Aamir Khan's 3 IDIOTS creates a record in Japan

Aamir Khan starrer, 3 Idiots has scaled yet another height, nearly 4 years after its first theatrical release in India. Latest box-office reports from Japan indicate that the film has collected over 100 million in its first two weeks to become the top ranking Hindi film ever in Japan, in terms of collections.



The last Indian film to strike a similar chord with the Japanese audience was the 1995 Rajnikant starrer MUTHU. 3 IDIOTS is still running in the cinemas in Japan and is on its way to creating yet another box-office record in a non-traditional market. It may be noted that 3 IDIOTS previously enjoyed an unprecedented run at the box-office in Taiwan, Korea, Hong Kong and China, with the Chinese premiere Li Keqiang even mentioning his appreciation of the film while on his recent visit to India.

CHECK OUT: Aamir's 3 IDIOTS to help fight terrorism

Directed by Rajkumar Hirani and produced by Vidhu Vinod Chopra, the film also stars Kareena Kpaoor, Sharman Joshi, R. Madhavan and Boman Irani in Oivotal roles, which was released on 23th December, 2009.

The sun rises again in Japan

Investors must remain bullish on Japan and India should stay engaged and strengthen its engagement with Japan.

This columnist had the opportunity to attend the lecture delivered by Japanese Prime Minister Shinzo Abe in Singapore on Friday. It was his first public speech after Liberal Democrats won elections to the upper house. The cavernous ballroom at the Ritz Carlton Hotel was overflowing with people. Investors and others were looking for some good news out of Asia now that both India and China are floundering and Indonesia is not too far behind in joining them.

 

It was a feisty speech. Repeated use of the words coercion and democracy was the feature of the speech. Abe said that reviving economic growth had become important since the two-decade long stagnation had enfeebled national pride, blunted Japan’s diplomacy and also threatened its security. He said that without growth, neither fiscal reconstruction nor social security for the aged was possible. That was interesting and a reasonable explanation of why he had to go for a massive monetary stimulus for reviving growth. As long as the world judged nations through the narrow prism of economic growth (Amartya Sen should take note), even demographically challenged countries had no option but to pursue economic growth.

Now that his party has a majority in both the houses of Parliament, he discussed some specific growth initiatives to be implemented in autumn. There would be decisions on investment tax credit for reviving corporate investment and a special session of the Diet would be convened to pass new laws on deregulation and corporate restructuring. In particular, regulatory reforms would focus on electricity, agriculture and medical services. He suggested that Japan’s technology combined with the infrastructure expertise and experience of companies such as Ascendas of Singapore could come in handy in creating the estimated $8 trillion of infrastructure that Asia is estimated to need. Japan has been a big investor in the Association of Southeast Asian Nations (Asean) countries. He reminded the audience that Japan stood by Asean during the Asian crisis of 1997-98. The US thwarted the idea of an Asian Monetary Fund mooted by Japan at the height of the Asian crisis.

He took particular pride in the fact that Japan and Singapore worked together to bring that “beacon of democracy”—India—into the East Asia Summit. He said that Asia was not known for coercion but for interaction based on mutual respect and being at ease with one another. He concluded this segment of his speech with an expectation that he looked forward to having amicable conversations with top Chinese leaders.

Japan’s attempt at reviving its economy could not have come at a more opportune time for Asia that is now looking for good news on the economic front. It is frustrating that the post-2008 crisis narrative has turned into one of instability, volatility and economic slowdown in emerging economies and relative stability and booming asset markets in the debt-laden Western world. It could not have been spontaneous.

It is in this context that efforts by Japan to end its pacifist constitution to develop a combat army of its own and to revive its economy should be welcomed by Asia and other developing nations. Of course, Japan is unlikely to emerge as a rival to the US either militarily or economically. But, the course of history does not change in a matter of few years. It takes time.

It is too early to pass a verdict on the success or failure of Abenomics. However, the early signs are promising. Annual change in manufacturing and mining, in investment and capital goods are beginning to claw back into positive territory after years of stagnation. It means that industrial production in these categories have seen sequential growth in the past few months. It is not an accident, perhaps, that the turnaround in industrial production has occurred since April when Abenomics began to grow roots.

There is a danger that a weak yen—one of the cornerstones of his economic strategy—erodes the purchasing power of an ageing population. Equally, given that Japan has a very large net international investment position, to the extent of over 60% of GDP, the yen’s weakness translates into larger yen values of the foreign investments of Japanese households. The strategy here is that a corporate sector nursed back into health and greater confidence would venture overseas, acquire assets, earn profits and send back its investment income to Japan to support the domestic economy.

Abe’s speech, while it stressed de-regulation, openness to foreign investment and an open economy was silent on creating an open society that welcomed immigration. Further, it is not clear if his efforts to revive Japan would succeed or be allowed to succeed by other nations. But, a world that is burdened by the contrived dominance of the West, especially in the last two to three years, needs Japan to succeed. It makes sense for investors to remain bullish on Japan and for India to remain engaged and strengthen its engagement with Japan.

Diet supplement for India-Japan ties

As the two countries consolidate relations, the Japanese ruling coalition’s victory in the upper house elections will help

India should be pleased with the outcome of elections to the Upper House in Japan, likely as it is to speed up cooperation in four areas — economics, defence and security, political and people-to-people exchanges. On a civil nuclear deal though, New Delhi seems happy to wait for the Japanese to choose the right political climate to resuming talks.

Japan’s progress to a closer relationship with India is bound to accelerate with the Liberal Democratic Party (LDP)-led coalition winning a majority in the Upper House, strengthening the Lower House victory it recorded in December last year.

This will reverse the political instability that has prevailed since 2006, coincidentally the same time that India-Japan ties took off. After the end of the Junichiro Koizumi Government that year, Japan has had seven Prime Ministers including Shinzô Abe, now in that office for the second time.

The main Opposition, the Democratic Party of Japan (DPJ) — which went through three Prime Ministers during its three-year reign that ended in December last year — was also committed to closer ties with India. But its political philosophy was less antagonistic towards China than that of Mr. Abe and his LDP. As a result, it took a more conservative view of opening up the civil nuclear and defence sectors to India.

In contrast, soon after taking over as Prime Minister for the second time, Mr. Abe set about overhauling Japan’s long-held notions about defence trade by reviewing its military policy; barring the United States, it has, since 1967, frowned upon ties with other countries in this sector.

Defence ties

By the time Prime Minister Manmohan Singh arrived in Tokyo in May this year, the Japanese were ready to sell India a civilian-military use amphibious plane by bending some of their rules prohibiting defence sales. And before this year-end, in a joint exercise that will be bigger than the first ever India-Japan exercises in June last year, the two navies will be in a better position to understand each other’s way of operations.

The Japanese Embassy in New Delhi will have three defence attachés by the end of the year — there is a single official at present — for a more intensive interaction at the levels of operations as well as trade. From India’s point of view, closer defence ties with Japan are a vital element of its Look East policy, as it provides a security component in ties with countries on its eastern flank.

Nuclear sector

The civilian nuclear sector is another key area of interest for India; talks with Japan had progressed smoothly till the Fukushima nuclear accident happened. Mr. Abe would be more than eager to resume talks on an India-Japan civilian nuclear agreement. But New Delhi would want Japan to set the pace, especially after it has tried to accommodate Indian interests without being asked. For instance, Japan has reduced its export control list for India which today stands at just 10 entities.

Tokyo has offered to take four of them off the list without being asked. A civilian nuclear agreement will offer Japan Steel Works massive opportunities in India; the initial impetus for opening India-Japan talks on the subject came from the Japanese industry. It should be a matter of time before the industry begins encouraging Mr. Abe to reopen talks for an agreement.

New Delhi hopes Mr. Abe, with the tailwind of majorities in both Houses of Diet behind him, will be able to implement his Abenomics of opening up business opportunities for Japanese corporates, essentially away from the Chinese mainland. For India that would mean Tokyo may speed up investment decisions in industrial corridors for the north and south.

People-to-people links

While it will be smooth sailing for India in economics and defence with the civil nuclear field likely to follow, New Delhi would be looking at a more forthcoming Tokyo with respect to greater people-to-people exchanges. Also, Japan has a rapidly ageing population and requires immigrants as caregivers. The India-Japan Comprehensive Economic Partnership Agreement (CEPA) did envisage such a movement of people and New Delhi would be trying to gently persuade the conservative Japanese Government to open up its market to skilled personnel.

The Upper House majority for the LDP and its allies means that Mr. Abe will not have to worry about numbers in either House of Parliament for the next three years. His political position has been bolstered by seats won by two parties further on Mr. Abe’s right. Provided Mr. Abe manages to survive the machinations within his own party and maintains his anti-China posture, India-Japan ties seem set to make progress.

RIL launches new models of production printers

Ricoh India Limited (RIL), a subsidiary of Ricoh Company Limited, Japan, today announced its aggressive mega expansion plans through introduction of three new models of production printers— Ricoh Pro C 901/901S GA+, Ricoh Pro C5100S/ 5110S and Ricoh MP CW 2200SP.

These new Ricoh Pro C 5100 series range are set to take the printing solutions offering in Indian Market to a new dimensions through High Product quality equipped with Ricoh’s best after sales service. The SME/SMB segment is set to benefit from this entry level product with competitive price and low cost of operation. Ricoh Pro C 5100 have print speed of 65 A4 pages per minute and 80 A4 pages per minute, with the duty cycle of 300 K A4 pages per month.

Speaking on the launch, Tetsuya Takano, Managing Director and Chief Executive Officer, RIL, remarked, “With Low Investment and extra long size printing capability, this product is surely going to benefit our customers. The launch of Ricoh Pro C 901/901S GA+, Ricoh Pro C5100S/ 5110S series is demonstrative of Ricoh’s policy of offering excellent products that add value to our customer`s workplace”.

Manoj Kumar, senior vice-president and CFO, RIL, stated, “We are also launching Colour Gel Jet Engineering Plan Printer, which has some unique features to improve the work efficiency in the Engineering, ACE and GIS segments. The launch of these products once again demonstrates the strong resolve of Ricoh to provide world class products and solutions to its business segment customers”.

Avijit Mukherjee, COO Production Printer business unit, said, “With Ricoh’s wide range of product lines and launch of new series of Production Printers at the entry level segment with excellent after sales service, we are confident that our channel partners will be able to rapidly expand their business opportunities and increase their customer base”.

India targets Japanese apparel market

India’s Apparel Export Promotion Council (AEPC), under the aegis of Ministry of Textiles, Government of India in active collaboration with the Embassy of India, Japan, participated with 136 companies, constituting a more than a 20% share in overall participation in JFW International Fashion Fair, Tokyo from 17-19 July, 2013.

Zohra Chatterji, Secretary (Textiles), Ministry of Textiles, Government of India led a delegation of manufacturer exporters from apparel, fabric and made-ups along with Dr A Sakthivel, chairman, AEPC, Shri Sudhir Sekhri, chairman export promotion, AEPC, Shri V Srinivas, Joint Secretary (Exports), Ministry of Textiles, and Shri Arun Goyal, Minister (Economic & Commercial), Embassy of India, Tokyo, Japan.

An India Pavilion attracted more than 1,900 buyers and the business negotiated and completed was worth $32.4m.
Garment exports during 2012 were $293m compared with $270m in 2011, posting a positive growth of 8.11%. It is expected that overall growth in business with Japan may exceed 10%, added Dr A Sakthivel.
India and Japan signed a Comprehensive Economic Partnership Agreement (CEPA) which took effect on August, 1 2011.  This has resulted in substantial growth of garment exports from India to Japan, according to AEPC.
Exports of woven apparel in the period 2005-2010 to Japan declined by 3.7%. Between 2011-2012 they grew by 4.6% and were worth $210m. Similarly, exports of knitted apparel from 2005-2010 to Japan fell by 0.2%, but grew by 10.5% between 2011-2012 and were worth $83m.
The value of global textile exports to Japan is $41,540m. Apparel exports were worth $32,073m in 2012. India’s exports were worth $485m.

20,076 Honda Amaze sedans sold in Q2 2013, waiting period 3-5 months

Honda Cars India Limited (HCIL), a subsidiary of Honda of Japan is among the few automakers in India reporting increased sales. A threefold increase in sales within the country during June 2013, launch of the new Honda Amaze sedan and increased exports has ensured the company targets a greater presence in volume segments.

 

Noting increased demand for diesel engine variants, HCIL plans on also adding more diesel products to their portfolio. Sales of Honda Amaze accounts for 60% of the company’s total sales, while a long list of customers will need to wait 3 to 5 months for their deliveries. Due to this increased demand the company will be adding a third shift to its facility at Greater Noida by end of this year while also increasing their level of localization.
HCIL will also be concentrating on operations in North East regions during the current financial year. Increased focus will be in eight North Eastern states with new facilities coming in  the region. The company plans to increase it’s footprint to 102 cities as against the current 98 cities. In accordance, dealerships are to increased to 162 as compared to 153 dealers at present.

 

Adviser to Sri City

Former Ambassador of Japan to India Yasukuni Enoki has been inducted as an Adviser to Sri City Special Economic Zone in Andhra Pradesh. He was the Ambassador of Japan to India from 2003 to2007. After signing the agreement, he said: “Keeping in mind the Japanese investments pouring into India, we are confident that Sri City will also be looked at keenly. I am very happy to be an Advisor and bring in Japanese companies into Sri City.” Ravindra Sannareddy, Managing Director, Sri City said, “It is an honour to have with us the former Ambassador of Japan to India as an Adviser. We are confident that more companies from Japan will now want to establish themselves in Sri City.”

Diet supplement for India-Japan ties

As the two countries consolidate relations, the Japanese ruling coalition’s victory in the upper house elections will help

India should be pleased with the outcome of elections to the Upper House in Japan, likely as it is to speed up cooperation in four areas — economics, defence and security, political and people-to-people exchanges. On a civil nuclear deal though, New Delhi seems happy to wait for the Japanese to choose the right political climate to resuming talks.

Japan’s progress to a closer relationship with India is bound to accelerate with the Liberal Democratic Party (LDP)-led coalition winning a majority in the Upper House, strengthening the Lower House victory it recorded in December last year.

This will reverse the political instability that has prevailed since 2006, coincidentally the same time that India-Japan ties took off. After the end of the Junichiro Koizumi Government that year, Japan has had seven Prime Ministers including Shinzô Abe, now in that office for the second time.

The main Opposition, the Democratic Party of Japan (DPJ) — which went through three Prime Ministers during its three-year reign that ended in December last year — was also committed to closer ties with India. But its political philosophy was less antagonistic towards China than that of Mr. Abe and his LDP. As a result, it took a more conservative view of opening up the civil nuclear and defence sectors to India.

In contrast, soon after taking over as Prime Minister for the second time, Mr. Abe set about overhauling Japan’s long-held notions about defence trade by reviewing its military policy; barring the United States, it has, since 1967, frowned upon ties with other countries in this sector.

Defence ties

By the time Prime Minister Manmohan Singh arrived in Tokyo in May this year, the Japanese were ready to sell India a civilian-military use amphibious plane by bending some of their rules prohibiting defence sales. And before this year-end, in a joint exercise that will be bigger than the first ever India-Japan exercises in June last year, the two navies will be in a better position to understand each other’s way of operations.

The Japanese Embassy in New Delhi will have three defence attachés by the end of the year — there is a single official at present — for a more intensive interaction at the levels of operations as well as trade. From India’s point of view, closer defence ties with Japan are a vital element of its Look East policy, as it provides a security component in ties with countries on its eastern flank.

Nuclear sector

The civilian nuclear sector is another key area of interest for India; talks with Japan had progressed smoothly till the Fukushima nuclear accident happened. Mr. Abe would be more than eager to resume talks on an India-Japan civilian nuclear agreement. But New Delhi would want Japan to set the pace, especially after it has tried to accommodate Indian interests without being asked. For instance, Japan has reduced its export control list for India which today stands at just 10 entities.

Tokyo has offered to take four of them off the list without being asked. A civilian nuclear agreement will offer Japan Steel Works massive opportunities in India; the initial impetus for opening India-Japan talks on the subject came from the Japanese industry. It should be a matter of time before the industry begins encouraging Mr. Abe to reopen talks for an agreement.

New Delhi hopes Mr. Abe, with the tailwind of majorities in both Houses of Diet behind him, will be able to implement his Abenomics of opening up business opportunities for Japanese corporates, essentially away from the Chinese mainland. For India that would mean Tokyo may speed up investment decisions in industrial corridors for the north and south.

People-to-people links

While it will be smooth sailing for India in economics and defence with the civil nuclear field likely to follow, New Delhi would be looking at a more forthcoming Tokyo with respect to greater people-to-people exchanges. Also, Japan has a rapidly ageing population and requires immigrants as caregivers. The India-Japan Comprehensive Economic Partnership Agreement (CEPA) did envisage such a movement of people and New Delhi would be trying to gently persuade the conservative Japanese Government to open up its market to skilled personnel.

The Upper House majority for the LDP and its allies means that Mr. Abe will not have to worry about numbers in either House of Parliament for the next three years. His political position has been bolstered by seats won by two parties further on Mr. Abe’s right. Provided Mr. Abe manages to survive the machinations within his own party and maintains his anti-China posture, India-Japan ties seem set to make progress.

Indo-Japan relations: New socio-economic model is the need of the hour

A conference on 'India-Japan Global Partnership and Impact on Indian Economy', delved into the strategic relationship between India and Japan and its impact on fiscal health, particularly in light of the current fiscal climate.

The conference was organized by Bombay Stock Exchange Ltd. (BSE) and India Center Foundation (ICF) in Mumbai as a pre-cursor to the India-Japan Global Partnership Summit (IJGPS) scheduled to be held from 1-5 September, 2013 in New Delhi. BSE is the strategic partner and Confederation of Indian Industries (CII) is the partner of IJGPS 2013.

In Focus

Addressing the conference Dr. Haruo Shimada, Former Economic Advisor of Fiscal Policy to the Cabinet of Japan, said, “The basic objective is to foster a trustful relationship between our two countries to empower the economies of both the countries. Japan can use its expertise and provide technology to India in various areas.”

Founder and Director General of IJGPS and Chairman of ICF, Vibhav Kant Upadhyay said that the summit was a strong and strategic platform for India and Japan to dream, ideate, create or plan for the future of the two countries.

“In Delhi during the first week of September we will see the India-Japan Global Partnership Summit converge for us to understand and plan the way forward. We have to create a new socio-economic model based on energy efficiency, environmental responsibility and sustainability,” said Mr. Upadhyay.

On this occasion, Amitabh Kant, CEO of Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) said that the Japanese private sector is the biggest creditor in the world with companies excelling in manufacturing.

“India needs to provide the right governance and structure for Japan to hand-hold India through,” said Mr Kant.

The chief of the DMICDC, a programme conceptualized in partnership and collaboration with Japan, added that the key challenge for India is to grow at 9 to 10% per annum and create jobs over the next three to four decades.

The conference was also addressed by Ashish Kumar Chauhan, CEO of BSE, Chandra Kant Salunkhe, Founder and President of SME Chamber of India, and by the Members of Parliament Piyush Goyal and Madhu Yashki.

During the visit of Indian Prime Minister Manmohan Singh in May this year, Japan had offered to sell India the ShinMaywa US-2, a highly sophisticated amphibious plane by relaxing its strict rules which prohibit international trade in defence equipment.

Noted Indian economist DH Pai Panandiker says that Indo-Japan relations are close and complimentary, which is advantageous for both the nations.

“Complimentary because what we need, Japan can give. We really need capital, we need investment and Japan is in position to invest very huge amount. I think there is complementarity which can be exploited to the advantage of both the nations,” Mr Panandiker told this citizen journalist .

According to the Embassy of Japan, over 1,000 Japanese companies have set up offices in India and have created over 1,50,000 jobs in the country. Japanese companies like Toyota, Hitachi and Panasonic are using India as a hub to export in the overseas market.

From April 2000 to March 2013 India has received USD 14.55 billion foreign direct investment from Japan. Since 2002, bilateral commerce between the two nations has increased six times, and currently stands at USD 18.77 billion.

India-Japan Global Partnership Summit (IJGPS) is an initiative of India Center Foundation (ICF), a not-for-profit and non-partisan organization dedicated to working as a catalyst to the nation-building processes. The mission of ICF is to help evolve thought processes and new models of socio-economic framework, by mapping the aspirations of the burgeoning nation to the availability of resources.

IJGPS is envisioned as a summit led by two great nations – India and Japan along with their global Partners- where policymakers, opinion leaders, business leaders, media and academicians ‘Dream, Design, Discuss, Decide, Drive and Derive solutions’ to challenges of a new socio-economic framework by creating a ‘Micro Road Map for the Macro Vision’ that exists in the form of India-Japan Global Partnership.

 

It’s no joke to be number 1: Munjal to Honda

A war of words appears to have erupted between Japan's Honda Motor and India's Munjal family, who control the country's biggest two-wheeler maker Hero MotoCorp. After Honda announced that it will surge ahead of Hero Moto by 2015 to become India's top two-wheeler maker, Pawan Munjal dismissed the Japanese company's assertion. Munjals and Honda parted ways from their erstwhile JV Hero Honda in 2013.

"I am dead sure of sustaining our leadership. Nobody can take away our leadership. It is no joke," Munjal told TOI when asked about the recent statement made by Shinji Aoyama, Honda's global operating officer for motorcycle business.

Honda has been growing swiftly following the split with Hero through its fully-owned subsidiary Honda Motorcycle and Scooter India (HMSI), and the company has also been gaining volumes in the motorcycle market beyond its stronghold of scooters. It has swiftly edged past TVS and Bajaj Auto to become the country's second-biggest two-wheeler maker and has said that market leadership is not far if industry sales continue to move in slow zone.

 "Under the current scenario in India, I believe it will not be 2020, but even 2016 or 2015 by when we will attain number one position here," Aoyama had said in March. Incidentally, Aoyama was in-charge of HMSI in an earlier stint and at that time had to coordinate operations with the Munjals as part of Honda's representative.

This is not the first time the two have been at loggerheads with each other and there had been incidents of friction even when they were partners in Hero Honda.

Munjal said Hero is geared up for the challenge from Honda and is working aggressively in the area of R&D, which was the key function where Honda contributed to the JV. As it ties up with international companies for the same, Hero is also increasing the headcount at its internal R&D set-up.

"There are several projects spanning across existing and new platforms that are currently underway at our R&D centres both at Gurgaon and Dharuhera in Haryana. We have more than 400 engineers at our R&D division, out of which an overwhelming majority are young and highly-skilled personnel. They are all brimming with ideas and I have given them a carte-blanche to think out-of-the-box and be innovative. We are also adding more engineers," Munjal said.

The company is also setting up an integrated R&D centre at Kukas in Rajasthan, which is expected to commence work "very soon", he added.

However, just as the company talks about maintaining leadership, Hero Moto has seen volumes go down at a time when HMSI gained in numbers and market share. Hero Moto's sales fell 2% last fiscal at 59.12 lakh units, while HMSI gained 31% in the same year at 26 lakh units. And in the first quarter of this fiscal, sales of Hero Moto fell by 4% to 15.27 lakh units, while HMSI saw volumes move up 14% to 7.1 lakh units. However, the gap between the two companies is still very large in terms of overall volumes.

Coimbatore District Small Industries Association delegation visits Isuzu plant in Japan

A delegation from CODISSIA (Coimbatore District Small Industries Association) visited automobile major Isuzu Motors' Fujisawa plant in Japan on July 22. The delegation, which is on an industrial visit to Japan, comprised about 35 medium-to-large component manufacturers from Coimbatore.

The visit was aimed at developing supplier relationships with Isuzu Motors India. The delegation was led by N Rajendran, Managing Partner, Bestomech Industries. The CODISSIA delegation spent an entire day at the Fujisawa plant and was given an exhaustive explanation of Isuzu's production systems. Isuzu also shared its India business plan with the visiting delegation.

"The visiting team found the tour to be highly informative and the delegation was very impressed with the new technologies they saw in the automotive manufacturing processes at Isuzu," Rajendran said.

Isuzu Motors India, a subsidiary of Isuzu Motors, has recently started discussions with auto component suppliers in India as part of its vendor development program. This visit was a part of the relationship building exercise with the component suppliers in India, the company said.

"We have started discussions with the Indian component manufacturers, and are very satisfied with the quality of their products and processes," said Takashi Kikuchi, President, Isuzu Motors India. "We expect to have a localisation of 70% when we start our manufacturing plant in India by 2016. After seeing the capabilities of the Indian suppliers, we are confident that we will be able to take the localisation content to almost 100% in a short period of time from the start of operations," he said.

Isuzu Motors will set up its own manufacturing facility at Sri City, Nellore district, Andhra Pradesh (AP). Earlier this year, Isuzu signed a memorandum of understanding with the AP government to acquire 107 acres of land for setting up the manufacturing plant. The plant, expected to be ready by 2016, will have a capacity of 1.2 lakh units.

The company has arranged a contract manufacturing agreement with Hindustan Motors (HML). HML will contract manufacture Isuzu pickup trucks and sports utility vehicles at its factory in Thiruvallur in Tamil Nadu.

India's Maruti net profit surges 49 percent

Maruti Suzuki, India's biggest carmaker by sales, Thursday reported a 49 percent jump in first-quarter net profit as cheaper imports of parts offset a drop in sales.

Maruti said quarterly profit surged to 6.32 billion rupees ($107 million) in the three months to June from 4.24 billion rupees a year earlier.

Maruti, 56.2 percent owned by Japanese automaker Suzuki Motor, has seen its costs drop due to a weakening of the yen against the rupee, which makes car parts imported from Japan cheaper.

The yen fell five percent against the rupee in the April-June quarter compared to the previous quarter ended in March, analysts said.

Year-on-year, the yen fell around 11 percent against the rupee.

"The rise in profit was due to cost reductions and favourable foreign exchange rates," the New Delhi-based company said in a statement.

In the April-June quarter, the firming of the dollar to the rupee also aided Maruti's exports to Africa, Europe and a number of countries in South Asia.

Maruti's earnings come at a time when demand for new cars in India is sluggish, due to high inflation, costly car loans and slackening economic growth.

India's car sales slid nine percent in June year-on-year, marking a record eighth straight month of decline.

Maruti's sales fell 5.1 percent to 99.95 billion rupees, on a 10 percent drop in volumes to 266,434 units in the quarter.

Maruti, founded in 1983, holds 39 percent of the Indian passenger car market, with its widespread service market helping it fend off rivals.

Ertiga minivans and Dzire sedans have been its better selling models as increasingly affluent drivers shift from the company's trademark small, inexpensive cars to bigger, costlier vehicles to navigate India's chaotic, potholed roads.

AEPC partakes at IFF Japan with 136 Indian companies

Apparel Export Promotion Council, under the aegis of Ministry of Textiles, Government of India and in active collaboration with Embassy of India, Japan, participated with 136 companies, constituting over 20% share in overall participation in JFW International Fashion Fair, Tokyo from 17th – 19th July, 2013. 

Smt. Zohra Chatterji, Secretary (Textiles), Ministry of Textiles, Government of India led a delegation of  manufacturer exporters from apparel, fabric, made-ups along-with Dr A Sakthivel, Chairman, AEPC, Shri Sudhir Sekhri, Chairman (Export Promotion), AEPC, Shri V Srinivas, Joint Secretary (Exports), Ministry of Textiles, Government of India  and Shri Arun Goyal, Minister (Economic & Commercial), Embassy of India, Tokyo, Japan.
Smt. Zohra Chatterji, Secretary (Textiles) inaugurated the “India Pavilion” on July 17, 2013 at Tokyo, Japan.
Smt. Zohra Chatterji had detailed interaction for increasing India’s textile and apparel exports with  Mr. Shimomoura, President, JTF,  Ms. Ishiguro, Directors, Ministry of Economy Trade and industry (METI), Japan Textiles Importers Association (JTIA),  Mr. Akiro Kiyahara, President, Juki Corporation, Mr. Ueda, Vice President, Japan Textile Federation (JTF.).  Secretary (Textiles) also Chaired a seminar on ‘Growing India – Japan Cooperation in Textiles and Clothing Sector’ in the presence of leading textile and clothing stakeholders of Japan.
“India Pavilion” witnessed over 1900 buyers and the business negotiated / done was US$ 32.4 Mn.
The garment exports during the period 2012 were US$ 293 Mn as compared to US$ 270 Mn in 2011, posting a positive growth of 8.11%.  The first time visitors were hopeful of generating business in long term.  Considering this, it is expected that overall growth in business with Japan may be over 10% Dr A Sakthivel added. 
India and Japan have signed Comprehensive Economic Partnership Agreement (CEPA) effective 1st August, 2011.  India’s garment exports to Japan have shown a substantial growth after signing of CEPA.
Exports of  woven apparels in the period 2005 – 2010 to Japan was minus 3.7%, which has grown to plus 4.6% between 2011-2012, registering exports of US$ 210 Mn.  Similarly, exports of knitted apparels in the period 2005 – 2010 to Japan was minus 0.2%, which has grown to plus 10.5% between 2011-2012, registering exports of US$ 83 Mn.
Smt. Zohra Chatterji also launched Fair Promotion Plan for Japanese buyers for the forthcoming international textile and apparel fair viz. Tex-Trends India (20th – 22nd January, 2014), to be held at Pragati Maidan, New Delhi.
Textiles exports to Japan from world is US$ 41540 mn. Apparel exports were worth US $ 32073mn in 2012. India’s exports of textile were worth US$ 485 mn.

Japan says will aim for mid-term fiscal plan by September

Japan will endeavour to fashion a credible medium-term fiscal plan by the time of a G20 leaders' summit in September, Finance Minister Taro Aso said on Saturday.

He also said that the still government aimed to introduce a higher sales tax rate next year as planned.
 
"We'll examine economic indicators due by October, including April-June (GDP) figures, and make a decision by October. But I want to aim for a sales tax hike from next April as planned," Aso told reporters at the end of a G20 finance ministers and central bankers meeting in Moscow.

Bank of Japan Governor Haruhiko Kuroda, speaking alongside Aso, said it was far too early to wind up the extraordinary stimulus policies Tokyo launched earlier this year to kick start growth and end years of deflation.
"Japan has just adopted qualitative and quantitative easing on April 4 ... We are aiming to achieve a 2 percent price stability target in about two years. It's too early (for us) to discuss exit," Kuroda said.

Japan, which holds an upper house election on Sunday, has drawn criticism for giving little detail on structural reforms billed as the 'third arrow' of Prime Minister Shinzo Abe's economic turnaround plan, G20 sources said.
German Finance Minister Wolfgang Schaeuble said Tokyo must complement its policies with a credible fiscal strategy.
 

India May Expand Solar Dumping Probe to EU, Japan Cells

Indian clean-energy companies that claim manufacturers in the U.S. and China dumped solar cells below cost on the market are seeking to extend their case to include imports from Europe and Japan.

Indosolar Ltd. (ISLR), Jupiter Solar Power Ltd. and Websol Energy System Ltd. (WESL) have filed a new petition to request that duties be imposed on shipments from the European Union and Japan, S. Venkataramani, chief executive officer of Indosolar, said in an e-mailed response to questions about the case’s first hearing held this week in New Delhi.

India joins a trade dispute among the world’s biggest economies as they fight to protect their solar companies amid a global glut of supplies that has resulted in a crash in prices. Solar equipment plants have been idled in the South Asian nation slowing the government’s plans to triple manufacturing capacity by 2020.

The initial case relates to imports from the U.S., China, Taiwan and Malaysia. The hearing drew officials from those countries whose solar-cell and solar-panel makers could potentially face duties, such as First Solar Inc. (FSLR) and JA Solar Holdings Co. (JASO), as well as dozens of representatives from the local industry.

J.S. Deepak, the Commerce Ministry official handling the case, didn’t answer five phone calls and two e-mails seeking comment.

Duties, Tariffs

Indosolar, Jupiter and Websol allege that foreign competitors sold solar products below the market price in India. They calculate the damage inflicted on their industry at as much as twice the cost of imports from January 2011 to June 2012. They’re asking the government for duties, both retroactive and current, as well as tariffs on thin-film solar modules.

All parties must submit written statements by July 25, and defendants have until Aug. 2 to respond, said Jagdish Agarwal, secretary of the Solar Independent Power Producers Association, who attended the proceedings. The government is due to decide whether to impose tariffs or drop the case by the end of August.

The petition is also being opposed by local solar project developers, who would see their cost of materials increase should the allegations be upheld. They argue that Indian manufacturers don’t meet quality and capacity demands, said Agarwal of SIPPA, whose members include at least 10 developers.

Under World Trade Organization rules, petitioners must have at least a 25 percent share of the market to open a case. In India, estimates of market size aren’t reliable and it’s unclear whether the three petitioners meet these criteria, Agarwal said.

China set tariffs of as much as 57 percent on polysilicon shipped from the U.S. and South Korea this week. The U.S. itself imposed tariffs of as much as 250 percent on Chinese solar panels last year after a drop in prices led to bankruptcies. The European Union set preliminary duties of 11.8 percent on Chinese modules, which may jump to 67.9 percent if a deal isn’t reached.

India-Japan global partnership and impact on Indian Economy

BSE is the strategic partner and Confederation of Indian Industries (CII) is the partner to IJGPS 2013.

BSE (Bombay Stock Exchange Ltd.) and India Center Foundation (ICF) held a conference on "India-Japan Global Partnership and Impact on Indian Economy" at the Bombay Stock Exchange International Convention Hall, as a pre-cursor to the India-Japan Global Partnership Summit (IJGPS) scheduled to be held from 1-5 September, 2013 at the India Expo mart, NCR, Delhi. BSE is the strategic partner and Confederation of Indian Industries (CII) is the partner to IJGPS 2013. The conference delved into the strategic relationship between India and Japan and its impact on fiscal health, particularly in light of the current fiscal climate by a wide galaxy of dignitaries including Haruo Shimada, Former Economic Advisor of Fiscal Policy to the Cabinet of Japan, Amitabh Kant, CEO of Delhi-Mumbai Industrial Corridor- Development Corporation (DMIC-DC), Ashish Kumar Chauhan, CEO- BSE, Chandra Kant Salunkhe, Founder and President – SME Chamber of India and Mr. Vibhav Kant Upadhyay, Founder and Director General of India-Japan Global Partnership Summit (IJGPS) and Chairman of ICF. The conference was also be addressed by the Honorable Members of Parliament, Piyush Goyal and Madhu Yashki.   Vibhav Kant Uphadyay, Founder and Director General of India-Japan Global Partnership Summit (IJGPS) and Chairman of ICF said, “IJGPS is a strong and strategic platform for India and Japan to dream, ideate, create or plan for the future of our two countries. Delhi in the first week of September we will see the India-Japan Global Partnership Summit converge for us to understand and plan the way forward. We have to create a new socio-economic model based on energy efficiency, environmental responsibility and sustainability.”   Prof. Dr. Haruo Shimada, Former Economic Advisor of Fiscal Policy to the Cabinet of Japan said, “The basic objective is to foster a trustful relationship between our two countries to empower the economies of both countries. Japan can use its expertise and provide technology to India in various areas.”   Amitabh Kant, CEO of Delhi-Mumbai Industrial Corridor- Development Corporation (DMIC-DC), said “The key challenge for India is to grow at 9 to 10% per annum and create jobs over the next three to four decades. The Japanese private sector is the biggest creditor in the world with companies excelling in manufacturing. India needs to provide the right governance and structure for Japan to hand-hold India through.”   India-Japan Global Partnership Summit (IJGPS) is an initiative of India Center Foundation, a not-for-profit and non-partisan organization dedicated to working as a catalyst to nation-building processes. The mission of ICF is to help evolve thought processes and new models of socio-economic framework, by mapping the aspirations of the burgeoning nation to the availability of resources. The new framework thus evolved will be Energy efficient, Environmentally responsible and Sustainable and will also contribute towards empowering societies across the globe. India-Japan Global Partnership Summit (IJGPS) is envisioned as a summit led by two great nations – India and Japan along with their global Partners- where policymakers, opinion leaders, business leaders, media and academicians Dream, Design, Discuss, Decide, Drive and Derive solutions to challenges of a new socio-economic framework by creating a ‘Micro Road Map for the Macro Vision’ that exists in the form of India-Japan Global Partnership.

Abe's win augurs well for India's Japan-centric Look East policy

Shinzo Abe's landslide victory in Japan's Upper House elections on Sunday opens up the prospect of Abe becoming the first Japanese premier in a while to complete his full term, as well as giving him the opportunity to fulfil a vigorous economic and security agenda. In India, his electoral victory has not only been followed closely, but has huge implications for New Delhi's own economic and security policies.

"India took the correct decision earlier this year, when Prime Minister Manmohan Singh redefined India's Look East policy with Japan at the heart of the policy," said H K Singh, former Indian envoy to Tokyo. "India is not averse to Japan assuming a robust economic and security posture," he added. Abe's rallying slogan of "Japan is back" made many of its neighbours uncomfortable, but not India.

The Indo-Japan relationship, already in top gear, was elevated after Abe's victory earlier this year. Manmohan Singh lost no time in visiting Abe, and sources said Abe was waiting for the July endorsement from the Japanese to restart crucial nuclear negotiations with India. With Sunday's election results, Abe has emerged as one of the more powerful political leaders in his country's recent history. The nuclear agreement - vital from the Indian point of view - is necessary for New Delhi to be able to source nuclear components and reactors from other countries as well.

Abe is likely to focus on restoring Japanese economy, even though Abenomics has its sceptics in the West. India doesn't look like an attractive investment destination at present, but the strategic imperatives for both countries may prompt Abe to put his shoulder to the wheel and persuade corporate Japan to take the plunge in politically uncertain India. Abe took the first steps of positioning his security policy beyond the Senkaku/Diaoyu dispute to wanting Japan to become a net provider of security in that part of the Asia-Pacific. With India taking similar steps in the Indian Ocean Region (IOR), there appears to be growing convergence between the two countries.

It will give China something to worry about and security analysts in India aver that has its own advantages.

Whether Abe can push through a stronger military policy is yet to be seen. Here, Abe's nationalist credentials have evoked a big pushback from Japan's immediate neighbours. But for much of south-east Asia and even India, a Japan with a normal military force and policy can be a balancing force in a continent where a muscular Chinese military posture is increasing worry lines, certainly in India.

Abe has indicated he may visit India before the end of the year, which would then make it the second premier-level visit in a calendar year. The Japanese emperor and empress are scheduled to visit India also at the end of the year, a trip that will certainly rile China.

Nissan India inks 10-yr pact with EPL for vehicles' export

Nissan Motor India Private Limited (NMPIL), the Indian arm of Nissan Motor Company of Japan has inked a 10-year agreement with Ennore Port Ltd (EPL) to export cars manufactured at its Oragadam plant near Chennai, said media report.

 

According to the agreement signed, Nissan India can export minimum 60000 units per annum for the next 10 years through the Ennore Port, added the media report.
NMPIL further said that the fresh agreement offers free parking space for the first 15 days and priority in handling its automobile units.

However, "It is subject to cancellation if the export of automobile units of Nissan or Renault is found through any other sea ports other than EPL or Chennai Port either in part or in full," the EPL said in the media.
Further, NIMPL claims that it was the first auto company to sign a pact with EPL, adding cars had been exported to over 100 countries in Africa and Europe from the south Indian port.

Terra A4000i Electric Scooter with iPhone coming to India

A4000i and A4000 are two electric scooters announced by Terra Motor Corporation of Japan. The A4000i is iPhone connected electric scooter, with a built in iPhone dock. Unveiled in Japan recently, two models are on offer, one without iPhone and the other with iPhone. According to their website, Terra Motors are India bound, and launch will take place by year-end this 2013.

So, what will the iPhone be useful for? Well, it will give information on electric consumption, balance battery life, average speed, mileage, navigation and a host of other updates with more data to be added in due course. The price announced in Japan for the iPhone variant, is ¥450,000 ($4,528 or INR 2.71 lakh), reports The Japan Times. The one without iPhone will be priced lower.

Electric bikes have become the new rage in Asia. They help to combat air pollution and rising fuel prices and each year a total of 30 million electric bikes are sold in China itself. But, in India, the market is still at a nascent stage. So, we are not sure launching such an expensive bike will find any takers in the country, where price is a big deciding factor.

Terra Motors’ new A4000i is compatible with the iPhone 3G, 3GS, 4, 4S and 5. Powered by a 48V lithium battery that can be completely charged in a matter of 4.5 hours, the battery has a lifecycle of 50,000 kms. The scooter has a top speed of 65 kmph and offers 65 kms running range on a single battery charge.

Japan beckons Coimbatore industrialists

Just as a business delegation from the Indian Chamber of Commerce and Industry (ICCI) has returned from a trip to Japan, a delegation from the Coimbatore District Small Industries Association (Codissia) is now preparing to visit the Land of the Rising Sun.

Apart from underscoring the importance of Japanese investment in India, what is significant is that at the centre of both visits is the SME sector. While ICCI wants the potential opportunities in Coimbatore to be known to the SMEs of Japan, Codissia is largely a representative body of the MSMEs.

Speaking to Business Line today, R. R. Balasundharam, President, ICCI, said the main aim of the visit to Japan was to make the Japanese companies aware of the immense potential in the SME sector.

During their visit, the delegation members addressed seminars in the three key cities of Osaka, Nagoya and Tokyo.

Japanese SMEs appeared to be interested in five areas. These were semiconductors, biomass for power generation, water and waste water management, instruments and sensors and Information Technology (IT).

He said Japanese SMEs in Coimbatore could be offered incubation facility.

The Japanese participants evinced interest in visiting Coimbatore later this year. R. Ramachandran, President, Codissia, is leading a delegation of 30 members to Japan, during which they would visit companies such as Isuzu Motors, Yamazaki Mazak and Toshiba Carrier Corporation.

He believes the visit will offer an insight into the best practices followed by the Japanese companies and this will help “enhance the competitiveness of MSMEs in the international market.”

He said the Codissia team has planned a visit to the Renewable Energy & PV Japan 2013, Tokyo. This has assumed importance in the context of the efforts taken by the Tamil Nadu Government to tap solar energy for power generation.

Suzuki Motorcycle launches new ad campaign

Anu Anamika, national Head, marketing, SMIPL says, ''The first TVC with Salman was a thundering success. Salman's Dabangg persona in the TVC helped extend Suzuki Hayate’s appeal across segments. Since Suzuki is a pan India brand, this time we thought of giving the campaign a different treatment with a South-Indian twist. We hope we are able to replicate the previous campaign's success and expand our reach to customers.'' - See more at: http://www.myiris.com/newsCentre/storyShow.php?fileR=20130719080347199&dir=2013/07/19&source=rss#sthash.RpjlcNcV.dpuf

Anu Anamika, national Head, marketing, SMIPL says, ''The first TVC with Salman was a thundering success. Salman's Dabangg persona in the TVC helped extend Suzuki Hayate’s appeal across segments. Since Suzuki is a pan India brand, this time we thought of giving the campaign a different treatment with a South-Indian twist. We hope we are able to replicate the previous campaign's success and expand our reach to customers.'' - See more at: http://www.myiris.com/newsCentre/storyShow.php?fileR=20130719080347199&dir=2013/07/19&source=rss#sthash.RpjlcNcV.dpuf

Suzuki Motorcycle India (P) (SMIPL), a subsidiary of Suzuki Motor Corporation, Japan, has launched a new ad campaign for its bestselling mass segment motorcycle-Suzuki Hayate.
An extension to the 2012 campaign, Suzuki's new TVC features Salman in his characteristic Dabangg persona of Chulbul Pandey, this time in a full blown South India avatar.

Anu Anamika, national Head, marketing, SMIPL says, ''The first TVC with Salman was a thundering success. Salman's Dabangg persona in the TVC helped extend Suzuki Hayate’s appeal across segments. Since Suzuki is a pan India brand, this time we thought of giving the campaign a different treatment with a South-Indian twist. We hope we are able to replicate the previous campaign's success and expand our reach to customers.''

Indian handicraft firms secure $3mn business in Japan Expo

Indian handicrafts companies participating in the three-day GIFTEX WORLD 2013 generated a business of worth over US$ three million which concluded at Tokyo Big Sight Japan. 

The Executive Director of Export Promotion Council For Handicrafts (EPCH), Mr. Rakesh Kumar led a delegation of 20 member exporters of Indian Handicrafts to participate in the famous Giftex World 2013 at Tokyo Big Sight Japan from 26-28 June, 2013.

Around 1800 exhibitors and nearly 70,000 trade buyers visited this 6-in-1 international fair to source their requirements. This year, 27 countries participated in the fair and India's first time participation in this fair was next only to China and South Korea.
Ambassador of India to Japan interacted with the EPCH member exhibitors and shared valuable tips to develop business in typical Japanese Market. The exhibitors represented various parts of India especially from West Bengal, Delhi, Jammu & Kashmir, Rajasthan, Uttar Pradesh, Bihar, Haryana, Madhya Pradesh and Uttarakhand.
Japan represents tremendous business opportunities for Indian handicrafts exporters in growing Asian market. Embassy of India in Japan will extend necessary support to EPCH to formulate a road map for promotion of Indian Handicrafts in Japanese market by organising Buyer Seller Meets, Induction of Japanese Merchandising Designers and Inviting Japanese trade visitors to Indian Fairs. 
Moreover, Mr. Rakesh Kumar, Executive Director EPCH, has been invited by Osaka International Business Promotion Center in this visit for strategic partnership with EPCH for Japanese product designers support for Handicrafts Sector in India.
The Indian Exhibitor profile includes Variety Gifts, Accessories, Interior Goods, Home Accessories, Kitchenware, Tableware, Ho me Textile, Christmas Accessories, Fashion Goods, Accessories, Fancy Goods, Eco-friendly Goods.
“Handicrafts occupies an important place in the Indian economy and society. This product group is a large foreign exchange earner, employment generator for economically and socially backward classes and promoter of Indian ethnic, cultural heritage worldwide,” the Executive Director of the Council added.
Japan is the second largest market in the world, after USA but slightly ahead of Germany for consumer and capital goods. Japan imports goods & services worth US$ 700 billion and is presently India’s key trading partner in the Asian region. The Japanese have many gift giving traditions and exchange many high value gifts during the year. The Japanese lucrative gift market is estimated to be worth US$ 150 billion.
The exports of Handicrafts have shown an increase of Rs.17970.12 crores (2012-13) from Rs. 12975.25 crores (2011-12), growth of 38.50% in rupees term. In dollar terms, the exports have shown increase of USD 3304.90 million (2012-13) from USD 2705.66 million (2011-12) a growth of 22.15 % during the period April-March 2012-13.

Nissan on the GO with Datsun

Japanese car maker Nissan Motor Co, on Monday, announced the global re-launch of ‘Datsun’ brand with the unveiling of its hatchback ‘Datsun GO’ that will be priced below Rs.4 lakh in India.

The company, which stopped selling the brand nearly 30 years ago, said the car would be available in the Indian market from early next year. It would be targeted at “emerging middle-class”, the company added.

 

“Today we begin a new chapter in Nissan’s history. Datsun is back...The car will go on sales early next year in India, followed by Indonesia, Russia and South Africa,” Nissan Motor Co President and CEO Carlos Ghosn said.

Market share

Stating that the company (Nissan) was targeting to up market share to 10 per cent by 2016 from about 1.2 per cent in India, Mr. Ghosn said, “We expect Datsun to contribute significantly to this growth.” The car-maker expects 50 per cent of its sales in India to come from the Datsun brand.

The launch comes at a time when the Indian automobile industry is going through a slowdown with domestic sales declining for eight months in a row .

Commenting on the market for small cars, Nissan Motor Co Corporate Vice-President, Datsun Business Unit, Vincent Cobee, said, “To my knowledge, the segments that have grown in India in the last six months are the segments that [have] seen product innovation. It is not so much the question of price; it’s a question about product attractiveness…A good product defines its own demand.”

In the segment, the Datsun GO will compete with Maruti Suzuki’s Alto, Hyundai’s Eon and General Motors’ Chevrolet Spark. Maruti and Hyundai together dominate the segment in India.

Datsun GO will be powered by a 1.2-litre petrol engine, and has been “fully engineered in India”. It will be manufactured at the Renault Nissan plant in Chennai.

“Bringing a car to any market that has been designed for somewhere else can be a bit of a dicey value proposition… Datsun GO has been made for India, in India for the emerging middle-class,” Mr. Cobee said, adding that it would be the first of several models that would be launched later in 2014 in Indonesia, Russia and South Africa.

When asked if Datsun would also be exported from India, he said some quantity could be exported to South Africa while “there will be pooling of assets” in Indonesia as the market was somewhat similar to India but not to Russia.

Nissan plans to introduce 10 models in India by 2016. The Japanese car-maker had announced plans to launch two products from the Datsun brand in India by FY14.