Family-run business from the south-west is a pioneer in India
As early as the 1990s, the company ‘Lapp’ set its sights on India, whilst many Western companies at that time were prioritising China. It was a groundbreaking decision: 30 years after the founding of ‘Lapp India’, the country is now the second-largest market for the Stuttgart-based family business. “Lapp” now operates its largest factory worldwide in Bhopal.
Family
All of this is closely intertwined with the family’s personal history. “When my grandmother Ursula Ida Lapp, my father Siegbert and my uncle Andreas travelled to India in the 1980s, they recognised something that many others overlooked,” says Matthias Lapp, third-generation CEO of the “Lapp Group”. “Back then, most people from the West had a very superficial view and saw mainly poverty. My family saw the energy of the people, the democratic institutions and the extraordinary economic potential. Since then, India has held a special place in our hearts.”
Following several years of collaboration with local partners, the company established its Indian headquarters in Bengaluru, in the southern Indian state of Karnataka, in 1996. The first cable production facility opened in 1998 in a nearby industrial estate. Today, Bengaluru is renowned as a hub for the high-tech industry and is regarded as the ‘Silicon Valley of India’.
Strategic growth market
‘Lapp India’ now employs around 500 staff. With three large production sites and an extensive sales and logistics network, it supplies customers throughout India. Key sectors include industrial automation, mechanical engineering, infrastructure, rail transport and renewable energy. The country is one of the “Lapp Group’s” most important global growth markets. For this reason, Matthias Lapp is investing heavily in local production capacity. He recently opened the extension to the plant in Bhopal, in the central Indian state of Madhya Pradesh.
What began in 2012 as a local cable production facility is now the largest manufacturing site in the entire group. It is home to some of the most advanced production processes. For example, the company manufactures sophisticated polymer compounds for cable sheathing here according to its own formula. Electron beam technology optimises cables at a molecular level, thereby improving their properties.
State-of-the-art manufacturing
Following its latest expansion, the company has recently commissioned a state-of-the-art production facility for low-voltage cables. These cables form the backbone of the electrical infrastructure in factories, commercial buildings, transport systems, renewable energy plants, utility networks and numerous industrial applications. The market is growing rapidly. This is because Indian investment in infrastructure is set to rise by around 50 per cent in the coming years. “India places its own unique demands on foreign companies,” says Matthias Lapp: “We have spent 30 years working to ensure that we stand on a strong foundation today. Localisation is important. We develop and manufacture in India for the Indian market. At the same time, we draw on the Group’s global network: product managers in Germany work alongside plastics experts in Switzerland and Indian engineers to develop the best possible solutions for our customers.”
A special connection
The Lapp family’s relationship with India goes far beyond business. Even as a child, Matthias Lapp got to know the country through regular holidays there. His uncle Andreas Lapp, the group’s long-standing CEO, has been Honorary Consul of the Republic of India for Baden-Württemberg and Rhineland-Palatinate since 2000.
In addition, he organises the annual ‘Stuttgart meets Mumbai’ event, which has developed into an established platform for German-Indian exchange; he founded the ‘Indian Business Centre Stuttgart’, which helps companies set up operations in Baden-Württemberg; and he is also one of the driving forces behind Karlsruhe’s activities in Maharashtra.
For more information, visit https://www.lapp.com/
Photo: Opening of the plant extension in Bhopal: Hubertus Breier (CTO), Matthias Lapp (CEO) and Richard Lee (CEO APAC) / Source: Lapp