministry of
Economic Affairs, Agriculture and Innovation. They
signed a Memorandum of Understanding with the
Indian government during a trade mission last July,
where both sides pledged to overcome various sanitary
barriers hindering the bilateral relationship.
The developments have resulted in an increase in orders
signed between Dutch and Indian companies. New
dates on the calendar offer even more food for thought.
In September, FoodTechHolland will be represented at
the large Indian food expo, FoodEx. Two months later,
Van Vliet hopes to welcome a large group of Indian
entrepreneurs to the Netherlands to show first-hand
why our small country is world-renowned in chain
logistics. Van Vliet: “Indians are all in favour of innovative
technology that changes the food processing industry.
It is essential to share ideas.”
India is one of the largest food producers in the world. However, its large population and large geographical spread also has
a negative impact on consumption. Lack of professional transport and an inadequate cooling chain are the main reasons why
an estimated 30 to 40 percent of all food production does not end up in the market place. FoodTechHolland is a cluster of more
than fifteen Dutch SMEs and mid-corporate companies from the food and food processing industry, which is offering assistance
to the Indian market. Associate Wouter van Vliet of cluster facilitator Larive: “In India, it is important to lead by example.”
FoodTechHolland: Dutch food for thought
For further information:
www.agentschapnl.nlwww.foodtechholland.com