Local Insight

How Local Partnerships Empower German Companies to Expand Successfully

How Local Partnerships Empower German Companies to Expand Successfully
How Local Partnerships Empower German Companies to Expand Successfully
Key Points

Enter new markets smoothly

"We’ve been in India for over 30 years. But only in recent years did we realise customers want direct support and responsiveness—from the manufacturer."

Kurtz Ersa, is a century-old German technology leader in soldering, molding, and automation systems, decided to deepen its commitment to India, it wasn’t just another market expansion, it was a strategic response to shifting customer expectations.

Recognising the Shift: From Sales to Service

Kurtz Ersa’s relationship with India goes back more than 30 years. For much of that time, it operated through local distributors, maintaining a steady but distant presence.

By 2017, however, Indian customers were expecting more. They wanted process guidance, after-sales support, and quick decision-making, directly from the manufacturer. Instead of maintaining the old model, Kurtz Ersa established its own service and sales subsidiary in India.
The impact was immediate. Clients welcomed the responsiveness, technical competence, and commitment that only a local team could deliver. What started as an operational shift soon became the foundation of the company’s India success story.

Understanding India’s Business Culture

The road to establishing a direct presence also revealed profound cultural insights. In India, relationships often take precedence over processes, and trust is built over conversations and consistency rather than contracts alone.

As one senior executive noted, 

From handshake to written order may take time, but once trust is established, collaboration moves fast.”

Managing such nuances required flexibility, empathy, and patience, attributes not always easy for process-driven European companies but essential for sustainable growth in India.

Comparing Business Cultures: Germany vs India

Aspect

Germany

India

Decision-Making Style

Structured, process-driven, based on documentation and analysis.

Relationship-driven; decisions evolve gradually through trust and multiple discussions.

Communication

Direct, factual, and time-bound.

Contextual, nuanced, and often indirect — reading tone and relationship is vital.

Time Orientation

Highly punctual; deadlines strictly followed.

Flexible time perception; adaptability valued over rigidity.

Hierarchy in Organizations

Flat structures; open exchange encouraged.

Hierarchical but increasingly collaborative, especially in modern sectors.

Negotiation Approach

Clear agenda, focus on efficiency and outcomes.

Personal rapport and patience matter as much as terms and pricing.

Risk Appetite

Low; prefers detailed planning before execution.

Higher tolerance for ambiguity and experimentation.

Work Relationships

Task-oriented and formal.

People-oriented; long-term loyalty develops through relationships.

This comparison underlines why local expertise and cultural translation are crucial for any German SME seeking to operate successfully in India.

India’s Role in Kurtz Ersa’s Global Growth Map

Over the years, India has moved from being a peripheral outpost to a major growth engine. It now stands alongside Europe, China, North America, and Southeast Asia as a core pillar of Kurtz Ersa’s global operations.

The leadership calls India “the geography with the greatest long-term potential.” Beyond market demand, India offers access to skilled talent, innovation capacity, and a growing ecosystem of advanced manufacturing partners.

Creating One Team Across Continents

A defining factor in Kurtz Ersa’s success has been its ability to align global standards with local autonomy. As a family-owned enterprise, the company believes in a simple philosophy – one team, one goal.

In practice, this meant empowering local leaders with responsibility. Two vice-presidents in India oversee daily operations and report directly to the general manager in Germany. The result is a collaborative structure that blends accountability with freedom, enabling quick decisions without losing strategic cohesion.

Leadership and People: Shared Values in Action

The company soon discovered that good leadership transcends geography. Whether in Germany or India, the principles remain the same: lead by example, communicate openly, and shape the future together.

This human-centric approach built mutual trust and motivation within teams. The Indian workforce responded with ownership and pride, while the global leadership recognized the value of cultural empathy as a managerial strength.

Innovation Rooted in India

Doing business in India for the company is not limited to sales or service. The next chapter involves building a local software development division of up to twenty engineers – a move that will contribute directly to the company’s automation and digital transformation roadmap.

What began as a market entry has grown into a center for innovation, where Indian creativity complements German engineering precision.

Finding the Right Partner for Sustainable Growth

Expanding across borders inevitably brings operational complexity: from tax compliance to HR administration. To manage these efficiently, Kurtz Ersa partnered with M+V Altios, whose expertise in financial and human-resources management provided the stability and transparency the company required.

This collaboration allowed Kurtz Ersa to remain compliant with local regulations while focusing entirely on growth and customer service. It exemplifies how having the right on-ground partner can make the difference between navigating India’s bureaucracy and thriving within it.

Lessons for European SMEs Entering India

Kurtz Ersa’s story offers pragmatic lessons for mid-sized European firms contemplating India. The market rewards persistence but tests patience. Bureaucratic procedures can be daunting, and success demands both cultural awareness and reliable local networks.

As the leadership reflects,

“India isn’t a market you enter to test - it’s one you enter to stay.” The key lies in balancing long-term commitment with the agility to adapt.

Frequently Asked Questions

Why do many German SMEs see India as a key growth market?

Because India combines a vast industrial base, young workforce, and a growing demand for quality technology solutions. It’s a market ready for long-term partnerships, not short-term ventures.

Bureaucratic processes, cultural differences in communication, and managing expectations around time and delivery. These can be managed effectively with experienced local partners.

It allows international businesses to stay compliant, efficient, and focused on customers — while experts handle HR, accounting, and regulatory complexities.

Crucial. Success in India depends as much on cultural alignment and trust-building as it does on price or product quality.

That expansion into India is not just a business move — it’s a commitment. With patience, empathy, and the right support, growth becomes inevitable.

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