FOCUS DENMARK

SPECIAL EDITION ON INDIA 2006

Colophon

Title:
FOCUS DENMARK

Subtitle:
SPECIAL EDITION ON INDIA 2006

Publisher:
Danish Trade Council, Ministry of Foreign Affairs

Author:
Danish Trade Council, Ministry of Foreign Affairs

Language:
English

URL:
http://www.netpublikationer.dk/um/6565/index.htm

ISSN:
1601-9776

Version:
1

Version/edition:
09-06-2006

Data formats:
html,htm,jpg,gif,pdf,css,js

Publisher category:
statslig

Table Of Contents

ACTIVE IN THE WORLD DENMARK

PRODUCTION POWERHOUSE

DANISH WORK CULTURE IS LUXURY

INVEST IN DENMARK

DENMARK GOES GLOBAL

DANISH STEEL FACTORY IN BANGALORE

DENMARK OFFERS INDIA A GREAT DEAL

INDIA OFFERS DENMARK A GREAT DEAL

DENMARK SAILS AHEAD

DANISH SHIPPING BOOSTS INDIA’S GROWTH

ORE FOR CHINA AND COAL FOR INDIA

BOOST TO BIOTECH COLLABORATION

R&D – THE INDIAN WAY

READY TO HELP INDIA’S DAIRY INDUSTRY

DIABETES: A WIDESPREAD DISEASE IN INDIA

BIOTECHNOLOGY AT NANO LEVEL

IT SPECIALISTS: DENMARKBUT NOT QUANTITY PRODUCES QUALITY

THE GURU WHO SPEARHEADS THE FUTURE OF MOBILES

SUPPLYING THE BEST FROM DENMARK AND INDIA

INDIAN IT EXPERTS TO HELP DENMARK

WORLD CHAMPION IN WIND POWER

DENMARK IN INDIA

ACTIVE IN THE WORLD DENMARK

Area: 43,069 km²
Population: 5.4 million
Capital: Copenhagen
Form of government: Parliamentary Democracy
Head of State: Queen Margrethe II
Government: Liberal-Conservative coalition
Head of government: Prime Minister Anders Fogh Rasmussen, Liberal
Religion: Lutheran Protestants (88%)

In the thousand years since the Viking era, the world has totally changed. The bearded marauders in their horned helmets have been replaced by clean cut Danish soldiers on peace-keeping missions in many places throughout the world. Measured by population, Denmark has sent out more soldiers and policemen than any other country in the world – around 56,000 between 1948 and 2002 – to undertake peace-making and humanitarian tasks for the UN, NATO, OSCE and as EU monitors. Since 1945 Danish foreign policy has been built on a high degree of international cooperation in order to create world stability, sustainable progress and a shared legal system for all. To Denmark, the EU, NATO and UN are organisations of great importance for global security and stability.

EU membership is especially important for Danish foreign policy. Denmark shares history, values and interests with Europe. The large European market is the foundation of the Danish economy, and the EU is the key to Danish influence on the rest of the world. During its EU Presidency in 2002, Denmark concluded the accession negotiations with 10 new membership countries. It is the Danish government’s view that a united EU will provide global strength which can compare with its economic strength.

Development policy in relation to the Third World is a significant part of Danish foreign policy. For many years Denmark has been among the few countries meeting the UN’s target of giving at least 0.7% GDP in development assistance. Half of the assistance is given multilaterally, the other half goes directly to the most poor, to women and to environmental projects in 15 selected countries.

As an ancient trading nation, Denmark works actively for breaking down duty and other trade barriers through the World Trade Organization. The objective is free trade for all and a shared system of trading law. For Denmark globalisation is not a danger but a challenge to create increased growth, not just in the industrialised world but for all.

Denmark is a European country. It lies north of Germany, south and west of the Scandinavian peninsula and east of Great Britain, separated by the North Sea. In addition to Denmark itself, the kingdom consists of Greenland, the world’s largest island, and the Faroe Islands – a small group of islands in the North Atlantic. Denmark comprises Jutland, which forms part of the European continent, and more than 400 islands of varying size. The capital Copenhagen is located on the largest island, Zealand. The form of government is a parliamentary democracy with a royal Head of State. The system of production is capitalist (economic liberalism) with private ownership of businesses and production. The state and other public authorities, however, exercise considerable control and provide comprehensive services for the citizens.

PRODUCTION POWERHOUSE

85% of the Danish population lives in towns. Greater Copenhagen has 1.1 million inhabitants; the next largest city is Århus with 225,000. The entire country is otherwise covered by a network of medium-sized towns. Approximately 66% of the land area is under cultivation.

Danish agriculture is highly developed, producing a considerable surplus of manufactured foods which are exported to other countries. Danish farmers produce around 25 million pigs annually. More than 85% of this production is exported, making Denmark the world’s biggest exporter of pig meat – one of Denmark’s most important export products.

Industrial production is very varied in relation to the size of the country. In addition to agricultural produce, some of the commodities which have made Denmark known abroad are machinery for the food industry, medicines, furniture, shipping, wind turbines and products of the advanced metal and high-tech industries. Denmark is well-known throughout the world for its design abilities, both regarding arts and crafts and industrial products.

Both agriculture and industry are highly effective. Agriculture and fisheries employ only 3.7% of the population, and industry and construction 23%. The remaining 73% are  employed in the service sector: 35% in public sector and personal services and 38% in private sector business, including financial activities and the shipping trade.

Denmark has an open economy and world trade is of great importance. Imports and exports of goods and services represent approx. 37% and 43% respectively of Denmark’s GDP.

DANISH WORK CULTURE IS LUXURY

By Karin Kaas

When Loffy Mathew boarded the aircraft in Bombay to fly to Denmark, the only thing he knew about the country was that Danes are good at making dairy products. Now he knows somewhat more. Because after a year in Denmark, the 30 year old Indian has experienced a little of everything. So what is his overall impression?

Loffy Mathew likes the Danish work culture the most. Working 9 to 5 is luxury compared to what he is used to

Photo: Les Kaner

“Mostly good,” says Loffy Mathew, who loves the friendly Danes and has seen everything worth seeing of Danish tourist attractions. But most of all, he likes the Danish work culture. Working from 9 to 5 is luxury compared to what he is used to. Since 2000 he has been posted to Singapore, Indonesia and Taiwan. And now it is the turn of Denmark.

“In Denmark, the work culture is very different to what I have experienced so far. Here there is no one breathing down your neck all the time. No one constantly telling you what to do. Instead you have plenty of freedom. Superiors show confidence in you, and you have responsibility yourself for assessing how tasks are best carried out, so long as you deliver the required results,” says an enthusiastic Loffy Mathew.

He works for the Danish postal service in Copenhagen. Together with about twenty other Indians, he has been brought in to carry out a very specific task, namely to implement software from Germany’s SAP into Post Danmark. Like his Indian colleagues, Loffy is a specialist in this type of software. He was educated at the University in Pune close to Bombay, where he graduated with a Masters Degree five years ago. Instead of settling down in his homeland, Loffy chose to have some years as a travelling consultant.

“It is a good opportunity to earn some extra money. My salary here is a lot higher than it would be in India,” he says. He is however certain that this type of job only works when you are young.

“When I start a family, I will settle permanently in India,” says Loffy, who is married and accompanied in Denmark by his wife. The couple live in an apartment in central Copenhagen. The Indian service company Tata, Loffy Mathew’s employer, has rented the apartment and pays the rent, insurance and other necessities. Loffy and his wife spend their spare time webchatting with family and friends at home in India, playing cards or socialising with the other Indians and their families, who currently are working for Post Danmark.

INVEST IN DENMARK

Invest in Denmark is part of the Trade Council in the Ministry of Foreign Affairs of Denmark. The organization serves foreign companies considering the possibility of establishing business operations in Denmark. http://www.investindk.com

In the last 15 years Danes have become 40% more efficient. That is how much productivity has increased since 1990. Analysts say that Denmark is well placed to maintain its leading position in creating growth through productivity, with flexibility and ability to adapt being important related parameters.

Denmark offers foreign investors a wide range of opportunities for establishing a business:

• A range of corporate forms enabling investors to tailor the investment to business needs and activities
• Quick, informal and cost-efficient establishment procedures
• Online incorporation of new companies in a few hours
• No residence requirements for managing directors or board directors
• Shareholder and board meetings can be held electronically
• Dividends can be distributed on an interim basis
• Danish company law conforms with current EU legislation

Engine for growth

Information and communication technology (ICT) is one of the major engines for growth, innovation and economic development in regions that have established themselves as information-society friendly. Denmark is such a region.

Denmark ranked No.1 in the world in IDC’s Information Society Index in 2005. According to IBM, Denmark is No.1 in the world in terms of e-readiness; No.4 in the world, according to IMD, 2005, in Communications Technology; No.3 in Europe in terms of development and application of technology and in the World Top 5 in terms of availability of skilled labour.

Danish competencies in sensor technology are among the world’s best. Brüel & Kjaer has set world standards in acoustics and vibration – standards which are used throughout the world in the automotive and aircraft industries. Correspondingly, Danish companies are leaders in sensors for measuring waste water and input and output in gas and central heating systems.

Denmark has strong competencies in technologies relevant to business software development. One of Denmark’s main strengths is the high concentration of cross-disciplinary researchers – enabling the integration of software in a multitude of industries. This has led to a growing number of international companies placing their R& Dactivities in Denmark including IBM, Nokia, Broadcom, Microsoft, HP and Siemens.

Wireless Centre

Denmark is one of the world’s leading centres for wireless R&D, with more than ten mobile development centres – in the application area as well as the design of new handsets and infrastructure components.

Players representing every link of the mobile development value chain are found in Denmark. This has been a key factor in creating the dynamic and innovative environment flourishing in the country.

The presence of world-class universities and technical colleges is another reason for Denmark’s strengths in wireless communication. Most of the world’s leading companies are represented in the Danish wireless cluster, including Motorola, Sony/ Ericsson, Nokia and Texas Instruments.

No.1 in life science

Life science is a thriving business sector in Denmark, with 30% of the country’s patent activity coming from this industry. The Danish life science sector is strong in production and especially strong in R&D. This is demonstrated by the fact that on a per capita basis Denmark is No.2 in Europe for R&D expenditure.

Denmark is home to major pharmaceutical companies such as Novo Nordisk and Lundbeck, as well as many small and medium sized biotechnological companies with a strong position in R&D. Denmark boasts Europe’s second largest pipeline in pharmaceutical development. The biotech sector employs 40,000 people and generates annual exports of USD 4 bn.

The Danish medical technology industry mainly consists of highly specialized small and medium sized companies, generating a total turnover of USD 6 bn and employing a total of 30,000 people. Denmark produces more medical equipment per capita than any other country.

Danish Biotech strongholds

CLINICAL TRIALS: From preclinical through phase III

VACCINES AND METABOLICS: Research and production facilities at the world-renowned State Serum Institute. The strongest diabetes cluster in the world – with basic research at The Steno Diabetes Centre and The Hagedorn Research Institute. Very strong commercial research by Novo Nordisk. The company supplies 50% of the world insulin market.

CENTRAL NERVOUS SYSTEM: The only cluster in the world that combines strong academic research with major pharma presence.

CARDIOVASCULAR DISEASES: According to Boston Consulting Group, Denmark has very strong research in both medicine and medical technology approaches.

CANCER: A large number of commercial biotech R&D companies. Comprehensive research in cures, relief, vaccines and delivery of chemotherapy as well as medical devices.

INFLAMMATORY DISEASES: Strong basic research and easy access to a large pool of experienced researchers working in the Copenhagen-based Medicon Valley.

Renewable energy

Danish research and Danish companies have constantly led the world in wind energy. 40% of the world’s wind turbines are produced by Danish companies – and in Denmark itself, more than 20% of the country’s electricity consumption is supplied by wind energy.

Denmark is also leading the way in R&D for the future Hydrogen Society. In the area of biofuels, such as bioethanol and biogas, Denmark is also leading development.

India’s Suzlon Energy has chosen to locate their global headquarters in Denmark.

Tulsi Tanti, Chairman of Suzlon Energy Ltd, India, says:

“Denmark is a global leader in know-how for wind energy. That is why our global headquarters is here.”

Per Hornung Pedersen, CEO, Suzlon A/S, Denmark adds:

“Denmark is the world’s leading wind energy hub. We could have placed our global headquarters anywhere in the world, but Denmark is the obvious choice when it comes to wind energy. Danish competencies in this field are unsurpassed and by locating here, we have direct access to an abundance of world-class know-how.”

Suzlon Energy’s global headquarters officially opened early in 2005. From there some 30 highly qualified staff manage Suzlon’s international activities in selected international target markets: the US, Australia, China and a number of European countries. The responsibilities and activities of the company include global management, sales and marketing for markets other than India, project management and support and service.

Suzlon is the world’s 6th largest wind turbine manufacturer with ambitions of becoming top league. The Indian company, which focuses its production on on-shore wind turbines, generated estimated 2004 revenues of USD 400 m.

DENMARK GOES GLOBAL

Denmark has four state institutions which assist Danish companies on difficult growth markets: The Trade Council of Denmark, the Export Credit Fund, Danida and the Industrialisation Fund for Developing Countries/Investment Fund for Central and Eastern Europe (IFU/IØ). These four organisations have started a collaboration called GoGlobal, which is based on the specific needs of companies by strengthening consultancy across the products offered by the GoGlobal partners, and via the shared internet portal (http://www.goglobal.dk), that provides a complete overview of Denmark’s international business instruments.

IFU forms part of the Danish international investment funds. IFU invests in developing countries in collaboration with Danish companies. In addition to offering capital and advice to joint ventures, the fund also participates as a partner and board member.

Due to IFU’s close contacts with Nordic, European, international and local financial institutions, IFU is often able to make complete financing arrangements on favourable terms.

Both large and small projects, including pilot projects, are eligible for IFU financing. This flexibility suits both the needs of developing countries and the structure of Danish trade and industry.

To be eligible, a project has to be financed in part by a Danish business partner and the project must be evaluated as a commercially viable project. Greenfield projects, expansion of existing projects and privatisation of state-owned enterprises are eligible. Host countries for investments must be on the OECD’s DAC list of development aid recipients, and per capita income must not exceed USD 5,295 (2005).

Since 1988 IFU has had involvement in 67 projects in India. The fund’s participation in projects has created more than 9,000 jobs in India.

http://www.ifu.dk

The Export Credit Fund (EKF) primarily ensures that Danish companies get their money from foreign buyers. In addition, EKF helps Danish companies to become global via guarantees (insurance) against extraordinary risks which private banks and insurance companies cannot cover alone.

EKF accepts new transactions on India and the country is classified in premium group 3 (of 7).

To date, business in India has been in the following areas:

• Infrastructure (port and terminals, cement plants)
• Renewable energy (wind)
• Investment/globalisation (e.g. rubber plants, baby food etc.)

EKF expects to see future transactions in the wind sector, and in ports and terminals. Furthermore, the number of Danish companies setting up production facilities in India will increase and thus require support with investment guarantees.

EKF activities in India can be improved by issuing guarantees directly to an Indian bank and sharing the risk with them. This will typically be in local currency.

The pricing range for EKF’s involvement will be 0.75 – 1.4% p.a. and will depend on the risk profile and total tenor of the transaction.

EKF covers periods of credit up to ten years (minimum one year). EKF has accepted the following banks: ICICI Bank (The Industrial Credit & Investment Corp of India), State Bank of India, Standard Chartered Grindlays, IDBI Bank, Punjab National Bank and IDFC (Infrastructure Development Finance Co Ltd).

The largest Indian companies are typically active on the global scene and are very creditworthy conglomerates. Hence they appeal to the investment banks and the large local banks which provide them with long term financing at very low prices (both fcy and lcy). Activities with these companies will require a large degree of structuring. For smaller Indian companies EKF expects to be more active.

http://www.ekf.dk

DANISH STEEL FACTORY IN BANGALORE

In 2003 three small Danish steel companies, facing increasing competition, established a joint steel component production company –Danish Steel Cluster – in India. The companies, Brd. Jensens Maskinfabrik, Rool Maskinfabrik and EC Maskinfabrik, supply components for e.g. wind turbines and office furniture. They approached The Industrialisation Fund for Developing Countries (IFU) which, together with the Trade Council of Denmark in India, identified local partners and made contact with Indian authorities. “None of us had any experience with production outside Denmark,” says Lars Jensen, chairman of Danish Steel Cluster. “So IFU and the Trade Council of Denmark made major efforts to get contact established.

The production of steel components started in February 2005, when Danish Steel Cluster opened its newly built production facilities in Bangalore. The collaboration in India has progressed, and Danish Steel Cluster has invested further in new production machinery. Production is estimated to be as much as 50% cheaper in India than in Denmark. The Danish companies expect nonetheless that outsourcing to India will create new jobs in Denmark through specialisation of the Danish part of the production.

The bulk of the Indian production is exported to western Europe, but it is planned to develop market opportunities in India.

IFU has 47% of the share capital in Danish Steel Cluster and is also represented on the board of directors.

DENMARK OFFERS INDIA A GREAT DEAL

AMBASSADOR TO INDIA: “Denmark can offer India a great deal regarding business-to-business as well as the rapidly growing Indian consumer market. At the Danish embassy in New Delhi, we are seeing strongly increasing interest from Danish companies in entering the Indian market”.

So says the Danish Ambassador to India, Michael Sternberg. He points to a wide range of opportunities including IT, biotech, food, energy/environment and advanced machinery.

“For many years Denmark has traditionally exported goods to India, from high tech machinery to various services in shipping and harbour operation, as well as railway operation in more recent times. Several Danish-built cement factories are helping to construct modern India, and with India’s very high growth rates and consequently increasing purchasing power, we are also seeing a strong rise in exports of Danish luxury goods in the design and clothing categories. As one of the world’s leading agricultural countries, Denmark also has strongly increasing exports of food and ingredients for the Indian food industry.”

Waste of food

Danish industry has a number of leading positions in the agricultural and food area such as food processing machinery, agricultural machinery and agricultural technology.

“India has a huge need to modernise its entire agricultural and food industry,” says Ambassador Michael Sternberg. “Surveys show that enormous amounts of food are wasted due to for example incorrect storage. As much as 30% of the country’s grain harvest is lost through spoilage. Danish companies have the technology and knowledge which can make a big difference to storage efficiency.”

Besides the traditional import and export of goods, recent years have also seen a very promising increase in collaboration in the IT and biotech area.

High knowledge level

“Both Danish IT and biotech companies are interested in collaborating with Indian companies,” says Ambassador Sternberg. With growth rates of 30-40% annually, India’s IT and biotech sectors are surging ahead. And whereas India previously was a preferred destination due to low costs, it is now attractive because of a high knowledge and competence levels. The Danish corporate sector has woken up to that fact.”

The Danish Minister for Science, Technology and Innovation Helge Sander made an official visit to India in October 2004, and the two countries signed a Memorandum of Understanding in the biotech area. The agreement has led to steering groups being set up in both countries, which have identified a number of specific collaboration projects in the area.

“The Indian government is very active in promoting international trading of services and creating an attractive investment climate,” says Ambassador Sternberg. “And if Danish companies enter and exploit the right partnerships with Indian companies, it can strengthen Denmark’s competitiveness in these two areas.”

Energy exploitation

The Danish Ambassador also sees great opportunities in the energy and environment areas. India has an insatiable need for energy, and Danish competencies in this area are well known and exploited all over the world.

“Denmark has companies with the ability to maximally exploit existing energy. In that area, India lags far behind,” says Michael Sternberg. “Denmark’s world-leading role as a manufacturer of renewable energy such as wind power could be of vital importance to India, which has the potential to become the world’s largest manufacturer of wind energy. In addition, Danish technology for the exploitation of bioenergy and hydrogen energy is in pole position internationally. With India’s declared policy regarding green, renewable energy, Denmark has an amazingly good position for helping to strengthen India’s growth.”

INDIA OFFERS DENMARK A GREAT DEAL

INDIAN AMBASSADOR TO DENMARK: “Personally, I think that relations between Denmark and India are good but pedestrian, only progressing at walking speed. If Danish companies dared to think more innovatively with entrepreneurial vision in relation to what India can actually offer to Denmark, the relations between the two countries would become far more valuable and productive than they are today.”

So says the Indian Ambassador to Denmark, Partha Sarathi Ray. He points to three focus areas which the Indian Government has prioritized: agriculture, infrastructure and manufacturing.

“I won’t dwell on the obvious, the IT and bio-tech areas, where a number of Danish companies have already outsourced and are making use of India’s knowledge and expertise. Not just because it is less costly in India, but primarily because of the quality of the work. But when we look at our three priority areas, I think relations are stagnating. Danish companies think in a pattern which is too traditional.”

Agricultural India

Ambassador Ray emphasizes that India has the world’s second largest arable land for cultivation at its disposal, and that the climatic conditions for agricultural production are optimal.

“Here Denmark can and should play a very substantial role in development. Today we see a number of European and American countries as investors and partners in Indian agriculture. But with the agricultural knowledge, food technology and expertise in fishing that I know exist in Denmark, a lot more could be done. Not just for the Indian market, but also with exports from India in mind.”

Ambassador Ray is very conscious of the limitations of India’s infrastructure regarding roads, harbours and airports. “But work is being carried out at high speed to make improvements, and we know that Danish expertise and capital could also play a role here. I know that Danish companies already are involved in railways and harbour operations in India, just as Danish designers have helped with the airport buildings at Hyderabad”, he says.

Fragmented

On the subject of manufacturing, Ambassador Ray points to the need of establishment of integrated production lines.

“India is a subcontinent having uneven regional growth. In India, you cannot just order companies to act in a certain way. Denmark is a small and very uniform country where manufacturing occupied a place of pride. In India, in the past, manual work was not considered as noble as the work of the mind. This mindset is now changing. That is something, we can learn from Danish companies”.

Denmark’s leading position in renewable energy has also been noticed in India.
“In the energy sector, we are looking for everything which can benefit India”, says the Ambassador. “And here we strongly emphasize that the environment must be treated with as much care as possible. Unfortunately, India does not lie in the same wind belt, with the same advantageous wind conditions, as in Denmark. Nonetheless, there are areas in India where wind turbines can be usefully installed. Especially in these days when increasing oil prices are close to making wind turbine technology competitive.

Outstanding doctors

On one issue, Ambassador Ray is concerned. He does not understand the many restrictions applying to Indians, with specialist backgrounds and a willingness to bring additional value to Danish companies, who want to work in Denmark.

“India’s training of doctors is for example recognised globally as one of the best in the world. Let me suggest that Danish patients, like patients from the US, Great Britain, France and many other countries, obtain treatment in ultra-modern hospitals which exist everywhere in India. There are no waiting lists. Patients receive attention straight away, and after hospital treatment, they can recuperate in luxurious five-star hotels for several weeks. Everything inclusive for a quarter of what corresponding treatment costs in Denmark.”

DENMARK SAILS AHEAD

SHIPPING: Denmark is today one of the world’s biggest shipping nations, not only in financial revenues and foreign exchange earnings, but also in operational tonnage, new vessels built and other aspects especially where container operations form a major part.

Hard facts and plain figures from international shipping newspaper Lloyds’ List show that Denmark is Europe’s leading shipping nation.

In 2005, Danish shipping companies generated record foreign currency revenues of approx. USD 23 bn, a 20% increase on 2004. The Danish Shipowners’ Association forecasts continued growth in 2006, despite an anticipated small drop in cargo rates, which achieved record heights in 2005.

The world’s most modern fleet

Danish shipping companies operate around 50 million tons dead weight, which means that over 10% of total world trade is transported on either Danish owned or Danish operated ships. Of the 50 million tons, about 30% is directly owned by around 100 Danish shipping companies ranging from the small to the very large. The rest are ships which are chartered or pooled from Danish shipping companies and cargo carriers. Measured by nationality of ownership, Denmark is the 12th largest shipping nation in the world. If all disposable ships are included, Denmark is then the world’s 5th largest shipping nation.

By the end of 2005, Danish shipping companies had a new vessel construction programme valued at approx. USD 12 bn. The existing Danish fleet is already the world’s youngest with an average age of just under seven years. The ongoing new-build programme will reduce the average age to 6.2 years, compared with the world average of 12 years. The new-build programme might be significantly larger according to Danish Shipowners’ Association, since the USD 12 bn figure only includes contracts which have been confirmed by both shipping company and shipyard.

Quality shipping

Denmark’s Maersk-Sealand, which acquired P&O Nedlloyd in autumn 2005, is the world’s largest container shipping company with more than 20% of the world’s total TEU capacity at its disposal.

The foregoing figures speak for themselves, but they also say something about the cause and effect that the concept of ’quality shipping’ has achieved for Denmark. Quality shipping means safety, reliability, trustwor-

thiness and competitiveness. Denmark’s golden reputation is built on an exceptionally high educational level for both the crew at sea and the growing numbers of skilled shipping people on land.

The Danish corporate sector uses the ’Blue Denmark’ concept, which means shipping and associated/derived businesses. It covers operation of harbours, shipyards, hardware and software subsuppliers for shipping, equipment and service deliveries as well as offshore activities in oil and gas. ’Blue Denmark’ involves 120,000 people who help ensure and maintain the quality level which has given Denmark the position of European frontrunner.

http://www.shipowners.dk

DANISH SHIPPING BOOSTS INDIA’S GROWTH

SHIPPING: India’s increasing importance in the global economy and Danish shipping’s major influence on world trade, makes it natural for the two parties to extend dialogue

“India has enormous potential, and the country’s growth means a large and growing need for western services, especially in shipping,” says Torben Janholt, chairman of the Danish Shipowners’ Association. In addition to his influential position in the Shipowners’ Association, he is also director of J. Lauritzen, one of Denmark’s major shipping companies.

“Today, Danish shipping has traffic to India in all the significant market segments, especially with containers and bulk transport. In 2005, the value of Danish shipping in relation to India totalled USD 1 bn – a figure which is rapidly rising.”

Major activity

Denmark has traded with India for centuries. 400 years ago it was as part of exploring the world. And by the 1800s as an indispensable part of world trade. Today all major Danish shipping companies have trade with India to a greater or lesser extent. And the world’s largest container shipping company A.P. Møller- Maersk, Norden and Clipper have extensive activities in India.

“India’s increasing importance in the global economy makes our interest in expanding the collaboration with India particularly timely,” says Torben Janholt. “In 2003, we held a seminar in Copenhagen in collaboration with the Indian National Shipowners’ Association. To continue the good dialogue with the Indian shipping industry, we will be holding a seminar in India on topical shipping policy issues, as part of the official visit by the Danish Prime Minister, Anders Fogh Rasmussen.”

Against protectionism

Among the seminar topics are protectionist attitudes, which according to Torben Janholt characterise certain part of Indian shipping these days.

“The major importance of shipping to Denmark – and by virtue of our size on the international scene, where Denmark accounts for around 10% of the world’s shipping trade – makes us one of the most liberal countries regarding free trade and free sailing, and also regarding free access to ports and facilities. Although as a member of the EU, Denmark is subject to the negotiations concerning a shipping industry agreement between the EU and India, we want to nurture bilateral relations in the shipping area. That is also because the multilateral negotiations, both with the EU and WTO, seem to happen very slowly,” says Torben Janholt.

Security at sea and in ports is among the other seminar topics, as well as harbour policy in general with issues such as efficiency, foreign ownerships, investments and infrastructure.

Ship-breaking

“Ship-breaking is not a major problem for Danish shipping companies, because our fleet is so new that ships are sold before they age,” says Torben Janholt. “But since there is both an environmental and security problem, we want to raise it with the Indian authorities. We will also debate a number of issues regarding Danish shipping companies taking on Indian sailors. Both concerning ships under the Danish flag, and ships which are controlled by Danish shipping companies. We are very open to employing Indian sailors, because the quality of many Indian sailors is very high.”

To emphasize the training aspect the Danish Shipowners Association supports the Indian Academy of Maritime Education in Chennai, which is training officers for Danish shipping companies, including A.P. Møller Maersk ships which sail under the Singapore flag.

http://www.shipowners.dk

ORE FOR CHINA AND COAL FOR INDIA

SHIPPING: Shipping company Norden is among the most important collaboration partners for India, with almost 5 million tonnes of raw materials shipped to and from India annually

Carsten Mortensen,
president and CEO of Norden A/S

“The rate of economic growth in India is impressive. In 2005 for example it was 8.1%, and we at Norden want to be involved in that growth. We showed our intentions early in 2004, when we opened our own office in Mumbai. And events since then have confirmed we were right. In just the last three years we have doubled our Indian freight, so that today we are loading and unloading almost 5 million tons annually.” So says Carsten Mortensen, president and CEO of Norden A/S, one of the most active Danish shipping companies transporting freight to and from India, especially coal from South Africa and Australia to India, and iron ore from India primarily to China.

Perfect

“Norden’s fleet of Handymax ships, among others, is ideal for shipping freight to India,” says Carsten Mortensen. “There are still major insufficiencies regarding the country’s infrastructure, such as in the harbours where we have to load and unload on the roads. But our Handymax ships are equipped with their own cranes and grabs which can handle these operations.”

     With around 100 calls to and departures from India each year, it makes the country one of Norden’s most important dry cargo markets, together with China, Japan and the US. India’s energy production capacity cannot be expected to keep pace with its continually rising need, which is forecast to double in the next 15 years. The same goes for India’s production of steel and aluminium, and it all adds to the need to import raw materials.

Product tankers

“Although bulk carriers represent most of our Indian tonnage, there is a great potential for our product tankers in the long term,” says Carsten Mortensen. We currently operate 110 dry cargo ships and 18 tankers. Last year we started a strategic pool collaboration with Interorient Navigation Company under the name Norient Product Pool. The collaboration covers product tankers, and our ambition is to be one of the three largest product tanker pools in the world by 2007.”

     In 2004, cargo rates reached an all-time peak. Although rates generally flattened out a bit in 2005, Carsten Mortensen foresees reasonable levels continuing in 2006.

     “As long as there is growth in the world economy, and currently everything indicates that there is, then the demand for ship transport will increase,” says Carsten Mortensen. “That puts us in a strong position. With our market presence in India, offering quality, reliability, flexibility and good customer relations, I predict that India will become increasingly important to our shipping company and vice versa.”

http://www.ds-norden.com

BOOST TO BIOTECH COLLABORATION

BIOTECHNOLOGY: Indian and Danish research in biotechnology complement each other. Now the collaboration is receiving a boost, and shared research projects are being defined

Since 2004, when India and Denmark signed a Memorandum of Understanding regarding biotech research collaboration, solid advances have been made. The Memorandum, which was signed by India’s Minister for Science and Technology, Mr. Kapil Sibal, and Denmark’s Minister for Science, Technology and Innovation, Helge Sander, during the latter’s official visit to India in October 2004, contained a decision to set up steering groups in the two countries. Two meetings have been held, and a large number of collaboration projects have been defined. As recently as February a workshop in Hyderabad on stem cell research was held, attended by leading stem cell research scientists from both India and Denmark.

Knowledge economy

“India and Denmark complement each other in biotechnology research,” says 0 Lene Lange is a member of the Danish steering group and deputy chairman of The Danish Council for Strategic Research. “The Indians are amazing at conducting fundamental research, while we are good at upscaling – or exploiting the research in industrial production. That is one of the reasons why we have global status in biological production, with companies such as Carlsberg, Novo Nordisk, Danisco, Novozymes and Chr. Hansen as leading lights. Denmark accounts for around 75% of global enzyme production as well as bio-technological ingredients for the food industry.”

The challenge of the global knowledge economy is the background for strengthening the research collaboration between Demark and India.

“Denmark needs to concentrate on research collaboration with growth economies like India, which offers collaboration at a very high level in a number of areas,” says Lene Lange. “When a country like India, with an annual growth rate of more than 8%, makes biotechnology a focus area, then things happen. And by having a sensible research collaboration, it will automatically lead to new products and increased trade. It becomes an advantage for both parties.”

Scout-India

An important part of the research collaboration has so far been a Danish initiative involving Danish research scientists travelling throughout India to seek out possible collaboration environments and collaborations. “It is important for us to target the collaboration in the best possible way,” says Lene Lange. “We have termed the initiative Scout-India. At relatively low cost it has been possible for Danish research scientists to meet Indian colleagues, and on that basis put a number of projects into practice which we think will lead to commercialisable results.” Scout-India has been such a success from both a Danish and Indian perspective, that a corresponding initiative will be initiated by India, with ten research scientists visiting Danish research environments in order to prepare for shared projects.

     The research collaboration covers stem cell research, research in nutrigenomics, bio-informatics, system biology, sustainable industrial processes and handling of waste as well as integration of epidemiology and bio-technology for promoting general health. “No limits have been set for which biotech areas and activities that the collaboration between Denmark and India will comprise,” says Lene Lange. “The two steering groups are open to all proposals, but the focus should naturally be on areas where either Denmark or India has strength positions. By focusing on elite environments, it makes the collaboration into globalisation in practice –and creates a win-win situation for both countries.”

R&D – THE INDIAN WAY

BIOTECHNOLOGY: When researchers conduct research, the way they do it depends on which part of the world they come from. The world’s largest producer of industrial enzymes, Denmark’s Novozymes, is hoping that Indian researchers can deliver surprising results for the company

The world’s largest producer of industrial enzymes, Denmark’s Novozymes, will open a research laboratory in Bangalore this year. By including Indian researchers in the company, which also has research groups in Japan, China, USA and Denmark, Novozymes is hoping that new and perhaps surprising angles in biotech research will emerge.

“In Novozymes we believe that multicultural diversity is an advantage for research as well as for the company’s commercial activities,” says vice president Ejner Bech Jensen, who is responsible for R&D in molecular bio-technology at Novozymes. “Although the results from research are universal by definition, we acknowledge that researchers with different backgrounds and different cultures think differently. By spreading out the research palette over several cultures we avoid habitual thinking.”

Protein engineering

Novozymes is an R&D oriented company, on which it spends 13% of its revenues. The bulk of Novozymes’ revenues are generated from industrial enzymes for applications in the detergent and feed industries, but even so, the company spends about 10% of its R&D budget on a number of pharmaceutical areas.

“Our new research group in Bangalore has the potential to become a good centre for preclinical research in the long term, since these competencies are well developed in India,” says Ejner Bech Jensen. “The combination of Indian researchers’ amazing computer technology and our knowledge of bio-technology could be invaluable. They are skilled at software development and computer technology, and it’s easy to imagine that in 5 to 10 years India will be the best place in the world for protein engineering, which requires superior computer technology to simulate the complicated protein structures”

Special enzymes

“The establishment of a research laboratory in India will also have commercial benefit for Novozymes in the long term,” says Ejner Bech Jensen. “By virtue of its size alone, the Indian market has giant potential, and we will naturally monitor it with great interest.

Our sales of industrial enzymes to India are currently fairly modest, but with the rapidly growing purchasing power of the Indian middle class, lifestyle habits and consumption patterns are changing. With our own researchers on the market, we will be well prepared to develop the special enzymes which the Indian market will demand.”

“One of the most promising growth areas in enzymes is however likely to be the development of enzymes for production of bioenergy, such as bioethanol,” says Bech Jensen. “I sense a strong movement in India in the direction of higher environmental consciousness, especially in the energy area. Here we are in a strong position with our technology for conversion of almost all forms of agricultural waste into pollution free energy. But to begin with, we are starting up gently in India and will see what it leads to. Perhaps something completely different to our expectations will come from it. That is the interesting thing about testing other ways of thinking,” ends Ejner Bech Jensen.

http://www.novozymes.com  

READY TO HELP INDIA’S DAIRY INDUSTRY

FOOD INGREDIENTS: One of the world’s leading producers of ingredients for the food industry, Denmark’s Danisco, is expanding its production in India to produce functional systems for the dairy industry

When Indian food legislation is brought into wider alignment this spring, the way will be open to making India’s food industry more efficient, and especially its dairy industry. India is already among the world’s largest producers of milk, but the dairy industry is fragmented and constrained by limitations, both of which are due to traditions and legislation.

“New rules for India’s food industry will mean a boom which can be felt,” says vice president Egon Bech Hansen of Danisco A/S, one of the world’s leading producers of food ingredients. Currently the company has small scale local production of flavours for the Indian food industry. But while India’s new food legislation is getting under way, Danisco is investing in new production of functional systems (knowledge optimised mixtures). These are especially intended for use in the Indian dairy sector e.g. for ice creams, yogurts and other dairy products.

“With the establishment of new production facilities at our factory outside New Delhi, we are almost doubling our activities in India,” says Chief Operating Officer Torben Svejgaard, who is responsible for emulsifiers, functional systems and textural ingredients at Danisco. “We believe the market has great potential both for local food producers and international food companies producing in India,” he says.

Danisco’s broad technology platform and product palette includes emulsifiers, enzymes, stabilizers, cultures, flavours and sweeteners such as xylitol and fructose. Most of the products are made from natural ingredients, for example Guar gum from India which is used in a number of Danisco’s functional systems.

Danisco’s technologies are intensively R&D based. The company, which last year acquired Genencor, a large US enzyme producer, has more than 2,000 active patents and patent applications.

“The high level of biotech in India is also part of our rationale for becoming more actively involved here,” says Egon Bech Hansen. “India has a very long tradition in research which fits well with western ways of doing things. In addition, Indian society puts great emphasis on ecology and safe food. They want a high degree of biodiversity and attach great importance to plantrelated biological technologies. So in our collaboration with Indian researchers, we hope that we can benefit from their knowledge in these areas, while we undoubtedly can teach Indian companies a lot regarding industrial development of food.”

http://www.danisco.com  

“New rules for India’s food industry will mean a boom which can be felt,” says vice president Egon Bech Hansen of Danisco A/S”…

DIABETES: A WIDESPREAD DISEASE IN INDIA

BIOTECH COLLABORATION: Danish researchers are among the world’s most knowledgeable regarding diabetes. And Indian researchers are excellent at medicinal chemistry. By collaborating, the parties can develop new and better drugs for the treatment of diabetes and obesity.

India has some of the world’s best researchers in medicinal chemistry, according to managing director of biotech company Rheoscience, Philip Just Larsen. And India has many of them, while Denmark has too few. On the other hand, Danish researchers know plenty about diabetes, which is growing to epidemic proportions in India. By combining competencies, Philip Just Larsen sees great opportunities in a Danish-Indian collaboration.

“Large sections of the Indian population are genetically predisposed to develop type 2 diabetes,” says Philip Just Larsen. “And the changing lifestyle which is currently happening in India, with changing eating habits, rapid growth in the number of people with sedentary jobs and thus a lack of exercise, has triggered an explosion of the obesity problem in India too. And along with obesity comes type 2 diabetes.”

Director of biotech company Rheoscience, Philip Just Larsen.

Fewer side effects

The scale of the problem is demonstrated by forecasts predicting that the number of Indians with diabetes will exceed 100 million by 2025. That is why the Indian medicinal giant Dr. Reddy’s Laboratories is focusing on finding new drugs for the treatment of diabetes.

“In collaboration with Novo Nordisk, which is one of the world’s most active companies in diabetes research and a major producer of insulin, Dr. Reddy developed a drug for the treatment of type 2 diabetes,” says Just Larsen. “However Novo Nordisk withdrew from the collaboration. Our company Rheo-science has now taken over further development together with Dr. Reddy and Center for Clinical and Basic Research, CCBR, which we originate from. We contribute our knowledge of diabetes, CCBR supplies the test material and Dr. Reddy supplies the active substance. The product, which is on its way to phase III clinical development, is called balaglitazone. It is a product which dramatically improves insulin sensitivity and with probably fewer side effects than seen so far with these types of drugs.”

Bridgehead to India

Rheoscience A/S conducts contract research, especially in obesity and diabetes. The company also has its own research programme. Rheoscience has outsourced part of the research to India’s Aurigene in Bangalore. The contract with Aurigene comprises employing 15 people for three years, and the collaboration is excellent, according to Philip Just Larsen.

“The collaboration is working so well that we have opened our own office in Bangalore which we will use as a bridgehead to the Indian market.”

http://www.rheoscience.com

BIOTECHNOLOGY AT NANO LEVEL

 

BIOTECHNOLOGY: New research shows that biomolecules can be manipulated when they are exposed to radiation from a pulsed laser beam. They ’open up’ and can thereby be bonded to microscopic surfaces. The Danish research scientists who made the discovery are now collaborating with an Indian research group

When biomolecules are exposed to a pulsed laser beam something intriguing happens: The molecules ’open up’, and you can start manipulating them. You can move the molecules around and bond them to different surfaces. And above all you can hold protein molecules in position within just a few micrometers. That is nano scale biotechnology.

Professor Steffen Petersen and Teresa Neves Petersen at Aalborg University’s Department of Physics and Nanotechnology, made the discovery by serendipity. The spectrum of a certain protein displayed strange properties, which they had a choice of investigating closer or passing over. They chose to look into the phenomenon in the hope of discovering interesting new aspects of the function of proteins.

Diagnosis

Luck was on their side, and they soon realised that what they had discovered could be used for industrial applications. Using laser beams, the proteins could be bonded with high precision on solid surfaces such as glass. Until now it has only been possible to bond proteins to surfaces by chemical methods which leave the molecules in random arrangement and with poor spatial precision. The new methods look highly interesting. The research scientists realised that they would be able to construct small biosensors, no bigger than a few millimetres in size, based on this principle – biosensors that would be able to simultaneously diagnose a number of different diseases including cancer.

The technology, which Steffen Petersen and Teresa Neves Petersen have patented in collaboration with Aalborg University and Novi Invest, will now be commercialised through BioNanoPhotonics A/S, a company which was established in autumn 2003.

In 2004, Steffen Petersen was invited to participate in the official visit to India by Danish Minister for Science, Technology and Innovation, Helge Sander. Here Petersen met Associate Professor Mrinalini Puranik at NCBS, and quickly realised that her research group could be a very interesting partner which could provide significant help to increase the total knowledge regarding the influence on light on bioprocesses.

“I visited her in Bangalore, and we found out that our research is complementary in a number of areas”, says Professor Petersen. “Since then, Associate Professor Puranik has visited us here in Aalborg, where she has been introduced to our new insight into the function of proteins. Her research group can contribute to our research in this area in a number of ways”.

http://www.nanobio.aau.dk  

IT SPECIALISTS: DENMARKBUT NOT QUANTITY PRODUCES QUALITY

EDUCATION: Denmark produces only 550 IT graduates annually. Although the courses are of high quality, they turn out far too few graduates

Denmark is aiming to be among the worldleading IT nations, and to excel at creating value with IT. That is why the IT University of Copenhagen was established, and in its six years of existence it has turned out around 800 graduates.

“In Denmark we produce around 550 MSc graduates in IT each year from universities and institutions of higher education,” says head of research Jørgen Staunstrup at the IT University of Copenhagen. “Our share of the total is 250. But it is still far too few to cover the needs which we know will develop in a few years. It is one of Denmark’s great challenges. If we do not produce more IT graduates, we risk lagging behind and weakening our global competitiveness.”

Capable Indians

The shortage of qualified IT experts has led increasing numbers of Danish companies to swing their attention onto India, whose conscious focus on training software experts has resulted in Danish companies bringing more than 300 IT experts to Denmark.

“I am very impressed with India’s IT people who are amazingly knowledgeable, and are known here in Denmark for delivering faultless results, on time and at the agreed price. Everything goes so smoothly and they are amazingly good at structuring their work. Their sheer number makes them able to handle even the largest projects – and they implement them with high quality,” says Jørgen Staunstrup.

Informal environment

Despite the differences in IT environments, Jørgen Staunstrup thinks that Denmark can still teach India something.

“In Denmark we are good at small projects which do not necessarily require large, formal organisations,” he says. “Our very informal way of doing things, which seen from the outside can be perceived as slightly chaotic, requires considerable independence and innovation. It might be that we are not so structured, but amazingly good results come from our way of working.”

Currently 35 Indians are among the 1,200 students at the IT University of Copenhagen. To gain admission, students must have a bachelor degree from another university. Since the IT University of Copenhagen was established, it has accepted students with more than 100 different bachelor degrees.

Professional networks

The IT University of Copenhagen has six MSc programmes: Design, Communication and Media, E-business, Internet and Software Technology, Multimedia Technology, Software Development, and Cross Disciplinary IT Development. The university also conducts research in computer games, context dependent mobile communication and software production.

“When Indian students complete their studies and return home or move on to another country, they help to spread the experience they have gained in Denmark. It is personal relations which create professional networks, which we also benefit from,” says Staunstrup.

http://www.itu.dk  

THE GURU WHO SPEARHEADS THE FUTURE OF MOBILES

RAMJEE PRASAD: The Indian born Professor Ramjee Prasad lives in a time that we will first experience in 4-6 years. He heads the scientific centre at Aalborg University where the 4th generation of mobile technology is currently being shaped

Ask who is the guru of 4th generation worldwide wireless telecommunication, and up comes the name of Ramjee Prasad. Indian by birth, he has for the last 6 years held the post of Professor at Aalborg University in Denmark. He heads CTIF, the Center for TeleInFrastructure, and is unquestionably the man who is driving the world forward to the goal of putting every conceivable form of wireless communication into one handheld device.

“Technologically speaking we are currently in 2010,” says Prof. Prasad. And in 2012, our technology will be on the market –that is in six years. And in six years, if everything goes to plan, we will be several years further into the future, technologically speaking. Because naturally, technological development does not stop with the 4th generation, although it is close to the ultimate,” says Prof. Prasad.

International awards

When Ramjee Prasad was born in northern India 60 years ago, no one could foresee that, together with his wife and three children, his path would take him to a relatively small north European university, which nonetheless has achieved international status as one of the leading telecommunication centres in the world. Professor Prasad himself is the recipient of several international awards. Recently he received the “Telenore 2005 Nordic Research Award.” His latest book is on “4G Roadmap and Engineering Communication Technologies.”

“Aalborg University has gained its status as the place where the mobile phone was born in an amazing collaboration with a number of commercial companies which placed their development activities in Aalborg,” he says. “Together with the academic environment, they fertilised each other, and Aalborg quite simply became the maternity clinic for the first two generations of mobile phones. We jumped over the 3rd generation and have gone directly to the 4th, where all wireless technologies that can be linked together will be joined in a single unit.”

Attractive country

CTIF is a research centre employing over 130 staff from 27 different countries, organized in 10 groups conducting research at the highest international level to enhance the technological development in modern wireless communication. CTIF has strong relations with industry, and is jointly conducting research and developing new types of networks, devices and services.

When Prof. Prasad travelled from India to Europe, he first settled in The Netherlands, where his children grew up. When they had grown up, the time came to move on. He favoured moving to Aalborg, and since his wife likewise considered Denmark a most attractive country for the family, the choice was made.

“We have never regretted that,” says Ramjee Prasad. “The research environment here in Aalborg regarding wireless research is simply world class. It is the crème de la crème for innovation and cerebration. We are not so good at branding ourselves, but that is just another challenge to deal with.”

http://www.ctif.aau.dk

SUPPLYING THE BEST FROM DENMARK AND INDIA

IT TECHNOLOGY: Using Indian IT expertise only because it is inexpensive is a thing of the past. Today Scandinavian management style and Indian knowhow in combination produce IT systems which increase the value of companies

“Danish management and system design, combined with Indian IT knowledge and expertise, make a perfect match.”

So says Jesper Kring, director and coowner of Kring Technologies, who has built up an IT organisation in India with more than 170 staff in just three years. They are all experts in Microsoft, Oracle, SAP and architecture developed by Kring Technologies. The company’s customers are mainly in the telecom, healthcare and finance sectors.

The right experts

“With our Scandinavian oriented management style and Indian knowledge, we are able to supply the best of both worlds,” says Jesper Kring. “But to find just the right people means that we have to be present on the market. The rosy picture that some like to paint of the IT situation in India, is not one that I recognise. Even with millions of graduates each year from the Indian universities – of whom many, many are IT people – it is tremendously difficult to find just the right ones. When we are recruiting people we often receive thousands of applications. But for every 100, we can actually only use one! Just the practical procedure of reading CVs, checking diplomas, interviewing shortlisted candidates and doublechecking their abilities and experience, is a challenge that requires many resources.”

Globalisation means a lot to Jesper Kring. For it is as a result of globalisation that Kring’s Indian subsidiary supplies IT systems to some of USA’s largest telco companies.

Knowledgesharing

“The right exploitation of globalisation in our industry puts everybody in a winwin situation,” says Jesper Kring. “But whereas previously the focus was very much on the financial side of IT system development and mainly occupied with price, the focus is now much more on the value chain itself and the delivery models for the development of IT systems. Knowledgesharing is everything. It also means that we often have a very important task in helping company managements to make their organisations adaptable to optimally exploit the new delivery models for the development of IT. It applies to the adaptability of the staff, and especially the management’s understanding of the major effect the models can have on the company’s competitiveness, if it is done right.”

“But,” says Jesper Kring, “it applies just as much to Indian IT companies that they need to make extra efforts to find the right collaboration partners in Europe, and here it is advantageous to look at Denmark. Based on my experience in Danish- Indian IT collaboration, India should definitely choose Denmark as its European hub. To India, Denmark is simply value for money.”

http://www.kring.dk

INDIAN IT EXPERTS TO HELP DENMARK

IT EXPERT SHORTAGE: “They are skilled, well motivated and well trained. Young Indian IT experts will help Denmark overcome a shortage of labour.”

For the next four years Denmark will have an annual shortfall of at least 1,000 IT experts needed to carry out the many large scale projects which are currently taking shape. So says Jeppe Hedaa, director of 7N, Denmark’s largest Danish owned IT consultancy company. And that is why 7N is now establishing a subsidiary in New Delhi in India.

“What we lack here in Denmark, we can find in India. Skilled, well motivated and well trained IT experts. I hope that in the next couple of years, we will

have around 100 people working in India.”

7N provides experts to 25 of Denmark’s largest companies including banks, insurance companies and companies with complex logistics. Firms like these do not use essentially readymade technologies like SAP, but develop their own systems from scratch.

“These are highly complex systems tailored to each customer based on their own architecture and programmes,” says Hedaa. “It requires systems people of

special calibre, who we know we can find in India.”

A year ago, 7N established its own subsidiary in Poland, which like India has many young qualified IT experts. The subsidiary in Poland led to 7N carrying out what Jeppe Hedaa calls its own ’nomad development’. Using this concept, 7N creates visions and ideas for IT systems in Copenhagen, after which small groups from the customer and the Polish experts get the system up and running. 7N in Copenhagen handles final adjustments and quality control.

“We are now going to India with our ’nomad development’, and we are very grateful that we now can see how to solve our major challenges in the staff area.”

http://www.7n.dk  

Handsfree communication from the Danish Embassy

India has the most call centres in the world. The industry currently employs 400,000 people, operating 150,000 work stations on a 24/7 basis. And the number of call centres is growing at a tremendous pace. The explosive rate of growth led the world’s leading manufacturer of handfree headsets, GN Netcom, to establish a liaison office in New Delhi in February 2005. The office, which is assigned to GN Netcom’s subsidiary in Singapore, inaugurated the Danish Embassy’s Incubator model in New Delhi.

“Since our entry into the Indian market in 2001, GN Netcom has proven itself to be a market leader in its goto-market model and through offering innovative products and valuable services to organisations such as Accenture, British Telecom, 24/7 Customer, Oracle and Global Vantedge to name just a few,” says Managing Director Peter Borup Jakobsen of GN Netcom, Singapore. “While we have concentrated on the call centre segment in India in the first year, we will start focusing on large companies and the consumer segment in 2006.”

In 2005, GN Netcom cemented its position as the world’s leading producer of both corded and wireless headsets. The headset divisions GN Mobile and GN Netcom operate in more than 30 countries and sell products in more than 80 countries worldwide through 80,000 retail outlets and speciality distribution channels. From being a niche product for call centres, headsets are rapidly becoming standard equipment for stationary phones and mobile phones in offices and homes all over the world. On the global consumer market, GN Mobile is generating annual growth rates estimated at more than 50 per cent p.a. On the office market through GN Netcom, annual growth rates are more than 25 per cent.

GN Netcom distributes its products in India through two distributors, Innova Telecom Pvt Ltd and Avaya Globalconnect Ltd.

http://www.gnnetcom.sg  

WORLD CHAMPION IN WIND POWER

ENERGY: The Indian government has set the objective that 10% of all electricity production must come from renewable energy sources by 2012. Today in Denmark, wind power already accounts for twice that figure. Denmark is also home to the world’s largest wind turbine manufacturer and the world’s largest manufacturer of blades.

Denmark utilises wind power more than any other country in the world. 20% of Danish electricity consumption is generated by wind turbines spread across the whole country. Since the mid 1970s, the wind power industry in Denmark has become an important player in Danish industry and a major contributor to exports. Vestas Wind Systems, the world’s largest wind turbine manufacturer, is Danish. Siemens Wind Power is based in Denmark and the world’s largest manufacturer of blades for wind turbines, LM Glasfiber, is also Danish.

LM Glasfiber, which additionally has production in Bangalore in India, is the only blade manufacturer that operates globally.

Blades play a vital role in wind turbines –their design is crucial to the efficient exploitation of energy from the wind. LM Glasfiber has produced and sold more than 84,000 blades since 1978, corresponding to a capacity of 19,860 MW, or the annual electricity consumption of approx. 19 million European households.

Local production

LM Glasfiber has local production in growth markets to ensure progress on the global market. In 2004, the company expanded its capacity in Asia alone by 50% and plans a further 60% expansion by 2006-7.

“Three things about blade production are especially important to customers,” says sales and marketing director Søren Knudsen of LM Glasfiber. “They need to be able to buy locally produced blades of consistent quality, purchase in local currency, and reduce transport costs and investments in working capital. We meet all three demands through local production.”

The Indian market for wind energy has grown by 20% on average every year since 1994, when LM Glasfiber established its first factory in the country. The Indian government has set the objective that renewable energy must account for 10% of the country’s electricity consumption by 2012.

Director Nirmal K. Gupta of LM Glasfiber in Bangalore in India says: “Local production helps to keep prices and thus customers’ costs down, and that is very important in a competitive situation. Our competence level is very high on the Asian market, so although we have progressed so far in small steps, we are ready to play an active role when the wind power market sees a boom in the coming years.”

LM Glasfiber currently has seven factories in five countries in North America, Asia and Europe.

17,500 MW Denmark’s Vestas Wind Systems A/S is the world’s largest manufacturer of wind turbines and is represented throughout the world. By the end of 2004, the company had installed wind turbines with a total production capacity of approx. 17,500 MW out of a total capacity of 48,000 MW worldwide. In other words Vestas Wind Systems has a global market share of around 35%. The company has production in Denmark, Germany, India, Italy, Scotland, England, Spain, Sweden, Norway and Australia. The company’s core business areas include development, production, sales and maintenance. Vestas started production of wind turbines in 1979. Today the group employs around 9,500 people.

Unique R&D In parallel with the development of a very strong production environment for wind turbines in Denmark, the country has grown into an international powerhouse for research and development in the area. Denmark’s Risø National Laboratory has set the standard for international research with its Wind Energy Department. The overall objectives of the research are to develop new opportunities and technology for the exploitation of wind energy and to advance the competitiveness of wind energy. The research also aims to further the global application of wind energy and to advance the basic atmospheric physics which is used to calculate the effect of the wind on major constructions and buildings. The research is carried out in cooperation with industry and other endusers, and in close collaboration or alliances with national and foreign universities, research institutions and organisations. The key areas of scientific expertise in the department are boundary layer meteorology, aerodynamics, aeroacoustics, fluid and structural mechanics, electrical design and control, and machine and construction technology. Risø has recently established a commercial centre for testing wind turbine blades. The Blade Test Center tests blades for both Danish and foreign wind turbine manufacturers. The presence of the test centre has led to Spain’s Gamesa and India’s Suzlon establishing development departments in Denmark.

DENMARK IN INDIA

Denmark’s exports to India have increased significantly over recent years. In 2005, exports totalled almost INR 50 billion, and the upward trend continues with a growth rate close to 50% annually. It makes India one of Denmark’s four largest markets in Asia.

The Trade Council of Denmark helps Danish companies on the Indian market. The Trade Council is represented in India as part of the Danish Embassy in New Delhi and by the Trade Commision of Denmark in Bangalore. The increasingly close collaboration between Danish compaies and the Indian IT and biotech environments in Bangalore og Chennai has made the Trade Commisioner’s office in Bangalore an important part of the relation between the Danish and Indian corporate sectors.

While the Trade Council of Denmark’s offices have the primary task of helping Danish companies to export to India, India’s increasing important role as an outsourcing country also means considerable access to Indian companies wishing to get into contact with Danish companies. The Trade Council of Denmark also represents Invest in Denmark, an organisation which attracts foreign investment to Denmark. In the last couple of years, several Indian IT companies have established businesses in Denmark.

Trade Commission staff, Bangalore

“One of the tasks to which we devote increasing resources is matching Danish and Indian companies seeking to enter partnerships,” says the head of the trade department at the embassy in New Delhi, export counsellor Ole Lindholm. “And Indians know that Danish companies are interesting. Not just in IT and biotech, but also regarding energy and environment, as well as luxury goods. Although there are still custom barriers of varying size, India is becoming more and more internationalised, and that is good for trade.”

http://www.ambnewdelhi.um.dk  

Embassy of Denmark, New Delhi 11 Aurangzeb Road 110011 New Delhi Tel.: (11) 42090700 Fax: (11) 23792019 Email: delamb@um.dk   http://www.ambnewdelhi.um.dk   Export Counsellor Ole Lindholm Export Counsellor Joakim Larsen Trade Counsellor Mr. Vinay Capila Senior Commercial Officer Mr. Rajnish Singh Commercial Officer Mrs. Sharon Nathani Trade Commission of Denmark, Bangalore 16/1 Grant Road Cross Vittal Mallya Road Bangalore 560 001 Tel.: (80) 2227 7174 / 2227 7175 Fax: (80) 2227 7176 Email: dtcblg@vsnl.com   http://www.dtcbangalore.um.dk   Trade Commissioner Sune Kjeldsen Trade Counsellor Harish Muthana

Trade Council staff, New Delhi