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From the dramatic growth of interest by German and European companies to signs of a continuing hot IPO market, and the market entry of leading international real estate companies into India, we’ll cover a broad range of topics this issue.

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Rise of the Week: German Companies Start Lining up in India

While US companies have actively set up Global Capability Centers (GCCs) in India for over two decades, European companies had been more cautious in setting up innovation hubs outside of the EU. But this is changing dramatically.

Large multinationals such as SAP, Bosch, Mercedes-Benz, Siemens, Continental, and Deutsche Bank already operate large GCCs that drive innovation for their products globally. And there’s more:

• Lufthansa plans to establish a GCC together with Infosys

• BMW’s joint venture with Tata Technologies was announced last year with the goal to develop automotive software and IT solutions

• Infineon announced its new GCC in India (see news below)

• Schaeffler is looking into establishing a new GCC as part of its global strategy to enhance software and engineering capabilities (see last week’s issue)

Achim Burkart, Consul General of the German Consulate in Bengaluru, shared the following statement in a Times of India article titled “Inspired by Benz, Bosch and others, German cos lining up”, published on 19 March 2025:

Burkart highlights three key examples of the growing interest by German companies including the famous German Mittelstand (SMEs that are often family-owned, known for their innovation and have strong market presence):

• Regular visits of high-ranking delegations to India

• Improving trade and government strategy

• Pride in innovation generated for German companies globally

In its GCC landscape report from September 2024, the globally active Indian management consultancy Zinnov, a leader in the GCC space, confirmed the strong growth of GCCs:

A trend that’s expected to continue and for European headquartered businesses to actually accelerate, according to Zinnov. This development is confirmed by Stefan Halusa, Director General of the Indo-German Chamber of Commerce, who mentioned in the Times of India article that 35% of German companies see GCCs as the reason for them to invest in India, up from 17% before.

In the same Times of India article, Doreswamy, CEO India of the automotive supplier Continental, and Kalavathi GV, Head of the Global Development Centre of Siemens Healthineers India, both highlighted the availability of talent, particularly in the innovative fields of AI and ML, as being the main reason for establishing large GCCs in India.

Something Siemens Healthineers clearly is committed to. The company’s largest innovation campus globally is currently under construction in Bengaluru, India.

Sources: Times of India, Zinnov & nasscom

What Else is Rising?

India’s Strong IPO Market is Expected to Continue

India has seen a strong momentum of Initial Public Offerings (IPOs) recently and led the world with a total of 338 IPOs in 2024—a 44% increase from 2023. Also, 5 out of the 10 largest IPOs in the whole APAC region for 2024 took place in India:

Notable IPOs:

• Indian subsidiary of Korean automotive group Hyundai, both the 2nd largest IPO globally that year and the largest ever IPO in India, that raised USD 3.3 Billion

• Swiggy, the homegrown food and grocery delivery business, that raised USD 1.4 Billion

• NTPC Energy, the state-owned power company NTPC’s renewable energy division, that raised USD 1.18 Billion

This momentum is expected to continue. According to Inc42, 23 startups including major unicorns

• Flipkart (eCommerce, backed by Walmart and Google)

• Ola Consumer (mobility, backed by Softbank, Vanguard etc.)

• OYO (travel tech, backed by Microsoft, JP Morgan etc.)

• PayU India (fintech and major payment provider, backed by Prosus)

• Zepto (quick commerce, backed by Y Combinator, General Catalyst etc.)

are in different stages of their IPO processes. In order to support and help manage IPO proceeds, Morningstar reported that the major banks HSBC and UBS have expanded their wealth management teams in India.

All in all, this development is a confirmation of the lasting momentum and growth of the Indian economy.

Sources: Lexology, Inc42, Morningstar

Major Real Estate Investors Enter and Expand in India

Several international asset managers and real estate investors are expanding their footprint in India or decided to enter the market:

• Blackstone, the world’s largest asset manager and India’s leading commercial real estate investor, announced new investments into India’s booming housing market (The Economic Times).

• Prologis, the world’s largest warehouse developer, announced plans to invest USD 500 Million by 2026 in the major markets Delhi, Mumbai, Pune, Bengaluru, and Chennai. (Manufacturing Today)

Those decisions follow a trend in the industry. India’s ongoing urbanization and growing infrastructure investments are a core driver for real estate developments, as developers secured land worth INR 62,328 crore (around EUR 6.7 Billion or USD 7.42 Billion) over the past year alone (The Economic Times & JLL).

Source: The Economic Times, Manufacturing Today, The Economic Times & JLL

Quick Risers

• European car makers accelerate their presence in India in order to take on more market share from the dominating Japanese automotive brands. European and Chinese brands only have a market share of 4.3%, much lower compared to Japanese (51.2%), Indian (25.4%) or Korean (19.1%) brands. (Source: The Economic Times)

• The German semiconductor company Infineon announced that it will set up a GCC at Gift City in Gujarat. The GCC will employ a total of 400 engineers and be an addition to Infineon’s locations in Bengaluru, Noida, Pune and Vadodara. The centre’s focus will be on R&D for semiconductor chip design, product software information technology, supply chain management, as well as systems and applications engineering. (Source: The Hindu Business Line)

• Infineon and US-based chip supplier Onsemi are exploring collaborations with local companies to establish semiconductor assembly and testing (OSAT) facilities in India. This is in line with the ongoing trend of India becoming a hub for semiconductor manufacturing. (Source: Moneycontrol)

• NTT Data plans to invest USD 500 Million on AI, data centres and sovereign cloud. While a Japanese company, NTT’s investments over the next 12-18 months confirm a growing trend of increasing investments in India from multinational businesses headquartered in Europe and APAC. (Source: Inc42)

• The Japanese car maker Toyota is setting up its first R&D centre in India, signaling the market's growing importance. From initially 200 people, Toyota intends to scale its Bengaluru-based team to 1,000 engineers by 2027. (Source: The Economic Times)

Spotlight: Zinnov’s 101 on Global Capability Centres (GCCs)

Global Capability Centers (GCCs), Outsourcing, Build-Operate-Transfer (BOT), Offshore-Development-Centers (ODCs)—common terms in the Indian business landscape, but confusing to many Europeans.

To clear up the confusion, Zinnov prepared a set of short videos and explanations. Take a look here!

Curiosity Corner

Your random facts and stories about India and the Indo-European friendship.

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