2016 Annual Report on Foreign Investment in France
Annual Report on Foreign Investment in France records over 150 Indian companies in France and 11 new investments from India in 2016.
New Delhi, 27 March 2017
In the backdrop of the ongoing Creative France global campaign, Business France, the national agency for the international development of the French economy, recently published its “2016 Annual Report: Foreign Investment in France, the International Development of the French Economy”. The report reveals that there are over 150 Indian companies operating in France, where they employ more than 7,000 people. 11 new investments from India were recorded in 2016, creating or maintaining 171 jobs.
According to this report, out of the Indian investments made in France in 2016:
36 % were in R&D and engineering activities;
27 % in decision-making centers; and
18 % in services to companies.
The Indian companies’ investments in France have been mainly in the IT, energy, recycling, aerospace and textile sectors.
Some of the major Indian investment projects in France from the year 2016 include:
AEQUS (headquartered in Belgaum / Karnataka): After acquiring the SIRA Equipements plant in Besançon (Bourgogne-Franche-Comté region) in 2015 and saving 28 jobs, this Indian aerospace components manufacturer and solution provider confirmed it was hiring a further five employees in 2016. Aequs Aerospace is one of India’s fastest-growing precision engineering companies, and continued to further its expansion in France in 2016 by acquiring the SIRA Group.
ROYAL ENFIELD (headquartered in Gurgaon / Haryana): One of the most prestigious brands in the world of premium motorbikes alongside Triumph and Harley Davidson, Royal Enfield has set up its Western headquarters in Paris. It has opened a concept store in Levallois-Perret and an office for prospecting the French and European market.
ETOSHA (headquartered in New Delhi): This company specializes in the manufacture of fragrances, aromas and essential oils for the food industry, personal care and homecare. The company established its European subsidiary and creative laboratory in October 2016 in France, in the city of Grasse, for preparing formulations with French ingredients for the Indian and Middle Eastern markets.
Two Indian firms were among the winners of French Tech Ticket, a program designed for entrepreneurs from all over the world who want to create their startups in France:
1. GUESSWORK, an Indian start-up that provides a mobile app to connect customers to small e-merchants. Thanks to its incubation in Startup42, le Kremlin-Bicêtre (in the Parisian region), Guesswork has adapted its application to the European market.
2. DYMOND CLEANTECH, an Indian start-up which has developed an electrochemical solution for purifying water using diamond electrodes. Dymond Cleantech was incubated in La Paillasse, in Paris’ 2nd arrondissement, in January 2016, where it benefited from technological workshops and co-working spaces to help it to reach its goal of commercializing its water purification processes not only in Europe but also in India, China and Africa.
“The increasing interest in France of foreign and Indian companies and start-ups, such as Guesswork and Dymond Cleantech in 2016, confirms France as an attractive hub for innovation and creativity as a part of India’s expansion strategy in Europe. Indeed, with 100 000 engineers trained yearly, over 6 000 tech startups and over 200 tech startup incubators, acceleration programs, France stands among the leading tech-related entrepreneurship and innovation ecosystems worldwide”, said Alexandre Ziegler, Ambassador of France to India.
In 2016, a total of 1,117 investment decisions – up 16%, with an average of 21 per week, representing the best year in the last decade – created or maintained 30,108 jobs (versus 962 decisions and 33,682 jobs in 2015). The number of decisions to invest at new sites in France grew 20%, accounting for a majority (51%) of all investment projects and 38% of all jobs generated (11,520 jobs). Foreign companies invested primarily in production/manufacturing and logistics operations, which accounted for 31% of all foreign investments in France (352 decisions) and 50% of the jobs generated (15,134 jobs).
Ambassador Alexandre Ziegler added: “With a 16% increase in investments in 2016 - that means an average of 21 investment decisions per week - the figures speak for themselves: France is an increasingly attractive investment location for foreign companies”.
Key factors behind this success are France’s numerous globally recognised fundamental strengths: its central location in Europe, excellent communication and transport infrastructure, industrial skills in a wide range of sectors, high productivity, a well-qualified workforce and innovation.
Thus, France continues to attract investment to ‘strategic’ business activities, and has now been Europe’s leading destination for foreign investment in the industrial sector for more than a decade. Innovation is recognized by business decision makers to be a driving force behind France’s attractiveness as an investment location, as is the thriving “La French Tech” ecosystem. In 2016, the 155 investment decisions in R&D, engineering and design, including 72 in R&D alone, confirmed this trend.
This report seeks to shed light on the way the French economy is becoming increasingly globalized, and the trade and investment synergies that are fueling business development throughout the country. France’s strategic location makes it a natural export hub for countries throughout Europe and Africa. In 2016, as in the previous year, 30% of French exports were made by foreign-owned subsidiaries in France.
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About Business France
Business France is the national agency supporting the international development of the French economy, responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France.
It promotes France’s companies, business image and nationwide attractiveness as an investment location, and also runs the VIE international internship program.
Founded on January 1, 2015 through a merger between UBIFRANCE and the Invest in France Agency, Business France has 1,500 personnel in France and in 73 countries throughout the world, who work with a network of public- and private-sector partners.
For further information, please visit: www.businessfrance.fr