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: peter.verheij@ing.nl

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