Japanese program to support organic cotton sector of India

Nearly 30,000 low-income cotton farmers in India will gain improved health and increased incomes by switching to organic cotton production, following a commitment made by two Japanese companies to the Business Call to Action (BCtA).


BCtA is a global initiative that encourages companies to develop innovative business models that combine commercial success and sustainable development. It is supported by several international organizations, including the United Nations Development Programme (UNDP).

Japan-based general trading company ITOCHU Corporation and kurkku – a firm that promotes environmentally conscious lifestyle through sales of sustainably sourced food and apparel – have pledged to improve the income of Indian farmers, their health, and the environment, by scaling up production of organically produced cotton, which is free of synthetic pesticides and chemical fertilizers and has an approximately 30 percent higher market price.

 

The two companies pledged to scale up their Pre Organic Cotton (POC) Programme, which encourages farmers in India to switch from conventional to organic cotton production by guaranteeing to buy the cotton that is organically produced at a price higher than that of conventional cotton. Such a commitment is critical to the initiative’s success since it typically takes three years for farmers to obtain an organic certification; in the meantime, they are growing organic cotton, which costs more to produce, but are forced to sell it at cheaper, conventional cotton prices.

 

During the three-year waiting period, the participating farmers will see a 20 to 30 percent increase in their income, with a projected additional 12 percent increase once their farms gain official international organic certification.

 

“Companies such as ITOCHU and kurkku demonstrate the potential of innovative business partnerships to generate value for companies as well as communities,” said Susan Chaffin, Programme Manager of the Business Call to Action. “This new commitment to the BCtA, the first in recent years by a company from Japan, supports environmentally sustainable agriculture while at the same time increasing income for farmers in India.”

 

Cotton occupies a mere five percent of all farmland in India, yet it accounts for more than half of the country’s pesticide use, adding a financial burden to farmers and causing serious health concerns including skin and respiratory diseases.

Honda CRF250L may hit the Indian Market

Honda CRF250L had earlier launched in the month of May in Japan and it was speculated that the bike may launch in India too considering the fact that the bike not only has a powerful engine but is also fuel efficient. Still, there has been no official word from the company about the bike’s launch in the country but most of the credible publication houses of India in automobile Industry believe hit the market sooner than later. The engine that the CRF250L features has an identical bore and stroke of CBR250R. In fact, majority of the gear ratios are same. What separates the two bikes in terms of engine is the power and the torque output. Seems like Honda focused more on the fuel efficiency factor as the CRF250L gives mileage than CBR250R but compromises on the power and torque results.

CRF250L churns out a maximum power of 23 bhp along with a maximum torque of 22 Nm as compared to CBR250R’s maximum power of 25 bhp and a maximum torque of 23 Nm. The company says that the bike garners a fuel efficiency of 44.3 kmpL when driven at a constant speed of 60 kmpL which would translate into 30 to 35 kmpL in day to day riding conditions.

But fuel efficiency is not the only reason for Honda to launch the bike in the country. Hero Impulse was highly successful in India and made sure that the country entered into a new age of off-road motorcycling. The company therefore can cash in on an unexplored area of the market and take up a major share from Hero who are riding on the success of Hero Impulse. If Honda does succeed, there is a high probability that other major companies may jump on the bandwagon.

Japan seeks relaxation of Indian borrowing norms

Government sources told CNBC TV-18 that  Japan seeks relaxation of Indian borrowing norms.

The relaxation is sought to facilitate Japanese equity in Delhi-Mumbai Industrial Corridor (DMIC), according to the CNBC TV-18 report.

Japan also seeks relaxation of European Central Bank norms for repaying rupee loans, the sources added. The relaxation from ECB is sought for working capital. The country wants relaxation of norms in forex borrowing rules too.

Japan wants to borrow forex overseas for DMIC projects, the government sources told CNBC TV-18. The Department of Economic Affairs has taken up Japan’s request with the RBI, the sources confirmed.
The RBI wants additional details on requests by Japan. India, meanwhile, asked Japan to expedite equity participation in DMIC.
Anand Sharma, the Commerce Minister, asked Japan to invest in DMIC by October.
The CNBC TV-18 report also said that the Cabinet cleared Japan’s 26% equity in DMIC.

Japan court rejects Apple's infringement case against Samsung

Days after winning a stunning patent battle in a US Court, American software giant Apple faced a reverse when a Japanese court today rejected its claim that its south Korean business rival Samsung stole its technology.
The Tokyo District Court in a significant ruling that could cause ripples in Asian market ruled that Samsung Electronics had not infringed Apple INC Smartphone and tablet computer, Kyodo reported.

The US maker of iPhone and iPad had demanded the South Korean technology giant pay damages of 100 million yen, claiming that some of Samsung's Galaxy smartphones and tablets infringe Apple's technology patent related to transfers of music and other data among portable devices.

The Tokyo battle is the latest saga in a global court fight being waged by two rivals.
"The defendant's products do not seem like they used the same technology as the plaintiff's products so we turn down the complaints made by (Apple)," Judge Tamotsu Shoji told the court.

Samsung has denied its rival's claims in a string of similar cases filed across the globe, hailed the Tokyo court's ruling and in a statement said the ruling "confirms our long-held position that our products do not infringe Apple's intellectual property."

The Tokyo ruling comes a week after the iPhone maker won more than USD 1.0 billion in a massive US court victory over Samsung with jurors finding that the South Korean firm had "willfully" infringed on Apple's patents.

The battle in Tokyo focused on Apple's claim that Samsung stole technology used to transfer music and video files, but sought a comparatively smaller damages running into USD 1.27 million. It also sought an injunction to block Samsung sales in Japan.

The US and Tokyo legal turf war comes after a court in Seoul last week ruled that the two business rivals had swiped each other's technology and awarded damages to both the sides.

India seeks Japan's support for National Investment and Manufacturing Zones

 India today sought support from Japan for creating world-class infrastructure in the proposed national investment and manufacturing zones (NIMZs) to boost its manufacturing sector.

During the meeting of Commerce and Industry Minister Anand Sharma and Japanese Minister of Economy, Trade and Industry Yukio Edano, issues related to Delhi-Mumbai Industrial Corridor project were also discussed.

NIMZs will be mega industrial zones with world-class supporting infrastructure. The government is offering a host of incentives like exemption from capital gains tax and a liberalised labour and environment norms to promote these zones. The National Manufacturing Policy proposes to create 100 million jobs by 2020.

Both the ministers met on the sidelines of 44th ASEAN Economic Ministers (AEM) meeting and related meetings at Siem Reap, Cambodia.

"Sharma briefed his Japanese counterpart on the NIMZs and sought Japan's support for creating the infrastructure in the notified zones," a statement by commerce and industry ministry said.

The two sides have also discussed the modalities of release of $ 4.5 billion funds. Japan would invest this in the DMIC project.

"The Japanese concern on relaxation of capital regulations was also discussed and Sharma conveyed the significant progress made on the issue," it said.

India is considering to relax guidelines to encourage Japanese funds to invest in the ambitious $ 100-billion project.

The DMIC project is important as it would help in boosting investment in infrastructure sector and would also encourage overall economic growth of the country which has slipped to a nine-year low of 6.5 per cent in 2011-12.

The project, which was conceptualised in 2006, is being developed in collaboration with Japan as a manufacturing and trading hub.

Both the sides have targeted for $ 25 billion bilateral trade by 2015. The figure stood at $ 13.72 billion in 2010-11.

NEC, JICA to support “smart villages” in India

NEC Corporation and the Japan International Cooperation Agency (JICA) will start studies to support "smart village" development in agricultural areas of India, according to an announcement by NEC, a leader in the integration of IT and network technologies.

The Japanese IT giant announced that the study seeks to improve living conditions for the needy residents of rural areas as part of the JICA's "BOP Business Feasibility Study Assistance."
This study will include activities such as the introduction of hydroponic agricultural practices to communities in Maharashtra and Karnataka states, and testing of pesticide-free vegetable production.

The company said that the hydroponic agricultural techniques utilize technologies from GRA that were used to treat salt damaged land in communities in Japan's Miyagi prefecture. These were impacted by the tsunami following the Great East Japan Earthquake of March 2011.

NEC's energy management systems (EMS) will also be introduced to help stabilize power supplies needed for operating hydroponic equipment.
A partnership with the College of Agriculture, Pune is also on the cards. This relationship, said the Japanese company, will enable students to gain production management experience through on-the-job training with hydroponic technologies.

All the above-mentioned agricultural activities are being coordinated in cooperation with the non-for-profit Institute for Cultural Affairs Japan (ICA), said NEC in its statement.
NEC believes that these technological innovations will give rise to "smart villages," where living conditions improve and disposable income becomes more available from higher earnings.  By 2015, NEC aims to see the commercialization of hydroponic techniques result in an increase in business and employment opportunities for the men and women of India's targeted agricultural communities, said the company.

Japanese auto parts maker sets up unit at Sri City SEZ

Automotive components maker Piolax India, a subsidiary of Piolax of Japan, inaugurated its first Indian facility at the Sri City multi-product special economic zone in Andhra Pradesh.

The plant is slated to commence commercial production shortly. Piolax is a global manufacturer of auto parts such as industrial fasteners, coil springs, flat springs and compact units. It has facilities in the US, the UK, China and Thailand.

Sri City, located some 55 km from Chennai, already has about 80 units from 23 countries. Built on the work-live-learn-play concept and designed by Jurong Consultants of Singapore, it has well demarcated industrial zones, including automotive, engineering, logistics & warehousing, aerospace, electronics, biotech/pharma, IT and renewable energy.

“We are happy that out of the 12 Japanese firms setting up units at Sri City, Piolax will be the third to commence production, with the remaining in various stages of construction,” said Ravindra Sannareddy, Managing Director of Sri City.

The unit is expected to hire 200 people.

Sri City is also setting up country-specific enclaves to offer specific and exclusive facilities to companies from these countries, a company statement said.

Japan's NTT eyes more acquisitions, growth in India

The NTT Group, which bought Mumbai-based Netmagic Solutions early this year, plans to continue shopping. It is interested in buying companies that will propel growth of its IT services segment in India and abroad. "For both China and India, we are making investments to grow, both organically and inorganically through acquisitions, to address global delivery needs as well as the significant domestic business," said Jeffrey Womack, head of marketing and alliances for NTT Data, the North American arm. With a string of acquisitions, NTT is turning the conservative image associated with Japanese firms on its head. In the past few years, NTT Data alone has acquired six companies.

But with a debt ratio of 0.38 and a deep pocket of nearly $2 billion in cash, the Japan-based firm packs enough ammunition to make even more purchases. "India is very important to us. It continues to be the foundation of our global delivery strategy. Till last year, India was supporting only North America, but now it is a global delivery hub, supporting clients in EMEA (Europe, Middle East and Africa) and Asia," said Womack, the second high-ranking executive from NTT Data to visit India after CEO John McCain in January.

He sees China, where NTT Data currently employs around 4,000 people, as the second global delivery location. In India, NTT Communications, another NTT Group company, acquired data centre and cloud services provider NetMagic in January for $128 million (. 740 crore at current exchange rates).

Before this deal, NTT Data had bought Intelligroup in 2010 and Vertex in 2007, giving the group a presence in six Indian cities. Its global buys, including Keane, further boosted the Japanese group's presence in India.

But despite these buys, NTT Data still lags behind other multinational technology-services firms, such as Capgemini and Accenture, which have aggressively ramped up their India presence over the past two-three years. While Capgemini employs over 30,000 Indians, Accenture's headcount exceeds 60,000.

NTT Data, which now has a workforce of 10,000 in India, will soon be home to the sharedservices operation that the company is building, Womack said. The centre will first run operations like human resources and IT support for NTT Data internally. Later, this will be extended to the whole NTT Group, he added.

Early this year, the company integrated all its US acquisitions under the NTT Data brand. With $16 billion in revenues , NTT Data now ranks as the sixth-largest IT service provider and systems integrator globally, according to research firm Gartner. "Having one brand name allows us to represent our capabilities better," said Womack.

India: NEC sets up strawberry project in Pune

NEC Corp has announced plans to set up an organic strawberry cultivation project in Pune, India. The idea, it says, is to create jobs in the area and to spread the NEC brand.

NEC is working in cooperation with GRA, a non profit organisation that has been growing strawberries in Miyagi prefecture in Japan. The non profit has been growing its fruit on land damaged by the tsunami last year.

The Indian project will commence in September. The company will construct 100 M2 greenhouses in two villages. The cultivation will begin next year, with importer seedlings from Japan.

NEC is hoping to sell the fruit to supermarkets and restaurants, at high quality prices. NEC expects annual sales of more than 2 million yen ($25,000) for each association.

The money generated by the project is intended to introduce NEC products to the villages, such as power systems, run with solar power as well as education and medical care that utilises the latest information technology.

Osamu Suzuki says Maruti Suzuki does not intend to put an end to the contractworker system at its car plants

Maruti Suzuki does not intend to put an end to the contractworker system at its car plants in India, Suzuki Motor Corp (SMC) chairman Osamu Suzuki said in an exclusive interview. At its Manesar plant, where an human resources executive was brutally killed and several other employees injured on July 18, there were about 1,800 contract workers in addition to 1,900 regular employees and 200 trainees, Suzuki said.

In Japan, contract workers comprise 30 to 35 per cent of its workforce, and Maruti Suzuki will try and move that ratio from the current 50:50, he said. But Suzuki, who met Haryana chief minister (CM) Bhupinder Singh Hooda during his India visit, made clear that he is surprised that authorities have not got to the "root cause" of the violent worker uprising.

"This incident happened on July 18th; today is August 29th. More than one month has passed. Many people have been arrested but I cannot believe that the reason for the incident is not yet clear."

Suzuki further said that he met 93 of the 96 employees hurt in the violence; the other three had their legs broken by the rioters. Taking a tough stand on the people involved in the violence, he said, "As far as the criminals are concerned, they will be caught and prosecuted and they will lose their jobs; so, they won't be getting any benefit from this."

Maruti Suzuki will change the way it hires contract workers, Suzuki further added. In Japan, "we have all the history and antecedents of employees like their educational qualifications, career history, home address and names … we are also checking their police or criminal histories.

But here, whoever contractors bring has been working without any conditions. So, I think, we would strictly implement these systems and Maruti Suzuki will also do the supervision." HAS the violence at Manesar changed his view about investing in India? "There is no change in my thinking. It has been 30 years since we established Maruti Suzuki .... I consider India my second home. Mrs Indira Gandhi was interested in manufacturing small cars; at that time, our views matched. Maruti is part of the Suzuki family."

Was he shocked by what had happened? "I think the way the (Maruti) union has taken up its dispute with the management is not at all correct. I don't consider this a union-management labour issue; I term it as a criminal act, and, of course, it shocked me," Suzuki said.

"From 1945, when Japan lost in World War Two, till 1960, we also had labour troubles So, I have also experienced labour problems (in Japan).... I don't think there was any problem or confrontation between Maruti Suzuki and the labour union." Suzuki went into meticulous detail about market share, product lines and worker numbers.

At one point, he asked Maruti Suzuki managing director and chief executive officer Shinzo Nakanishi for a sheet of paper so he could write down details and draw diagrams. Suzuki Motor had plants in several countries. Was India one of the most difficult to work in? Suzuki gave his first answer in English. "No comment," he said and laughed.

Japan-based Dentsu partners Taproot India for majority stake acquisition

 Japan-based advertising company Dentsu Inc has collaborated with Taproot India Communication for buying majority stake in the Mumbai-based firm. Dentsu will purchase 51% stake in Taproot. 

Dentsu said, “Partnering with Dentsu will enable Taproot India to offer a more comprehensive bouquet of services to their clients and across larger market geographies.”

Taproot will be continuing to run independently under the management control of its present leadership.

Taproot India Co-Founder and Chief Creative Officer Agnello Dias said, “With Dentsu as our partner we feel we can scale up several areas of our operations very quickly without losing what has been working for us so far.”

Asean to resolve trade issues with Japan, India

Asean needs to resolve trade and investment issues as it embarks on a regional comprehensive economic partnership, secretary-general Surin Pitsuwan says.
Speaking on the sidelines of the annual meeting of Asean economic ministers, Surin told The Cambodia Herald that such a partnership "will certainly be helpful" to Asean.

He said, however, that Asean had "left over issues" with its dialogue partners, "particularly Japan in services and in investment and India in services and investment.
"We would like to get on with the negotiations so we can go into the regional architecture, which is expected to be launched at the end of this year, with a clean plate.

"We will do our best in order to finish our left over issues, particularly with the two partners Japan and India."
The former Thai foreign minister said Asean was also discussing how to improve the intellectual property environment to promote protection and technology transfers.
"More and more our exports are exported with intellectual property content. We certainly would like to make it competitive, make our region more creative and more innovative," he said.

Asean's discussions with the director general of the World Intellectual Property Organisation this week are "very important," he said.
Surin also highlighted the importance of small and medium-sized enterprises in Asean, which he said accounted for an estimated 90 to 95 per cent of regional economic activities.
"They are very important in generating employment. They are important in contributing to the GDP. Twenty per cent of our exports are from SMEs," he said.

"Asean integration will also need SMEs crossing borders to invest in each other. The trade between and among among ourselves is only 25 per cent of our total trade. So SMEs certainly can increase that percentage. Their participation and enthusiasm in understanding the process of the economic community development is extremely important."
Regarding the establishment of the Asean Economic Community by 2015, "everything is on course," Surin said. "We will have to accelerate a bit more. So far we have achieved almost 72 or 73 per cent of all major instruments we need in order to form the economic community."

But "we also have to go into the actual implementation of these agreements," he said. "That's when all these member states have to look inside and coordinate among their own agencies, work with their own legislatures in order to come up with enabling legislation and translating what ever we have agreed on at the regional level down to the implementation at the member states level.
"There is a challenge there," the secretary general said "That is the challenge in every integration grouping anywhere in the world, translating the regional goals down to national implementation and legislation."

Toshiba buys India's L&T Plastics Machinery

Japan’s Toshiba Machine Co. Ltd. is buying one of India’s largest injection molding machine producers, L&T Plastics Machinery Ltd., in a move that will significantly expand its presence in a market of growing importance to Japanese firms.
L&T’s parent company, Indian conglomerate Larsen & Toubro, announced the sale in an Aug. 27 filing to the Bombay Stock Exchange. Terms were not disclosed.
The investment is part of a significant expansion into developing markets by Toshiba, which is opening an injection press factory in Thailand and has a facility in China, in addition to Japan.

Japanese manufacturers, including the country's plastics machinery sector, have been investing heavily outside the country in the last few years, to escape Japan’s higher costs and build business in emerging markets like India.
For example, by some estimates, Japanese car makers have more than 50 percent of India’s automobile market, and that’s expected to attract more Japanese component suppliers.

Larsen & Toubro, a major Indian conglomerate with US$12.8 billion in total sales, said it is selling the plastics machinery business as part of its “strategic road-map to exit non-core businesses and rationalize its portfolio.”
It said the machinery unit had sales of 206 crore (2.06 billion rupees or US$37.1 million) with profit after tax of 11 crore (110 million rupees or US$1.98 million) in the fiscal year that ended in March.

“We are a fairly large technology, engineering, construction and manufacturing company, whereas, plastic is a much smaller business in our wide portfolio,” said S. Raghavan, a senior vice president with Larsen & Toubro and head of the company’s machinery & industrial products unit, which includes the plastics business.
“Moreover, even the smaller players or companies [in the injection press market] are manufacturing electric injection molding machinery, whereas [L&T] is focusing on hydraulic based injection molding machinery,” he said in a telephone interview from Chennai.

Asked about L&T’s recent results, Raghavan replied: “The first quarter of the current fiscal [year] was not good, sales were down [compared to last period a year ago]. But we hope to maintain or marginally improve the sales turnover in the fiscal 2012-13.”
L&T’s makes injection presses for a variety of markets and enjoys strong brand recognition in India.
The chief executive of L&T Plastics Machinery, P. Kailas, declined to comment on the sale.
In the L&T statement, it said Toshiba was making the purchase “as part of its strategy to expand globally with a focus on developing markets.”

In an email to Plastics News, Toshiba, based in Numazu, Japan, said the purchase will give it factories in Japan, China, Thailand and India.
It said L&T Plastics Machinery, based in Chennai, India, has made about 660 presses a year in recent years. Toshiba said it wants to complete the purchase by the end of October, and does not need approval from the Indian government.
Measured by sales, L&T’s business would at present seem to be only a relatively small addition to Toshiba, which had global sales US$592.7 million in its molding machinery unit in the year ending March 31, 2011, the last period figures are available on the company’s website.
It reported income of US$16.1 million in its molding machinery division in that period. The molding machinery business includes plastic injection and extrusion machines, along with die-casting machines.
In 2010, Toshiba Machine adopted a new business plan that it said would “launch new sales and service bases primarily in the Asian markets” and seek to develop more systems integration, relying less on only selling machines.

“Emerging economies in Southeast Asia, India and South America are steadily gaining prominence, necessitating a major shift from the conventional business models,” Toshiba said.
L&T’s plastics machinery unit was formed in 2000 as a joint venture with Germany’s Demag Ergotech GmbH, but L&T bought out the German partner in 2009.
L&T was also one of the initiators of the Indian government’s 2009 decision to enact steep anti-dumping penalties against some Chinese-made injection molding machines.

Japan buys stake in India infrastructure firm

Japan said Tuesday it would buy a major stake in an Indian company at the centre of a huge infrastructure building project, marking Tokyo's latest investment in the South Asian giant.

The government-linked Japan Bank for International Cooperation would purchase a 26 percent stake in the Delhi-Mumbai Industrial Corridor Development Corp. (DMIC), Japanese industry minister Yukio Edano said.

The Indian firm has been charged with building massive projects linking Delhi and Mumbai including a freight railway between the two Indian cities.

Other projects include industrial parks and power stations that are expected to be built around the rail line.

In December, Japanese Prime Minister Yoshihiko Noda promised roughly $4.5 billion in financial support for the state-funded Indian firm's projects.

The stake in DMIC will cost the Japanese bank 260 million rupees ($4.7 million) with one of its executives to sit on the company's board.

The investment comes as Japan looks to boost its footprint in Asia's biggest democracy amid simmering diplomatic tensions with neighbouring China and South Korea.

However, deadly labour unrest at a plant operated by Maruti Suzuki, India's largest carmaker, which is owned by Japanese automaker Suzuki Motor.

A riot by workers last month at the Maruti vehicle factory led to the death of a manager and injury to 96 supervisors.

India's ONGC in talks with Mitsui to source LNG-chief

India's Oil and Natural Gas Corp. has signed an initial business agreement on LNG with Japan's Mitsui Group, the Indian company's chairman Sudhir Vasudeva said on Tuesday.
"It is a broad-based MoU for the entire value chain of LNG ... right from sourcing to liquefaction to marketing. We will work with them to find out the opportunities," he told reporters.

Vasudeva also said the state-owned company in its next board meeting will consider farming out stake in one of its east coast blocks to Japan's Index. (Reporting by Nidhi Verma,; Editing by Satarupa Bhattacharjya)

Japan-ease for Ahmedabad roads

If you have spent a good time of your day negotiating Ahmedabad's traffic, got stuck in jams and have sweat and swore on the edgy autowallas, or were not aware of the road having been dug the previous night, do not worry, the Japanese are here.

For the first time in the country, the Japanese government will aid an Indian city - Ahmedabad, in implementing an Intelligent Traffic System (ITS). From getting real-time traffic diversions on your mobile phone, to spending less time on traffic lights, reducing accidents to live updates on electronic display boards at traffic junctions or an accident, the system will do it all.

"There are radio sensors to calculate the traffic density at any junction. The data is relayed into the ITS system which then co-ordinates with other traffic lights within a fixed perimeter. The traffic line which has the highest vehicle density will go green first to ease traffic," says a senior urban development official.

He adds, "On a smartphone a citizen can log into a website to watch which roads are dense with traffic in real time and also know the speed of vehicles there. One can mail or twitter the current traffic information in this application contributing to updates," he adds.

Apart from variable message signs at traffic junctions, the ITS system can be u
pgraded with an automatic number plate recognition software, speed cameras, and CCTV systems for security.
"At an advanced stage, the ITS application can integrate live data and feedback from a number of other sources, such as parking guidance for different areas and weather information, as well," says the official.

Japanese firms keen to work in industrial, manufacturing clusters: Jetro

Japanese companies are keen to work with their Indian counterparts in the two mega industrial corridors and in the development of manufacturing clusters in South, according to Japanese External Trade Organisation.

Director General, Manufacturing and Environmental Engineering, Jetro, Yasuhide Yamada, said that Japanese companies have begun to work on two manufacturing clusters in Gujarat and Rajasthan partnering Indian companies.

“We are now looking at setting up two more manufacturing clusters in South, possibly in Tamil Nadu and Andhra Pradesh,’’ he said.

Yamada, who led a high-powered Japanese industrial delegation, which included Kawasaki Heavy Industries, Hioki, Hitachi, Nidec Chuou Kenkyujo, Sketch Co., Ltd and Yagai, recently to Hyderabad, said most of the Japanese companies are keen to partner their Indian counterparts to set up local manufacturing units.

“As a part of this initiative, two clusters are being set up in North and we plan to have similar clusters in South. The new industrial corridors coming up between Mumbai and Delhi along with manufacturing zones and similar corridor in South between Chennai and Bangalore, offer us the opportunity to take part in various aspects of the project. This includes development and also financial support from Japanese International Cooperation Agency (JICA),’’ he said.

During their interaction with Business Line on the sidelines of CII Energy Summit, Yamada said that Jetro’s focus has been on encouraging foreign direct investment into Japan and also facilitating the growth of local companies in other countries.

Referring to the Perform, Achieve and Trade scheme in India that encourages heavy energy consuming industries to improve efficiency, Yamada said that Japanese companies have acquired considerable expertise in this area.

They can offer their expertise and products that could help Indian firms streamline their operations for energy savings, he said.

The bilateral trade between Japan and India, estimated to be $13 billion, is projected to grow to about $25 billion by 2015. Significantly, the trade doubled in the last three years.

Suzuki has no plans to withdraw operations from India

Japan's Suzuki Motor Corp. has announced that it has no plans to withdraw its operations from India or stop production at Manesar plant despite suffering the one of worst case of industrial unrest in the company's history.
Agitating workers of Maruti Suzuki's Manesar plant in Haryana went violent on July 18th and killed one senior official and left nearly one hundred others injured.

Japanese manufacturer's Chairman Osamu Suzuki, who paid a visit to India in wake of the riots by workers at the Manesar plant, said that Suzuki wanted to maintain the love of India's citizens by producing more vehicles for them.
Confirming the company's stance, Mr. Suzuki said, "Japan's Suzuki has no plans to withdraw its operations from India."

Following the bloody riots, the management fired more than 500 of its 1,528 permanent workers who were allegedly involved in the riots. The riot-hit plant restarted production on 21st of August under a heavy police security.

During his visit, Mr. Suzuki met Gujarat chief minister Narendra Modi and confirmed that the company had plans to start production in Gujarat sometime in 2015, subject to market conditions. However, he refused to reveal details of the company's plans in the state.

Now, Rajasthan to pay interest on unused loan to Japan International Cooperation Agency

Japan funding for the Rajasthan Forestry & Biodiversity Project (RFBP) may have been delayed for less than three months but not a blade of grass has moved despite the project receiving funds for over one year. The project on afforestation was signed in June 2011 with the Japan International Cooperation Agency (JICA) but till date it has not been inaugurated by the state government
.
As a result, instead of availing the Japanese funding for ecological betterment, now the state would have to pay to JICA, 0.10% commitment charge calculated on prorated daily basis on the unused amount. So far, out of the loan agreement Rs 1,152.53 crore, not a penny has been used in this financial year and only Rs 85 lakh was spent in the last financial year. The Japanese Official Development Assistance (ODA) loan according to the contract signed was for a term of 40 years at an interest rate of 0.65% to be re-paid with a moratorium of 10 years.

"Japanese ODA loans are made possible by using the public funds in Japan. In order to promote early realisation of the project and to increase the incentive of implementing the project within the set date for projects pledged after October 2007, commitment charge will be accrued from 120 days after signing of the loan agreement. If the loan agreement is not effectuated within 120 days from the signing date, the commitment charge accrued up until the date the agreement comes into effect should be retroactively paid on the date of the first repayment under the loan agreement," the JICA loan agreement reads.

While the RFBP phase I was implemented by the forest department, phase II of the project with an outlay of Rs 1,152.53 crore was to be implemented under the society mode. The phase II was also to be implemented in accordance with the JICA principle was by first establishing a project management unit (PMU) as an independent autonomous society for the exclusive implementation of the project as per the provisions of Society Registration Act 1958. But till date, no PMU is set up.

"That is precisely the problem. This project had to be implemented with the help of local committees and NGOs. And where is the government interested in empowering the grassroots?" a source rued. According to the detailed implementation report, the forest department has to by now hired a project management consultant, finished selecting batch II of the target village, finished advance work in afforestation, finished training of NGOs, village level workers, but all that is only on paper.
"With a focus on the Millennium Development Goals, micro-planning for the project was to be carried out at the village level involving local communities from the beginning. This was to work towards securing community participation and ensuring their active involvement in the development of forest and community land, but all that is not even thought about," the source said.

The RFBP was to be implemented during an eight-year period from 2011 to 2019 financial assistance of the Japan Bank for International Corporation (JBIC). The project was to be launched with objectives of restoring ecological status of Aravallis, conserve biodiversity, check desertification, improve moisture and protect infrastructure in the desert areas. It was also aimed at providing fuel/fodder grass, timber and non-timber forest products along with employment generation in the rural areas.

Osamu Suzuki’s Gujarat love affair

Japan's Suzuki Motor Corp Chairman Osamu Suzuki today visited the site here where its subsidiary Maruti Suzuki India plans to set up a new manufacturing unit at an investment of Rs 4,000 crore. Accompanied by Maruti Suzuki India Chairman R C Bhargava, company Managing Director and CEO Shinzo Nakanishi and state government officials, Suzuki inspected the 700-acre site besides meeting local people. "He (Osamu Suzuki) took an idea of the land allotted to us by the state government. The site and location of the plant is very good," Bhargava told reporters.

Suzuki Motor Corp. Chairman and Chief Executive Osamu Suzuki, center, receives a traditional welcome during his visit to the proposed site for Maruti Suzuki India Ltd’s (MSIL) manufacturing facility at Hansalpur near Mehsana. AP

Osamu Suzuki goes through the site map with an unidentified official. AP

The visit was covered extensively by the media. AP

Suzuki, center, inspects the proposed site where the motor company will build a new manufacturing facility in Gujarat by 2015-16. AP

Planning is in full flow as the country’s largest carmaker Maruti Suzuki India, a subsidiary of Japan’s Suzuki Motor Corp. look forward to increasing its manufacturing capacity. AP

Suzuki leaves after a meeting with Gujarat state Chief Minister Narendra Modi at Gandhinagar. AP

Japan to invest in Chennai-Bangalore industrial corridor

“It is preparing a comprehensive integrated master plan for the development of CBIC”

Despite the violence in the Suzuki plant at Manesar in July, the Japanese have no second thoughts about investing in a multi-billion Chennai-Bangalore Industrial Corridor (CBIC), according to government sources, privy to several rounds of talks between Japanese diplomats and Indian officials on the issue.

“They are going ahead with preparations for a comprehensive integrated master plan for the development of the CBIC, with the progress being regularly reviewed by T.K.A. Nair, Adviser to Prime Minister Manmohan Singh,” the sources said.

Upswing in ties

It was during a spell of upswing in bilateral ties two years ago that Dr. Singh and the then Japanese Prime Minister, Naoto Kan, agreed on the concept of an industrial corridor in south India that would mirror the Delhi-Mumbai Industrial Corridor taking shape in northwestern India. The idea was reflected more concretely in a joint statement after last year’s prime Ministerial-level summit meeting — an annual feature now in India-Japan ties — and is due to be reviewed when the Prime Ministers meet for this year’s summit interaction.

However, a cloud was hovering over the project after the July 18 violence at the Suzuki plant in which one official of the Human Resource Department was killed. The response from Japanese diplomats during meetings with Indian government officials was positive in the sense they were satisfied with the State government’s handling of the issue and were convinced the violence was an aberration, said the sources.

The idea has generated considerable enthusiasm in the South India. Andhra Pradesh has sought to be included in the project and sought the CBIC’s extension to the Krishnapatnam port. Karnataka wants the corridor to be extended to Chitradurga and the State government has already commissioned a pre-feasibility study to set up a manufacturing city between Chitradurga and Tumkur.

Although South India has become the hub of Information Technology and automotive sectors besides other industries, the sources said the Prime Minister was keen to put an ambitious project in the pipeline so that it could be operational after a decade. The plan currently includes a dedicated rail freight corridor besides solutions to address the private sector’s complaint of bad roads, poor access to ports and frequent blackouts.

The key projects will include Phase II of the Chennai Outer Ring Road and the Chennai-Bangalore Expressway, the upgrade of airports in Chennai, Bangalore and Sriperumbudur and ports in Chennai and Ennore, a high-speed rail between Chennai and Bangalore and the Avadi rail link.

PMO’s role

The Prime Minister’s Office will be involved in pushing through reforms in “soft infrastructure” such as the cumbersome customs procedures, limited use of IT and automation and imposition of Central Sales Tax.

With the renewed Japanese vote of confidence in the Indian industry, the stage is now set for stakeholder interaction. Many big Japanese names such as NYK Logistics, Sumitomo Corporation, Mitsui, Honda, Toyota, Canon, Komatsu, Sharp, NTT and Santen have been identified and their inputs will form a critical part of the terms of reference of the master plan, whose lead agency is likely to be announced by the time the Prime Ministers meet later this year.

Maruti may double capacity at new India plant

Japanese-owned Maruti Suzuki may double capacity at its planned car plant in Gujarat state, a report says, as it reviews strategy following deadly labour unrest at another major factory.

The Gujarat plant -- due to open 2015-16 -- will be the first for India's biggest carmaker outside the northern state of Haryana, where a riot by workers last month at its Manesar factory led to the death of a manager and injury to 96 supervisors.

Dow Jones Newswires, quoting an unnamed senior Gujarat state official, said initial capacity of the new plant could be as high as half a million cars per year -- twice what Maruti originally envisioned.
Maruti is investing Rs. 40 billion ($727 million) to build the factory. The report late Friday came as Suzuki Motor chairman Osamu Suzuki travelled to the western Gujarat state to meet chief minister Narendra Modi.

Suzuki is on a week-long visit to India to take stock of the situation at Maruti, which is crucial to the Japanese firm's fortunes because it contributes one-third of its pre-tax profit and accounts for half of its production outside Japan.

A Maruti spokesman would not comment when asked about plans to enlarge the initial planned capacity of the Gujarat plant at Mehsana, 100 kilometres (60 miles) from the state's main city of Ahmedabad.

Deepesh Rathore, an analyst at consulting firm IHS Automotive, told Mint newspaper 'there is a sense of urgency to start operations from Gujarat as Manesar has been problematic for them'.

Last month's violence at the Manesar plant, near New Delhi, was the worst since Maruti cars started rolling off assembly lines in India in 1983. Maruti's other factory is located in nearby Gurgaon.

The Indian subsidiary, the country's largest carmaker by sales, lost $9 million a day during a subsequent 21-day plant shutdown, which ended earlier in the week, analysts estimate.

Gujarat, with its long coastline allowing easy exports, has emerged as a popular centre for car production with US giants General Motors and Ford also setting up factories there.

Sony aims for strong foothold in India

In sync with its ambition to become the most-favoured electronics manufacturer in India, Japan-headquartered Sony Corporation is targeting $3 billion revenue from the country’s operations in the next two years.

“We aim to become $3-billion (Rs 16, 500 crore) company by the

 

financial year 2014 through the aggressive business strategy in India,” Kenichiro Hibi, managing director, Sony India told HT. 
“Consumer electronics business would be a major contributor to the targeted turnover,” said Hibi. “Presently, it contributes more than half to the total revenue and we expect the momentum to continue.”
Sony has identified three product categories to drive sales growth. It comprises flat panel television (Bravia) followed by laptops (VAIO) and mobile (Xperia) category.

The technology major is betting on product customisation aimed at the mass market to drive its aggressive sales plan.
“Our engineers personally met hundreds of Indian customers to precisely understand their taste in terms of brightness and vividness of colours,” Hibi said.

The electronics giant’s goal is a firmer grip on Indian market, considering that the company plans to increase its existing distribution network to 7,000 outlets this fiscal year, up from 6,000 last year.
Moreover, Sony has set an ambitious target to sell over 12 lakh units of its flat panel range Bravia by the end of the fiscal year against 9 lakh units sold last fiscal.

“We are investing over Rs. 200 crore to support the campaign aimed at boosting sales of flat panel segment,” said Hibi. “Otherwise too, we will pump up an investment of Rs. 450 crore for brand promotions, this year.”

ONGC signs pact with Japanese firm for gas, LNG biz

State-run oil and gas giant Oil and Natural Gas Corporation  said it has signed an agreement with Mitsui & Company of Japan for a wide ranging cooperation in the gas and LNG businesses.

Both the companies signed an MoU on August 14, ONGC chairman and managing director Sudhir Vasudeva told reporters on the sidelines of an HR round table here. The MoU is expected to pave the way for setting up a re-gasification terminal in the country besides marketing of re-gasified LNG, he added.

“We have signed an MoU that will work on an entire value chain of sourcing LNG to setting up re-gasification terminal. We will study the opportunities,” Vasudeva said. Under the agreement, which is aimed at meeting the rising demand for natural gas, both ONGC and Mitsui would make efforts to source LNG from international suppliers on spot, short- and long-term contract basis.

Meanwhile, Vasudeva said ONGC is expected to invest Rs 1,64,000 crore during the 12th Plan. While its fully-owned subsidiary OVL will invest Rs 95,000 crore and another state-owned company MRPL will invest Rs 10,000 crore towards the respective expansion plans, Vasudeva added.

Commenting on long-term plans, Vasudeva said ONGC will invest around Rs 11 trillion in the next 18 years and hopes to increase the oil production from 62 million tonnes and market cap by four times.

Japan likely to ban shrimp imports from India

The detection of ethoxyquin, an antioxidant, in the shrimps exported to Japan has badly hit India’s export prospects to that country. Japan had already rejected more than 10 consignments of shrimps exported from India in the recent weeks, causing heavy losses to exporters and shrimp farmers.

High level sources said as the issue is yet to be sorted out, Japan is likely to ban shrimp imports from India. There have been a lot of cancellations from Japan and this has badly affected exporters based in Odisha and West Bengal. It is learnt that the commerce ministry had called for an urgent meeting in Chennai on August 27 and a high level delegation is likely to visit Tokyo soon.

The problem has also caused a drastic reduction in the prices of shrimp in the global market, with these falling 25-35 per cent in two-three weeks. There is also a fall in export orders from other major import destinations like the Europe and the US.

Odisha and West Bengal regions are the most affected areas as around 60 per cent of the black tiger variety of shrimp produced in these regions is exported to Japan. G Mohanty, president of Seafood Exporters Association of India (SEAI), Odisha region, told Business Standard that Japan had started the testing of ethoxyquin, without any notice to exporters or to the government. He said the aquaculture sector in Odisha and West Bengal is in crisis as the prices had dropped heavily. “There will not be any shrimp aquaculture production in the coming years,” he added.

“Already importers have been asked not to ship the cargo until the issue is sorted out. So, a large number of containers are now stocked in Kolkata,” said Taj Mohamed, president, SEAI, West Bengal region.
Due to this India suffered a serious setback in marine product exports during the April-June period of the current financial year as the country’s products lost their sheen in major export markets like Europe and Japan. Cumulative export in the period dropped to 131,000 tonnes, valued at Rs 2,700 crore, as against 165,000 tonnes, valued at Rs 2,870 crore in the same period of the last financial year. This shows a fall of 20 per cent in volume and five per cent in value. In dollar terms, the decrease was 20 per cent at $515 million as against $645 million. Last fiscal, exports increased 6.02 per cent in volume and 28.65 per cent in rupee terms when compared to those in 2010-11.

Japanese entity allowed to hold 26% stake in DMICDC

India has decided to allow Japan Bank for International Cooperation (JBIG), a government-owned entity in that country, to hold 26 per cent equity in the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC). The Cabinet today approved a proposal on equity restructuring in DMICDC. The equity will be given from the stake of Life Insurance Corporation and India Infrastructure Finance Limited, which currently own 51 per cent stake in the corporation. The Centre’s stake will be capped at the existing 49 per cent. DMIC project, touted as a strategic partner-ship project between India and Japan, is being developed as a global manu-facturing and investment destination, utilising the high capacity 1,483-km-long western Dedicated Railway Freight Corridor as the backbone.

Participation of JBIG in DMICDC will enable the DMIC project to leverage the active assistance and cooperation of the government of Japan, an official statement said. Subscription in the equity of DMICDC will increase the confidence of Japanese companies in the project and strengthen the ties with the government of Japan, it added.

This may also pave the way for Japanese experts to come to DMICDC. Long-term financing institutions in Japan like pension funds have limited experience in India, and 26 equity equity would give these entities comfort level and a feeling of participation in the project.
This would open up possibilities for long-term infrastructure lending at lower rates, the statement said.
DMICDC was incorporated in 2008 with an authorised equity base of Rs 10 crore. Subsequently, a request was received from Japan for 26 per cent participation in the equity of DMICDC. During the Japanese Prime Minister Yoshihiko NodaRs s visit to India in December 2011, Japan offered to match the government of IndiaRs s contribution to DMIC Project by announcing a contribution of $ 4.5 billion.

Cabinet approves revised equity structure of DMIC

DMIC Project being a strategic partnership project between Government of India and Government of Japan, participation of the Government of Japan in DMICDC will enable the DMIC project to leverage the active assistance and cooperation of the Government of Japan.

The Union Cabinet has approved the following revised equity structure of Delhi Mumbai Industrial Corridor Development Corporation (DMICDC): Share of Government of India : 49% or less; Share of Government owned Financial Institution of Japan, the Japan Bank for International Cooperation (JBIG) : 26%; and Share of Financial Institutions owned by the Government of India: 25% or more No financial implications will be involved after the revised equity structure on the part of Government of India. DMIC Project being a strategic partnership project between Government of India and Government of Japan, participation of the Government of Japan in DMICDC will enable the DMIC project to leverage the active assistance and cooperation of the Government of Japan. Subscription in the equity of DMICDC will increase the confidence of Japanese companies in the project and strengthen the ties with the Government of Japan. This may also enable the dispatch of Japanese experts to DMICDC. Long term financing institutions in Japan like pension funds have limited experience in India and 26% equity would give them comfort level and a feeling of participation in the project. This would open up possibilities for long term infrastructure lending at lower rates. The Delhi Mumbai Industrial Corridor (DMIC) project was conceived as a symbol of Indo-Japan strategic partnership during the visit of the Hon`ble Prime Minister of India to Tokyo in December, 2006. The Delhi Mumbai Industrial Corridor (DMIC) is being developed as a global manufacturing and investment destination utilising the high capacity 1483 km long western Dedicated Railway Freight Corridor (DFC), as the backbone. As approved by the Cabinet on 16th August 2007, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) was incorporated on 7th January, 2008 with authorized equity base of Rs. 10 Crore (49% equity participation by Gol, 41% by IL&FS and 10% by I DFC) for developing projects, coordinating the implementation of the numerous projects and also raising finances, wherever needed. Subsequently, in the meeting held on 15th September, 2011, the Union Cabinet approved the restructuring of DMICDC with Government of India equity capped at 49% of the total equity and the Government owned Financial Institutions as majority shareholders. In pursuance of the above approval, India Infrastructure Finance Company Limited (IIFCL) and Life Insurance Corporation of India (LIC) took over the equity held by IL & FS Ltd and IDFC respectively, at par, thereby substituting private Financial Institutions in DMICDC with Government owned Financial Institutions. In the meantime, a request was received from the Government of Japan for 26% participation in the equity of DMICDC. During the Japanese Prime Minister`s visit to India in December, 2011, Japan offered to match Government of India`s contribution to DMIC Project by announcing a contribution of US$4.5bn for projects with Japanese participation. The equity contribution to an extent of 26% would give them comfort level and a feeling of participation and involvement in the project.

Suzuki chief visits manufacturing plants in Gurgaon

Japan's Suzuki Motor chairman Osamu Suzuki on Thursday visited two of its India plants - a two-wheeler manufacturing facility and a car plant in Gurgaon - in his first trip to the country after the violence broke out at its another plant in Manesar last month.

 

Suzuki, who arrived in India on Wednesday on a week-long visit, is yet to visit the Manesar plant. He entered Gurgaon under police protection.

While the company officials were tight-lipped about Suzuki's schedule, employee union leaders of two-wheeler plant of Suzuki Motorcycle India Pvt Ltd at Kherka Daula here said he only held meetings with the management and did not meet workers and their representatives.

Union leaders of Gurgaon car plant of Maruti Suzuki India said that Suzuki would be meeting them later this evening and they would raise with him the issue of Manesar incident, including the sacking of 500 workers after violence.

On August 21, Maruti Suzuki India (MSI) reopened its Manesar plant amid heavy security, a month after the lockout was declared following the violence in which one senior company official was killed and 100 others injured.

The company has sacked 500 permanent workers, who were allegedly found to be involved in violence inside the plant.
"Mr Suzuki visited plant in morning and held discussion with management. Though we expected that he would meet workers and union, but he did not. He came here for a very brief period," Suzuki Motorcycle India Employee Union president Anil Kumar told agencies.

Suzuki was accompanied by Maruti Suzuki India (MSI) managing director and CEO Shinzo Nakanishi. MSI is subsidiary of Japan's Suzuki Motor Corp (SMC).

Later in afternoon, Suzuki visited MSI's Gurgaon plant. "Mr Suzuki has just came inside the plant. He will be here till evening. The union will have a meeting with him at 4pm today. We will discuss various issues with him. We will request him to revise our wages which is very necessary in the current inflationary scenario," Maruti Udyog Kamgar Union (MUKU) general secretary Kuldeep Jhangu told agencies.

"We will also discuss the sacking of 500 workers at Manesar plant and request him to consider their reinstatement," he added. MUKU, the union of Gurgaon car plant, has also been opposing the sacking of the workers.

During his India visit, Suzuki is also said to be meeting Haryana Chief Minister Bhupinder Singh Hooda and Gujarat Chief Minister Narendra Modi and would attend the Annual General Meeting of MSI on August 28.

Lupin eyes 3rd japan buy for Rs. 550-1,100 cr

The country's third-largest pharmaceutical company by market value, Lupin India, is eyeing Japan for its third acquisition, likely to be in the range of $100-200 million ( Rs. 550-1,100 crore).

Lupin, which acquired two companies in Japan earlier, is looking to strengthen its position in the world's second-largest pharmaceutical market.

"Japan is a market where we remain interested in acquiring even more," said Nilesh Gupta, group president and executive director, Lupin. "We are looking at more opportunities there."

Japan, whose pharmaceutical market is pegged at around $75 billion, contributes 12% to Lupin's revenues.
The company which witnessed gross sales of around Rs. 7,000 crore in 2011-12, had made its first acquisition in Japan by buying Kyowa Pharmaceutical in 2007 and I'rom Pharmaceutical in November 2011.

The acquisition is unlikely to be a big one as company is not comfortable with big-ticket buys. "There is an organisational reluctance to a very large ticket acquisition," said Gupta.

Global Wave Launches New Innovations in India

Recently a Japanese based Innovative Technology Company Global Wave introduced a first-of-its-kind mobile accessories in the Indian Market.

With the support of AAAAA Group Consultants, Global Wave recently had a successful product launch event on 7th August 2012 which was held at Khar Gymkhana, Mumbai, India. The launch party was attended by more than 200 Major Retailers and Distribuors within the Mobile Accessory Industry.

Global Wave Inc CEO Mr. Shingo Kodama had specially prepared a speech in our National Language "Hindi" in order to build a special connection with our attendees.

List of Products Introduced:

1) PoKeBa - A High voltage compact battery (Portable Charger)
2) P-SKIN  - A Water/ dust resist mobile phone sheet
3) Pic3D-II - Glasses-free 3D sheet
4) MR.SHIELD - Screen guard for mobile phones. Preventing from damage.

Our Team: (From Left to Right) Mr. Vishal Narsian (Relationship Manager - India), Mr. Vinay Java (General Manager - India), Mr. Sunny Chandiramani (COO - India), Mr. Shingo Kodama (CEO), Mr. Narender Chandiramani (Head Advisor - India) & Mr. Michael Yanagidaira (Sales Manager - India)

Fascinated by the Market Response in India, Global Wave has laid out an aggressive & strategic business plan for further introducing newer technology in the Indian Market.

Global Wave Product Videos

 

Pokeba

P-SKIN

 Mr. Shield

Please contact vishal@globalwave.co.in or vinay@globalwave.co.in for any enquiries.

Company Website: www.globalwave.co.in