Just in time for our 75th company anniversary, the AZO Group has significantly expanded its international presence. By taking over our previous representative partner Vedic Pac Systems in India, we have taken an important strategic step towards strengthening our position on the Asian market. This step underlines our commitment to global growth and the promotion of local expertise.
The decision in favour of the Indian market was no coincidence, as Lukas Zimmermann, Business Development AZO Holding, reports. India recorded considerable economic growth in 2023 with a GDP growth rate of 8.2%, significantly exceeding the original forecasts. According to Rajesh Nath, Managing Director of VDMA India, the country is experiencing strong growth across all sectors, particularly in the construction sector, which is being boosted by extensive infrastructure projects by the government. The growing middle class, which is expected to comprise around 300 million people by 2027, also offers enormous market potential.
Daniel Auerhammer, Technology & Technical Director responsible for the AZO Group and now also for Vedic Pac Systems, emphasises: "With this integration, we as the AZO Group are securing access to a pool of highly qualified specialists in the field of software development and programming. India is considered a centre for IT expertise and innovation. This strategic move enables us as AZO Group to expand our development team and benefit from the skills and knowledge of Indian OT specialists. This should accelerate the development of new products and continuously improve existing software solutions.
A decisive factor for the takeover was also our endeavour to fulfil customer requirements even better. At AZO, we attach great importance to glocal/frugal system applications and the long-term operation of our customers' systems. A competent local sales and service partner is therefore the key to a successful market entry in India. With the integration of Vedic Pac Systems, we have secured this important market access.
Jan-Wilko Helms, Managing Director and responsible for the sales activities of the AZO Group and now also for Vedic Pac Systems, emphasises the strategic importance of this acquisition: "With the takeover of our long-standing partner Vedic Pac Systems, we as the AZO Group are strengthening our initiative in the important South Asian market. This is a strategically important decision, especially in the current geopolitical context. We are taking over a highly motivated sales team that is already very well positioned in the market." Helms adds that this acquisition not only strengthens the company's market presence, but also represents an investment in the future. By integrating the experienced Indian team, we are gaining valuable local expertise and will be able to serve customer needs in the region even better.
This takeover also represents a novelty for us at AZO in that we are retaining the existing structure of Vedic Pac. In addition to the broad positioning in numerous industries, we now benefit from Vedic Pac Systems' special expertise in the confectionery sector - which will be particularly important for our activities in the region. For this reason, the company will now operate under the name Vedic Pac Systems, a Member of AZO Group.
"The integration of Vedic Pac Systems into the AZO Group is an important milestone in our company's global growth strategy. We want to further strengthen our innovative power and expand our market position through close cooperation and dialogue between the sites," says Lukas Zimmermann.
We are confident that this step will benefit both us as a company and our customers worldwide.