German Companies Are Betting Big On Punjab

[kdsingh80]

German companies are betting big on Punjab

Ruchika M Khanna

Tribune News Service

Chandigarh, September 11

When home-grown industrial units are moving out their investments, some German companies are reposing faith in the state’s growth story by hiking their investment and expanding their facilities in Punjab.

While combine harvester manufacturer Claas and auto component manufacturer Sigma Freudenberg Nok are looking at increasing their investments in Punjab, German wholesale retailer Metro Cash and Carry is also making its entry in the state.

Talking to The Tribune, Karl Jerg, general manager, Sigma Freudenberg Nok (SFN), which manufactures radial shaft seals, said the company was now looking at creating an additional manufacturing facility in Mohali with an investment of 3.5 million euros.

“We are running our facility at Mohali to full capacity. In order to enhance our production capacity, we are looking at creating another facility, which will start commercial production next year,” he said.

Claas India, too, has decided to expand its facility in Morinda. On the sidelines of a seminar on German Best Practices at the CII, Pradeep Malik, president and managing-director of the company, said the company’s board of directors had decided on increasing the plant’s production capacity from 1500 to 2000 units per annum.

“Though we have yet to decide on the quantum of investment, we will be increasing our production capacity and upgrading our paint shop and R&D centre. With the focus now on increasing export of combine harvestors from the Morinda plant, the company has decided to increase its investment here.

“So far, 20 per cent of our production is exported to South Korea, Pakistan and South Africa. We are now looking at increasing the share of exports to 30 per cent and service new markets like Thailand, Phillipines and South America from here,” he said.

Other than these two companies, Metro Cash and Carry also started its operations in Punjab beginning this month, opening its centre in. The company will open its second centre at Zirakpur and a third one at Jalandhar soon.

It has bought land for setting up these stores, each spread over an area of 1 lakh square feet and offering over 1800 items. The wholesale retailer is looking at an investment of Rs 900 crore in Punjab, to be made in a phased manner. The company will be sourcing a lot of fresh produce from local farmers, to be retailed through these stores. The company is looking at Punjab as a major sourcing hub for fresh produce for its centres across India.

http://www.tribuneindia.com/2011/20110912/punjab.htm#2

[HSD1]

How many jobs is this going to create?

[kdsingh80]

How many jobs is this going to create?

If they will procure direct from farmers and distribute all over India then this will be a huge benefit for Punjabi farmers as Punjab will become major sourcing hub of vegetables

[HSD1]

If they will procure direct from farmers and distribute all over India then this will be a huge benefit for Punjabi farmers as Punjab will become major sourcing hub of vegetables

But who gets the kind of jobs in these combine harvester/tractor manufacturing plants? Is it Punjabis and Sikhs or do they go to workers coming from other states?

[kdsingh80]

But who gets the kind of jobs in these combine harvester/tractor manufacturing plants? Is it Punjabis and Sikhs or do they go to workers coming from other states?

To be honest I don't think majority of workers are going to be Punjabi's.These type of companies pay low wages and most of Punjabi's will not be interested in those jobs,but indirect jobs will definately go to Punjabi's .Let me give you example I live in NCR region of Haryana and few haryanavi's work in companies but indirectly they suck the money from these workers,Example giving them rooms on rent.opening eating places ,Alchohol shops ,water supply and lots of indirect business which benefit only the locals

[HSD1]

To be honest I don't think majority of workers are going to be Punjabi's.These type of companies pay low wages and most of Punjabi's will not be interested in those jobs,but indirect jobs will definately go to Punjabi's .Let me give you example I live in NCR region of Haryana and few haryanavi's work in companies but indirectly they suck the money from these workers,Example giving them rooms on rent.opening eating places ,Alchohol shops ,water supply and lots of indirect business which benefit only the locals

It's good to see that there will be short term benefits to locals. Over time hopefully Punjab will develop it's own farming manufacturing companies drawing from the people who work in these kinds of factories so the profits dont go back to places like Germany.

[dalsingh101]

Did this happen? Did Germans open up plants?

[Genie Singh]

german engineering is the best in the world and many punjabis can see the quality right their, perhaps this will be a way for punjabs economy to increase and for punjabis to learn more of how successful innovation and business trends can be created where by some day punjab can produce world class products which are exported all over the world.