Market Update: German industry giant bets big on India as manufacturing costs push European firms eastward – Full Analysis

   Arti Bali,

In a significant vote of confidence for India’s manufacturing ambitions, Germany’s 75-year-old Remmers Group has partnered with Indian coatings leader Teknovace in a Rs 300-crore joint venture, positioning India as a key export base for high-performance coatings serving markets across Europe, Africa and Southeast Asia.

The deal marks a strategic shift for the German industrial major, which deliberately chose India over other international locations as rising costs squeeze European manufacturers. “The Indian market emerged as the most favorable option,” Dirk Sieverding, CEO and owner of Remmers Group, told UNI, citing India’s “entrepreneurial dynamism,” “strategic location,” and “stable trade relationships.”

The partnership comes as European and American companies accelerate diversification away from China-centric supply chains, with India emerging as a primary beneficiary. Unlike typical foreign investments aimed largely at India’s domestic market, the joint venture will manufacture in India for global exports, including shipments back to Europe.

“This goes far beyond a financial investment,” Sieverding emphasised. “We are building a long-term partnership with technology transfer, shared capital, and no exit pressure, enabling India to serve multiple international markets.”

The announcement gains significance as it coincides with Union Commerce Minister Piyush Goyal’s visit to Brussels for crucial Free Trade Agreement negotiations, highlighting the deepening India-EU economic corridor. FTA talks resumed in June 2022 after a nine-year pause, with industry leaders on both sides viewing the engagement as an opportunity to convert global uncertainty into tangible business growth.

Sieverding said the current global environment is distinctive due to the convergence of “geopolitical shifts,” “economic disruption,” and “India’s unique advantages.” Rising manufacturing costs in Europe, supply-chain diversification, and India’s democratic stability have created what he described as a “generational opportunity.”

In an exclusive conversation with UNI, Sieverding said the collaboration was driven by the company’s desire to expand beyond Europe, where Remmers has a 75-year legacy. “Teknovace’s entrepreneurial spirit, innovative technology, and rapid growth made them the ideal partner. Together, we complement each other technologically and strategically,” he said.

Despite global disruptions, including geopolitical and economic uncertainty, both companies see these challenges as opportunities. In recent years, several global buyers have shifted sourcing from China to India, resulting in increased demand from Europe and the United States.

Pankaj Singh, Managing Director of Teknovace, said the partnership would provide access to advanced European technologies, capital infusion, and international market exposure. “This is more than an investment; it’s a long-term partnership with no exit pressure, enabling accelerated growth and innovation,” he said.

Nikhil Mahapatra, Founder and Director of Teknovace, noted that supply-chain disruptions in China and volatility in other global markets have made India an increasingly attractive destination for international investment.

The joint venture will also focus on sustainability and innovation, including reducing CO₂ emissions, integrating sustainable raw materials, and strengthening R&D capabilities. Partnerships with global clients such as IKEA underscore the emphasis on high standards and environmentally responsible practices.

Dirk Sieverding said that with “balanced diplomacy,” “shared democratic values,” and rising global uncertainty elsewhere, India is emerging as a reliable destination for manufacturing and long-term investment.

UNI MI AAB