Japan telecom giant SoftBank to invest $10bn in India

Japanese telecom and internet giant SoftBank on Monday announced its intent to invest nearly $10 billion (around Rs 60,000 crore) in India over the next few years, with Masayoshi Son, the $92 billion conglomerate's chairman and founder, expected to kick off investments during his trip to India, where he is expected to meet several entrepreneurs .

Son mentioned the investment intention during his meeting with communications and IT minister Ravi Shankar Prasad, an official statement said, adding that India is "the top most priority for SoftBank".

Japan's richest man, who had invested $20 million in Chinese e-commerce giant Alibaba in 2000, is eyeing investments in e-tailing and technology companies in India, said sources privy to the discussions. Son is learnt to have suggested that the Centre should speed up the rollout of telecom infrastructure and quickly move to nationwide 4G services.

SoftBank is investing $627 million in Delhi-based e-commerce player Snapdeal, the biggest by any Japanese investor, and also pumping in as much as $180 million in taxi hailing startup Olacabs which competes directly with Uber.

Softbank so far runs a joint venture with Indian telecom major Bharti (Bharti Softbank) here and has invested in Bangalore-based mobile advertising network InMobi. The mammoth investment plan from SoftBank comes at a time when privately held Indian consumer tech companies are witnessing soaring valuations and seeing investors line up expecting high returns. Sources said SoftBank had also held talks with mobile payments companies Paytm and Freecharge and that Masa will be meeting a few other startups on his India trip.

(Prime Minister Narendra Modi in a meeting with CEO of SoftBank Corporation, Masayoshi Son, in New Delhi: PTI Photo)

Fifty-seven-year-old Son is Japan's richest man with an estimated net worth of $20 billion having surpassed Tadashi Yanai, chairman of Fast Retailing which runs Uniqlo, post Alibaba's IPO. SoftBank is the single largest shareholder in the Chinese e-commerce behemoth with a 34% stake in the Jack Ma-led company. SoftBank had acquitted the US mobile services provider Sprint in 2012 and had made attempts to buy T Mobile earlier this year ( the bid was later withdrawn) to collectively take on the two biggies AT&T and Verizon in the American mobile market.

SoftBank is expected to have picked up about 20-25% stake in Snapdeal and Olacabs each, however, this could not be independently confirmed by TOI. A venture capitalist on conditions of anonymity said that SoftBank only comes in when it can pick up a significant minority stake in ventures which is the case in both Snapdeal and Ola, he said.

Olacabs raises $210 million from Japan’s SoftBank Corp; enters $1b Club

Taxi service aggregator Olacabs has raised $210 million from Japan's SoftBank Corp at a valuation of nearly $1 billion (Rs 6,100 crore), people familiar with the development said, as it joins the league of India's most valuable startups and squares off against Uber as well as other venture-funded cab service marketplaces.

An announcement could be made as early as next week, when SoftBank Chairman Masayoshi Son visits India and makes official his group's investments of over $1 billion in Indian startups. ET reported that online retailer Snapdeal is in line to snag $650 million and mobile marketplace Paytm up to $300 million from the Japanese conglomerate which booked an estimated $5 billion gain from the IPO of Chinese ecommerce giant Alibaba last month. "The company is valued close to $1 billion," a source said, referring to Olacabs, which was founded in January 2011 by IIT-Bombay alumni Bhavish Aggarwal and Ankit Bhati.

Olacabs declined to comment. Soft-Bank did not reply to an email seeking its view. Olacabs started life in Mumbai but is now based in Bangalore.
It is backed by Sequoia Capital, Hong Kong's Steadview Capital and Tiger Global. Kunal Bahl, the cofounder of Snapdeal, is an angel investor in the company. The funding is an important milestone for Indian startups that are increasingly gaining the attention of deep-pocketed global investors looking to cash in on India's entrepreneurial prowess and the country's vast market opportunity.
Online retail has grabbed most of the attention and money so far—market leader Flipkart alone has raised $1.2 billion this year—but taxi marketplaces and realty portals are expected to be where the next battles to gain consumers and market share will be fought. An indication of the rising interest in the taxi aggregation market is the fact that Olacabs raised Rs 250 crore only in July, when it was valued at Rs 1,000 crore. What has also excited investors is the entry into India of Uber, the cab hailing app that has been making waves across the world.

        

San-Francisco based Uber, which is barely four years old raised $1.2 billion, at a valuation of $18 billion, in June this year. Uber entered India in August 2013 and has been recruiting taxi owners rapidly. Jaspal Singh, the cofounder of Valoriser Consultants which provides market research services for transportation companies, said the funding and valuation of Olacabs are an indication that investors are betting on rapid growth prospects. "Their longterm strategy is to expand the market size by attracting first-time riders and enter into new geographies," he said. Over two million taxis are registered in India and the market is estimated to be worth over $7 billion.

Companies like Olacabs do not operate their own taxis but provide the technology platform that links taxi owners with passengers. Ola, which is launching its service in one city every two weeks, claims to have around 33,000 cars on its platform. In about three and ahalf years, it has built a presence in 19 cities so far. The latest funding for Olacabs is likely to put pressure on Taxiforsure, its main Indian competitor which has also raised an estimated $50 million this year. Taxiforsure, cofounded by IIM-Ahmedabad alumni Aprameya Radhakrishna and Raghunandan G, is backed by Accel Partners, Bessemer Venture and Helion Venture.

Japan to help Andhra Pradesh develop new capital

Representatives of various economic agencies of Japan on Wednesday expressed interest in building a smart capital city for Andhra Pradesh in Vijayawada-Guntur region besides transferring technology in agriculture and food processing sectors.

A delegation comprising representatives of Japan External Trade Organization, Japan Bank for International Cooperation, New Energy and Industrial Technology Development Organization, Japan International Cooperation Agency and officials of Japan embassy held an "exploratory meeting" with Andhra Pradesh chief minister N Chandrababu Naidu at the secretariat here.

The delegation informed Naidu that Japan was keen on developing an industrial park that would have a dedicated utility centre in the state, an official statement said. 

The Japanese also expressed interest in setting two 4,000 MW thermal plants in Visakhapatnam and Srikakulam districts and a 2,000 MW solar power unit in Anantapuram district.

A joint working group has been constituted to work out modalities of the projects, it said, adding that the visiting representatives expressed readiness to transfer technology in agriculture and food processing sectors.

The Japanese delegation informed the chief minister that it would be meeting officials of 100 companies in New Delhi next month and wanted a representative of Andhra government to attend the event.

This would be a prelude to the proposed visit of Naidu to Japan next month.

Japanese auto component firms eye bigger pie of Indian market

Auto components makers are set to get a boost as Japanese car makers are increasing localization in their end products. Photo: Bloomberg “We are here as we have a future in India,” said Kazuhisa Takai, vice president at Sakura Autoparts India Pvt. Ltd. Takai’s firm is one of eight Japanese auto component firms setting up manufacturing facilities in the outskirts of Chennai for India Yamaha Motor Pvt. Ltd’s second factory in the region. Takai’s statement sums up the sentiments of a number of Japanese auto parts makers. They are looking to set up and expand in India to meet the needs of auto makers from their country as Toyota Motor Co., Suzuki Motor Corp., and Honda Motor Co. embark on an aggressive localization and expansion drive in India. There are close to 250 Japanese component makers already operating in India, according to the Auto Component Manufacturers Association (Acma)—a number that is set to swell by 35-40% over the next five years as Japanese parts makers boost investments in the Indian market, said analysts and investment bankers. Since Prime Minister Narendra Modi’s recent visit to Japan, the nation’s automobile industry has been making serious attempts to grow their India business, said R.C. Bhargava, chairman of India’s top car maker Maruti Suzuki India Ltd. 

Parent Suzuki Motor paved the way for investments by suppliers from Japan when it first entered the market in collaboration with the Indian government in 1982. At least 80-100 suppliers will be entering India for setting up units for making parts for Toyota Kirloskar Motor Pvt Ltd, said Shekar Viswanathan, vice chairman and whole-time director of Toyota Kirloskar Motor Pvt Ltd. Getting suppliers from Toyota’s global supply chain to set up manufacturing facilities in India, he said, is part of the company’s strategy to be able to launch future models with a higher proportion of locally produced parts. Viswanathan declined to identify any of these firms as they are in various stages of entering the market. “It would be an opportunity for them (Japanese auto part firms) not only to feed the local market, which is expected to expand at a fast pace after a decade’s worst slowdown, but also to use India as an export hub,” said Amit Kaushik, principal analyst at I.H.S Automotive, a market researcher. Kaushik estimates the Japanese supplier base will grow by at least a third over the next five years. The Japanese companies are showing a renewed interest in the auto ancillary space after a long time, said Anil Singhvi, founder and chairman at Ican Investment Advisors, a Mumbai-based investment banking firm. Besides the growth opportunity that India offers, the depreciating currency is an advantage for these firms, he said, adding that mergers and acquisitions in the space could also pick up. “I believe that transactions will increase in this space where Japanese players will look to take more control,” said Singhvi. If recent deals are any indication, the trend is already underway. On 25 September, Rico Auto Ltd informed the stock exchanges it has sold its Co. Ltd, stake in the joint venture FCC-Rico to its Japanese partner FCC allowing the Japanese company to take full control of the operations here. In March, Lumax Auto Technologies Ltd formed a joint venture with Mannoh Industrial Co. Ltd of Japan to make gear shift levers. Prior to this, Mannoh had only a technical alliance with Lumax. “They were keen to engage with the Indian market more deeply, hence we floated this new company in which Mannoh has 45% stake,” said Deepak Jain, managing director at Lumax Industries Ltd. Meanwhile, Jain’s firm is also in talks with two others Japanese firms for a joint venture in electronic and electrical parts. 

The deal, he said would be concluded in a few months. Minda Industries, the Delhi-based auto component maker, formed a joint venture with Panasonic Japan for making lead acid batteries for automotive and industrial applications, the company said earlier this month. Influx of component suppliers from Japan is leading to emergence of dedicated Japanese supplier parks in Gujarat, Karnataka and Tamil Nadu. These would be similar to the one in Neemrana in Rajasthan that came up a year and half back. 

Toyota’s Viswanathan said his company is in talks with the state government for a land parcel near Tumkur in Karnataka for auto component firms looking to set up shop to cater to Toyota’s needs. Gujarat Industrial Development Corp. (GIDC) has identified 115 hectares of land for drawing investment from Japanese companies, especially auto component makers, according to GIDC officials, who declined to be identified. Some of the companies that have been received approval to set up units in the industrial park include MA Extrusion India Pvt. Ltd, Toyota Forms India Pvt. Ltd, ROKI Minda Co. Pvt. Ltd and TS Tech Co. Ltd. “These companies plan to manufacture parts including automobile seats, air cleaner, pre-cast concrete forms, etc,” an official from GIDC said, declining to be identified. Some of the other firms which are setting up plants in the region include Hitachi Hi Rel Electronics, Mitsui Kinzoku Components Ltd and Showa India Ltd. The firms will be catering to the requirements of Suzuki Motor, Honda and others that announced their expansion plans earlier this year. In January, Suzuki said it would invest Rs.3,000 crore in a plant in Gujarat and sell the cars it produces there to Maruti Suzuki. With an annual capacity of 1.5 million units, the plant will start production in 2017. In February, Honda Motorcycle and Scooter India Pvt. Ltd (HMSI), also announced plans to set up a 1.2 million per annum capacity scooter factory in Gujarat. In August, Honda Cars India Ltd too announced plans to build a third factory with a 240,000 units per annum capacity, in Gujarat.

India, Japan to sign advance-pricing agreement to untie tax hassles

Das, however, did not name the Japanese company signing the APA. He said it augurs well for investors from Japan who are looking at India.

NEW DELHI: India and Japan will soon sign an advance-pricing agreement (APA), a move that will provide certainty to investors at a time the country is looking to attract big Japanese investment.

"I am happy to mention here that APA between India and Japan in a particular company's case has been finalised and it would be inked very soon," revenue secretary Shaktikanta Das said at an event on Thursday. "So, this will bring lot of clarity between our tax perception and the activity of that particular company. And the agreement is between tax authorities of India and Japan."

Das, however, did not name the Japanese company signing the APA. He said it augurs well for investors from Japan who are looking at India following a very successful visit there by PM Narendra Modi. The government has so far received more than 378 applications from companies for the mechanism, which will allow MNCs to seek guidance on pricing of goods and services in advance.

An APA, usually for five years, is signed between a taxpayer and the tax authority (CBDT) on an appropriate transfer pricing methodology for determining the price and ensuing taxes on intra-group overseas transactions.

Transfer pricing — transaction prices between separate entities of a large company — generated much heat in connection with investments by large MNCs like Vodafone, Shell, WNS and Nokia.

MNCs are often accused of misusing the system to transfer profits to their subsidiaries in countries that have low tax rates. The law requires that goods and services be sold to subsidiaries by parent companies at arm's length price, the price at which goods are traded between unconnected companies.

Taxing these units has become a complex area for the revenue department, with the government often disagreeing on the profits declared by a foreign company for its Indian unit.

Das said the government is committed to providing "fair, stable and predictable" tax regime that does not have any room for ambiguity and the Budget 2014-15 is a starting point.

"Lot of predictability has been brought in with this budget," he said, adding that the government has clearly said there will be no retrospective change in the tax policy that creates fresh tax liability. But, he said, it has to be a partnership between the industry and the revenue department.

"We need to move away from aggressive tax planning vis-a-vis aggressive tax assessment. We need to find resolution.

The whole perception of aggressive taxation is centred around 7-8 cases. I would not like to go into those cases as they are in various stages in different courts," he said.  

Foreign investments worth $100 bn knocking at India’s doors: Modi Industry Ministry sets up ‘Japan Plus’ team to fast track investments

Signalling a massive dose of FDI in manufacturing, Prime Minister Narendra Modi today said $100 billion worth of foreign investments is headed India’s way and it is up to the states to take advantage of the inflow.

"$100 billion investments from Japan, China and America have applied for visa. Now it is turn of the states to capitalise on the opportunity. The roads are wide open. The states which are ready can walk away with major share," he said while inaugurating the Global Investors' Summit in Indore.
The Prime Minister added that the Centre would stand shoulder to shoulder with all states, irrespective of political affiliation of the state government, to facilitate investment and economic growth.

Following the announcement by the Prime Minister on his Japan visit, the Department of Industrial Policy & Promotion (DIPP) today announced it has set up a special management team to facilitate and fast track investment proposals from Japan. The team, known as “Japan Plus”, will comprise representatives from the government and METI (Ministry of Economy, Trade and Industry) and Government of Japan.

An outcome of the recently concluded visit of the Prime Minister of India to Japan, the mandate of the “Japan Plus” team runs through the entire spectrum of investment promotion – research, outreach, promotion, facilitation and aftercare.

The team will support the Government of India in initiating, attracting, facilitating, fast tracking and handholding Japanese investments across sectors. The team will also be responsible for providing updated information on investment opportunities across sectors, in specific projects and in industrial corridors in particular. In addition, the “Japan Plus” team will identify prospective Japanese companies, including, Small and Medium Enterprises (SMEs) and facilitate their investments in India.

The government has also constituted a core group chaired by Cabinet Secretary on India-Japan Investment Promotion Partnership.


During the recent visit of the Prime Minister to Japan, the India–Japan Investment Promotion Partnership, as part of the Tokyo Declaration for India – Japan Special Strategic and Global Partnership was announced. Under this Investment Promotion Partnership, Japan has offered to invest in India approximately 3.5 trillion Yen ($33.5 billion) by way of public and private investment and financing, including Overseas Development Assistance, over the next five years.

$1.65-bn SAR aircraft deal likely to take off during Modi’s Japan visit

A pending deal involving purchase of 15 ShinMaywa US-2i Amphibious and Rescue (SAR) aircraft for $1.65 billion is likely to be sealed when Prime Minister Narendra Modi visits Japan shortly.

 

A pending deal involving purchase of 15 ShinMaywa US-2i Amphibious and Rescue (SAR) aircraft for $1.65 billion is likely to be sealed when Prime Minister Narendra Modi visits Japan shortly.
MoD sources said in march, a delegation of senior officials, including from the Navy, visited the facilities where the amphibious aircraft is being produced. They also sought to iron out issues related to modifications "that would allow Japan to export the aircraft to India without violating its self-imposed defence export restrictions".

A friend-or-foe identification system will be removed from the aircraft, a defence official said. Both countries had, at that time, also discussed the possibility of India being permitted to assemble the aircraft indigenously, giving it access to Japanese military technology. The deal was put on hold because of general election in India.

"The deal is significant for a variety of reasons. On the surface, it’s another indicator of growing cooperation between India and Japan on security matters. The deal is doubly significant in the context of India’s relations with Japan because once India clinches the deal, it will become the first country to purchase defence equipment from Japan since the latter’s self-imposed ban on defence exports began in 1967. The deal is important for Abe as it would open up Japan's defence industry for additional contracts with foreign partners,” said diplomatic sources.

Modi is expected to visit Tokyo enroute the BRICS summit in July, where he will meet with his counterpart, Shinzo Abe.
According to Japanese officials, the proposed sale of ShinMaywa US-2i amphibious, fixed-wing aircraft would not infringe on Japan's self-imposed ban on arms exports because the aircraft to be given to India will be unarmed and can be used for civilian purposes. The plane, built by ShinMaywa Industries (7224.T), could be outfitted for firefighting or as a kind of amphibious hospital and costs an estimated $110 million per unit. The plan is to deliver two aircraft and, then, assemble the rest of the planes with an Indian partner.

The Navy had issued requests for information on amphibian planes in 2010 to ShinMaywa, Canada's Bombardier for CL-415 platform, Russia's Beriev for Be-200 and US/German company Dornier for Seastar CD2. The Navy is also interested in Japanese patrol vessels and electronic warfare equipment as Tokyo moves further on easing its ban on military exports, the officials said.

Kochadaiiyaan to get a mega release in Japan

Superstar Rajnikanth's Kochadaiiyaan which is being directed by Soundarya Rajnikanth Ashwin is made with photo-realistic performance capturing technology.

According to a press release, in US, a leading Hollywood special effects studio watched the film and was amazed that this film was made in India. In US the audiences gave standing ovation after watching the film. Kochadaiiyaan is into its 3rd week and is running in 350 screens in South India. There is a screening of Kochadaiiyaan planned for British film institute in London which will happen by the end of this month. Kochadaiiyaan has been invited to almost all the festivals all over the world. The producers are planning a mega release in Japan shortly.

FDI diplomacy with Japan at play

New Delhi, June 8: The new Narendra Modi-led government plans to change the way Indian diplomacy is conducted by focusing on what moves the world — money.

With that aim, Modi will look to work his charm on cash-rich Japan for investment and trade. New Delhi is keen to offer strategic engagement and preferential status to Japanese businesses trying to find a second home after China turned costly and at times threatening.

Modi, who’s also being courted by China whose foreign minister Wang Yi is currently here, will be visiting Japan early next month. Japan will be his second state visit after Bhutan.

India, Japan and the US will also hold three-way talks later this month, focusing on foreign direct investment (FDI) and defence ties.

Terms of endearment

India is likely to offer to Japanese investors enclaves along the Delhi-Mumbai industrial corridor, rollback of retrospective taxation that saw tax demands of $3 billion from companies such as Mitsubishi, preferential treatment in investment-related clearances and regular economic dialogues on the lines of India-US talks.

Besides, India is likely to allow FDI in railways, paving the way for an India-Japan joint venture to build a bullet train using the Japanese Shinkansen technology that has been preferred over French and Chinese offers.

The carefully crafted diplomatic move follows a series of visits Modi made to Japan as the chief minister of Gujarat.

After Modi won the elections last month, a bout of public bonhomie followed with Abe tweeting, “Great talking to you, Mr Modi. I look forward to welcoming you in Tokyo and further deepening our friendly ties.” The tweet from the usually dour Japanese Prime Minister was unusual. But Abe has long treated Modi as a kindred spirit. Both are ultra-nationalists, committed to making economics the cornerstone of diplomacy.

Modi, as the chief minister of Gujarat, has long been involved in the Japan-funded Delhi-Mumbai corridor as it passes through his home state, Gujarat.

Modi hopes the indus- trial zone will draw Japanese investment not only in Gujarat but also in northern and western India.

Sea link

Tokyo is also in talks to partner India in developing ports along the eastern coast to improve sea connectivity with Southeast Asia. This will lead to better maritime links with Japan as part of an Asian supply chain network and can be seen as a rival project to China’s sea-borne Silk Route under which the latter has developed ports in countries surrounding India.

“We are interested in this project and are involved in a survey on this,” Shinya Ejima, chief representative, Japan International Cooperation Agency (JICA), India, told The Telegraph.

The ports, which will be improved to enable them to receive more traffic, will include Haldia, Vizag, Ennore and Chennai. The JICA has committed around 700 billion yen to the Delhi-Mumbai corridor.

According to finance ministry officials, Modi’s advisers see infrastructure projects driving Japanese investment in India. A survey by the Japan Bank for International Cooperation in November 2013 showed Japanese businessmen placed India as “the most promising country” ahead of China, Brazil, Vietnam and the US in the long term.

Around 87 per cent of the companies surveyed appreciate the “future growth potential of local markets”, though more than half said “underdeveloped infrastructure” was India’s Achilles’ heel.

Sanjeev Sinha, a Tokyo-based fund manager who advises Japanese companies investing in India, said, “The top management of Japanese firms recognise the strategic importance of India as an investment destination… (which is backed by) commitment from political leadership starting from the Prime Minister.”

Beijing concerns

Higher wages in China, tough stand of the state towards Japanese firms doing business there, lack of transparency in administering rules and intellectual property rights and anti-Japanese demonstrations in 2012 because of tensions over Senkaku islands have made Japanese companies wary of investing further in the giant neighbouring economy. Japan is the largest foreign investor in China’s $5-trillion economy.

Southeast Asia has been the biggest beneficiary of the shift in Japan’s choice of investment destinations. The region now accounts for 7.2 per cent of Japanese overseas equity holdings, up from 4.3 per cent in 2010. In India, Japan has invested over $16.26 billion over the last 14 years, including nearly $7 billion in the last 5 years.

Production push

Automobiles are expected to be the biggest draw for the Japanese in India. NYK Line, which dominates global shipping of cars, expects India to step up production of automobiles to 5 million by 2015 from 3 million now.

Much of that increase will come from Suzuki, which is planning a Rs 5,000-crore plant in Gujarat. Nissan, Honda and Toyota along with a clutch of auto parts makers are also expected to be major investors in India over the next three years.

en-Japan Acquires Recruitment Agency NewEra Consultancy

@Tilak

Japanese recruitment and post employment solutions provider en-Japan Inc has acquired 60% in New Era India Consultancy Pvt. Ltd, a job placement firm for INR 345 Mn, making it a subsidiary. As per the agreement , en Japan and en Asia holdings Ltd., a consolidated subsidiary, will acquire 60.0% of the total issued shares of New Era from Founder Arvind Sehgal, the largest shareholder of New Era (95%). The residual 40% will be acquired by the company in 2016 to make it a wholly owned subsidiary. The buy would enable en-Japan to access the New Delhi based company’s clients and further enhance its transactions particularly with the Japanese firms. Bridge & Sun Partners, a Tokyo based investment banking firm advised en-Japan on this deal. Established in 2000, New Era is a recruiting company targeting high-class professionals in India with core focus in introducing IT professionals with a large number of global clients. In addition to its head office in New Delhi, New Era has offices in major cities (Bangalore and Mumbai) with plans for further expansion in India. The 331 men strong company had a topline of INR 157 Mn with a operating income of INR 27 Mn and net income of INR 20 Mn for the FY13. enJapan was also established in 2000 and engages itself in offering Recruitment service and post-employment support, Internet- based job information service, job placement, employee training, H&R consulting, aptitude tests in Japan, Australia, South Korea, Singapore, Vietnam, Hong Kong, Thailand and China. As 67.6% of the population in 2025 will be in the working-age population, recruitment services are expected to expand and enJapan seeks to capitalize on this opportunity. As per MyHiringClub.com's survey, FMCG would lead the chart and is expected to generate 1.5 lakh new jobs, followed by healthcare (1.33 lakh), IT and ITeS (1.21 lakh), retail (86,700) and hospitality (83,400). Banking and financial services (61,400), manufacturing and engineering (51,500), education, training and consultancy (42,900), media and entertainment (42,800) and real estate (38,700) are also expected to create job opportunities. The number of Japanese companies launching business in India has doubled over the last five years. By 2013, 1,072 companies had entered the market in India. Some of the recent inbound Japanese deals include: Japan’s staffing firm Outsourcing Inc had acquired a majority stake of 51% in Bangalore based staffing and HR outsourcing services company Alp Consulting and its subsidiary Datacore Technologies Private Limited for $5 Mn. @NuGrid_Consulting Private Limited had been acquired by Japanese HR service provider Recruit Holdings through its wholly owned subsidiaries - RGF Hong Kong and RGF HR Agent Singapore for nearly R150 Cr

OMRON : OPENS ITS FIRST AUTOMATION CENTRE IN INDIA

Omron Corporation Japan has opened its fifth global automation centre in Mumbai. This is the company's first automation centre in India. The centre aims to showcase Omron's expertise in sensing and control technology. The centre will display Omron's key portfolio of industrial automation range as well as the company's technical and application support capabilities. Omron is a global leader in the field of automation and employs 36,000 employees in over 35 countries.

Japan, China vie for India's new prime minister Narendra Modi's heart

Japanese Prime Minister Shinzo Abe follows only three personalities on Twitter. One is India's newly minted Prime Minister Narendra Modi. So it came as no surprise when Abe dispatched a congratulatory tweet to Modi minutes after it became clear that the latter would occupy the prime minister's official residence at 7 Race Course Road in New Delhi. Modi's tweet in response read, "I am sure we will take India-Japan ties to newer heights." It sounded as though the two politicians were continuing a previous conversation rather than forging a new relationship.

Much of Shinzo Abe's economic reforms in Japan will not bear fruit without a significant emerging market driving the growth of Japanese industry. Japanese exports to China declined by 18% in the 12 months leading to the Indian elections. The decline was triggered by the controversy over the Senkaku (or Diaoyu, in Chinese) Islands and is unlikely to reverse course in the near future.

Meanwhile, many Japanese companies are well entrenched in India but suffered at the hands of the previous outgoing United Progressive Alliance government. Two major Japanese corporations, Mitsubishi and Honda, were slapped with tax recovery notices to the tune of US$2.6 billion following a retrospective amendment to a tax law in India. All this makes Modi look like a white-bearded Samurai savior in the eyes of Abe's business-minded constituents.

The annulment of tax demands might be on top of Abe's wish-list, but there is much more that he expects from Modi. Japan has cultivated India as an export destination for a long time by funneling investment into big ticket infrastructure projects such as the Delhi-Mumbai corridor. Abe would like this trend to continue. India might consider inviting Japanese investment in its Northeast region as a fitting reply to China's claim over what it calls South Tibet. Modi has already inducted a retired army general to supervise the impending boost to infrastructure in this region.

Regarding Delhi Mumbai Industrial Corridor (DMIC) project, Indian author and activist Arundhati Roy wrote in her book Capitalism: A Ghost Story

It will be connected to the Delhi Mumbai Industrial Corridor (DMIC), a 1,500-km-long and 300-km-wide corridor with nine megaindustrial zones, a high-speed freight line, three seaports, six airports, a six-lane intersection-free expressway, and a 4,000-mw power plant. The DMIC is a collaborative venture between the governments of India and Japan, and their respective corporate partners, and has been proposed by the McKinsey Global Institute. The DMIC website says that approximately 180 million people will be "affected" by the project. Exactly how it doesn't say. It envisages the building of several new cities and estimates that the population in the region will grow from the current 231 million to 314 million by 2019. That's in seven years' time.

When was the last time a state, despot, or dictator carried out a population transfer of millions of people? Can it possibly be a peaceful process? The Indian army might need to go on a recruitment drive so that it's not taken unawares when it is ordered to deploy all over India. In preparation for its role in Central India, it publicly released its updated doctrine of military psychological operations, which outlines "a planned process of conveying a message to a select target audience, to promote particular themes that result in desired attitudes and behaviour, which affect the achievement of political and military objectives of the country." This process of "perception management," it said, would be conducted by "using media available to the Services."

Abe will also expect Modi to replicate the Gujarat model of governance delivery at the national level. A simplified indirect tax system, time-bound land acquisition schemes and transparency in industrial licensing will be essential ingredients of this model. This will allow Japanese companies to maximize their growth prospects in India and will give Abenomics a new lease of life.

In what appears to be an unintentional Machiavellian twist, Modi has managed to cultivate an equally friendly relationship with China. More surprising is the fact that the Modi-China relationship is now burdened with exactly the same expectations as the relationship between Modi and Abe.

Chinese engineering, procurement and construction contractors are thirsting for a bigger slice of the $1 trillion infrastructure outlay in India over the next five years. Chinese manufactures of mobile phones, transformers and everything else in between have announced plans to enter the Indian market. Low interest loans from Chinese banks that will accompany the activities of Chinese companies in India is also a carrot that India cannot easily ignore.

India too has spruced up its wish list. Last month, the country's first ever service sector delegation to China reached Beijing making a case for Indian information technology and pharmaceutical companies that have been struggling to make headway in the China's domestic market. China's only positive response so far has been an admission that Indian movies are popular among its citizens and cultural co-operation is vital. Everything else is being held back until China gets what it wants from India.

China is rushing its foreign minister to New Delhi on June 8 to ensure that Modi does not overlook its interests as he gets down to business. With the India-China border dispute being tamed by a joint dialogue mechanism over the past several years, the stage appears to be set for a decisive barter where both parties are completely aware of what the other wants in the economic sphere.

This is the first time that the Chinese state media has provided extensive coverage of an Indian general election, so most Chinese are familiar with Modi. It also helps that most Chinese can pronounce Modi's name without much difficulty. Chinese businessmen who have visited Gujarat province, where Modi was chief minister, look at him as a messiah and are relieved that India's democratic process could finally elevate an effective leader.

The courting of Modi by Japan and China certainly resembles a Bollywood plot. But whom will Modi embrace and when? One can only enjoy the songs and drama while waiting for a happy ending.

Japan ferrochrome spot prices rise on output cuts in India

Japanese spot import prices of high-carbon ferrochrome rose this week as Indian producers cut output amid a decline in domestic chrome ore feedstock supplies, market sources said Friday.

Platts assessed the spot price of high-carbon lumpy ferrochrome at 91-93 cents/lb CIF Japan Friday, up from 90-91 cents/lb CIF Japan a week ago, on three deals reported.

One deal for 100-200 mt and another for 500 mt were confirmed by both buyer and seller at 91-92 cents/lb CIF Japan for June shipment from India's east coast. A third deal for over 100 mt was reported at 93.5 cents/lb CIF Japan for low phosphorous material, or maximum 0.02%, and normalized to 93 cents/lb CIF Japan.

Platts takes into account deals for 10-100 mm lumpy material with minimum 60% chrome, 2-4% silicon, around 8% carbon and 0.02-0.05% phosphorous content, with a minimum volume of 100 mt on a CIF Japanese main port basis.

One Omani producer offered 89-91 cents/lb CIF Japan for 0-10 mm powder with around 47% chrome content this week, which failed to attract buyer interest, a Japanese trader said.

Seller and buyer sources said spot trade was lackluster this week as most Japanese end-users were focused on low and mid-carbon ferrochrome, which were seeing supply from Russia and Kazakhstan tighten. An Indian producer source said he received inquiries only from Europe this week.

The Japanese trader said: "End-users think high-carbon prices will stay cheap for a while, but I have concerns about supply tightening."

A second Japanese trader, who pegged the current spot price at 94-95 cents/lb CIF Japan, said: "Non-integrated Indian producers [buying chrome ore from third parties] are in a panic. End-users will be so too, eventually."

A non-integrated Indian producer source pointed to low run rates in the country, saying: "Producers are generally at below 40%."

Visa Steel is said to have cut output at its 50,000 mt/year plant since May. Platts was not able to confirm with the company.

Rohit, another non-integrated producer with a 70,000 mt/year production in West Bengal, may have cut output too, market sources said. The producer could not be reached for confirmation.

A third non-integrated producer was heard shifting to manganese alloy production. The producer did not respond to Platts' inquiries.

ORE MINING BAN

Non-integrated producers are being forced to curtail output as chrome ore supplies from Tata Steel were cut after it was ordered to suspend mining on May 16 by the Odisha State Supreme Court.

The first producer source said his company typically sourced more than 50% of its chrome requirements from Tata. The only other local supply source was the state-run Odisha Mining Corporation, or OMC.

OMC is expected to issue a tender to sell around 50,000 mt of chrome ore next week. Indian state-run Metal & Mineral Trading Corporation issued a 10,000 mt chrome ore export tender Wednesday that closes June 18.

Two non-integrated Indian producers that were said to be cutting output continued to offer spot cargoes this week, a third Japanese trader said. Ferrochrome supply from India typically falls in June as seasonal monsoons lower output at feedstock ore mines, producers said.

With domestic feedstock supply tightening, Indian ferrochrome producers said they were increasingly seeking spot ore imports from Oman and Turkey.

Spot inquiries are expected to pick up next week after Korea Resources Corp. closes a buy tender June 10 for over 1,000 mt.

Market sources said it was possible spot prices would surge if inquiries increased and spot supply ran thin.

Japan coordinating Modi's visit in July

The new Indian Prime Minister Narendra Modi plans to visit Japan in July. He is apparently trying to emphasize the importance he places on bilateral relations.
India's Foreign Ministry on Friday announced that arrangements are underway for Modi to visit Japan to hold talks with Prime Minister Shinzo Abe.
Modi took office on May 26th as he led his Bharatiya Janata Party to a sweeping victory in recent parliamentary elections and realized India's first change of power in a decade.
The new prime minister plans to visit neighboring Bhutan at the end of June. The Foreign Ministry says Japan is likely to be Modi's second foreign destination.
Modi has pledged to revitalize India's economy. He has attached importance to developing economic ties with Japan to promote more investment to his country.
Meanwhile, the Japanese government is set to deepen economic and security cooperation with India in the face of China's increasing maritime activities in the East and South China Seas.

Injack signs MoU with Yokohama India Centre

It was in Yokohama that Indian merchants first entered Japan about 150 years ago and established their business base

The Indo Japan Chamber of Commerce Kerala (Injack) today  signed an MoU with Yokohama India Centre (YIC) for mutual cooperation in promoting business between Kerala and Japan.  The signing ceremony was held during a video conference between officials of the two organisations  at Nippon Kerala Centre in Kinfra hi-tech park, here.
T  Balakrishnan,  president of Injack, and   Yoshihiro Nishida, co-chairman of Yokohama India Centre, signed the MoU. Injack is only the third organisation in India with which YIC has similar MoUs, the other two being Indian Merchants Chamber (IMC) and Federation of Indian Chambers of Commerce & Industry (Ficci).
Yokohama has a long history of doing business with India.  It was in Yokohama that Indian merchants first entered Japan about 150 years ago and established their business base.  Since then Indian business presence in Yokohama has increased manifold and now several big Indian IT companies, including Infosys and TCS, have branches and some like TVS have  manufacturing units there.  
With the signing of  the MoU,  business cooperation in the SME sector is expected to get a boost, as the focus of Injack is on developing  business in the SME sector. Injack has already identified 50 SMEs in and around Yokohama for business matching with SMEs in Kerala.
Balakrishnan proposed partnerships between women entrepreneurs of Kerala and Japan in the SME sector.
A survey by a Japanese consultant to identify more specific areas of interest to Japanese entrepreneurs was also mooted.  A delegation of Japanese business persons is likely to visit Kerala early next year.

JAPAN'S ISUZU MOTORS PLANS TO SELL 50,000 PICKUP VEHICLES IN INDIA

Isuzu Motors of Japan, which has a fully owned subsidiary in Chennai, aims to sell 50,000 pickup vehicles in India in the next few years to gain market leadership. It has earmarked Rs3,000 crore investment for a 1.2 lakh units per year manufacturing facility. Isuzu has started assembling `D-Max' pickups at Hindustan Motors' Chennai plant. It will crank up sales once its own manufacturing facility in Sri City in Andhra Pradesh gets on stream in 2016.

Japan may expand infrastructure investment in India

Japanese investors are excited after the new government has promised faster decision-making and emphasis on has emphasis on infrastructure in India, and they are ready to bank roll and provide expertise to develop India’s physical infrastructure. Japan’s Ambassador to India Takeshi Yagi, along with representatives from that country’s development agencies, met department of industrial policy and promotion secretary Amitabh Kant on Friday to discuss investment plans in India, particularly in various infrastructure corridors.
The meeting was part of a mutual effort to give a thrust to Japanese investment in India, Kant told ET. The two sides assessed how the government can work together with agencies such as the Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation (JBIC) for speedier implementation of projects in hand and thereby bringing in more investment, he said to media. “We discussed and reviewed the Delhi Mumbai Industrial Corridor (DMIC) and Chennai Bangalore Industrial Corridor.” The meeting was attended by representatives from Japanese organisations JICA, JBIC, Japan Chamber of Commerce and Industry in India, Overseas Human Resources and Industry Development Association, and the New Energy and Industrial Technology Development Organization, besides Madhya Pradesh commerce and industry minister Yashodhara Raje Scindia. “The MP minister also wanted to provide impetus to DMIC in her state,” Kant added.
The BJP, which is set to form the next government on Monday, in its election manifesto had talked about building 100 new cities besides making world-class investment and industrial regions as global hubs of manufacturing. While India has been wary of Chinese investment, the comfort level is much high when it comes to Japan, and it is very visible in foreign direct investment numbers. Japan is the fourth biggest foreign investor in India, contributing about 8% to the total FDI inflows. It brought $1.7 billion in fiscal 2013-14, and $16.2 billion between 2000 and 2014. In contrast, FDI from China is $0.4 billion since 2000. The close ties between the countries were also visible when Japan expanded its currency-swap arrangement with India to $50 billion from $15 billion last year, contributing to New Delhi’s efforts to arrest the rupee’s free fall. About 60% of Japanese presence in the country is in the manufacturing sector. Big Japan-funded projects in India include the ongoing DMIC and the Delhi Metro. The Japanese are also in talks to build a road network in the Northeast.
The Japanese government has approved $4.5 billion for non-commercial projects through JICA and commercial lending through JBIC, which has 26% equity in DMIC. Besides, Japan has also committed a loan of $2 billion for the Delhi Metro. The two sides are also integrating on the Chennai Bangalore Industrial Corridor. India and Japan are widely expected to forge even stronger ties under the incoming Narendra Modi government. “India’s relationship with neighbours in the East is likely to improve tremendously. Modi is pro foreign investment and will help in attracting technology and boost manufacturing. Japan is a huge stakeholder in DMIC, with larger zones in BJP-run states, be it Rajasthan or Gujarat, which will strengthen bilateral ties,” said Arpita Mukherjee, professor at the Indian Council for Research on International Economic Relations. According to her, it is the corporate confidence which will drive up investments further, which will mean carrying out reforms.

Right on time - Casio

Casio India Limited, a subsidiary of Casio Computer Co, Japan, has launched its range of Edifice Era-300 chronograph watches in India. Features include a compass, temperature display, and neon illumination.

Price: Rs 19, 995

Isuzu to expand India dealer network, launches pick-up trucks

Japan's Isuzu Motors aims to expand its dealer network in India six-fold to about 60 outlets in the country by the end of the next financial year.

The company, which opened its first dealership in North India in Delhi today, also launched three variants of pick-up trucks under the D-Max range in the National Capital Region at an introductory price of Rs 5.89 lakh, Rs 6.09 lakh and Rs 6.99 lakh (ex-showroom NCR).

"The Delhi outlet is our 10th dealership in the country. We plan to expand the number to 60 by the end of 2015-16 to increase our presence in the country," Isuzu Motors India Managing Director Takashi Kikuchi told reporters here.

The company will add dealerships in Noida, Jaipur and Ludhiana by the end of this financial year. It plans to open outlets in Chandigarh, Amritsar, Jalandhar, Lucknow, Kanpur and Udaipur by the end of next year.

"We are extremely happy to open our first outlet in North India. North is an important region for us, contributing to around 30 per cent of total pick-up sales in the country," Kikuchi said.

The company, which is setting up a manufacturing plant in the country at an investment of Rs 3,000 crore, aims to start production at the facility in 2016.

"To begin with, we will start with a production capacity of 50,000 units and later scale it up to over 1 lakh units per annum," Kikuchi said.

Currently, the company produces the pick-up range at Hindustan Motors' Chennai facility.

Kyoto to Kundapura

Art student Megumi Sakakida Deepak loved the taste of Indian food she ate at the restaurant she worked in, in Japan. It brought her all the way here in an affair of art, food, coconut chutney, and marriage

Look what food can do! It brought Megumi Sakakida from Kyoto to Kundapura in her quest for the sound of the Kannada language she liked hearing, and a desire to meet its people, explore its culture, and of course, food.

“I was working in an Indian restaurant called Kerala in Kyoto, Japan. Two of the chefs were from Karnataka — one from Karkala and one from Kundapura. They taught me about Indian food and culture and I was fascinated by India. I decided to travel here, and toured south India in 2009 and 2010; I visited Bangalore, Karkala and Kundapura. If Kyoto is my fist home, Kundapura is my second. I was very comfortable here, and it felt like home. So I decided to come back here and become a part of India,” smiles Megumi, dressed in a colourful salwar-kameez, two braids, and wearing a mangalasutra! She can now speak fairly good Kannada and has even been learning the written script.

She talks of the next leg of her India sojourn. She had completed her bachelor of visual arts in Japan, and decided to join Karnataka Chitrakala Parishath for a Masters programme. Many in Japan advised her to join Shantiniketan (West Bengal), but Megumi was keen to join the Parishath because she wanted to learn Kannada! During her student says in Bangalore she attended Kannada classes every Saturday. She had met many Kannadigas and wanted to speak with them in Kannada. “Learning Kannada was not so hard because I found the grammar similar to Japanese. Some words are also similar. Kannada script is very cute looking; it has round characters.” She went “home” to Kundapura for holidays.

During her art course, she met and married classmate Deepak, from Kushalnagar, Coorg. After completing her course, she started working with a Japanese firm as a consultant for Japanese tourists wanting to visit south India. Her parents were initially surprised at the decision of their only child. They however, let her be, because she was happy. Moreover, technology has made keeping in touch easy, she says.

As a beautiful convergence of her love for a new culture, and her art, she has put together a series of artworks “Nanna Bharateya Jeevana”, which looks straight out of a graphic novel panel. It started off as a way of documenting the food she ate, drawing out the dish, writing its name in Japanese and Kannada. “I can see each culture through its food,” she explains. She lists neer dosa, ragi mudde, and rava idli as her favourite foods. Rice, she says is the connecting factor between the two food cultures.

“I couldn’t express myself very well in words, so I wanted to paint my feelings.” Her work titled Nanna Kanasu shows her wearing bindi, flowers in her hair, and, a mangalasutra. “I had attended many Indian weddings and I was dreaming about getting married in India,” she laughs. There’s a lovely sketch in her series of a bride and groom titled “Ganda-Hendati” (husband-wife).

“I’m interested in the food culture here. I love the plantain leaf. We eat very differently in Japan. We never mix rice and curry — it’s always one bite of rice and one bite of curry, separately, and with chopsticks. We don’t have the concept of vegetarian food. The vegetables are in the meat dishes!”

Her other food fascination, is coconut. “We only get dry coconut in Japan.” So when her best friend Shobha (the chef’s daughter) got married in Kundapura, Megumi lived with them for a month, partaking of all the preparations and rituals , from painting the house, shopping for saris and gifts, picking coconuts from the farm and carrying them on her head home. “I grated 50 coconuts for the wedding. At the end of it, my hands were bleeding!”

All these find their way into her art and there’s a cute depiction of her sitting across the eelige mane with a mound of green coconuts behind her, furiously grating. Another painting illustrates in detail the recipe for coconut chutney; Megumi says she loves the taste of coconut.

In All her artworks features is a little white dog. “It is ‘nanna manassu’ (my heart),” she explains, because I feel shy to show myself in my pictures, so I use the dog as a symbol.”

“It was difficult to get a job in the art field in Japan. That’s why after my course, I joined the restaurant. I would help cut vegetables and serve food. That’s how I got to try Indian food. I ate my first masala dosa when I was 21.” She comes back full circle, back to her restaurant days in Japan. “I want to say thank you to India. It changed my life. When I graduated in Japan, there was no hope for my life. Everything looked bleak. I hated living in Japan. But after coming to India things became colourful and exciting. Now I also appreciate Japan better.”

She breaks so often into Kannada, it’s surprising. “I hope I’ve become a Kannadiga,” she says, with a sweet wide smile spread between her two braids. With earnest zeal like that, she leaves no doubt in your heart.

You can see Megumi’s paintings at the Rangoli Metro Art Centre, MG Road Boulevard. The exhibition is on view till June 8.

Panasonic launches new window ACs in India, targets small town buyers

Japan's electronic major Panasonic said it has ventured into the window air-conditioner segment in a bid to expand consumer base in
the hinterlands and small towns.
Panasonic, which is aiming to capture up to 8 per cent (value basis) of the AC market this season, has re-entered into the segment with the entry-level models, the company said in a statement.

Its window AC line up is already available in the market in variants of 1, 1.5 and 2 tonnes, ranging from Rs 24,990 to Rs 39,490.

Its window AC line up is already available in the market in variants of 1, 1.5 and 2 tonnes, ranging from Rs 24,990 to Rs 39,490.
"The consumption pattern in these areas is shifting from necessities to discretionary goods and the consumers have been showing a great appetite for consumer durables.
"Window ACs have strong potential demand from rural India and smaller towns since the first time buyers in these markets essentially prefer window ACs as they want a low cost product with simpler features," the company said.
After this addition, Panasonic would now cater to different audiences with its offerings.
Commenting on the development, Panasonic India and South Asia Managing Director Manish Sharma said: "We want to give our consumers a wide choice of products to choose from and make available products that suit their requirements in context to their economic and demographic limitations".
Panasonic grew 5 per cent in terms of value, he said.
"We are hopeful that year 2014 will definitely open up a plethora of new opportunities and we are expecting the market also to grow by 5 to 8 per cent this year," Sharma added.
It has a network of 700 authorised service centres and over 50 Panasonic service plazas.

Panasonic's window AC line up is already available in the market in variants of 1, 1.5 and 2 tonnes, ranging from Rs 24,990 to Rs 39,490. 

Narendra Modi promises to build 1st bullet train if elected

India will soon begin work on a new bullet train railway network if, as widely expected, Hindu nationalist leader Narendra Modi becomes prime minister later this week.
Modi highlighted his support for bullet trains modelled on Japan’s superfast railways in speeches at the start on the long election campaign.

He is planning to accelerate those plans as one of his top priorities if he is made prime minister.
He believes bullet trains could become symbols of a new age of modernisation in India in contrast to the old colonial railway network built during the British Raj.
Indian Railways (IR) today is associated with roof-riding fare-dodgers, while for paying passengers train travel is a grubby experience in carriages often infested with cockroaches and rats.

In a campaign speech in Delhi in January, Modi said India’s railways had been neglected for too long. “We have such a huge rail network, but it is our misfortune that no attention is paid to railways in the country. The change that Japan’s rail system has undergone, it deserves to be applauded.
After all that change occurred because Japan introduced the concept of bullet trains and got the country raised. China also followed that concept.

He said that “We have such a long rail network, but we are not thinking about its modernization.”
He called for new “rail universities” to be opened as centers for engineering innovation and pledged to open four new bullet train routes in time for India to celebrate its 75th anniversary of independence in 2022. Then, he said, the “world will see India from a new perspective”.

Feasibility studies had been done for bullet train routes from Ahmedabad to Pune via Mumbai and Delhi to Amritsar, close to the Pakistan border, via Chandigarh. Building a Bullet Train system will cost three times more than standard Indian rail tracks and carriages and higher fares will mean it will only be affordable for wealthier passengers, R.N Malhotra, a former chairman of the Indian Railway Board, said.

A legend of Indian classic dance comes back to Japan after 26 years

Pandit Birju Maharaj, the king of one of the eight classic dances of India, aims to promote Kathak, or an act of storytelling through dance, during his first visit to Japan in 26 years.

In an interview after performing Sunday in Tokyo, the dancer, composer and choreographer described Kathak as a form of yoga put to music, where the performer also uses gestures and facial expressions to enact stories from Indian mythology.

The 76-year-old dancer, invited by one of his students to introduce the “real” culture of India to Japanese, said Kathak is “an act of yoga, prayer and meditation . . . and is also entertaining”.
“Everyone seeks happiness and peace in this world,” he said. “Music has a big role in providing peace. It distracts you from the outer world for some time and then you are back to the worldly life again.”

The Kathak master is scheduled to give one more dance performance next Sunday in Osaka.

Karthikeyan 8th fastest in Super Formula qualifying

India's top racing driver Narain Karthikeyan has his task cut out in the second round of the Japan-based Super Formula Championship after he set the eighth fastest time in the qualifying at the iconic Fuji Speedway here today.

In the qualifying held on the Formula 1 format, Karthikeyan was ninth fastest in Q1 with 1:24.085 before he improved to 1:23.253 to be eighth in Q3 on the 4.5 km track where he will be race for the first time in his carer.

His teammate at Team Lenovo Impul, JP de Oliveira, will start on pole for the first of the two races on Sunday.

The Indian, who beat the more experienced local and foreign drivers to secure the front row in the season opener at Suzuka last month before retiring out of the race, finds himself in a more challenging situation here.

A 25-lap sprint race will precede the second main race which will require drivers to pit at least once during 35 laps.

Considering the highly competitive field, Karthikeyan is looking at a top five finish in the double header.

"The conditions are much different from the last time I came here for testing. It is a circuit I have not raced on, so I am looking forward to compete here finally," said Karthikeyan referring to his visit in January when the temperature hovered around five degrees from the pleasant 20s right now.

"It has been a difficult weekend compared to Suzuka last time around. There are a few things we are still working on the setup front."

Though it is a low downforce circuit, colder air affects the aerodynamics of the car.

"Colder air is much denser, so you feel the affect of aerodynamics more in terms of stability, but increase the temperature by 20 degrees and you end up with a lot less downforce even if mechanically everything is the same," explained Karthikeyan.

The track encourages overtaking and he is confident of making his way up through the field.

The completely revamped Super Formula series (formerly known as Formula Nippon) has switched to a new Dallara SF14 chassis this year; powered by two-litre, 550 bhp turbocharged engines - similar to the new F1 regulations.

New Energy Systems : VIOM, JAPAN'S NEDO TIE UP TO CUT DIESEL USE IN TOWERS

Viom Networks, a Gurgaon-based telecom tower firm, is working with Japan's New Energy and Industrial Technology Department (NEDO), to reduce diesel consumption at some of its sites. Viom and NEDO have signed a memorandum of understanding (MoU) for the same. Viom is India's second largest telecom tower company with more than 42,000 sites.

NEDO has already begun a study to determine the number of sites where it plans to work on and also on the alternative technology, mostly renewable energy, which it wants to introduce. It is also looking at remote control or management of these mobile phone towers. Investments in technology and energy saving solutions are to be made by NEDO.