With one of the world’s largest railway networks, India has embarked on an ambitious electrification drive. The government’s push towards sustainable and efficient transportation has created significant opportunities for international players. A European company – globally recognized leader in rail electrification, providing cutting-edge solutions for sustainable and efficient railway infrastructure.
The european company has been engaged in the Indian market since the early 2000s, initially through partnerships and project-based collaborations. The company operated in India by supplying equipment and providing technical consultancy, leveraging its European engineering expertise to contribute to India’s railway modernization efforts. However, as India’s rail electrification initiatives expanded, the need for a more structured presence became evident.
Recognizing the immense growth potential and the increasing complexity of project execution in India, the european company decided to establish a subsidiary. The move was aimed at enhancing its ability to deliver projects efficiently, ensuring better compliance with local regulations, and fostering stronger relationships with Indian stakeholders.
Navigating the Indian Rail Market
“India’s railway sector is undergoing a transformative phase,”.
“There’s a strong emphasis on sustainability, innovation, and efficiency, which aligns well with our expertise in rail electrification. However, to be successful, businesses must adapt to India’s unique market conditions.”
The India Reality Check: “It’s Not Just Business as Usual”
Foreign companies often assume India works like Europe or the U.S. But the reality is different. Long approval processes, changing regulations, and complex public-sector deals can slow things down. Without the right guidance, businesses can waste time and money.
“We were working on the Jammu and Srinagar railway line for electrification. Unlike standard overhead wiring, tunnels required steel bars instead of wires. We had to import these steel bars, along with screws, nuts, and bolts, as they were not available in India.
This meant managing complex logistics, from customs clearance at ports to transportation through challenging terrains. The stakes were high delays could mean cost overruns, and mishandling could damage essential materials.
Our team and Maier Vidorno Altios were providing initial support in specific areas of managing finance for them, then we expanded our role to take over the company’s supply chain management (SCM), import logistics, and regulatory compliance. We introduced a structured India market entry strategy, ensuring:
- Seamless Import Management – Streamlined customs clearance processes to prevent project delays.
- Optimized Supply Chain – Implemented an efficient logistics framework, reducing lead times and ensuring smooth transportation.
- Regulatory Compliance – Navigated complex import regulations, ensuring adherence to Indian laws without unnecessary delays.
- Cost Efficiency – Identified and rectified inefficiencies in the logistics chain, bringing down operational costs.
For a european company that had successfully expanded across Europe and beyond, India’s dynamic market posed unique challenges. “You don’t just enter India with a blueprint that worked elsewhere,” Ankur noted. “There’s a steep learning curve—understanding regulatory frameworks, identifying the right partners, and navigating public sector projects requires a different playbook.”
Key Takeaways for European Company
Any european company doing business in India offers critical insights for international companies:
• Establishing a local entity ensures better control over operations and compliance.
• Understanding India’s legal and tax landscape is essential to avoid costly delays.
• Partnering with experienced professionals can streamline the process and mitigate risks.
A Strategic Approach to Success
India remains a promising market, but success requires strategic planning and adaptability.
Companies eyeing expansion into India can take note—preparation and the right support make all the difference in navigating this complex yet rewarding market.
