Bavaria : A Promised Land for Hi-tech Business

With a bouquet of industry-friendly initiatives and backed by a favourable ecosystem, Bavaria, the largest state in Germany has been attracting businesses and investors from around the world dealing with hi-tech products, including Internet of Things. Indian firms too have been cashing in on the opportunities offered by Bavaria. However, there are still numerous more windows of growth waiting to be opened.

india and Bavaria – the economic powerhouse of Germany – share a close relationship, which has been growing steadily over the years. A great number of Indian companies have operations in Bavaria as it gives them easy access to the entire European region. The firms, including Zee Entertainment Enterprises Ltd, Samvardhana Motherson, Quest Global Engineering, TCS, Infosys Consulting, L&T Infotech, Cipla, Glenmark, Dr. Reddy’s Lab, and several others, are among the more than 1,500 international hi-tech firms who have set up business in the South-German state. Meanwhile, over 350 Bavarian firms have opened branch offices or production plants in India. Some of the big names among them are: BMW, Siemens, Audi, MAN, Adidas, Allianz AG, Munich Re, EADS, Infineon, Wacker Chemie, Osram, Linde etc.

So, what makes Bavaria such a happening place in the international business scene? A host of factors, primarily an ideal geographical location with the perfect environment for cross-industry innovation, turns Bavaria into a perfect platform for developing future markets. The southernmost and largest Federal State of Germany is one of the most advanced and strongest economic regions in Europe with a GDP of € 568 billion in 2016.

Advantages galore

Bavaria, located right in the heart of Europe, offers excellent factors like a highly skilled, well-trained and educated workforce, state-of-the-art infrastructure, an advanced R&D base and unmatched opportunities in the B2B sector. It, thus, provides an ideal springboard for Indian tech companies to address the EU market.

However, Bavaria is mostly known for its global players and brands - often broadly associated with Germany. The backbone of its economy are a myriad of innovative, tech-savvy small and medium-sized enterprises, many of which are world leaders in their business area, especially in industries like Automotive, Aerospace & Satellite Navigation, ICT, Mechanical and Process Engineering. Bavaria enjoys a leading position internationally in these key technology sectors. It is also a world leader in Life Science and Medical Technology, Energy & Clean technology, Optronics, Nanotechnologies and Industrial & Automation technologies. The state has excellent logistics systems, airports and public transport system which make it ideal for international companies to start their operations.

Bavaria acts as a gateway to the large South East and East European markets with its 500 million consumers. The state offers enormous resources in terms of development synergies, customer base potential and excellent government support.

With its multifaceted and conducive industrial climate, Bavaria attracts a wide spectrum of competitive suppliers, potential customers and cooperation partners which could be a win-win situation for any trading partner. Major cities of Bavaria - Regensburg, Wurzburg, Greater Nuremberg and Augsburg – are all centers providing hi-tech services.

The ‘Bavarian Cluster Initiative’ is a key feature of the modernization and innovation strategy designed to enhance Bavaria’s role as a top location for business and research all over the state. The cluster policy concentrates on seventeen branches and technologies with high importance for Bavaria’s key industries. Clusters have the mission to promote and support the co-operation between first of all SME/Mittelstand companies and research institutions and thus foster innovation and growth.

The Mechatronics & Automation cluster provides a network for mechatronics companies orientated towards all of Bavaria.

This now includes many traditional and future-orientated sectors such as Automotive engineering, Machine Tool building, Electrical and Electronics industry, Medical and Environmental technology, and Aerospace. Mechanical engineering in Bavaria focuses on drive technology, general ventilation technology, power systems (engines and turbines), and pumps and compressors, and is concentrated in the districts of Swabia, Lower Franconia and Upper Bavaria.

Innovation leader in IoT & AI

Traditionally, Bavaria is well-known for its breweries and car manufacturers. However, the State is now at the forefront of Europe, especially in the field of ICT. To drive forward digitalisation, many companies are investing in technological progress. The numerous IoT labs that have been created in Bavaria during the past few years reflect this trend.

Among the prominent ones is the global IoT headquarters of IBM in the form of the Watson HQ in Munich’s Highlight Towers.  Microsoft‘s IoT & Al Insider Lab also at Munich, is another similar facility in the vicinity. Here, the objective of the lab is to place new digital products from startups as well as large companies on the market more quickly. Volkswagen, which is among Munich’s IoT pioneers, has already opened the first data lab of an automobile group in 2014 and SAP with SAP IoT.

Bavaria beckons India

The State of Bavaria India office, ‘Invest in Bavaria’ opened its office in Bangalore in 2001 to offer first-hand service for Indian investors in setting up and expanding business operations in Bavaria by providing market and expansion process information, location analysis, data support and a professional network in the business and government area.

In 2002, India opened a Consulate General in Munich. In 2016, close to 98,000 Indians lived in Germany and represented more than 22 percent of the blue card holders. The Indian community in Bavaria has access to a large infrastructure of business and social associations. There are a multitude of Indian restaurants, markets and cultural associations catering to Indian needs in Bavaria.

‘Invest in Bavaria‘ is a special division within the department of the Bavarian Ministry of Economic Affairs and Media, Energy and Technology and the single-stop point of contact for all companies interested in setting up and expanding business in Bavaria. ‘Invest in Bavaria’ invites Indian companies to utilize the excellent business opportunities and the support that Bavaria can offer in expanding their business horizon. Being a public funded Government Agency, all our services are free of charge
and confidential.

For more details contact:

John Kottayil

Executive Director

State of Bavaria India Office - Invest in Bavaria,

Prestige Meridian 2, 12th Floor, Unit 1201,

30 MG Road, Bangalore – 560001

Phone: +91-80-40965025/26  

Email: director@invest-in-bavaria.in

Website:  www.invest-in-bavaria.com

Facebook : @investinbavaria.indiaoffice, @investinbavaria

Twitter : @indiaoffice2001

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