Many German engineering companies are considering shifting a part of their production to other bases, including their research and development facilities.

Ing.Timo Wurz, Managing Director (Metallurgy and Thermprocessing) of VDMA, told The Hindu recently that not all companies can look at investments in other countries. Thus, while some are able to cope with the current challenges, there are some struggling to survive too. However, “There will be a growing part of value creation done by German companies in other parts of the world. India is a very important market. China is also important. So it makes sense to be there and make products,” he said.

Companies need more strategic capabilities to see what will work for them. More companies are thinking of doing research and development too in key markets to see what extent it is possible, he said.

Industries in the European Union and Germany are facing challenges as the Russia-Ukraine war is driving energy costs up, especially in Germany, and there are tariff related problems too from the US. Further, competition from China is on the rise.

Till Schreiter, Managing Director, ABP Induction Systems GmbH, said governments and industries are looking at securing the energy needs. On the raw material front, alternative sources should be developed to ensure there is no disruption. “To secure supply, we need fair trade, need to a create a win – win situation,” he said.

“As producers, we believe research and development should be where you produce and not where you serve. So, we do research in countries such as Indian and China,” he said.

Mr. Wurz added that European and German machinery manufacturers are export-based businesses. This model is under pressure now as markets are not so open.

Regulations are needed to restrict unlimited inflow of machinery, products, and technology that are subsidised by governments in countries such as China. The VDMA is calling for simplification of anti-dumping process. “We are just against unfair practices among trading partners. We need a level playing field and fair play,” he said.

Kolkata-based Ramkrishna Forgings that supplies forged, machined, and fabricated products, is investing ₹250 crore to ₹300 crore this year in multiple production facilities.

Chaitanya Jalan, Joint Managing Director, said the company is investing ₹170 crore to manufacture components for passenger vehicles in Jharkhand. This will be commissioned in March- April next year. It will also invest to augment capacity in machining and assembly lines. The company is looking at taking its total annual production capacity to one million tonnes by 2030, he added.

Kolkata-based Ramakrishna Forgings that supplies forged, machined and fabricated products is investing ₹250 crore to ₹300 crore this year in multiple production facilities.

Chaitanya Jalan, Joint Managing Director, said the company is investing ₹170 crore to manufacture components for passenger vehicles in Jharkhand. This will be commissioned in March- April next year. It will also invest to augment capacity in machining and assembly lines. The company is looking at taking its total annual production capacity to one million tonnes by 2030, he added.

Koot, a Coimbatore-based engineering solutions startup for pump and motor manufacturers, has plans to expand its global operations.

According to a press release, Koot, an industry-first platform in the pump and motor sector, spanning engineering design, research, development, and precision manufacturing services, has established technology and support centres in Germany, the U.S., and India, with its global manufacturing headquarters in India. It has more than 600 tier-two suppliers and is in discussion with global OEMs for strategic alliances.

Koot supplies pump and motor components such as impellers, casings, shafts, rotors, and sub-assemblies to companies such as HOMA of Germany, Pedrollo Group of Italy, and Hitachi of Japan. With focus on the US, European, and the Asian markets it plans to reach out to more customers in these geographies.

The company won the European PIA Supplier Award in 2025 and aims to become the preferred engineering and technology partner for more pump OEMs.

It currently employs about 30 people and will add 25 more in the engineering, research, and design services in the next 18 months.