YG India Special: The Matchmaker – Purvi Shah

Despite the connotations of her self-proclaimed job title, Purvi Shah does not arrange romantic relationships — though she may make her clients just as happy as lovebirds. Shah, founder of the consulting firm Living Event, connects Indian and German businesses, helping them network, negotiate partnerships and break into the Indian market. Her unique position as an Indian having spent most of her life in Germany provides the insight behind her advice. YG sat down with Shah to get her perspective on the state of Indo-German business relations.

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Why did you decide to start a consulting firm for German businesses entering the Indian market?

First of all, I am of Indian origin, and I speak Gujarati, one of the main languages. Last year, I got in touch with more enterprises that somehow have a relation to India. The demand for people with knowledge about India is increasing, and I took the chance in offering my services. I now do seminars on intercultural communication for Indian and German companies, matchmaking of enterprises in India and Germany, and I will issue an Indo-German business and culture magazine soon. Companies have responded well to Living Event, especially the intercultural seminars. I see myself as a mediator between the two countries and the cultures.

According to the German embassy in New Delhi, Indo-German trade has increased 289 percent since India opened its markets in 1991, an average of 19 percent a year. Why do you think the two nations have developed such strong ties?

Germany is a country of know-how and a country of inventors. India has the labor to produce these products for a reasonable price. India is the biggest democracy of the world, and with the English legal system — and with English as one of the main languages — it is easy for German companies to gain ground in this country.

Where is there is room for growth in trade?

I see growth in many fields, especially in pharmaceutical products, biotechnology, the automotive sector, geothermal energy and many more. India has opened its barriers since beginning of the nineties and possibilities for market entry are still being facilitated through the Indian government. The middle class in India is increasing, which also indicates that new products and new technologies are wanted — especially from Germany.

In your experience, what type of growth has been more prevalent: German enterprises setting up operations in India or Indian firms moving to Germany? Has one nation profited from the relationship more?

There is a difference when comparing the countries. Since it is possible to create subsidiaries in India, German companies often set up a branch or some operations in India. Joint ventures with Indian companies are still very common, but therefore it is indispensable to know the joint venture partner very well. Indian companies do expand their product ranges or their sales departments by buying companies in Germany.
 
What are some mistakes German companies make when trying to break into the Indian market?

Many German companies underestimate the cultural differences. The Indian mentality is not comparable to the German. Though many Indians (especially managers) have studied abroad and have seen other cultures, they will never lose their roots and will always stick to their own culture.
Another big issue is that Germans trust too fast. It is important to check the partner and co-workers in detail before going into a deeper relationship.

What success stories have you seen?

In the field of matchmaking, there are several companies in Germany selling their products to India. Even in the food business, I know of one Indian company trying to gain ground with their franchise system, which will definitely be successfully established in 2008-09. The Indian Reliance company successfully entered the German market years ago and a German cable producer has for years been manufacturing its products for the Asian market in South India. But there plenty of SME’s which have successfully gained ground in India.