'India has our full attention'

Apollo Tyres’ takeover of Vredestein, located in Enschede in east Netherlands, has been one of the most successful acquisitions that an Indian company has made in recent times. Henk Ligtenberg, Director, Investment Promotion, The Development Agency East Netherlands (Oost NV) talks about what the east Netherlands is best known for and the focus areas for attracting investment from India.

Oost NV is the development agency for Gelderland and Overijssel. What is this region of the Netherlands best known for?

The eastern part of the Netherlands is a unique region where innovation and creativity are driving forces for business. This part of the Netherlands is gaining international attention for its booming technology sector, renowned universities and flourishing entrepreneurial climate. The region is one of Europe's centres of excellence in the high-tech industry.
Business development is focused in three main areas—food, health and technology. Each of these regional strengths offers strong business and research communities for the commercialisation of new products and services.
Food: East Netherlands is the centre of 'Food Valley', a cluster of around 100 companies, centred around the Wageningen University and Research Centre, one of the most authoritative agri-food research institutes in Europe. Together these companies, including Unilever, Royal DSM, FrieslandCampina, Cosun and Avebe, employ about 10,000 people in food sciences, technological research and related businesses. It is a European leader in R&D and entrepreneurship in the agri-food sector and a powerhouse in food technology and development.
Health: Anyone who is looking for a favourable place to set up medical activities should consider the east Netherlands as a potential location. Here you will find Europe's most dynamic cluster of businesses, universities, research institutes, medical projects and activities. The lines of communication between universities and entrepreneurs are short and you can profit from a short time to market. Focus areas within the health sector include molecular medicine, diagnostics and imaging, nanotech for point of care, rehabilitation and medical robotics.
Technology: Centred around the three universities in Enschede (University of Twente), Nijmegen (Radboud University) and Wageningen (Wageningen University and Research Centre) technology functions as a motor for innovation in our region. Oost NV initiates and coordinates activities to support the commercialization of new ideas in local business and offers soft landing facilities for new investors. Our focus areas are high-tech systems (including semi conductors and clean tech), high-tech materials, software development and IT services, micro and nanotechnology, agri-food, (bio) medical technology and rehabilitation.

Can you tell us about Oost NV’s association with the East Netherlands Participation Company (PPM Oost)?

Before anything else, money matters involve people. That is something that tends to be forgotten. The main driver for PPM Oost is therefore not profit, but the positive contribution of a company to the economic development of the east of the Netherlands. The company invests in promising businesses, companies that are pioneers or give the regional economy a boost. It focuses on the market sectors health, technology and the food industry, but other innovative companies are also welcome, of course.
With funds of more than €50 million and 73 participations, PPM Oost invests in starters, early phases, expansion, bridge financing, management follow-up, restructuring, company succession, management buy-outs and buy-ins.
PPM Oost is a member of the Dutch Private Equity and Venture Capital Association (NVP) and works closely with Oost NV.

Can you tell us about some prominent foreign companies that are present in the region and well settled, especially companies from Asia? How have they benefited from the investment?

East Netherlands has welcomed dozens of big industry players such as AAP, Abbott Labs, AstraZeneca, HJ Heinz, Kikkoman, Monsanto, NXP, Scania, Synthon and Wärtsilä.
Most Asian companies that are present here work in the field of technology. We have companies from China, Japan, Korea Taiwan, and one Indian healthcare company, Urmila Chemopharma Ltd+ UCP Europa, which setup here this year. A lot of German, British, and American companies are also present here.

What are the prevalent modes of investment for foreign companies in the East Netherlands—acquisitions, R&D partnerships, marketing and sales offices?

Two things are striking in that respect:
1. 80 percent of all the new projects are realised in the sectors food, health and technology.
2. More than 50 percent of these projects are in R&D.

Apollo has invested in Vredestein, which is located in your area. Has Oost NV been instrumental in assisting Apollo in any way?

Oost NV was not involved but we are very proud that Apollo invested in our area in Vredestein. The number of employees will increase from 1000 to 1100 to produce 6 million tyres a year, which will contribute significantly to our region’s economy.
What is your interest in India at present? How would you market your region to an Indian audience? Are you planning any missions/promotional activity in India in the near future?
India, being one of the BRIC countries, has our full attention so we will visit your country in order to cooperate with the NFIA to attract investments in food, health and technology.
We will be concentrating on food, health and technology focussed investments and matching companies/universities.

We are going to visit India in end-2010/beginning-2011 on a fact-finding tour. Companies from India who are interested in our services can contact NFIA (+91 11 2419 7629 / info@nfia-india.com) to prepare a meeting during our trip to India in 2010-2011.