TÜV Rheinland setzt auf berufliche Bildung in Indien

TÜV Rheinland focuses on vocational training in India

TÜV Rheinland is acquiring the Indian company NIFE (NIFE Sole Proprietorship).

NIFE is a major provider of vocational education, a strongly growing market in India. NIFE is currently already present in seven Indian states and 70 cities. Overall, 300 trainers for education and vocational training are working in the areas of fiber optic technology, elevator technology, fire protection and safety technology.

Dr. Manfred Bayerlein, Chief Executive Officer (CEO) of TÜV Rheinland AG: "The acquisition of NIFE constitutes a significant step forward in the Indian market. Our company now has more than 900 employees in India, one of the most rapidly growing national economies in the world. In addition, TÜV Rheinland NIFE Academy is a key component of our strategy for 2017."

The Indian training market has major potential since it does not have a formal training system for tradespersons, technicians or skilled workers like the vocational training system in Germany, for example. It is assumed that only around 4 % of the population has formal vocational training, another 10 % is trained without a qualification and 86 % of the approximately 1.3 billion Indians do not have any formal vocational training.

TÜV Rheinland NIFE Academy's primary target group is young people between the ages of 17 and 24, and it offers an extremely wide range of courses ranging from seminars lasting several days to university degrees.

Stephan Schmitt, Chief International Officer at TÜV Rheinland AG: "The Indian economy is increasingly on the lookout for trained specialists. Eight out of ten young people to complete a training course at TÜV Rheinland NIFE Academy find a job in a company immediately upon completion."

Siegfried Schmauder, Executive Vice President of Training and Consulting: "Qualified employees are essential for the continued growth of the Indian economy. TÜV Rheinland NIFE Academy forms the basis for rolling out further vocational education courses from TÜV Rheinland in India."

"NIFE acquisition will increase our footprint in India"

It is part of TUV Rheinland's expansion strategy, says Chief Executive Officer (CEO) Enrico Ruhle.

TUV Rheinland, the Cologne-based German multinational that is a leader in testing, certification and consulting, has just acquired NIFE, a Kochi-based vocational training institute with several branches in the country. This is the first such acquisition by the German company's Indian subsidiary, TUV Rheinland India Private Ltd, which is headquartered in Bangalore. In an interview, Enrico Ruhle, CEO and MD, says the company is planning to expand its operations in the country. Excerpts:

How does NIFE fit into TUV Rheinland's scheme of things?

We started our Indian operations in 1996 and we have a lot of testing and certifying assignments in the infrastructure in the country. These include three metro rail systems, airports and ports. We are now expanding our 'training and consulting division' which offers services to industry as well as educational institutions in India. India is a huge market in the field of vocational and industry-specific training.

The acquisition of NIFE, which has dozens of vocational training centres across the country in the areas of fire-and-safety and lift-technology, is part of our expansion strategy. This is our first such acquisition in India.

How is the acquisition going to help TUV Rheinland India?

It will vastly increase our regional footprint. I hope it will also improve our visibility across all our five business streams in India.

Are you going to re-brand NIFE?

We have set up a new entity called TUV Rheinland NIFE Academy Private Ltd. The students completing their training will now get an international certificate issued by the academy.

TUV's association with NIFE will benefit the students, NIFE and the TUV. It will also help the fast expansion of the academy and its training facilities.

What is the extent of TUV's investment in the new company?

We have a controlling stake in the company. TUV Rheinland will provide continuous support to help both the companies leverage new opportunities. It will be business as usual with the same NIFE management team.

As a global company, how do you see TUV's growth in India in the near future?

At present, TUV Rheinland might not be a Fortune 100 company, but we are growing fast globally.

Currently, more than a half of the company's revenue comes from the overseas operations.

India is a huge emerging market for our products and services, particularly in the areas of training, testing, inspecting and certifying. There is a huge potential for growth for the company with local tie-up such as with NIFE.