italian-Links | September 2011

The IICCI Launches the First Indo-Italian Business Conference Understanding the Indian Furniture Market.

A Consumer Behaviour Study

Contents

Message

1 Italian Links Volume 8 No 1 September 2011 Published by The Indo-Italian Chamber of Commerce & Industry, Bengal Chemicals Compound, 502 Veer Savarkar Marg, Prabhadevi, Mumbai 400025, India Editor-in-Chief Sergio Sgambato Managing Editor Claudio Maffioletti Deputy Editor Letizia De Martino

2 3 Economic Overview

5 Sector Insights

9 10 12 14 16

Editorial Staff Amar Joshi, Charvi Thakkar, Gianpiero Aufiero, Jason Almeida, Manoj Bhatkar, Monaz Billimoria, Nupur Mathur, Pushkar Hate, Roberto Zanchi, Sachin Mogre, Sathish Kumar, Stanley Moses, Vittoria Filosa Regional Correspondents D. Sreevidya, G.K. Hegde, Gurpreet Ahuja, Jyoti Saha Design & Layout MadderRed, Mumbai Printed by Mail Order Solutions (I) Pvt. Ltd.

www.indiaitaly.com iicci@indiaitaly.com For private circulation only

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20 22 24 26 28 29 30

31 33 36 38 39

40 42 46 47

49 50 51 52 53 54

Messages

Narinder K. Nayar President

According to recent studies, the Indian banking sector is set to become the world’s 3rd largest, in terms of assets, over the next 14 years. It will also see exponential growth in the coming years, with its assets poised to touch US$ 28,500 billion by 2025, as compared to assets of US$ 1,350 billion in 2010.

This is but one testament to the dynamic nature of the Indian economy, which is already a likely candidate to surpass Japan by 2035, and rank 3rd after USA and China.

Along with the debureaucratization of investments in the infrastructure sector and the increase in the literacy levels– according to the 2011 Census, 74% of the population in India is literate as compared to 65% in 2011 – India could overtake China since it is a demographically younger country.

Thus, the immerging role of India in the world economy is evident and it is clear that investing in the subcontinent has well become a necessity, for the European economies, rather than remaining an option among other markets.

In 2010 Italy ranked 12th in the countries that mainly invested in India and in the first quarter of 2011, various institutional and business delegations visited both India and Italy one after the other.

However, in spite of this positive scenario, India is still perceived today by many Italian companies as distant, complex and a market that requires a long-term approach.

This is evident particularly in priority sectors for the development of the Indian economy – infrastructure & building, energy & environment, agri & food processing technologies and machine tools – where the Italian companies, despite possessing the know-how and state of the art technologies, have not yet been able to establish themselves.

Therefore, the Indo-Italian Chamber of Commerce and Industry increased the number of visits to Italian Chambers of Commerce, companies and sector associations and institutions, through road shows and country presentations, to disseminate knowledge about India and identify specific entry strategies to the Indian market for the Italian SMEs. Such activities generated a significant number of new collaborations, for instance the ones with SACE - the Italian insurance and financial group, Invitalia - the Government agency for inward investments promotion, and with SIMEST – a development and trade financing company for Italian companies abroad.

As an apt conclusion to this period of great development in its activities, the IICCI launched the first Indo-Italian Business Conference (IIBC), a platform for dialogue between Indian and Italian institutions, associations, research centres and business communities, to identify projects to be realized in partnership in the identified key sectors, which are rich with opportunities, for future indo-italian collaborations.

This initiative was born thanks to the joined effort of the our Chamber in India and the representative agencies of the Italian Chamber system – namely InnovHub and Promos (Milan Chamber of Commerce), Promec (Modena Chamber of Commerce) and Unioncamere Emilia Romagna, Turin Chamber of Commerce and Foreign Centre for Internationalization of Piedmont (CEIP), Umbria Foreign Trade Centre, Veneto Foreign Trade Centre, Vicenza Qualità (Vicenza Chamber of Commerce) – and realized with the contribution of the Unioncamere Inter-Chamber Fund, under the aegis of the Embassy of Italy in India and in collaboration with the European Business & Technology Centre (EBTC).

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H.E. Giacomo Sanfelice di Monteforte Ambassador of Italy to India

ndia closed the fiscal year 2010-11 with a GDP growth of 8.5%, in the context of a general rise in people’s income and consumption. These favourable circumstances witnessed the unfolding of increasingly incisive action by Italian businesses and by the network of Italian system players and institutions in India (the so called “Italian System”), which responded promptly to the demand for “Made in Italy” products and to the requests for cooperation articulated by the Indian business world. The figures speak plainly: bilateral trade grew around 28% in 2010, reaching 7.2 billion €, higher not only than 2009 but even than the years prior to the international crisis.

Even the foreign direct investment (FDI) from Italy recorded a 15% increase, all the more significant in view of the restrictive trend of the flow of FDI to India in 2010 (-26.6%).

I

Now a new developmental phase is in the offing, particularly for the manufacturing industry and also for giving impetus to the productivity of the agricultural sector, in order to redefine the country’s growth according to the criteria of greater “inclusivity” and “productivity”. I am confident that the season of “second generation” reforms that is beginning in India – after the season of liberalisation in the ’90s that had provided a boost to the Indian services industry – will further create significant opportunities for cooperation between the businesses of our two countries. The reforms announced range from tax simplification and abolition of interstate barriers, opening up of the retail sector to foreign investors and the reform of land acquisition laws to the liberalisation of the pension and insurance systems and the deregulation of power prices.

It is this context of change into which fit the initiatives started by the Italian system players in India in the course of this year. To begin with, immediate deliverables emerged from the January mission to Italy by the Minister for Commerce and Industry Mr. Sharma: the identification of the strategic sectors for strengthening bilateral economic relations and the commencement of a programme of targeted initiatives, with the full involvement of Confindustria (the Italian nationwide confederation of industries) This was followed by sector-specific missions devoted to the infrastructure and power sectors in March 2011 and to the automotive sector in April 2011. The Indian Minister for Power Mr. Shinde and the Minister of External Affairs Mr. Krishna also went to Italy in June. An Italian “System Mission” to India, which will be led at a Ministerial level, is scheduled in early November with a delegation of over 200 firms and in the presence of the top management of Confindustria. The key sectors will be infrastructure and construction, conventional and non-conventional power, automotive and machine tools with special focus on the agro-industry sector. Also planned is a focus on small and medium-sized enterprises, a sector in which Italy appears to be a preferred partner for India.

In this season of renewed strengthening of Indo-Italian bilateral relations, the Indo-Italian Chamber of Commerce and Industry (IICCI) performed and will continue to perform an especially significant role. I am pleased to say that, since I assumed office in September 2010, the IICCI has proved that it is an integral and active part of the “Italian System” in India, contributing both with regards to planning of activities as well as to implementation. An especially prized and high-value-added contribution, which is nourished by the actual experiences of a membership base of over 1100 firms distributed throughout India.

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Messages

The Indo Italian Business Conference (IIBC) that will take place from 26 to 30 September 2011, cannot but confirm the perfect synergy between the activities of the IICCI and those of the Embassy. The nature of the IndoItalian Business Conference is not only preparatory to the Italian Country Promotion Mission (being focused on three of the sectors pertaining to the November mission: infrastructure and building, energy and environment, and agri-food processing technology), but also complementary (visiting the cities of Mumbai, Pune, Kolkata and Ahmedabad, whereas the Country Promotion Mission will visit Delhi and Chennai).

Moreover the IICCI and its recently instituted Indo-Italian Club for Infrastructure and Building (IICIB) will play a prominent role in organising the infrastructure/power component within the System Mission.

I hope that IIBC 2011 is a resounding success and engenders valuable contributions and ideas in view of the imminent Italian System Mission.

Courtesy: Imagoeconomica

Ferruccio Dardanello

I

n spite of the crisis, that has in the last few years affected the entire globe, the Italian production system was able to establish itself in the most valued foreign markets and find new outlets for its products. The beneficial formula followed by the firms has been to identify (and invest in) a winning combination of quality and search for excellence on one hand, and flexibility and efficiency on the other. With these basic ingredients, today our firms are asserting their competitiveness in the international markets. The choices made during the past few years were certainly not easy. Trimming down their presence in the markets of the European Union, which remain traditionally and customarily the strong core of Italian exports, our entrepreneurs embarked on the inevitably more difficult and risky routes, to the non-European markets, scouting for the most promising ones. As a result, our figures show that Italy ranks second among the countries of the European continent – after Germany – in terms of presence in non-EU markets, and second – after China – in terms of quantity exported to the emerging countries.

ISTAT (the institute for statistics of Italy) figures for April 2011 reveal that Italy is a “debtor” nation to India, since there is a trade deficit, and that Italian exports to India represent only 1% of the national overseas sales. Italy, therefore, still has a meagre presence, but interesting changes were recorded during the last year: compared to April 2010, Italian exports rose by 22.6%. In the first two months of 2011, some sectors recorded triple-figure percentage increases compared to the first two months of the previous year. These included many segments of the mechanical sector, starting with metal moulding machinery (+115%), rubber items (+186%), electronic components and magnetic cards (+160%), motor vehicles (+137%), among others. This is a positive indication that the Indian market is becoming aware of the quality of Italian products as a whole and there are good

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opportunities for establishing profitable and lasting relations of economic cooperation between the two countries.

Reaching this vast and still mostly unexplored sub-continent for Italian firms – most of which are small – requires sufficient assistance for entrepreneurs who need reliable reference points and support in their business activities. The network of the business support networks is essential, represented by the 105 Italian Chambers of Commerce (one for each province) and the network of the 75 Italian Chambers of Commerce Abroad, which serve as effective bridges for Italian firms in markets throughout the world. Initiatives of close cooperation between the Italian Chambers and their overseas sister institutions are therefore welcome, like the Indo-Italian Business Conference (IIBC) organised by the Indo-Italian Chamber of Commerce and Industry (IICCI) in collaboration with 6 representative agencies of the Italian Chamber system. These initiatives represent a unique opportunity for small and medium-sized enterprises, from leading sectors of our production system, to introduce themselves and start profitable collaborations in the Indian market.

The IIBC is a clear expression of that “culture of doing” - and of “doing well” - that marks out the Chamber system in all its forms as a point of reference and firm support for about 6 million Italian firms that operate daily in the domestic international markets. “Doing”, therefore, with a great spirit of cooperation with all the entities that believe that a transparent, modern and dynamic market made of genius and creativity can contribute to the development of our planet.

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Messages

India – Italy trade, 2010-2011

The fluctuations in the value of bilateral trade between India and Italy, in the period 2005-2011, mirror the trends of the economy of both countries in the global context.

The total value of Indo-Italian bilateral trade has continuously grown between 2005 and 2009, while commercial exchange has reached a total value of 8.252 million $. The yearly growth rate reached its peak in 2006-07, with an increase of 46% in value over the previous year. The effects of the global economic crisis contributed to a 12% reduction in trade volumes in 2009-10, causing a return to pre-2008 levels. Trade values, however, appear to have stabilised in 2010-11.

Looking more closely at the components of bilateral trade, it is interesting to note that Italy’s current account balance has been positive only in the period 2008-10 (+640 million US$ in 2008-09 and +462 million US$ in 200910). 2010-11 estimates are expected to be once again in the negative, as is typically the case for trade between India and Italy. Moreover, even though Indian imports have grown by 26% in 2010, they constitute a mere 1.8% of India’s foreign trade value. Additionally, Italian exports to India only constitute 1.2% of India’s imports.

All in all, it appears the growth in trade relations between India and Italy, interrupted by the global economic crisis, is now struggling to gain momentum. Indian imports and exports from and to Italy almost declined steadily to stagnation. Italian imports in India were 1.2% of the total in 2010-11 viz. 1.24% in 2005-05. Exports to Italy were 2.44% in 2005-06, while they have decreased to 1.87% in 2010-11. In essence, the statistics reveal that Italy is has not been successful yet in taking advantage of India’s economy growth.

In the Indo-European context, Italian exports constitute 10% of the total exports to India, making Italy rank third after Germany and Belgium, which account for 27% and 20% respectively. Nevertheless, the year 2010-11, as mentioned, seems to be a year of recovery and, though Italy’s growth in bilateral trade is quiet low, it is reasonable to expect an increase in international trade in the future.

A scrutiny of the import and export statistics between India and Italy show an increase in the Indian exports of aluminum and related articles, and electrical machinery and equipment, by +834% and +205% respectively.

Exports of plastic records a remarkable increase of +132% as well.

The imports into Italy of vehicles and parts, however, registered a reduction by-34% as opposed to an increase of +46%, as recorded in 2009-10.From Italy’s perspective, the export of natural pearls and precious stones has grown by190%, affirming the favorable trend of the previous years.

It is also interesting to note an increase of +96% in the exports of mineral fuels and mineral oils along with the exports of salt, sulphur, earths and stones which significantly rose by 66%. This year, however, exports of iron and steel products decreased (-37%) along with electrical machineries and parts (-13%), the latter partially due to an increase of the imports from India of the same products.

Economic Overview

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Bilateral Trade India-Italy | 2005-2011 2005-06

2006-07

2007-08

2008-09

2009-10

2010-11**

Value

2,519

3,585

3,914

3,824

3,400

4,277

Variation %

10%

42%

9%

-2%

-11%

26%

103,090

126,414

163,132

185,295

178,745

228,407

2.44%

2.84%

2.40%

2.06%

1.90%

1.87%

1,856

2,676

3,907

4,428

3,863

3,942

Variation %

35.00%

44.18%

46.00%

13.34%

-12.76%

2.05%

Total indian imports

149,166

185,735

251,654

303,696

288,403

329,521

1.24%

1.44%

1.55%

1.46%

1.34%

1.20%

Total trade India/ Italy

4,375

6,261

7,821

8,252

7,263

8,219

Variation %

20%

43%

25%

6%

-12%

13%

Indian trade balance VS Italy

663

909

7

-604

-462

335.2

Indian exports to Italy

Total indian exports % exports to Italy VS total Indian imports from Italy Value

% import from Italy VS total Bilateral Trade

Source: Indian Trade Ministry - Department of Export-Import Data (*) Indian Financial Year (Apr-Mar)| figures in million $ (**) expected, official data are available until the 3rd quarter of 2010-11

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Economic Overview

INDIAN EXPORTS TO ITALY Values in million $ Commodity

2009-10 % Growth

2010 – 11 (exp.)

% Growth

Vehicles other than railway or tramway rolling stock, and parts

526

46.10%

342

-34.90%

Iron and Steel

264

-40.50%

405

53.54%

Organic chemicals

218

0.00%

197

-9.41%

Coffee, tea and spices

93

-28.40%

144

55.00%

Footwear, gaiters and the like; parts of such articles

210

-6.40%

212

1.08%

Plastic and articles thereof

95

-2.30%

225

136.49%

117

-1.00%

358

205.61%

241

-5.80%

191

-20.58%

Nuclear reactors, boilers, machinery and mechanical appliances, parts thereof

179

-25.30%

198

10.47%

Articles of apparel and clothing accessories not knitted or crocheted

173

-7.70%

159

-7.96%

Cotton

106

-13.80%

148

39.28%

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers,and parts Articles of apparel and clothing accessories knitted or crocheted

Raw hides and skins (other than furskins) and leather

76.5

-27.00%

110

43.65%

Articles of leather, saddlery and harness; travel goods, handbags

120

-19.00%

106

-11.71%

Articles of iron or steel

81

-32.20%

92

14.02%

Tanning or dyeing extracts, tannins and their deri. dyes, pigments and other colouring matter, paints and ver, putty and other mastics, inks

68

5.50%

87

27.78%

Other made up textile articles, sets, worn clothing and worn textile articles, rags

73

-8.70%

69

-5.61%

Natural or cultured pearls, precious or semiprecious stones, pre. metals, clad with pre-cast metal and articles thereof; imit.

Jewellery, coins

80

-46.00%

76

-5.07%

Carpets and other textile floor coverings

40

6.30%

41

1.67%

Salt, sulphur, earths and stone, plastering materials, lime and cement

35

-47%

43

21.84%

Aluminium and articles there of

8

3%

76

834.32%

Source: Indian Trade Ministry - Department of Export-Import Data

Economic Overview

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INDIAN IMPORTS FROM ITALY Values in million â‚Ź Commodity

% Growth

Nuclear reactors, boilers, machinery and mechanical appliances, parts thereof

1447

-23.70%

1589

9.84%

Goods for some special uses

250

91.70%

268

7.20%

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers,and parts

330

-15.50%

288

-12.73%

Organic chemicals

190

43.80%

189

-0.35%

Articles of iron or steel

318

1.40%

200

-37.11%

Iron and steel

122

12.20%

132

8.20%

Plastic and articles thereof

89

-2.10%

116

30.34%

Raw hides and skins (other than fur skins) and leather

68

-9.33%

73

7.84%

Salt, sulphur; earths and stone, plastering materials, lime and cement

49

18.90%

81

65.99%

Miscellaneous chemical products

67

-1.47%

71

5.47%

Vehicles other than railway or tramway rolling stock, and parts and accessories thereof

64

-53.50%

83

29.17%

Optical, photographic, cinematographic measuring, checking precision, medical or surgical inst. And apparatus parts and accessories thereof

92

-32.90%

91

-1.45%

Natural or cultured pearls, precious or semiprecious stones, precast metals, clad with pre-cast metal and articles thereof, imitation jewellery, coins

29

24.80%

84

189.66%

Pharmaceutical products

62

29.70%

61

-1.08%

Rubber and articles thereof

54

59.30%

49

-8.64%

Paper and paperboard; articles of paper pulp, of paper or of paperboard

46

-24.50%

49

7.25%

Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishing; lamps and lighting fittings not elsewhere specified or included

33

-6.90%

39

17.17%

Aluminium and articles thereof

22

98.67%

27

18.99%

Mineral fuels, mineral oils and products of their distillation, bituminous substances, mineral waxes

10

-88.91%

20

96.27%

Tanning or dyeing extracts; tannins and their derivates, dyes, pigments and other coloring matter; paints, putty and other mastics, inks

25

-9.29%

32

26.58%

Source: Indian Trade Ministry - Department of Export-Import Data

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2010 – 11 % Growth (exp.)

2009-10

Italy’s Building Experience

Gianluca Brusco Head of the Economic and Commercial Office Embassy of Italy in India Honorary Vice-President Indo-Italian Chamber of Commerce and Industry

T

he state of a country’s infrastructure is often an important indicator of its economic and social development and provides the structural foundation for sustained growth.

Today, India is facing the massive challenge of bringing its infrastructure up to the level required to support, maintain and further promote the country’s extraordinary growth path. Due to the sheer magnitude of this task, India will need to gather all those partners who can offer the technology and expertise necessary to accomplish it.

Italian excellence in these sectors rests on a millenary tradition. The Romans after all paved roads all throughout Europe and beyond, many of which are still used as such. The Unesco Memory of the World Register preserves The Tabula Peutingeriana, a recently discovered 7 metres long parchment scroll made in the Middle Ages, which is the only surviving copy of a road map from the late Roman Empire. It shows the network of the main Roman roads from Spain to India.

Through modern times this tradition of excellence has been fortified by an uninterrupted quest for technological innovation that enhances Italian excellence till date. The Italian industry is very well placed to partner India’s infrastructure revolution. As a matter of fact, in the last 5 years the engagement of Italian construction companies in overseas markets has grown by 20% yearly grossing a phenomenal 140% rise in revenues from foreign contracts. In the period of 2004-09 Italians were executing nearly 600 projects in 86 countries spanning the 5 continents with revenues of € 44 billion. Another € 16 billion have been raised from concessions.

The infrastructure systems that constitute the core business of Italian companies purely in construction are railways, roads and highways, metro-rail, bridges, tunnels, ports, airports and buildings, besides

projects in the energy sector such as hydro plants, power plants, gas pipelines and electricity networks.

In terms of location of contracts undertaken by Italian companies, until 2009 South America, North Africa and Europe as a whole were the most prominent areas, but the trend has been changing, with other areas, including Asia, gaining prominence.

In terms of contract value, it is interesting to note that the number of contracts grows in parallel with the quantum value, that is to say that Italians are winning more of the larger contracts and less of the smaller ones. 46% of contracts are above € 50 million and the rest are shared by progressively less and smaller contracts. This data also indicates that the Italian companies engaged in overseas infrastructure and construction projects include the whole gamut of business, from the largest groups with contracts portfolios worth billions and many tens of thousands employees down to small and medium companies (the bulk of the Italian industrial system), all of which are well known for their competence, technology, know-how and competitiveness in terms of the quality/price ratio. As in the case of popular Made in Italy goods, in large-scale public works projects as well, quality and attention to detail continue to be the trademark of the Italian working culture.

Infrastructure & Building

9

Opportunities for Indo-Italian Collaboration in the Infrastructure & Building Sector

Cesare Saccani Managing Director ICMQ India President Indo-Italian Club for Infrastructure and Building (IICIB)

I

n the present XI Five Year Plan (2007-12012), the Government of India had planned investments for € 389 billion for the infrastructure sector, that will be brought to around € 750 billion during the XII Five Year Plan (2012-2017), 50% of which should come from the private sector.

The major investments in the infrastructure sector of the upcoming years will be: € 69 billion for the construction of roads and highways; € 49 billion to add 25,000 km of new railways by 2020 and start radical work of manutention of the existing one; € 16 billion to potentiate the port capacity through a better endowment of machinery and equipment for cargo logistics, of connection with the earth/ road connections and for the computerization of the operations; € 126 billion in projects related to power generation, considering that in the XII Five Year Plan the adding of almost 100 GW is expected out of which 43 GW is already allotted and the rest is to be allotted in the coming 3 to 5 years.

The Indo-Italian Club of Infrastructure & Building It is in this scenario that last December the IndoItalian Chamber of Commerce and Industry (ICCI) established The Indo-Italian Club for Infrastructure

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Infrastructure & Building

and Building (IICIB), which at present includes around 80 Indian and Italian companies from the infrastructure, construction and building materials sectors. The idea to create the IICIB comes from the inclination to create a common platform for both Indian and Italian companies wherein exchange, of information and contacts, is possible. Moreover, where useful services to develop businesses, that require a very systematic approach as those mentioned above, are provided. Besides promoting exchanges within the Club members, the IICIB aims to work as an interface with the Government authorities, which are into public construction, at different levels.

The emerging needs During the various events, organized in the recent past by the IICIB, that aimed to promote the entrance of Italian companies in the Indian infrastructure market, key emerging needs have arisen, such as: 1. Joint entrance into the market: the complexity and maturity level of the Indian market and the specific know-how and expertise of Italian companies requires an approach based on partnerships among Italian and Indian companies and an integrated support from public and private financial institutions; 2. Lobbying towards Indian Public Bodies: to push the introduction of tendering rules (qualification criteria for contractors and suppliers, bid evaluation approach, etc.) while being able to recognize not only a “price competition” but above all the “innovation and technological know-how” of Italian companies;

3. Visibility in the market: to create awareness about the Italian technologies and capabilities in construction; 4. Local technical support: to reduce the operational risks related to quality and delivery time that could result into relevant unexpected costs throughout preliminary evaluation of supplier, technical control during the design, construction etc.; 5. A single and competent reference point: to optimize the resources and the capability of representing the Italian interests in front of the Indian community (Public Bodies, industries, etc.).

The Club has accumulated competence and built up a network required to take up the role of guiding the Italian infrastructure and building industry in entering the Indian market. A formal recognition of the IICIB and its key role as a reference point in India for Indo Italian cooperation within the construction industry was recently given by the Embassy of Italy in India.

Mission and objectives The mission of IICIB is to “lead Indian and Italian organizations in creating opportunities and promoting

Cluster

the establishment of partnerships (consortia, joint ventures, etc.) in the Infrastructure, Construction and Building materials sector”.

The Club aims to achieve this through: 1. Facilitating the flow of information Indian and Italian companies, on each infrastructure and building sectors, by on market overviews and trends, opportunities, technical expertise, etc.;

between country’s focusing business

2. Creating networking opportunities and promoting members’ activities, both in India and in Italy; 3. Assisting its members in establishing business collaborations to operate in the Indian and/or the Italian markets, through monitoring of projects and tenders, entry strategies, matchmaking, etc.

Organization The sector complexity requires a specialised approach in order to match the needs of different companies. For this reason the IICIB has identified three main clusters. The identification of these clusters leads the Club’s program to arrange specific initiatives (roundtable, events, B2B, communication and so on) according to customized approaches.

Innovative Technologies in

Energy Procurement

Innovation, sustainability

Infrastructure

Contractors

and technologies for construction

Target

Main contractors

Engineering companies

Architects

Infrastructure groups

Contractor in energy

Developers

sector

Building material & equipment manufacturers

For more information on the Indo-Italian Club of Infrastructure and Building (IICIB) and on how to become a member, please contact infraedi@indiaitaly.com or visit the Special Projects section on www.indiaitaly.com.

Infrastructure & Building

11

Infrastructure Excellency in Piemonte Region

P

iemonte, through highly specialized companies, offers a wide range of top level services in the following fields: Engineering and construction of roads and highways Companies offer specialized services such as feasibility studies, environmental impact appraisals, road construction management, road network, cement and bitumen, road signals and accessories as well as acoustic barriers.

Railways and metros Highly specialized Piemonte companies are able to implement: feasibility studies of new rail works, overhaul and improvement of existing installations, environmental impact appraisals, acoustic barriers, construction supervision, construction planning and project control, real-time monitoring and in-house GIS control systems, supply of rail equipment wheelrail interchange and so on.

Underground and tunnels Our companies can implement the following: tunnels construction planning and project control, physical impacts on the natural environment, social and economical impacts on a project involving transformation and development of urban contexts, tunnels construction management, tunnels construction supervision, risk analysis.

Bridges and viaducts Piemonte companies offer highly specialized services in designing and construction of steel bridges and structures.

Intelligent transport system Piemonte companies offer a wide range of services such as: modeling, optimization on existing infrastructures and monitoring of traffic flow, web portals for fleet and transportation, monitoring of traffic flows for dynamic routing, analysis of drivers behavior, environmental compatibility/sustainability analysis, perishable and dangerous goods monitoring, etc. Investing in advanced systems for intelligent transportation and info-mobility is the road

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Infrastructure & Building

to making inner-city traffic more agile, safer and more comfortable, to reduce emissions and therefore pollution as well as to enhance environmental sustainability of urban mobility.

Torino is emerging as one of the leading centers for the convergence of all sciences related to the development of “Sustainable Mobility”. Many famous style studios, design firms, and designers work in Torino and Piemonte. These world renowned companies and professionals have shifted the attention from a pure style research mindset, to the focus of designing parts, supplies and vehicles equipped with the most advanced materials, telematics and advanced info-mobility connective systems. It is from this approach that newer varieties of vehicles destined for exclusive urban use are born: an innovative generation of smaller and more agile vehicles will replace big SUV’s or off-road vehicles to go shopping downtown.

In Torino and Piemonte, the procedural and technological know-how of FIAT Power Train (FPT) and General Motor Power Train (GMPWT), with the contribution of the research and development centers of suppliers, the University and the Polytechnic of Torino, are engaged and dedicated to the development of the future world engines, such as: the new generation of diesel engines, to reduce emissions by downsizing the engine mass and weight, while increasing the overall engine performance; evolved electronic systems, to manage and control the engines’ activities and performance; hybrid engines, to reduce fuel consumption and to begin promoting the circulation of vehicles that are not dependent only on endothermic engines and to open up the path towards future electric vehicles.

The fast evolution of the new telematics technologies provides cities with evolved systems for intelligent traffic management. With over 20 years of experience, Torino and Piemonte have positioned the region as a frontrunner in this technology. This know-how dates back to the 1980s with the very first intelligent traffic light systems connected directly with the public transportation system’s vehicles to assure their priority at the major intersections. It continues

today, with new advanced technological devices installed inside the vehicles enabling them, during a trip, to entertain a dialogue with systems and infrastructures outside the vehicles, and therefore allowing the drivers to gain real time information on traffic conditions, congestions, queues, road blocks and works in progress.

In 2006, during the Torino Winter Olympic Games, the system for the intelligent management of the urban mobility was expanded and, therefore, enabled management and control of traffic outside the city limits, up to the Olympic mountains.

Intelligent Transport Systems (ITS): outstanding skills in Piemonte • Over 150 public and private R&D centers and companies active in the ITS field; • Over 30 research projects on ITS currently developed with the participation of at least one company or R&D center; • 2,000 skilled staff with know-how in the ITS and info-mobility fields; • Candidature of Torino as center for the standardization and certification of road mobility at European level.

www.to.camcom.it

|

www.centroestero.org

Infrastructure & Building

13

Infrastructure, Logistics, Building & Construction in the Veneto Region

I

nfrastructure & Logistics The Veneto region is an ideal gateway to Europe.

It is very close to the fastest growing consumer and manufacturing markets in the European Union (EU), and at the centre of the new Europe-wide transport corridors. In particular, the Northern Adriatic Sea is the end point of the shortest route linking Asia to Europe: it provides the shortest transit time (and the lowest amount of polluting emissions) if compared to all other European routes.

In this context, the Venice multi-port gateway ensures the sustainability of direct lines to Asian markets. The Port of Venice is one of the top destinations in the world, as confirmed by the following data. Venice Cargo Port has the capacity of 26,000,000 tonnes, 26 commercial and industrial terminals, 30 km quayside, 163 berths, 205 km internal railroad and 2,050 hectares; Passenger Port, the 1st Mediterranean homeport for cruise ships has the capacity for 2,000,000 passengers, 8 passenger terminals and 200 mega yachts per year.

The Veneto region is currently realizing an impressive

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Infrastructure & Building

infrastructure development that will let it rise to the highest competitive standards required by future intercontinental trade flows from Asia. With reference to logistics, on-going projects will open up the Adriatic Sea to a massive change in scale in the container sector. A new Container Terminal will be completed in the forthcoming years in the Port of Venice: with 1,500 metres of quayside, it will have a handling capacity of 600,000/800,000 TEUs. Its operations will be integrated with the Venice Offshore Platform to be built where the seabed has a natural depth of 20 m.

Venice Port’s container throughput will then rise to 3 m TEUs. The offshore platform will handle oil, bulk and container traffic, and will allow ultra-large ships to call at the Port. It will be a hub distributing goods through the most convenient land entry point.

Alongside the building of new passenger terminals, the Port is building a new terminal that will cater to ferries transporting trucks, cars and passengers. The motorways of the Sea terminal – operational by 2013 – will be able to host up to 1,200 ferries per year. It is designed to serve both intra and extra European

traffic, and includes a new logistics platform with links to rail and roadways.

At the same time, the Veneto infrastructures are deeply linked to the ICT sector’s excellences. It is due to LogIS (Logistic Information System), which is the Port of Venice Community System dedicated to monitor the port’s activities.

The opportunities of strengthening the relationship between Venice and Indian ports are huge and the Venice Port Authority is involved in a range of actions aimed at attracting traffic from India to the markets of Italy, Germany, Central and Eastern Europe. Indian partners are the Jawaharlal Nehru Port Trust (JNPT), the Maharashtra Maritime Board and the Port of Chennai.

Building & Construction Veneto companies and Institutions share the vision that all European buildings will be designed, built or renovated to high energy-efficiency standards by 2050. In other words, the Veneto region is determined in supporting the development of hightech and innovative services and projects that will increase the region’s international competitiveness.

Markets’ constant evolution shows that the competitive advantage is represented by the role of the innovation technology and by the spread of highly skilled competences. With particular regards to the building and construction sector, Veneto can offer the Indian business community technically specialised, managerially skilled and globally scaled expertise.

In the province of Treviso, Treviso Tecnologia, the Special Agency for Technological Innovation established by the Treviso Chamber of Commerce, is actively involved in the promotion of innovation and technology transfer for the building and construction sector.

It is a member of the Energy Efficient Buildings – E2B Association, whose main activity is the design of the research roadmap for the sector towards the European Commission Framework Programme for Research (FP). At the same time, Treviso Tecnologia offers a complete set of advice activities focused on the growth of enterprises on important issues essential for their international competitiveness. Its main units in this field are CERT (Treviso Tecnologia

Certification and Testing Centre) Laboratories and InfoTech services.

CERT Laboratories develop, on a local basis, investments in knowledge and services promoting the certification and the accreditation of products of enterprises on domestic and international markets.

Services, provided by the Products Laboratory and the Metrologic Laboratory, are accredited upon standard UNI CEI EN ISO/IEC 17025, according to the specific needs of the local entrepreneurial background. The Products Laboratory is a CE marking notified body for wood & furniture and building products according to the CPD no. 1600.

Activities concern mainly fields of: Doors, Windows and Curtain Walls; Industrial Gates and Garages Doors; Wood flooring; Resilient covering, textiles and laminate floors; Clothing textiles; Metrology; Chemical-Merchandising; Fire performance (bestowed by the Italian Home Office for similar homologation tests).

A network of professional competences is set up to facilitate the implementation of Quality, Environment and Safety Management Systems. They offer the enterprises a qualified advisory section both for supporting the system/product certifications, or their accreditation, both for endorsing the quality of a company’s technical organisation management.

InfoTech services develop an effective activity of technical and technological information, dissemination initiatives and operative supports about the Intellectual Property Rights issues and the international standardisation (ISO, EN, UNI regulations). Moreover, InfoTech provides specialised innovation technology tools and knowledge networks, on patents and new designing systems, on products, production and commercialisation.

Since 1999, Treviso Tecnologia is a PATLIB (Patent Libraries Centre, part of the EPO – European Patent Office) and therefore it is enabled to offer activities supporting Industrial Property management. It is also the UNI/CEI/EN Point, pursuing its mission of disseminating the national/international technical regulation culture, adopting a strict policy of punctual and precise services, disseminating actions of specialised training, throughout the local territory. www.centroesteroveneto.com

Infrastructure & Building

15

Success Stories

Emanuele Fontana Managing Director Fagioli PSC India Pvt. Ltd.

From no. 1 transport company in Italy to international leader in logistics, door-to-door service of heavy component transport, cargo shipping and heavy lifting in the civil, offshore, petrochemical and energy sectors. Please tell us in brief the story of the group.

Fagioli, founded in 1955 by Mr. Giovanni Fagioli, in a short span of time it became the leading transport company in Italy. Thanks to continuous investment in personnel and equipment, the company became a global player in the international shipping sector, particularly in the plant-engineering sector. The growing complexity of customer requirements drove Fagioli to develop and implement new ideas and technology. The company entered the heavy lifting sector over 10 years ago through the acquisition of PSC Heavy Lift, a leading UK company in tower lifts and hydraulic jack lifts. This acquisition enabled Fagioli to simultaneously expand its international presence, particularly in Asia and North America, and to offer customers a door-to-door transport and lifting service.

When and how did Fagioli decide to enter the Indian market? Did you encounter difficulties?

Fagioli entered the Indian market almost in the pioneering times for an Italian company. 10 years ago, through our subsidiary PSC Heavy Lift, we entered into a 70/30 joint venture with a local partner, Gemini Power Hydraulics Private Limited, active in a sector similar to that of Fagioli.

We are extremely satisfied with this partnership that enabled Gemini to use the ‘Fagioli’ name in the Indian market and us to access a market that had enormous gaps in the supply of lifting services against a fast growing demand.

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Infrastructure & Building

As a result, today Fagioli is the number one company in India in the lifting sector, with a long and significant track record with important customers like BHEL, Larsen & Toubro, Reliance, Tata Projects, NcNally Bharat, Powermech and others. Recently, we decided to acquire the minority stake held by our Indian partner, with whom we still collaborate today, and now Fagioli India is a wholly owned subsidiary of Fagioli.

What are the most innovative systems that you have introduced in India? What are the most recent projects completed in India?

Fagioli brought to India the innovative lifting techniques that make it one of the world leaders in the sector. This is thanks to the quality and supply of our equipment and to the high standard of our engineering that is carried out mostly – even with regards to Indian activities – in Italy.

In particular we provided an alternative to traditional lifting using cranes, all this while applying our stringent safety criteria and guaranteeing the reliability of the result, the two Fagioli trademark qualities. In terms of results, in January we carried out the 100th lifting of boiler drums in the history of Fagioli India and today we are already at the 113th.

In terms of projects, among the most complex and significant ones were the transportation and lifting of a 1500 tonne splitter for Reliance’s Jamnagar refinery, one of the largest in the world, and the installation of a Konecranes bridge crane at the Cochin shipyards.

What are the current trends and requirements of the Indian heavy lifting sector?

The main driver of our business is investment in the

Courtesy: Fagioli PSC India Pvt. Ltd.

installation and upgrade of electrical and nuclear power plants, petrochemical refining plants and large infrastructure, particularly bridges, roads, ports and airports.

In the next few years, the investment necessary to ensure the economic growth, to which India aspires, will be considerable and will involve the public and private sectors as well as domestic and – increasingly – foreign investors.

As a result we expect the demand for heavy lifting and transport services to increase and customer requirements to become increasingly complex.

What will be the future of the sector in India?

In the future it could become important to be able to provide customers turnkey services that include both transport as well as lifting of heavy modules. At the moment no player is integrated to that effect, but Fagioli is gearing up to become one in India, within a short period of time, like it already is in the other markets where it operates.

Italian companies often consider the Indian market as complex and remote. Do you share this impression? What are your suggestions for those Italian companies that have not yet invested in India?

I believe that those Italian companies that still do not have a presence here, perceive India as a remote, difficult and risky market but they realise at the same time that they cannot give up the idea of offering their products and services to the 11th largest world

economy, that is growing by 8-9% per year, with over a billion people.

My impression is that India is quite hastily being equated with China, where it is often difficult for foreign firms, especially SMEs, to operate because of the bureaucracy, the insufficient protection of intellectual property and a legal system that is not always comprehensible and transparent.

India is, first of all, the largest democracy in the world and, thanks also to its historical ties with the United Kingdom and the Commonwealth, has a slow but dependable legal system that protects the rights of the foreign investor. Moreover, professionals like lawyers and business and tax consultants, besides speaking English perfectly, have often studied or worked in Europe or North America, which is something that renders them much closer to us than one might think, and understand the requirements of foreign companies.

There are many cultural differences and difficulties due to a lack of infrastructure, but I would advise an Italian firm to look at the success stories and rely on institutions like the Chambers of Commerce to obtain information useful for understanding this country and seizing its opportunities.

What are Fagioli’s next goals in India?

We are aiming to consolidate our role as leader in the heavy lifting and the power sectors and increasing our penetration in the petrochemical and civil engineering sectors. In the latter we are carrying out our two most significant contracts of 2011 and have excellent prospects of receiving further orders from customers for 2012. Moreover, we are already participating in tenders to carry out in India some of the other activities in which Fagioli is a world leader, particularly in project forwarding and plant engineering shipments. All this is thanks to on-going investment in equipment and personnel.

Infrastructure & Building

17

Davide Panzavolta Area Manager Soilmec, Drilling and Foundation Equipment

I would say it is essential. The market is continuously evolving and therefore it is necessary to interact with it. Quickness of response and flexibility are useful for creating when even a custom-made product would serve. But often it is our group that influences the market through new solutions and new technologies.

This makes us especially proud.

Since 40 years Soilmec is one of the leading international companies in the design, manufacture and distribution of subsoil engineering machinery and equipment: could you share with us the story of your success?

Founded in 1969 as a Trevi workshop, Soilmec’s forty-year-long story is full of inventions and successes. The method of designing and building equipment is continuously adapted to the real requirements of the site. Continuous cooperation with the parent company Trevi (subsoil engineering specialist and among the most important contractors in the world) has created a unique model that nobody has so far managed to copy effectively. Continuous innovation, state-of-the-art technology and reliability are the keys to our success. But it is also its extensive worldwide presence that allows us to be continually close to the requirements of our customers and, more importantly, close to our equipment.

How important is it to keep the range of products offered abreast with the requirements of the market with which one interacts?

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Infrastructure & Building

Courtesy: Soilmec, Drilling and Foundation Equipment

Soilmec operates in 90 countries on the 5 continents. When and how did the company decide to have a presence in India as well?

We have always had a presence in India through our Singapore subsidiary. I would therefore say that it was of course a change of strategy. In 2003 it was decided to track the Indian continent directly from Italy and at the end of 2006 it was decided to establish Soilmec India, an extremely well timed decision. The market responded splendidly at once and we increased our market share from 5% to 40% within only two years.

What are the causes of Soilmec’s competitive edge in India?

We invested a great deal in sufficient human

resources and relied on local production of drilling tools along with site accessories. We offered ourselves as the only company to have spare parts outlets in three regions in India; we also have service outlets wherever there is a site with our equipment.

Soilmec India has more than 50 personnel while our biggest competitor has not more than 7-8 personnel.

The difference in approach to the customer and the service offered is consequently plain to see for all the customers. We also offer a wide range that no competitor can match.

What are the most recent projects carried out by Soilmec in India?

Our most recent projects are Tisco Kalinganagar steel plant, NTPC-SAIL’s Bhilai power project, Chennai Metro, Jaipur Metro, Kolkata Metro, Reliance Power Nellore, Kolkata airport, etc.

In your opinion, what are the segments that will generate bigger opportunities for Italian companies?

I think that highway and railway tunnels are an opportunity and obviously highways and high-speed railways is another.

With 35000 km of roads and highways to be built by 2015 in India, there seem to be many opportunities in subsoil engineering. What are Soilmec’s future plans in India?

To consolidate what we have achieved, expand the local setup and try to bring new technology, all for India’s benefit.

Fairs and Exhibitions September 2011 – March 2012 MARMOMACC 21-24/09/2011 VERONA International exhibition of stone design and technology www.marmomacc.it

EXPOEDILIZIA 22-25/03/2012 ROME Professional exhibition for the building industry and architecture www.senaf.it

SAIE 5-8/10/2011 BOLOGNA International building exhibition www.saie.bolognafiere.it

KLIMAHOUSE 26-29/01/2012 BOLZANO International trade fair for energy efficiency and sustainability in construction www.fierabolzano.it/klimahouse2011

SAIENERGIA 2010 5-8/10/2011 BOLOGNA Expo on renewable energy, sustainable and safe building systems, components and materials www.saienergia.bolognafiere.it

ECOCASA 16-19/02/2012 REGGIO EMILIA International exhibition on eco sustainable building www.fierereggioemilia.it

Infrastructure & Building

19

Indo-Italian Collaborations in the Energy and Environment Sector

Prof. Ing. Lidia Szpyrkowicz Scientific Attachè Embassy of Italy in India

S

ince prehistoric times man has been aware of the environment; the more it became known to him, the more man wanted to subjugate it to his own needs, which initially were simply to survive but now concern the whole socio-economic development.

Energy, on the other hand, has become an integral part of man’s consciousness only recently, a few centuries ago, when alchemy was substituted by chemistry, physics and astronomy.

Now more than ever we know how energy pervades the environment, where it is produced, conserved and transformed through physical processes. It is sufficient to think of the physics and implications of Einstein’s equation E=mc2 and the chemistry of chlorophyll photosynthesis occurring with the use of solar energy, as the basis of the development of life on Earth.

Today we must fulfill our ever increasing requirements of affluence by making responsible and conscious choices. We are now also aware that we cannot change the laws that govern environmental processes, nor can we change its natural equilibrium, without putting at risk our own survival. We cannot endlessly burn carbon, wood, petrochemical products etc and release CO2 into the atmosphere without altering its conditions.

To satisfy our need for energy we have to make responsible choices, which are environmentally sustainable. Armed with the knowledge of environmentally sound processes we can use and develop technologies which will enable us to satisfy our energy needs in a mindful and responsible way, also simultaneously decreasing the inefficiencies in distribution and wastages. This is a global challenge, as much as the security of drinking water resources, both of which are to be addressed with a recourse to international cooperation, which should include

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Energy & Environment

politics, economy, science and ethics. And it is in this spirit of a global cooperation that recently high level visits from Italy to India have been conducted: in February 2010 the Minister of the Environment Stefania Prestigiacomo (the Italian Ministry of Environment, Land and Sea - MATTM, has an agreement with the Ministry of New and Renewable Energy - MNRE) and the then Undersecretary of MATTM Roberto Menia in November 2010.

India is an interesting market for environmental technologies, with a volume of business of $US 6.42 billion (data for 2007) and the annual growth of this sector equal to 15 %. The economic scenario gains also from the fact that India started to create its legislative basis for the efficient protection of the environment (water, air, soil, hazardous wastes, etc) already in the ’70s, which results today in good environmental laws, even if their implementation is not always sufficiently well executed. Having launched in 2008 the National Action Plan for Climate Change, comprised of 8 missions (solar, enhanced energy efficiency, sustainable habitat, water, sustaining Himalayan ecosystem, “Green India”, sustainable agriculture, strategic knowledge on climate change), which take into account the existing activities and policies in India in the field of the environment, including industrial and commercial interests in the sectors which are directly or indirectly linked to environmental issues, has allowed to elaborate integrated strategies for the protection of the Environment, designed for a long period. These strategies are based on the effective integration of science and economy, in order to facilitate the transfer of recent technological developments, particularly in the area of alternative and renewable energy and energy efficiency, to the Indian market, encouraged also by the reduction of duties and taxes.

The strong attention dedicated to the environmental issues is also confirmed by the agreements signed between Italy and India on the governmental level.

It is important to note that “Environment and Energy” are among the fields indicated as priority sectors for scientific and technological cooperation between the two Countries. At present there are 8 bilateral research projects active in the framework of the

• September 15 -16, 2011, Pune: Indo-Italian Workshop on Advances in Fluvial Hydraulics and Water Resources Development and Management; main Partners in this event: Indian Society for Hydraulics (ISH), Italian Group of Hydraulics (GII) and Central Water & Power Research Station (CWPRS), Pune • November 30 - December 3, 2011, New Delhi and Chandigarh: 2nd Indo - Italian Workshop on Electrochemistry for Future Energy Solutions

Executive Programme in Science & Technology, signed for the period 2008-2010 between the Italian Ministry of Foreign Affairs (MAE) and the Indian Department of Science and Technology (DST), and extended for the 2011. Topics covered by the projects include: new materials for applications in renewable energy, effects of heavy metal pollution on soil functionality, atmospheric environment and intercontinental transport of pollutants, energy planning using optimization methodology, and seismic hazard assessment in Indian mega-cities. Also in the next Executive Programme call under negotiation for the years 2012 – 2014, which will most probably be opened to the companies, energy and environment will be included.

Since 2008 there were 7 scientific Indo-Italian Workshops organized by the Embassy on topics related to the Environment and Energy. For the 2011 the following Workshops are programmed:

In these Workshops, along with scientists and researchers, Italian and Indian companies dealing with machines, equipment and components will also participate.

The Government of India and the European Union have signed specific agreements to strengthen scientific and technological cooperation. In 2009 a EU-India joint call for proposals was published for the projects in the field of renewable energy, focused on solar applications. One of the three projects chosen by the EU and DST for being financed (on efficient solar cells based on organic and hybrid technology) is coordinated by the Italian research group, which proves the high level that Italian scientists have reached in the area of renewable energy. It is hoped that a similar result will be reached in the EU-India calls published this year. For these calls, which will focus on “Water”, significant funds will be put together by the EU and India, with the total of € 32 million.

Energy & Environment

21

Italian Expertise to Boost India’s Renewable Energy

greenhouse gas emissions. India has 150 GW of renewable energy potential, about half of which in Poul V. Jensen

the form of small hydropower, biomass, and wind,

Director

and the other half in solar, cogeneration, and waste-

European Business & Technology Centre (EBTC)

to-energy (World Bank, 2010)1. A supportive legal and regulatory framework for the sector is being established, as well as ambitious national targets that represent a commitment to the sector, as well

I

ndia’s

vast

energy

and

environment

market

can be a challenging yet rewarding experience

for visionary Italian cleantech businesses and researchers. The growing potential and increasing opportunities in India is creating huge scope for collaborations and synergy. Italy has the knowledge, expertise and experience in renewable energy, whilst India has the untapped market potential to be taken advantage of.

India’s

generation

capacity

is

largely

thermal

dependent, skewed towards unsustainable coal based generation. Reliance on fossil fuel reserves means that India has to increase its dependency on importing such fuels, which leads to concerns about energy security. On the one hand, India already faces a power deficit that leaves millions without electricity. On the other, India is a growing economic powerhouse. To sustain India’s economic status, GDP growth has to be maintained at over 8% p.a.

Growth which is heavily energy intensive.

In the context of managing climate change and simultaneously sustaining India’s economic growth vis-à-vis the limitations in supply of energy, the increased use of clean energy in the future will not only help to fuel economic growth, but also decrease

as a formidable challenge. However, the cost of meeting these targets will be high unless innovation, investment, collaboration and market reforms take place.

Italy is one of the worlds’ largest global players and investors in renewable energy. In 2009 Italy attracted 14 billion US$ in investment2 and has more recently moved up from 9th to 3rd place in terms of global renewable energy investment (REN 21, 2011).3 One of Italy’s renewable energy strengths lies in hydropower, which contributes a significant 16.6% of the country’s total gross electricity production (EREC, 2009)4. Biomass, geothermal, wind and solar are also areas where Italy displays growing technical competence. Italian companies can also look forward to investing in areas such as energy efficiency, smart technologies, clean coal technologies and demand side management.

As uncertainties face the European Union, India is a key destination for Italian cleantech businesses and researchers for a number of reasons. India provides a large domestic market and, given the growing energy dependent population, there exists a high electricity demand-supply gap than needs to be addressed.

Thus, there is an urgent need for supporting

1

Sargsyan, G. Bhatia, M. Banerjee, S.G, Raghunathan, K, Soni R. (2010) “Unleashing the Potential of Renewable Energy in India.” http://siteresources.worldbank.org/EXTENERGY2/Resources/Unleashing_potential_of_renewables_in_India.pdf 2 http://www.policyinnovations.org/ideas/briefings/data/000206 3 REN21 – Renewables 2011 Global Status Report (2011)http://www.ren21.net/REN21Activities/Publications/ GlobalStatusReport/GSR2011/tabid/56142/Default.aspx European Renewable Energy Council (EREC) (2009) “Renewable Energy Policy Review – Italy” http://www.erec.org/fileadmin/ erec_docs/Projcet_Documents/RES2020/ITALY_RES_Policy_Review_09_Final.pdf

4

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Energy & Environment

investment in renewable power sources. According

companies who want to enter and ensure success in

to the Asian Development Bank (2007), India has

the Indian market, providing market intelligence and

an assessed hydropower potential of approximately

a sleuth of supporting services as well as hosting

84,000 MW at 60% load factor, and ranks fifth

regular events across India to increase chances

globally in terms of usable potential, yet less than

of collaboration and partnership. Closely linked to

25% of the market has been developed5. Many other

Italy, through four of our partners– the Indo-Italian

untapped markets exist, but making inroads to the

Chamber of Commerce and Industry (IICCI), Milan

Indian market is not without its challenges.

Chambers, CEIP Piemonte, and Politecnico di Torino,

Recognizing the need for guidance in clean-tech

EBTC envisages and welcomes a clean energy

innovation and business opportunities in clean

sector that promotes a collaborative environment

energy as well as in biotechnology, environment and

between Italy and India in energy and environment.

transport, the European Business and Technology Centre (EBTC), co-funded by the European Union and co-ordinated by Eurochambres, was established in India to assist the business, science and research communities from the EU and India to work together towards generating new business opportunities in clean technology transfer, and co-operation in research, science and technology.

EBTC

offers

complete

support

to

clean-tech

5

K. Ramanathan, P. Abeygunawardena (2007) “Hydropower Development in India, A sector assessment�, Asian Development Bank http://www.adb.org/Documents/Reports/Hydropower-Devt-India/Hydropower-Devt-India.pdf

Energy & Environment

23

Success Stories

Vikramjiet Roy Managing Director Maccaferri Environmental Solutions Pvt. Ltd.

Today Maccaferri is one of the international leaders in the environmental and mechanical engineering sectors. Could you please brief us on the story of the group?

For over 130 years, Officine Maccaferri has provided innovative solutions to the construction industry and partnered in building a better environment. From humble beginnings in Italy, with erosion protection and retaining walls, Maccaferri has diversified significantly and now offers engineered solutions from reinforced soil structures, pavement reinforcement to rock-fall mitigation and tunnelling systems. Today, Maccaferri manufactures these products in over 25 manufacturing facilities around the world and has nearly 60 operating companies. Following a vertical integration strategy, Maccaferri researches, manufactures, designs and installs its solutions.

Maccaferri’s mission is to become a leading international provider of advanced solutions to the civil, geotechnical and environmental construction markets.

When and why did Maccaferri decide to enter the Indian market? What were the initial challenges?

Maccaferri has worked in India for nearly 50 years. At first products and services were supplied from outside India, typically from Maccaferri operations in Italy and the UK. Maccaferri Environmental Solutions Pvt. Ltd. was incorporated in India in 1998, with technical and support offices. Maccaferri manufacturing operations in India began soon afterwards and have continued to expand since then to include not only steel wire products, but also soil reinforcement geogrids and other geosynthetics. Maccaferri now has over 350 employees within India.

Having entered new markets many times, there were

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Energy & Environment

no unique challenges that Maccaferri had not faced earlier when entering a new market. However there are always surprises ranging from marketing within a different culture (one size does not fit-all) and the climate affecting well established manufacturing processes. It was apparent that the scale and size of the country could lead to a lack of focus especially when faced with so many potential opportunities.

India has well educated construction professionals, so there is a common language of quality engineering solutions.

How did you work out the integration between Italian and Indian technologies, know-how and manpower?

Maccaferri tries hard to engender a team spirit of cooperation and mutual respect. However, our manufacturing specialists typically spend a great deal of time setting up the factories, hand in hand with the Indian colleagues who will eventually become responsible for the operations in the future.

Maccaferri’s technical support engineers spend time within existing developed subsidiaries around the world to learn the ‘Maccaferri Way’ before redeploying back to India. This rapidly introduces them to a wide range of solutions and markets, elements of which can then be customised or used within the Indian market in wake of the prevalent local scenario. The goal is to get the local subsidiary self-sufficient in independent operations as soon as possible. This engenders a sense of responsibility and a firm foundation from which local strategies can be developed keeping the global perspective intact.

Please could you elaborate on the current trends of the Indian Environment sector? Which are its

most active segments?

The generic mindset towards economic growth has, in recent times has seen a paradigm shift and the current trend, whilst depicting great focus on economic and infrastructure development, seeks to include environmental protection and preservation in all activities. Infrastructure Development is the second largest economic activity in India and construction accounts for a major chunk of the total investments in infrastructure. While it is of utmost importance to develop infrastructure at a fast pace the government’s resolve now is to develop ‘ecofriendly’ infrastructure. The current 5 year plan (200712) also envisages critical anti-erosion and floodcontrol works in costal and major river basins which, together with a wider awareness for economic growth encompassing environmental protection, would provide great impetus to business in the sector.

In your opinion, which are the technologies that can be successfully integrated with the environment projects in India?

Primarily, the environmental market does not stop at specific ‘environmental’ projects. With the growing global awareness of an eco-friendly lifestyle, the conservation and protection of natural resources becomes the primary responsibility of any agency stipulating economic growth. Thus, from retention of soil and control of erosion while developing roads, highways and railways and the protection of river basins, to the management of waste by stabilisation of landfills, the more aesthetic aspects of landscaping and architectural protection, the list of technologies which may be integrated with projects in India is only limited by our imagination and resolve.

Drawing from your experience, which strategy should an Italian entrant adopt to capitalize on the opportunities in the Indian environment sector?

Embrace the local experience, be culturally sensitive and astute, recruit locally trained people and be aware that this is a very entrepreneurial country.

If you do not have a competitor now, you will have one very soon! The market is dynamic and the marketplace very fluid so the business has to be

structured to capitalise on this. The company has to be comfortable with moving quickly and making rapid decisions, as opportunities are only available for a short period of time. With the economic conditions in the country, including inflation and interest rates, bold financial strategies within the company are necessary to cope with this.

Which are the segments that will create major opportunities in the future?

Due to the growing population and increasing wealth of the nation, there is an increased demand and construction of infrastructure of all types as is common to all rapidly developing countries. There are erosion problems on the coasts, sea and large rivers, of the country. As the country becomes more mobile, road pavement quality to facilitate safe vehicle movements will need improvement. Pressures to address pollution, efficient energy production and usage, creating sustainable growth will be keys in the future for India and simultaneously the path of rapid development for all entities engaged in the complimenting sectors.

Which are the main projects implemented so far by Maccaferri in India? What are the future investment plans?

Amongst the many projects implemented by Maccaferri, the notable ones are the retention solutions on the Mumbai – Pune Expressway, the soil reinforcement for the Sabarmati River Port Development, flood protection work for Cairn Energy and solutions for the Sikkim Airport, Southern Railways. Maccaferri seeks to enhance the reach of its products and develop a locally available and globally compliant portfolio of products and solutions to be able to partner in the eco-friendly economic development of India.

Energy & Environment

25

Alternative & Renewable Energy in Piemonte Region

T

he Piemonte region invests considerable resources in energy policies with some fundamental objectives: the reduction in energy dependence on gas and petrol, the consequent reduction in polluting emissions and the construction of a strong industrial supply chain for energy in the region. These are making a substantial contribution to the growth of the GDP and the diversification of the economic fabric.

The current strategy for innovation in the energy field pivots in particular around 3 aspects: the allocation of significant shares of European funds to technological innovation and in particular to the energy sector; to give priority to the “invisible platform” of energy saving and efficiency; and to activate strong investment to back the growth of the development of a local supply of technologies and services. Piemonte is the European region that has earmarked most community resources in this field: over € 300 million out of the € 500 million allocated for innovation.

Hydrogen technologies and photovoltaic are also strategic priorities.

As to the photovoltaic sector, Piemonte companies address every type of customer, private as well as public, and depending on specific needs they offer a complete range of installations. Moreover, lot of companies are able to manage realization of turnkey plants that comprise study, planning, realization of tailor made projects as well as creation of plants that

integrate different technologies and control systems, also by remote control.

Priority sectors • Photovoltaic and biofuel • Renewable energy and mini-hydro • Green building and hydrogen technologies • Renewable energy, energy environmental sustainability

saving

Success cases and prototypes Biosolar Lab, the first laboratory in Italy dedicated to solar energy conversion through biotechnologies, has been founded by Politecnico di Torino in cooperation with Imperial College London, MIT, ENI and Chemtex.

The laboratory is involved in the development of an artificial leaf photosynthesis to produce electric energy from hydrogen.

HydroGen 4 is the first electric vehicle with hydrogen fuel cells, the fruit of the work of Piemonte Region with General Motors and the Politecnico di Torino.

This first stage on the hydrogen road in Italy, traced by the European Commission, confirms a Piemonte strongly oriented towards sustainable mobility, clean tech and renewable energies. Torino is naturally tracking Berlin, becoming Europe’s second hydrogen laboratory.

Energy & Environment partnering event - Torino (Italy), 10 -11 October, 2011 At its 3rd edition, the event aims to matchmaking international key players and a selection of best in class Piedmontese companies dealing with waste management, recycling, water/wastewater treatment, soil/contaminated land, air quality/off-gas management, noise prevention and treatment, risks (natural and technological), bio-building, renewable energy (photovoltaic, solar energy, hydropower, biomass etc.). The event is organized by Piemonte Agency on behalf of the Torino Chamber of Commerce. www.centroestero.org/eepe – ambiente@centroestero.org

26

Energy & Environment

and

Phylla is a type A electric city car powered also by photovoltaic panels produced by Enecom Italia.

Phylla is constructed from totally recyclable materials and has zero CO2 emissions. This project, financed

by Piemonte Region, was developed by the Fiat Research Centre, by the Politecnico di Torino and by a team of Piedmontese companies.

SkySpark (www.skyspark.eu), an ecological aeroplane completely powered by an electric energy system, is the result of an industrial research project co-ordinated by DigiSky, a company founded to

develop innovative aircraft systems. The project brought together the experience of the Politecnico di Torino, the Environment Park and a group of SMEs. The technologies are cutting-edge in the world of research: high energy density hydrogen fuel cells with plants designed for aircraft; ultra-compact electric engine with brushless technology, of the direct-drive type optimised for propeller propulsion; use of lithium-ion-polymer batteries optimised for application on board. www.to.camcom.it

|

www.centroestero.org

Energy & Environment

27

Energy & Environment in the Veneto Region

I

n the Veneto region there are thousands of companies with activities that can be related to “environmental technologies”, i.e. cleaner and resource efficient technologies which can decrease material inputs, reduce energy consumption and emissions, recover valuable by-products, minimise waste disposal problems or some combination of these.

They can be classified according to the sector of intervention: pollution management, resources management, integration, and monitoring. In particular, companies belonging to this sector deal with the following fields: biobuilding; waste treatment, recovery, processing and disposal plants, equipments and services; materials and reagents; other environment services; analysis and measurement instruments; water softening and treatment technologies, materials and services; gas purification and treatment technologies, materials and services; energy-saving and production technologies, materials and services; soil and ground safeguard and remediation technologies, materials and services; soundproofing and acoustic antipollution technologies, materials and services; other environment technologies, materials and services.

At the institutional level, Treviso Tecnologia, the Special Agency for Technological Innovation established by the Treviso Chamber of Commerce, is part of the Europe and Mediterranean (Euro-Med) TEMP project (co-funded by the European Union) that promotes the rise of awareness and the technology transfer on water reuse in industrial operations (i.e. textile) in the Euro-Med area.

The direct interaction with European Commission has lead to several joint discussion meetings with different DGs like energy and transport as well as contacts on specific themes like the “smart cities” initiative or the “Intelligent Transport System” plan.

At the national level, Treviso Tecnologia has a formal agreement with ENEA (National Agency for Energy and Environment) acting as intermediary to/from SMEs to promote technology transfer and research-industry collaboration on themes like renewable energy and eco-innovation.

Regarding environmental technologies, Treviso Tecnologia aims at promoting a innovation-oriented business culture, constantly supporting small and medium sized enterprises through: The development of high-tech and innovative services and projects, in connection with the university and the scientific world; the implementation of learning paths enabling new professionalisms and profiles: technically specialised, managerially skilled and globally scaled in a lifelong learning view; the diffusion of technical knowledge for realising projects for improving the competitiveness via the certification of both products and company management systems; the offer of information, training and development services, pursuing a continuous dissemination of technological innovation among enterprises and leveraging the power of the networking between research institutions, universities, Chambers of Commerce and other public organisations.

www.centroesteroveneto.com

28

Energy & Environment

Modena: All the Colours of Green

W

hen we speak of green economy our thoughts immediately go to photovoltaic and wind energy. In fact, the boundaries of the green economy stretch much farther than this and include many different production sectors; not only energy from renewable sources, but also sustainable mobility, bio building engineering, textiles. All of these are already present in the Modena area: for example a company manufacturing electric motorcycles and a number of companies engaged in building and plant engineering and specialised in the construction of zero-emission buildings; not to mention the entire support service sector (consultancy, research and so on). In other words, that green mark on Modena’s economy gets bigger every day. This is only logical on the other hand if we consider growth rates estimated from now until 2020, and which range from the 180% for the sector related to renewable energies to the 100% of energy streamlining, and from the 94% of sustainable mobility to the 53% of wastes and the 153% of water.

This results also in positive repercussions on jobs.

The green mark does however have so many nuances that to make the precise quantification of Modena’s green economy is difficult. In our province, we can estimate there are around 1,400 companies and free-lance professionals engaged in the green economy, with just over 40,000 workers.

No industry is impervious to applications in some way tied to the protection of the environment. Above all as regards the production of energy is one of the few sectors which has withstood the crisis. In Italy in fact, there are already more than 100,000 photovoltaic installations, with a production of electricity which has reached 1% of the demand (source: A.T. Kearney).

The construction trade is perhaps with the strongest environmental connotation. There are many specialised companies in this sector; especially plant engineering firms (it is suffice to mention, for example, geothermal energy, i.e., the exploitation of underground heat not only for domestic heating, but also for cooling buildings).

Care for the environment has also become big business for the manufacturers of building materials, which in our area means ceramic tiles. Numerous products now boast low environmental impact, but the world of tiles has already gone even further and shifted the boundaries from environmental compatibility to energy production, with the manufacture of photovoltaic material.

Green agri-food is another major player. Starting with organic farming products and their processing and ending with technologies relating to the production of secondary raw materials.

The manufacturing sector, in the strictest sense, also has green nuances, for instance, the production of water-treatment equipment, parts and machinery and the building of wind farms.

In the textile clothing industry, products made from natural fibres such as kenaf and hemp are on the increase.

In other words, we do not yet know whether the boost required to raise ourselves up from this crisis once and for all will be a green one. What is for sure is that this sector plays a key role during downturns in the economic cycle. It is a sector with by now solid fundamentals, to be followed carefully to grasp all the opportunities it offers, at both small and large scale. www.modenaemiliaromagna.it

(Dossier compiled by Mr Ermes Ferrari for “Modena Economica” no. 6 - December 2010 - journal of the Modena Chamber of Commerce)

Energy & Environment

29

Fairs and Exhibitions September 2011 – March 2012

ECOMONDO 9-12/11/2011 RIMINI International fair on green technology, energy recovery and sustainable development www.ecomondo.com ENERGY & ENVIRONMENT PARTNERING EVENT 10-11/10/2011 TORINO CEIP proposes to organise B2B meetings with interested and potential Italian companies p.hate@indiaitaly.com EOLICA EXPO MEDITERRANEAN 14-16/09/2011 ROME International exhibition on wind energy solutions www.eolicaexpo.it ZERO EMISSION 14-16/09/2011 ROME International exhibition on renewable energies and energy consumption reduction www.zeroemissionrome.eu KEY ENERGY 9-12/11/2011 RIMINI International exhibition on sustainable transport and renewable energies www.riminifiera.it GREEN ENERGY EXPO 16-19/11/2011 MILAN International exhibition on renewable energies www.greenenergyexpo.eu ENERSOLAR+ 16-19/11/2011 MILAN International exhibition on solar energy www.greenenergyexpo.eu

30

Energy & Environment

Agri & Food Processing Technology in India

R.K. Sharma Sr. Deputy Director National Horticulture Board Ministry of Agriculture, Govt. of India

T

he food processing industry covers a large spectrum of products of plant and animal origin and is the sunrise area of the Indian economy in view of its potential for growth and likely socio-economic impact.

Among the large number of technologies developed, the most popular ones include: agriculture produce refinement equipment (cleaners, graders and driers for on-farm as well as industrial operations); processes and equipment for parboiling of rice, puffed and flaked rice; development of processes and equipment for processing of pulses; development of driers using agricultural residues, by-products and solar energy; adoption and development of processes, and equipment for production of protein rich produces (full fat soy flour, soy drink/soy milk, soy paneer (tofu) and soy fortified baked products; processes and equipment for production of high quality spices and spice mix, development of raw materials and processes for production of instant sweets, curries, snack foods, instant soft drinks, egg powder, production and packaging of milk products; equipment for high recovery of sugarcane juice, processes for production of high quality jaggery; processes, equipment and pilot plants for production of various industrial raw material from lac including dyes & pharmaceutical products; control of stored grain insects by using chemical & physical methods, storage structures for on-farm, trade and process plant level operations; processing and canning of meat, meat products and fish.

Starting with a small number of processing facilities in 1950-51, a fairly well spread network has developed in the country today. There has been a big jump in the share of different products in the total processed fruits and vegetables from the year 1998-99 in which it was: pulp and juice 27%, jams and jellies 10%,

pickles 12%, ready to-serve beverages 13%, syrups 8%, squashes 4%, tomato products 4%, by canned vegetables 4% and other products 18%.

The processing facilities in the country had experienced the constraints of low capacity utilization, high fluctuations in raw material quality, quantity and market price, poor technology for handling and storage, inadequate R&D support for product development, high cost of energy and inadequate and expensive cold chain facilities and varying requirements of processing conditions from one material to another.

Subsequent transformations have led to the successful deployment of technologies, especially in post-harvest infrastructure and value addition in horticulture, like state-of-the-art irradiation facilities for long storage; vapour heat treatment for mangoes; enhanced storage capacity for produce specific requirements; tremendous improvement in packaging technology for fresh and processed produce and nutraceuticals pigment extraction from marigold and calendula.

It has led to the growing successful horti-businesses like for instance the retail market for fresh fruits & vegetables is $35 billion and organized retail is growing @ 30% p.a. whereas FDI in processing and food chains is also increasing. Several national and international retail giants like Walmart, Reliance, Unifruitte, Godrej, Birlas, Spencers, Nilgiris, ITC, TATA, Pantaloon Group, Adani, Amul, Nestle, MTR, Dabur, Pepsi, etc. are in business in India.

In order to maintain quality government organizations have come up with standards and to monitor it through compulsory legislation and voluntary standards.

The function of the Bureau of Indian Standards (BIS) is two-fold: formulation of Indian standards and their implementation through its voluntary and third party certification system. BIS has on its record over 700 Indian Standards related to food-items. These standards, in general, cover raw materials permitted and their quality parameters, hygienic conditions under which the product is manufactured and packaging and labeling requirements. The standards also prescribe, where required, freedom from toxic substances and contaminants. System Standards for

Agri & Food Processing Technologies

31

cold chain have also been notified by Department of Agriculture & Cooperation (DAC).

India’s strength in the improved supply of raw materials, social acceptability of agro-processing as an important area and the government agencies, vast network of manufacturing facilities provides

32

Agri & Food Processing Technologies

opportunities for large agro-processing activities and integration of developments in contemporary technologies such as electronics, material science, computer, bio-technology etc. and global markets for export.

Success Stories

Sameer Suneja Managing Director Perfetti Van Melle India Pvt. Ltd.

Perfetti Van Melle is one of the leading groups today in the confectionery sector worldwide.

Could you please brief us about the company and its objectives?

Perfetti Van Melle India Pvt. Ltd. (PVMI) is a market leader in the Indian confectionery industry and is a renowned manufacturer, distributor and marketer of several high quality confectionery products. Almost 2.5 times the size of its nearest competition, it is a leading player. The company at present has a diverse portfolio of brands across segments (i.e. candies, gums & mints etc.) which it sells through various retail channels across the country. PVMI has always been known for its iconic, interesting and entertaining advertising. It is a fully owned subsidiary of the global confectionary conglomerate Perfetti Van Melle that is headquartered in Lainate, Italy.

When and why did Perfetti decide to enter the Indian market and which were the strategies implemented?

Perfetti decided to enter into the Indian market sometime in 1992-93. The economy of the country had opened-up in 1991 and post liberalization, the overseas corporation (parent company) saw a big opportunity in the Indian market for their products and decided to set-up a confectionery manufacturing unit in India at Manesar, Gurgaon. The strategy was to offer products specifically suited to the Indian palate at extremely affordable price points. A Greenfield extensive distribution system was set up which was backed by extremely compelling advertising.

initiated in India.

The USP of the company has been high quality and innovative products at the most competitive prices with wide spread distribution reach. There are several successful products which the company has introduced in India. For instance the first ever launches of products like liquid filled chewing-gum (Centerfresh in 1994), deposited candy (Alpenliebe in 1995), sour gum (Center Shock in 1995), functional gum (Happydent White) and filled candy (Creamfills).

What approach would you recommend to other Italian companies that aspire to enter the Indian market?

The country is fast developing and there are huge opportunities across categories. The new companies should have the ability to “think local as well as act local”.

Please share with us the future plans Perfetti has for India.

Perfetti has ambitious plans both in confectionery as well as in evaluating a new line of business. It has just entered into manufacturing savouries (namkeens) which marks the first ever venture of this type, by the Perfetti Group, anywhere in the world.

What, in your opinion, is the company’s USP (Unique Selling Point)? Please tell us about the successful projects that your company has

Agri & Food Processing Technologies

33

Antony Cherukara Senior General Manager, Mahindra AppliTrac Mahindra & Mahindra Ltd. - Farm Equipment Sector

Mahindra & Mahindra is considered to be one of the top three tractor manufacturers in the world.

Please share with us the success story.

Mahindra & Mahindra’s Farm Equipment Sector (FES), is part of the Mahindra Group, which achieved a turnover of USD 12.5 billion in 2011. As the market leader in India for the past 28 years, FES has helped bring the benefits of mechanisation through affordable technology to Indian farmers. Mahindra has achieved the distinction of being the largest tractor company in the world by volumes, with sales in more than 35 countries.

Could you please describe for us the current scenario in the Indian market for agricultural vehicles and machinery?

Mechanisation in agriculture is gradually increasing in India, while back-breaking agricultural practices are getting simplified. Shortage of human labour, rising wages and cost of up-keep of bullocks has helped to make the case for farm mechanization even stronger.

With the growing demand, this market has huge potential. Other factors that contribute to the demand for mechanisation are a good monsoon season, an increase in disposable income and in the minimum support price (MSP), access to institutional credit, government subsidies and support services.

Not only large farmers, but also smallholders are adopting equipment for more efficient farm management, to carry out operations like tillage, sowing, irrigation, plant protection and threshing.

M&M has formed a JV with an Italian company Maschio Gaspardo. How is this JV expected to benefit the companies in tapping the Indian market?

34

Agri & Food Processing Technologies

As a result of this tie up, Mahindra AppliTrac will receive the exclusive supply of a complete range of rotary tillage equipment from Maschio Gaspardo.

Through the partnership with Maschio we hope to provide farmers with world class products for mechanization, to increase rural productivity and efficiency.

The Gyrovator ZLX, an advanced technology rotary tiller, is the first product to be introduced since Mahindra’s exclusive tie-up with Maschio in December 2010. The Gyrovator was specially engineered to suit varying requirements across India’s dry and wet lands.

What are the future plans M&M has for the Indian agriculture sector?

Mahindra has a vision of delivering FarmTech Prosperity to Indian farmers through innovative products and services. We want to provide farmers with best-in-class options for mechanization and innovative crop specific farming technologies to enhance productivity.

• Arjun Multi-Application tractor launched in F11, has been well received and will be introduced in more markets.

• Yuvraj 215 tractor, a revolutionary product for the small and marginal farmer, is going to be introduced in many states in India.

• We plan to open more Mahindra Samriddhi centres across India.

• Offer various mechanization solutions under Mahindra AppliTrac.

The Indian farmers are looking to increase yield levels and enhance cost effectiveness by improving the efficiency of tillage and seeding

Courtesy: Mahindra & Mahindra

operations. In what way does M&M plan to contribute in this context?

Mahindra AppliTrac offers rotary tillage equipment, and transplanters and seeders. Through Samriddhi Centres, Mahindra aims to enhance agricultural productivity through creative farming technologies, thereby leading to an increase in rural prosperity. As part of this concept, several Mahindra dealerships have been transformed into such Samriddhi Centres offering the farmer easy access to technological know-how, hybrid seeds, soil and water testing facilities, demo farms, finance and insurance, internet updates as well as sales and servicing of tractors and implements.

What are the technologies and strategies that Italy can offer India in the agri technology sector that could be mutually beneficial to both countries?

There are opportunities across the value chain thus India and Italy could gain through appropriate technology transfer and partnerships between enterprises in both the countries.

Agri & Food Processing Technologies

35

Agri-Food and Agro-Industry in the Veneto Region

In

1926

the

Veneto

Regional

Government

established the Istituto per la Qualità e le Tecnologie Agroalimentari

(Institute

Technologies)

which

for

is

Food

the

Quality

food

and

section

of

Veneto Agricoltura, the body that deals with rural development and research in agriculture, forestry and the food processing industry. The Institute is competent for the entire agro-food industry, which means: research and development, transfer of technologies and innovation, analytical activities, production of microbial cultures, and training.

The Institute is a leader in the food sector and its activities are: health and safety (development of innovative, safe and flexible production technologies which ensure the improvement of food quality: functional food, bio preservation, probiotics, methods for implementing and monitoring hygienic standards); quality and tradition (development of autochthonous starter cultures with the aim of safeguarding the traditional characteristics of fermented food products and beverages and maintaining their bond with the area in which they are produced); assessment of quality (promotion of food products by developing and applying objective methods for the study of their chemical, microbiological and sensorial properties); food of

technology innovative

(design and

and

implementation

environmentally

friendly

methodologies, exploitation of new processing and

T

he Veneto region is highly specialized in the food sector and has developed intense agricultural

and zootechnical activity. It is also characterised by the presence of a large number of companies involved in food manufacturing or in the production of food processing plants and machinery (dairy, bakery, packaging equipment, etc.).

The agricultural sector involves 76,000 companies and accounts for 4% of the total regional GDP (€ 4.75 billion). The agro-industry sector involves 4,000 companies and accounts for 1.5% of the total regional GDP (€ 1.6 billion). Together, they involve

preservation techniques).

The institute’s activities are strongly linked to industries, mainly SMEs. It provides technical support and consultancy to companies and access to new knowledge and technology outputs. It is also involved in projects with other research institutes and universities, producers’ associations and Consortia for the protection of traditional and PDO (Protected Designation of Origin) products.

The Institute consists of 5 laboratories (Biotechnology, Chemistry, Microbiology, Milk and Sensory Analysis) and 1 plant for the production of microbial cultures.

80,000 companies and account for 5.5% of the total regional GDP (€ 6.35 billion). Furthermore, the sector involves 17.4% of all Veneto companies.

36

Agri & Food Processing Technologies

The Biotechnology group has a long tradition in assisting the food industry through research and

innovation projects concerning the selection and

The Biotechnology group is also involved in studies

development

fermented

on probiotic potential of lactic acid bacteria. Among

foods and beverages. The group has implemented

the strategies that have been exploited, interesting

several research projects with the aim of studying

results have been obtained using lactic acid bacteria

and preserving the microorganisms associated with

(protective cultures) able to inhibit the growth of

traditional products and developing specific cultures

undesirable microorganisms through the production

using these microorganisms.

of antimicrobial compounds such as bacteriocin and

The application of molecular methods, such as

antifungal metabolites.

RAPD-PCR, PFGE, TTGE and DNA sequencing

Treviso

for the differentiation of microorganisms at species

Technological Innovation established by the Treviso

or at strain level allows to obtain the microbial

Chamber of Commerce in 1989, is also involved in

profile of the different products and to trace different

the innovation of the agro-food sector. It is partner of

groups of microorganisms and single strains during

the F2F project (From Farm to Fork) to validate the

manufacture and ripening processes. The final step,

adoption of RFID tags in the agro-food sector. The

which allows implementing research results into

project, co-funded by the European Union, is followed

products for the food industry, is the preparation of

with particular attention in order to favour traceability

the cultures in different formulations (single strains,

systems for four sectors, namely meat, cheese and

mixed cultures, freeze-dried “semi-direct” or direct

dairy products, fish and wine, and to promote the

vat starters etc.) tailored to meet the needs of the

adoption of new technologies in “old-styled” sectors.

of

starter

cultures

for

Tecnologia,

the

Special

Agency

for

different productions. www.centroesteroveneto.com

Agri & Food Processing Technologies

37

Vicenza: Leading the Agri & Food Sector

T

he agri & food sector of Vicenza is well-structured, rooted in the territory and is highly known for a considerable number of typical and traditional local products, because the sector has been able to express itself in a wide range of Italian traditional food products. Local agricultural and food production is characterized by the care taken in turning out its products, which have quality guaranteed by an entrepreneurial structure made up of small and medium industries that are well aware of the aspects of food safety and technological content – guaranteeing hygiene and high standards.

The “Made in Vicenza” agri & food sector can count on many local specialties. There are products that represent the feather in Vicenza’s cap, some of which have been recognized on the European level through the PDO indication (Protected Designation of Origin) such as “Sopressa Vicentina” and Asiago cheese, or the TGI (Typical Geographic Indication), such as Marostica’s cherries. The products certifies by the Consortium “Le Terre del Palladio” also deserve to be mentioned, including the cheeses, such as Stravecchio di Malga and Morlacco; cereals such as Vialone Nano rice, Marano cornmeal and vegetables such as the Mountain Potato and Radicchio.

Last but not the least, the typical local dish par excellence: “Baccalà alla Vicentina”, a recipe based on stockfish (the Veneto region imports 80% of the stockfish produced in Norway) that can be enjoyed in every restaurant in the Province, with special attention to the traditional recipe, for restaurants marked with the logo “I ristoranti del baccalà”.

Therefore, Vicenza comes to the table rich and appetizing, capable of satisfying the most demanding palates with quality products, such as olive oil with the two POD indications “Veneto Euganei e Berici” and “Veneto del Grappa”, sausages where, in addition to the already mentioned Sopressa Vicentina, there is also the Prosciutto Veneto Berico-Euganeo, not to mention several successful niche products, such as grappa and distillates. It’s a short step from eating to drinking, so one will discover that Vicenza has always known how to express itself at extremely high levels in the prestigious tradition of Italian winemaking, from Cabernet, Raboso and Merlot red wines to Chardonnay, Garganego, Sauvignon, Riesling and Moscato whites, as well as sparkling wines and raisin wines (first and foremost Recioto and Torcolato).

Business units

584

Staff

6,507

Turnover

5,493 million €

Exports

300 million €

www.vicenzaqualita.org

38

Agri & Food Processing Technologies

Fairs and Exhibitions September 2011 – March 2012

IPAK IMA 28/02-3/03/2012 MILAN International exhibition on packaging technologies www.ipakima.com AGRO-BIO-FRUT 5-7/10/2011 CESENA Exhibition of new technologies for seed production and Mediterranean organic production www.cesenafiere.it TRANS-WORLD 5-7/10/2011 CESENA Expo of food transport and logistics www.cesenafiere.it FIERA AGRICOLA 2-5/02/2012 VERONA International exhibition technologies www.veronafiere.it

of

agrifood

FRIGUS 25-28/02/2012 RIMINI International exhibition on technologies for the froze chain and processing of frozen foods www.riminifiera.it ENOLITECH 25-28/03/2012 VERONA International exhibition on wine production and processing www.veronafiere.it MACFRUT 5-7/10/2011 CESENA International exhibition of equipment, technologies and services for the production, packaging and transportation of fruits and vegetables www.cesenafiere.it

processing

Agri & Food Processing Technologies

39

IICCI Launches the First Indo-Italian Business Conference (IIBC) A Project by

With the contribution of the Unioncamere Inter-Chamber Fund

In collaboration with

The event The first edition of the Indo-Italian Business Conference (IIBC) took place from September 26th to 30th 2011 in the cities of Mumbai, Pune, Kolkata, Ahmedabad and Bangalore. The IIBC has been conceived to become a platform for dialogue between Indian and Italian companies and experts, to foster new collaborations in three sectors: infrastructure & building, energy & environment, and agri & food processing technologies. These sectors, of high priority for the development of the Indian economy, offer opportunities for Italian expertise to be a force of innovation, and for companies to increase their presence in the local market.

With the patronage of

Sponsors

The 3 sectors ▬ Technologies, servicies, materials & equipments for infrastructure & buildings: roads (including bridges and tunnels); railways; ports; airports; urban infrastructure; ▬ Renewable energies and technologies for the Environment: particularly biotechnologies and transport sectors; ▬ Agricultural technologies, conservation and agri & food processing.

40

IICCI Specials

Partners

Agenda Infrastructure & Building On the 27th and 30th of September, in Mumbai and Kolkata respectively, the IIBC hosted a round table titled “Urban Planning and Innovative Building Technologies: Key drivers for a sustainable city”, to open the debate for potential indo-italian collaborations in the infrastructure & building sector. The companies also engaged in b2b meetings and site visits to some of the main construction sites of Mumbai.

Energy & Enviroment The European Business and Technology Centre (EBTC) – a programme co-funded by the EU and co-ordinated by Eurochambres – used the IIBC platform to host a visit of a European delegation of companies and research organizations to India.

The focus of the EBTC and its delegation was on energy, environment, biotech and sustainable transport, and the event aimed to foster exchange of technologies, patents and knowledge on these themes. The delegation visited the cities of Mumbai and Bangalore, on 27 and 29 September 2011 respectively, to attend the round table “Hi-Tech Park, Research Centres and Innovation Clusters for Green Technology: the European and Indian Experience”.

The delegates also visited The Energy & Resource Institute (TERI) and the Indian Institute of Technology (IIT) and attended b2b meetings.

Agri & Food Processing Technologies In order to showcase to the delegates how Italians know-how and technologies can be employed in the agri & food processing technologies sector, a round table on “Italian innovation for Indian agri & food processing”, followed by b2b meetings between Indian and Italian companies, was organized for the 28th of September. Moreover, b2b meetings and a visit to the tractor factories of Mahindra & Mahindra were also offered.

Special Events On 26th September, on occasion of the opening seminar and welcome dinner of the Indo-Italian Business Conference, two awards ceremonies were held for Impresa Awards 2011 and Ospitalità Italiana - Ristoranti Italiani nel Mondo.

Impresa Awards In its 7th edition this year, the Impresa Awards were launched in 1999 by the Indo-Italian Chamber of Commerce and Industry (IICCI) to give recognition to Indian and Italian entrepreneurs and businesses who have made an impact on the economic relations between the two countries. This year’s award categories were: Social Impact, Innovation, Environment, Market Presence, Business Excellence and Jury’s choice.

Ospitalità Italiana – Ristoranti Italiani nel Mondo An initiative by Unioncamere and Assocamerestero in collaboration with Federazione Italiana Pubblici Esercizi and with the support of Istituto Nazionale Ricerche Turistiche (ISNART), Ospitalità Italiana gives its seal of quality to Italian restaurants around the world in recognition of their serving authentic Italian cuisine.

The Indo-Italian Chamber of Commerce and Industry collaborated with the organizers to identify restaurants in India that live up to the high quality standards of Italian hospitality. The awarded restaurants are: Travertino, La Piazza, Baci (New Delhi), Via Milano and Italia (Bengaluru), Tuscany Gardens (Candolim-Goa), Prego (Chennai), La Cucina (Kolkata); Celini, Vetro, Fratelli Fresh (Mumbai); and Dario’s (Pune).

IICCI Specials

41

Understanding the Indian Furniture Market A Consumer Behaviour Study

A

study on Indian consumer preferences on furniture conducted by the Indo-Italian Chamber of Commerce and Industry, commissioned by Aspin Frosinone, the Chamber of Commerce of Udine - Special Agency for Internationalization of local enterprises and Vicenza Qualità, has identified key-factors to be kept in mind when deciding about strategies and actions to increase the presence of Italian furniture in India.

The study was conducted through a series of questionnaires answered by more than 400 persons which included final consumers, intermediaries and opinion leaders located in large, first-tier Indian cities (Delhi, Mumbai, Bangalore, Chennai and Kolkata), each having a population of more than 4.5 million, and in seleted smaller cities where the growth of the middle-class is particularly strong (Ludhiana, Pune, Pondicherry, Goa). The most significant points that emerged from the study are as following: 1. Characteristics of the sector The Indian furniture market is still in its initial phase of development, and confirmed by the following data: a. Only 4% of the manufacturers interviewed have showrooms in multiple indian cities, and this implies that there is a huge presence of small craftsmen or of medium sized companies operating only in one city; b. Only 22% of interviewed importers have a sales network that covers the whole country; c. Often the same company acts as an importer, distributor and retailer. This indicates a limited level of specialization along the value chain.

2. The consumers a. The floor space of properties (apartments or independent homes) is high compared to the western standards: 86% of those interviewed live in properties with floor space of more than 300 square meters. b. However, one is witnessing a gradual shift, mainly in tier-1 cities, from joint families (6/8 members) to nuclear families (4/5 members) and therefore reduction of floor space and increase in number of rooms. c. People are willing to invest a lot in furnishing their property: d. 43% of the property owners are willing to invest more than 10,000 € in furniture; e. According to architects, 77% of their clients are willing to invest more than 10% of the property value; f. 45% of those interviewed in the contract and hospitality sector are willing to invest more than 40,000 € on furnishing g. In the order of importance, the most desirable features of the product are solidness (22%) and design (20%). Brand name has a limited impact (10%): Table. 2 How much are you willing to invest to furninsh your property?

Upto 2000 € Between 2000 to 4000 € Between 4000 to 10,000 €

15%

Between 10,000 to 20,000 €

24%

> 20,000 €

13%

Table. 1 How does you sales network functions?

19% 4%

29%

38% 58%

We find our clients mainly through word-of-mouth We have a show room in one city We have many show rooms in one city We have many showrooms in various Indian cities

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3. Factors that influence the final choice a. Sources of information: • For the users, specialized magazines (42%) and direct contact with architects

and interior designers (25%) are the main sources of information. However, only 12% of those interviewed buy interior magazines on a regular basis, while 31% buy them occasionally. TV (6%) and internet (3%) play a very moderate role.

• For the intermediaries (manufactures and importers) the network of personal contacts (21%), specialized magazines and trade fairs ( both 18%) are of prime importance in promoting products.

• However, the ethnic and the colonial style have an interesting appeal for 26% of those interviewed.

Table. 4 What is your favourite style?

9%

3% 14 %

Baroque Ethnic 12%

Colonial Modern Indian

33%

Modern Western Postmodern & Experimental

Table. 3 Which is the best way for you to find information on furnitures and interiors?

4% 11%

Magazines Newspapers

3% 42%

TV Architects and designers Internet Word-of-mouth

25%

Others 6%

9%

29%

c. Product origin: • Perhaps due to a limited exposure to imported products, there is sense of general satisfaction with regards to Indian furniture in terms of availibility (6.7), life (6.1), after-sales service (6) and price (5.8). Instead the design receives few votes (5.3).

• There is a very negative opinion about the products imported from China (average 4.2) and from South-East Asia (4.6)

b. Favourite styles: • Modern western style (33%) and modern Indian style (29%) constitute the large majority of preferences. The Baroque/classic style (only 3%) enjoyes extremely limited popularity.

• Design (6.6) and solidness (6) of products “Made in Italy” are highly appreciated. Italy, like Germany and the United States, suffers not only due to the price of its products, but also due to its limited availability (4.3) and the after-sales services offered (4.2).

Table. 5 How would you evaluate the characteristics of the furnishing products on the basis of their origin?

8 .0

Life Design Price Availability Service

7 .0

6 .0

5 .0

4 .0

3 .0

2 .0

1 .0

0 .0

India

China

Malaysia/Indonesia/Thailand

Italy

Germany

IICCI Specials

USA

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4. Who makes the final choice? a. Even though the opinion of the buyer is what counts the most (70% of property owners, 56% of directors of institutions), an important role is played by architects (20% of property owners, and 53% between the architects employed by the company and external architects in case of construction firms). An important role is also played by the contractors (upto 10% in case of property owners and upto 6% in case of projects carried out by contractors). b. The architects are important for specific areas, for example for constructing the dining room (26.4%) and the bedroom (23.5% for master bedroom and 25.5% for kids or guest rooms).

armchairs (54.2%), tables (50.8%), and outdoor furniture (50.3%); furniture items that are made by a craftsman are generally kitchens (41.5%), sideboards/cupboards (40.1%) and beds (36.2%).

The others are generally made to size by a carpenter.

Table. 7 Who makes what?

33%

10%

20%

Family Architect/Interior designer Builder/Contractor 70%

The furniture is made by a craftsman I choose a furniture and get it copied by a craftsman Purchase the furniture in a shop / from a manufacturer

c. Instead, the works executor plays an important role in the choice of facing (27%), of doors and windows (17.8%), of bathroom fittings and for external areas (15.9% and 16.7%).

Table. 6 Who makes the final decision?

35%

32%

6. How does one evaluate the purchase experience?

The widespread perception is generally positive at all levels: for 51% the experience is good (41%) or excellent (10%), for 46% on the average it is satisfactory (46%). Only 3% have an overall negative opinion: in these cases the problems are the quality of service provided by the staff, the mode of delivery, and mismatch between the product delivered and the one ordered.

Table. 8 How would you evalute your purchase experience?

1%

5. How is the project implemented? a. This phase appears to be the one that pays the price for the backwardness and limitations of the sector. In fact, only 33% of interviewees purchase ready-made products in shops or place orders abroad. The rest either get furniture made to size from a carpenter (35%) or get the furniture made on model taken from a magazine or from the internet (32%). b. For the most, products purchased from shops are chairs and dining chairs (55.2% and 50.3%),

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2%

10%

Excellent Good Average

46% 41%

Bad Very bad

7. What do you feel about Italian furniture? a. Knowledge: the Indian consumer is overall well aware (86%) of what is “Made in Italy” furniture, thanks mostly to the information taken from specialized magazines (44%) and from architects and designers (32%). 82% have also seen Italian furniture either in a trade fair (28%), or in showroom in India (28%). In many cases, one also finds “Made in Italy” furniture at the residence of acquaintances or in showrooms abroad (20%)

Table. 11 Why did you never by Italian furnitre?

10%

2%

Too expensive Not available 3 1%

Did not like design, materials or colors

57%

Others

Table. 9 Where have you seen “Made in Italy” furniture?

4% 28%

20%

Trade fair Residence Showroom in India Showroom in Italy/abroad

c. Factors on which one should invest: the price (4.1 out of 5 points) and availability (3.6) are factors on which one should invest to increase the sale of “Made in Italy” products in India. The other very important factor is also the visibility, which is possibile through promotional campaigns (3.0)

Others 28%

20%

Table. 12 Factors on which the Italian companies should invest to improve their presence in the Indian market?

b. Purchase: A interesting percentage of those interviewed said that they have purchased italian furniture (36%), mainly sofa (18%), chairs (12%), kitchen (11%), dining table and lights (9%). In 28% of the cases, the purchase was done at a showroom in India from an Indian importer (25%).

In 17% of the cases the product was ordered directly from Italy.

23%

27%

Price Design Promotion and branding Service 17%

14%

Availability

19%

. The reasons that hinder the choice of an Italian product are price (57%), availability (31%), design and the color/material combination (10%).

Table. 10 What kind of product did you purchase?

Sofa 8%

Armchairs

18%

5%

Kitchens Dining tables

8%

Lights 12%

9%

Sanitarywares Chairs

For more information, please contact: Aspin Frosinone - info@aspin.fr.it Chamber of Commerce of Udine, Special Agency for Internationalization of local enterprises - progetti.info@ud.camcom.it Vicenza Qualità - info@vicenzaqualita.org

Fittings

2% 8% 9%

Wardrobe Kids furniture

4%

6% 11%

Bed room Decorations

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Arbitration & Alternate Dispute Resolution in Italy

Due to the vast amounts of time and money involved in the trial process, the American and Italian business communities have increasingly turned to legal alternatives that are more prompt, private and economical than the courtroom.

Alternative Dispute Resolution (ADR) refers to the wide spectrum of legal avenues that use means other than trial to settle disputes.

The main ADR alternatives to civil litigation are negotiation, arbitration, conciliation and mediation.

Arbitration is an ADR (alternative dispute resolution) method where the disputing parties involved present their disagreement to one arbitrator or a panel of private, independent and qualified third party “arbitrators.” According to the Italian Civil Procedure Code parties in conflict may chose neutral arbitrators to decide and settle a dispute between them, as long as those disputes are not already of the type designated to be handled within the court system. In Italy, arbitrators are generally attorneys or law professors, and are chosen by disputing parties in respect to their experience and competence in specific areas of law. When a disputed matter is to be given to a panel of arbitrators, each party selects its own arbitrator, and selected arbitrators appoint jointly a third one as the Chairman of the panel. If they are not able to agree on a common choice, the parties may instead appoint and utilize one sole arbitrator to assist with the dispute. Typically, to use arbitration in Italy, an “arbitration clause” must have been inserted into contract between the two parties. I.C.P.C § 808 labels this clause the “compromise clause” (clausola compromissoria). The procedures that the arbitrator or the panel must follow during arbitration can be inserted as well along with these contractual arbitration clauses.

Technically, the process of arbitration concludes with a decision called an “award” (lodo arbitrale) to be issued within 240 days from the date the arbitrator accepted the dispute (I.C.P.C § 820). There are two types of arbitration. First, in “binding arbitration” (arbitrato rituale), the arbitral award (lodo arbitrale) is comparable to a litigated judgment and is enforceable in respect to the parties’ damages. Second, in “non-binding arbitration” (arbitrato non-rituale), the arbitrator renders a final decision similar to that of a contractual agreement; specifically, the parties owe each other an obligation as they would in a contractual arrangement. Under Italian codes, this type of proceeding carries its own scheme of rules and permits parties to obtain substantial justice by asserting a “sentence of equity.” Basically binding arbitration award is rendered under principles of Law, instead non binding arbitration award is rendered under principles of equity.

An arbitration decision generally has the force of law behind it, but does not set a legal precedent: the arbitral award concluding the dispute has the same value as an ordinary judicial judgment, provided that any of the parties involved will activate procedure for the acknowledgement of the award by the competent Italian Court of Appeal.

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Country Profile - India

BNP Paribas was the second foreign bank to start a dialogue with India in 1860 begining operations in Kolkata. Today, BNP Paribas is amongst the leading corporate banks in India.

This historical association with India has given BNP Paribas an unparalleled experience of the Indian economy and we have been witness to the country’s growth at close quarters. Currently, the bank has branches in eight major cities of Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore, Ahmedabad and Pune.

The Group offers sophisticated solutions through its three core business lines - Corporate and Investment Banking, Investment Solutions and Retail Banking, several of them in association with strong local partners.

In India, BNP Paribas is a very active player in Corporate & Investment Banking offering products across businesses - Fixed Income & Debt Capital Markets, Corporate Finance, Structured Finance, Energy & Commodities Financing, Cash Management & Trade, Export & Project Finance.

BNP Paribas has a strong presence in the Wealth Management arena offering world class capabilities and customized solutions to its clients. It has grown extensively on the back of the Group’s renowned expertise which provides the local team with a strategic orientation.

The Group has further developed its businesses through joint ventures in Home Finance and Securities Services with Sundaram Group; in Life Insurance with State Bank of India, in Personal Investment Services and Institutional Broking with Geojit Financial Services and a BNP Paribas Lease Group (Equipment Solutions) joint venture with SREI Infrastructure Finance. In addition, the Group has subsidiaries in Fleet Management (Arval) and has an asset management company, BNP Paribas Mutual Fund.

While BNP Paribas is proud of its deep-rooted history in India and the strong relationships that it has forged through its values, it is continually changing to make the most of the opportunities provided by India’s growth.

IICCI Specials

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Piemonte, a Region Rich in Opportunities

L

ocated in north-western Italy, right at the heart of Europe’s most highly developed core, Piemonte plays an essential role in the nation’s economy.

The region brings together industrial tradition, innovation, a powerful drive for research and development, leisure and entertainment, arts along with exquisite tastes and aromas. Intellectual vividness has always been a distinctive feature: Torino, the first capital of Italy, was the political and strategic point of departure for the reunification of the Country in 1861, while in recent times, it was the venue of the Winter Olympic Games (2006) and the first World Design Capital (2008). The region is dynamic in industry as in services, with a skilled, flexible and versatile workforce. It hosts research as well as education facilities and competency centres of international standing.

Piemonte has a strong financial and manufacturing structure and as a confirmation of its competitiveness over 660 foreign companies have chosen to invest here.

Internationally famous for being the cradle of the Italian car industry - Torino being the home town of Fiat, the leading Italian automotive group, and of car stylists, such as Giugiaro and Pininfarina – the region also hosts top-class enterprises active in: aerospace, robotics, ICT, life sciences, energy and environment, industrial design, logistics, pharmaceutics, healthcare and agrifood.

Facts and figures ▬ Capital City: Torino ▬ Piemonte Inhabitants: 4.4 million (7.4 % of the national total‫)‏‬ ▬ GDP: € 123.4 billion (8.1% of the national total)‫‏‬ ▬ Export: € 34.5 billion (10.2% of the national total)‫‏‬ ▬ Companies: 469,000 (7.7% of the national total) ▬ Wage-earning population: 1,860 million people ▬ R&D: 4 universities, over 200 private and public R&D centres, 380 labs, 6 S&T Parks, 12 Innovation Hubs, incubators and so on ▬ 1st Italian region for expenditure on innovation in the manufacturing sector ▬ 1st Italian region for private investment in R&D ▬ 1st Italian region for hi-tech patents The Torino Chamber of Commerce (www.to.camcom.it) promotes cluster projects providing foreign buyers with valuable support for outsourcing activities in several sectors.

The Chamber’s projects aimed at developing the area internationally are managed by the Piemonte Agency (www. centroestero.org). The Agency provides free services to foreign companies which: want to locate in the area, are looking for suppliers and partners in a variety of sectors, interested in developing business with local enterprises in the food and wine, require training in international trade and commercial strategies.

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Umbria: The Eurochocolate Comes of Age

Eurochocolate, an event dedicated to chocolate – also known as the “food of the gods” - was born in 1994, and since then has established itself as the most attended gathering of its kind, honouring Italian and international chocolate tradition, both artisanal and industrial. Architect Eugenio Guarducci, currently the President of Eurochocolate, conceived the event borrowing an idea from Swiss friends.

In 1982 Eugenio and his brother Alberto went to Zurich to pay some friends of theirs a visit, and then they all went to Munich’s Oktoberfest. The event dedicated to beer, attended by so many people, inspired them to organize something similar in their own city. Perugia, their hometown, is known the world over for its traditional chocolate producer Perugina.

Twelve years later Guarducci realized his project, which is also a notable example of successful local territory promotion.

Every October, when chocolate eating in Italy returns to its full pace, the event brings to the historic centre of Perugia shows, and cultural and tasting events.

The growing popularity of Eurochocolate has compelled its organizers to find new venues across Italy, each with a special connection to chocolate production.

Eurochocolate began touring around the country in cities like Torino, Roma, Pisa, Napoli, Modica, Forlì, Varese, L’Aquila and Cortina d’Ampezzo, and has even gone abroad, to Berlin, Peking and Lugano.

Since 1994 Eurochocolate has become the most important Italian event in the chocolate industry, and it has become a role model for many other similar events that have since then been born.

Eurochocolate, with its tasting and professional training programmes, and its marketing efforts can be thanked for helping consumption of chocolate more than double in Italy and for creating a chocolate culture and consumer awareness.

In 2011 Eurochocolate is going to turn 18, and is preparing to celebrate the event in an innovative fashion. The symbol of this year’s event is a 400kg picture frame entirely made of chocolate, measuring 2m by 3m. Accordingly, this edition’s official gadget will be a Choco Frame branded Costruttori di Dolcezze (makers of sweet things) by Eurochocolate.

For the last seven years, Eurochocolate has been

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preceded by the celebration of Chocoday, on the 12th of October. This day aims to endorse chocolate production made using only real butter and pure cocoa, with no added oils and fats, respect for the traditional chocolate production, its ethics and values, and sustainability Chocoday is supported by the Italian Ministry of Agricultural and Forest Policy, the Ministry of Economic Development, the Ministry of Foreign Affairs, the International Cocoa Organization (ICCO), FairTrade Italy, Umbria Region and the City of Perugia.

For more information: www.eurochocolate.com info@eurochocolate.com

The Veneto Region: 460,000 Export-Oriented Companies

T

he Veneto region is one of the twenty administrative regions of Italy. Its 5 million citizens inhabit a total land extension of 18,390 km2.

The territory is divided into 7 provinces: Venice, Padua, Treviso, Vicenza, Verona, Rovigo and Belluno and 581 municipalities. The city of Venice is its capital, where both the Regional Government and the Parliament lie.

Among all Italian regions, Veneto has the 8th largest land surface, the 5th largest population. At the same time – with a GDP of € 116 billion (10% of the national GDP) – it is also one of the richest regions of Europe.

The region has made impressive advancements in its society, economy and commerce owing to the success of its trademark development model based on social cohesion, a deep sense of community and a diffused industrial web made up of 460,000, strongly export-oriented, small and medium-sized enterprises.

The regional productive system covers all sectors, especially food products, wood and furniture, leather and footwear, textiles and clothing, gold jewellery, chemistry, metal-mechanics and electronics.

Companies from Veneto have well-established relations in every foreign market. In 2010, they exported goods and services for € 45.6 billion (+16% over 2009 figures). Imports in 2010 reached € 38 billion (+23.7% over 2009). Total commercial exchange reached € 83.5 billion. Veneto companies are deeply internationalized and their market openness – imports account for 26% of the GDP and exports for 31.4% – is one of the highest in Italy and Europe.

In 2010 the GDP of Veneto increased about 1.6% due to the significant growth of the regional exports.

Of these, the metallurgical industry experienced the best performance (exports +40%). Significant results were also recorded by automotive (+29.8%), tanning and leather industry (+21.2%), eyewear (+18.7%) and jewellery (+22.2%). The industrial machinery industry ranked first for exports – with € 8.6 billion – and accounted for almost 20% of the total.

European Union markets absorbed 60% of all Veneto exports and Germany ranked first amongst its main trade partners, having purchased goods for € 6.2 billion (13.7% of the regional exports), followed by

France, the United States, Spain and the United Kingdom.

Veneto’s exports to India in 2010 increased from € 293 million (2009) to € 372 million, while imports from India increased from € 410 million (2009) to € 704 million. Total commercial exchange is booming, from € 703 million (2009) to € 1.05 billion. The main items in imports have been: textiles, clothing and leather; coke and refined oil products; and metal and metal products. In exports: metal and metal products, electronics and machinery.

There is more to the Veneto region than just industry and the region excels in a variety of sectors related to agriculture and tourism. Agriculture (80,000 companies) accounts for € 5 billion of the regional GDP and is strongly connected to the wine and food industry, whose products receive legal protection thanks to their quality and uniqueness.

In 2010 the region confirmed itself as the largest Italian producer of grapes and wine to the tune of 1.1 million tons of grapes and 8.2 hectolitres of wine produced. From Prosecco, Amarone, Soave and Breganze to Lison and the most recent D.O.C.G. “Colli Euganei”, the wines of Veneto mirror and blend of all the cultures of the Mediterranean Sea. Furthermore, in 2010 Veneto hosted over 14.5 million tourists (61% from abroad), leading to a 4.6% increase as compared to 2009. The number of overnight stays reached 61 million, confirming the leading role of Veneto amongst all Italian regions.

Veneto offers a unique choice of excellences: heritage cities, lakes, mountains (the Dolomites) and thousands of spa and seaside resorts. www.centroesteroveneto.com

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Modena: An Excellent Place

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odena is one of Italy’s most highly developed provinces. The per capita GDP of the population, at € 32,000, is one of the highest in the country, placing it well above the average for EU countries.

The Modenese industry is based on a districtcentred organisation and with diffuse relations with international markets. The province hosts a number of multinational corporations, thereby playing an important role in the current process of innovation and development and offering a wide-reaching system of services able to assist businesses in all aspects of corporate life.

Particularly interesting statistics include the number (67,876) of companies (on average one for every ten inhabitants), a high employment rate (66.3% of the population between 15 and 64) and consequently the low unemployment level (6.8% of the labour force).

When examining the province’s economic profile, it is also important to take into account revenue generated abroad and its incidence on the total.

In relative terms, sales abroad represent 40% of the turnover of the entire manufacturing sector (approximately € 9.3 billion in 2010). These figures make the province one of the highest in Italy with regards to exports and illustrate the vitality of local industry and the universally recognised quality of its products.

From a sectorial standpoint, the economy is somewhat diversified, though it presents a certain prevalence of industrial activities and connected services, as well as commercial activities. The main fields of industrial specialisation include a vast range of mechanical products (instrumental goods, farming machinery and automobiles), clothing textiles, tiles and ceramic slabs, foodstuffs and biomedical supplies.

The competitive force of the province’s economy does not however reside in its companies alone, but also in a host of resources systemically rooted into the territory. Among these there is a wealth of knowledge and a rich network of relationships between the companies and the population, who share common values and rules. www.modenaemiliaromagna.it

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Lombardy Leads in Biotech

T

he Italian biotech industry includes 228 companies with almost € 5 billion in sales. 74% of these firms work in the pharmaceutical field, which accounts for 95% of their income. Italy is the fifth-largest pharmaceutical market in the world and strives to become one of the principal biotech clusters in Europe.

35% of Italian companies operating in the biotech sector are based in Lombardy. In all there are 78 companies employing more than 11000 people who generate annual revenues in excess of € 2.4 billion.

Lombardy hosts 24% of Italy’s undergraduate & postgraduate courses in the biotech sector and 25% of Italian science parks.

The research, development and production activities in the Lombardy cities of Milan, Como, Varese, Lodi and Pavia are concentrated in the areas of Red biotech (health), Green biotech (agro-food) and White biotech (industrial uses).

Lombardy’s leadership is all the more significant if we consider that the region accounts for 73% of the national investments in biotechnology R&D. The other important regions are Latium, Tuscany and Emilia Romagna. The Lombardy biotech chain includes not only large, midsized and small companies but also modern science parks, internationally important universities and clinical institutes involved in experimentation.

The exchange between India and Lombardy is more than 62 million €, an increase of 1.4% between 2009 and 2010, for the pharmaceuticals, agrochemicals and chemicals for agriculture. 56% of the imports come from Lombardy and 49.5% of the national exports sector.

Milan is the first of the Lombardy provinces both for imports (almost 30 million €, 82.3% Lombardy) and exports (more than 18 million €, 67.4%). Second is Bergamo for imports (6.9% Lombard) and Varese for exports (14.1%), while Monza Brianza is third (with 4.5% for the regional import and 13.3% for the export).

In Lombardy there are 426 companies operating in the sector of biotechnology that is 39.6% of the total in Italy. Most of them are companies specialized in the manufacture of medicines and pharmaceutical preparations (85.9%), but also companies operating

in Research and Development in the biotechnology field (8%) and in the manufacture of agrochemicals and other chemical products for agriculture (6.1%).

Milan is the first with 314 companies, representing 73.7% of the total of Lombardy and 29.2% of the national one, followed by Bergamo (5.9%) and Brescia (4.9%). www.mi.camcom.it www.promos-milano.it www.innovhuv.it

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Vicenza Companies in all Sectors of the Economy

V

icenza is in the heart of the Veneto region, one of the most industrialized areas in Italy.

In Vicenza one can find any product in the world, except perhaps ships, airplanes and automobiles – even though you will find plenty of their components there. Of the over 80,000 companies registered with the regional Chamber of Commerce, about 50,000 are involved in manufacturing, employing more than half the workforce: with a total population of around 800,000 inhabitants, there is almost one company for every 9 people, thus unemployment is extremely low, at less than 5%.

In Italy, in terms of the absolute value of exports, Vicenza is one of the top provinces and it is number one in the North-East. Products from Veneto can be found the world over since goods made there are mainly sold abroad: the province exports abroad more than 50% of its production.

The region today has a solid manufacturing basis with ancient roots, but one that is also at the cutting edge of industry. It has enough flexibility to adapt rapidly to clients’ needs and respond to market and economic changes at all times: what makes this “Veneto model” so successful is precisely this ability to adapt.

Naturally, this land of enterprises and entrepreneurs has its specialties located in specific areas of the province. Prime movers in the economy of Vicenza are the metallurgical and mechanical industries, textiles and clothing, tanning and gold-working: these 4 sectors together account for about 80% of exports from the Vicenza area.

The food industry in Vicenza revolves around quality.

The most famous products from the area certainly include the wines, most of which bear the DOC seal of quality, such as the four wines from exclusive DOC areas - Breganze, Colli Berici, Gambellara and Vicenza – as well as two ohers shared with the neighboring province of Verona - Arcole and Lessini Duello. Together with the wines, there are other very well-known and refined products such as Asiago cheese among other typical products.

The province of Vicenza thrives on tourism as well: such as the town of Palladio, which is famous worldwide.

Vicenza offers its visitors such a vast array of artistic and architectural masterpieces that UNESCO has declared it a part of its World Heritage list.

An Agency to Assist Internationalization Bringing Vicenza to the rest of the world; a job for Vicenza Qualità.

The Special Agency of the Vicenza Chamber of Commerce was set up with the mission to promote Vicenza and its industry, crafts and farming products. Pursuing non-commercial aims of public interest its objective is to promote the local economy on behalf of the Chamber of Commerce. Set up in 1989 with the main aim of promoting quality products from Vicenza, it has broadened its scope over the years, and is currently involved in promoting greater awareness of products from the Province of Vicenza, assisting in marketing and encouraging sales. It pursues this aim by organizing all kinds of events in Italy and abroad.

www.vicenzaqualita.org

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The IICCI Launches the First Indo-Italian Business Conference Understanding the Indian Furniture Market.

A Consumer Behaviour Study