Indian carmakers seek foothold in Poland

Leading Indian automakers are making a beeline to develop manufacturing facilities in Poland to tap the lucrative European market.

Krzysztof Majka, Polish ambassador in India, said companies like Tata Motors, Mahindra and Mahindra and Ashok Leyland were looking at opportunities in the central European country which was set to join the European Union on May 1 this year.

"They are looking at either developing complete manufacturing facilities or select auto components sourcing units in Poland," Majka told Business Standard .

Poland is a manufacturing base for number of transnational automakers like Fiat, General Motors, Volkswagen, Toyota and Daewoo. Fiat is one of the largest exporters out of Poland with export worth $ 2 billion a year. Some of these companies are also sourcing components from there.

Car exported out of Poland attract 35 per cent duty on entering EU. The duty will come down to 10 per cent after it joins EU.

"Our country can act as a springboard for Indian companies willing to enter the European market," the ambassador said. He, however, declined to divulge further details on the specific proposals from these automakers.

Observers said the interest from Indian companies were understandable given their global ambition. Many of them are now aggressively looking at expanding manufacturing base to multiple locations, they noted.

Investments from Poland

Polish companies are looking at investment opportunities in mining, port infrastructure, food processing-packaging industries in India. Majka said investment worth $ 50 million was awaiting approval from the Centre.

"Agro processing industry is taking a leap forward in India This has created enthusiasm among Polish companies who are willing to invest here," Majka said.

Moreover, the area of co-operation between two countries will also include power infrastructure, marine food processing, ship-building among others.

One the other hand, Poland is keen to source software requirement for banking industry from India. The bilateral trade between India and Poland stood at $ 216 million in 2002 with balance in favour of India.