india growing japanese interest 2012.1.31

8/3/2019 India Growing Japanese Interest 2012.1.31

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India-Japan Trade and Investment

The Growing Dimensions

Halasi Gergo

31stof January, 2012


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India: Growing Japanese Interest

Indias import from Japan

Indias export to Japan

Japan is among Indias top 5 trading partners

2.2

1.8

2.7

3.2

4.1

1.5

1.91.7

2.12.5

Growing Indo Japan Trade (US$ billion)

4.1

4.5

20062001 2002 2003 2004 2005

Source: Ministry of Commerce, Government of India


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Only by totaling 27 FDI projects reported in Japanese media, Japans FDI to Indiaamounted to around US$ 5.5 billion over 5 years from 2006 to 2010

150.8 149.6 125.9 139.8

254.9

Japanese FDI inflow into India (US$ million)

515.5

20062001 2002 2003 2004 2005

Source: Ministry of Finance, Japan


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Maruti Suzuki

Toyota

MCC PTA

Nissan Motors

Honda Siel Cars

Asahi India Glass

2546

386

364

231

175

111

Major Japanese FDI Projects in the Pipeline (2007-2012)

Source: Embassy of Japan in India, New Delhi


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India maintained its 2nd rank among Promising countries/regions For businessdevelopment in the Medium term for Japanese Manufacturers overseasbusiness operations

India achieved this for the first time in 2005

2006 2005 2004 2003 2002

1 China China China China China

2 Thailand Thailand Thailand

3 Vietnam Thailand USA USA

4 Thailand Vietnam Vietnam Vietnam Indonesia

5 USA USA USA Vietnam

6 Russia Russia Russia Indonesia

7 Brazil Korea Indonesia Korea Korea

Source: JBIC report on Japanese Manufacturers' Overseas Business Operations (2006)


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Spread and concentration of Japanese Companies in India

Source: Embassy of Japan in India, New Delhi

DelhiNoida

GurgaonFaridabad

Mumbai

Pune

Thane

Aurangabad

Chennai

Bangalore

Hyderabad

Thiruvananthapuram

Kochin

Kolkata

Haldia

BhubaneswarBarodara

DelhiNoida

GurgaonFaridabad

Mumbai

Pune

Thane

Aurangabad

Chennai

Bangalore

Hyderabad

Thiruvananthapuram

Kochin

Kolkata

Haldia

BhubaneswarBarodara

Major Japanese clusters

Location No. of Companies

Delhi 103

Noida 21

Hyderabad 11

Pune 18

Kolkata 12


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Stories of Japanese Success in India

Hitachi entered Indian power generation equipments market in 1948

Presently seven operating companies in India

Hitachi India (holding company for India operations)

Hitachi India Trading

Hitachi Home Life & Solution India

Hitachi Data systems India

Hitachi Koki India

Hitachi Metaglas

Hitachi Metals

In 2005 Hitachi established its Global Solution Centers in Hyderabad andBangalore to provide customers global outsourcing solutions leveragingIndias vigor in this field

Hitachi India


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India's largest automobile company

A joint venture with of Government of India with Suzuki Corporation of Japan

The first cars rolled out on 14th December 1983

Maruti reached a total production of one million motorcars in March 1994 andcrossed two million mark in 1997

The success of the joint venture led Suzuki to increase its equity from 26% to40% in 1987 and further to 50% in 1992.

Government now holds only 18.5 per cent in Maruti, while Suzuki has 54.2

per cent

Aims to increase its annual car sales to one million units by the year 2010

Maruti is planning to invest US$ 1.5 billion to build a new car plant, a dieselengine unit and a transmission facility

Maruti Udyog


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Indias largest and one of Asias largest manufacturers of automotive safety glass

Total production capacity of Indian manufacturing facilities is 2.5 million car sets

Sole supplier to almost the entire Indian passenger car industry

Enjoys a market share 81 % in the automotive glass segment

Significant presence in the after-market, with a market share of over 50 percent

Exporting auto glass to after-market in Europe and Pakistan

AIS Float Glass enjoys a total market share of over 20% in the Indian float glass industry

The company registered annual sales of US$ 173 million in the financial year 2006

Asahi India


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Started business with sales of fax machines and copiers in 1997

Initially there were only 150 agents in 14 branches

In 2004, launched digital cameras and digital video camcorders focusing professionals andamateurs

Canon now operates through 7 national retail chains and 28 city chains.

It has 227 flagship stores including 140 IT Imaging Zones, 40 Digiclick Zones and 30Canon Care Centres

Plans to increase these to 442 by the end of 2007

Canon has touched a turnover of US$ 100 million (Gross proceeds) in the financial year

2006

It now has a market share of 40% in Digital-SLR cameras20% in Digital copiers and Digital Cameras

Canon India received its 151st product award in Oct 2006

The company crossed the 1 million customer mark in India in December 2006.

Canon India


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100 % subsidiary of Sony Corporation, Japan

Entered India in 1995

Operates through a III tier distribution model of retailer, corporatepartner and IT retailers.

It has a distribution network of 4,500 dealers and distributors, 58 SonyWorld outlets, 112 Sony Exclusives and 17 direct branch locations

Sonys sales activities are concentrated around the metros and the Bclass cities only.

Present expenditure in advertising and marketing accounts 4-5 % ofturnover

It test market its products and maintain continuous consumer researchthrough the Sony World outlets

Of late, focusing on smaller retail formats-Sony Digital Kiosks target atthe growing young consumer groups

Sony India


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Founded in 1984 as a joint venture between Indian-owned Hero Cyclesand Japan's Honda Motor

Delhi-based Hero Honda has grown its sales 730 percent in the past eight

years, to US $1.9 billion in 2006

The company now commands a market share of nearly 50 percent

Hero Honda sold more than three million unit of two wheelers in thefinancial year 2006

Indias largest two-wheeler maker is planning to invest US$ 137.5 millionin capacity expansion

Hero Honda has manufacturing facilities in Gurgaon and Dharuhera and isplanning to establish units in other two locations

Honda


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Thank you for your Attention


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Questions Please

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