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Adani Enterprises Ltd (AEL), the flagship company of leading infrastructure conglomerate Adani Group, on Friday announced a long-term tie-up and signing of a partnership agreement with Japan's Kowa Company Ltd, a diversified group
The pact involves joint cooperation in common areas of business such as infrastructure and trade in both Japan and India.
According to the “Business Alliance Agreement,” Kowa will facilitate the Adanis' initiation to do business with Japanese firms and help the Indian conglomerate develop its key businesses such as ports, shipping, coal mining, transportation of coal and power.
The pact will also empower Kowa to act as a first contact for the Adanis' business operations in Japan. The Adanis will act in similar capacity to facilitate Kowa's business interests in India. The agreement was signed between Mr Yoshiro Miwa, President and CEO, Kowa Company, and Mr Gautam Adani, Chairman of the Adani Group in Japan, a company spokesman said here.
Commenting on the business alliance agreement, Mr Adani said the partnership will help his Group foster new business ties and expressed the hope that Kowa will help the Adanis derive synergies for fast-track growth in the highly competitive APAC region. The Adani Group's decision to expand business in Japan comes soon after the Group's, on January 25, signing a definitive agreement for setting up a port and railway infrastructure in Indonesia. In the recent past, the Adanis had announced plans for coal mining and transportation in Australia.
The Adani-Kowa business alliance is an overarching one and includes several businesses for both the partners to explore together, in Japan and India. Kowa would also play a significant role in attracting investments from leading Japanese firms to the Special Economic Zone (SEZ) at Mundra, on the western coast of India.
The tax-free zone is being developed by Mundra Port and SEZ Ltd, another Adani Group company. Kowa will help AEL procure heavy engineering machinery for thermal and solar power generation, ships and tugboats.
Tug boat purchases
Earlier this month, Adani Shipping Pte had acquired two capsize vessels to bolster the infrastructure major's integrated logistics coal chain.
In line with this development, AEL will buy another five tug boats from Kowa to be deployed at Mundra and Hazia ports in Gujarat. Kowa will also facilitate purchase of two new capsize cargo vessels of 1.80 lakh DWT each for the Adani Group meant for loading dry cargo like iron-ore, coal, grains and other materials.
Established in 1939, the Kowa Company Ltd is a diversified business house in Japan with interests in sectors such as trading, shipping, pharmaceutical, industrial and chemicals, textiles and apparel.
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