The Hindu Business Line : `Japanese cos to step up investments in India'

Advantage India
Seventy-one per cent of the surveyed Japanese companies in India are planning to increase their investments including companies such as Suzuki, Honda and Toyota.
Indian companies too, are exploring Japan as an investment opportunity.

New Delhi , June 13

Bullish on their Indian operations, a majority of Japanese companies in India are planning to step up their investments in their Indian subsidiaries, according to a report released by the India Brand Equity Foundation (IBEF). The study, titled, `Proven Strategies: Japanese Companies in India', which surveyed 25 successful Japanese organisations in India, highlights best practices adopted by Japanese companies in order to succeed in the Indian market.

According to the report, 71 per cent of the surveyed Japanese companies in India are planning to increase their investments including companies such as Suzuki, Honda and Toyota.

Indian companies too, the report suggests, are exploring Japan as an investment opportunity. It is estimated that around 70 Indian IT companies have already established their offices in Japan.

The Minister of Commerce and Industry, Mr Kamal Nath, said: "The companies profiled in the report are a small sample of 300 plus Japanese businesses thriving in India today. I invite more Japanese companies to put their faith in the world's fastest growing free market democracy."

Mr Nath would be releasing the Japanese version of the report in Tokyo on June 14 at the India-Japan Business Summit being held on the eve of the World Economic Forum's East Asia Summit.

The findings of the report state that while sectors such as transportation (28 per cent), telecommunications (18 per cent), fuel (14 per cent), chemicals (12 per cent), and trading (6 per cent) have attracted significant Japanese investments, other sectors such as pharmaceuticals, health drinks, pulp and rice processing too are gaining momentum.

Further, the report points out that a majority of the Japanese companies, which entered the country through a strategic partnership with an Indian company, apart from transferring the technical expertise, have also begun to establish their R&D base in India.

Additionally, according to the report, numerous Japanese companies in India are planning to expand their production capacities, increase product portfolio, target new consumer segments and increase market share in India.

Mr Ajay Khanna, CEO of IBEF, said: "There is an ideal match between the technology and finance of Japan and the skilled and relatively inexpensive labour of India. This can be harnessed further to deliver quality products to the world at competitive costs."

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