Tuesday 25 March 2014

Goldman, Mitsui lead $50 mn investment in India-Japan

Goldman Sachs  and a unit of Mitsui & Co Ltd  have led a 3,150 million rupee investment consumer goods firm Global Beverages & Foods Pvt Ltd, the investment banks said in a joint statement on Wednesday.

 Goldman, Mitsui lead $50 mn investment in India-Japan
A. Mahendran, a former managing director for Godrej Consumer Products Ltd, will be chairman and managing director of Global Beverages & Foods and will also invest in the company, the statement said.

Global Beverages & Foods plans to build a portfolio of consumer brands to cash in on increased consumer spending in India.

Saturday 22 March 2014

India Yamaha recalls about 100 YZF-R1 superbikes

Two-wheeler maker India Yamaha Motor is recalling about 100 units of its superbike YZF-R1 in the country, due to a problem with the vehicle's headlight.
The recall, which is part of a global exercise undertaken by the company, covers YZF-R1 bikes sold in the country in the past 3-4 years.
"...our parent company Yamaha Motor Co, Japan have determined that a defect, which relates to Head light lead coupler overheating and melting exists in YZF-R1 motorcycle falling within certain production numbers," Yamaha said in a statement on its website.
This headlight sub-lead must be replaced at the earliest in the motorcycles falling within certain production numbers, it added.
"Yamaha is initiating a factory modification campaign, where the affected motorcycles must get the headlight sub lead replaced with a modified one," it said.
The company added that the replacement of the faulty part would be free of cost.
According to sources, the company would recall about 100 YZF-R1 superbikes in India.
Last year, the company had recalled 56,082 units of its scooter 'Ray' after detecting insufficient strength in the handlebar of some vehicles due to inadequate welding.

Nikon India to invest 120 cr in next fiscal

Japanese camera maker Nikon on Wednesday said it will invest ₹120 crore in India in the next fiscal on branding and marketing, similar to what it is spending in the current year.
With a market share of 55 per cent in India, the company expects to continue with the number one position with a growth of 20-30 per cent every year, with majority of the shares coming from the digital single lens reflex (DSLR) cameras, a top company official told Business Line.
DSLR market
“The total size of the DSLR market is expected to go up to 3.6 lakh units in the next financial year from three lakh units this year and around 2.4 lakh units in 2012-13, and our aim is to get the maximum share,” said Hiroshi Takashina, Managing Director, Nikon India.
In the compact digital cameras also, he said, the company has around 33 per cent market share and it targets to achieve 38 per cent in the next financial year.
Nikon India has 14 models in the DSLR segment and 27 in the compact digital cameras, all imported from its factories in China, Japan and Thailand, he added.
Apart from investment in branding and marketing for its products, Takashina said the company will also expand its reach to 4,000 multi-brand stores in the next one year, from around 3,500 shops now.
Expansion plans
“We have 31 local distributors with local partners in each State and we are planning to enter 30 more cities, especially in tier-II and tier-III in the next fiscal in places like Bareilly, Agra and Agartala,” he said.
Looking at such expansions and with upcoming products, the company expects a turnover of ₹1,100 crore in the next fiscal, up from around ₹1,050 crore this year, Takashina added.
Meanwhile, Nikon launched three new models of D3300 priced in the range of ₹32,450 to ₹46,950. It has also launched its flagship model D4S, to be available from end of this month at ₹4,19,950.

Friday 21 March 2014

38 Indians win Japan government scholarship

Japan is wooing bright young minds from India and 38 Indian students have won a special Japanese government scholarship. The 38 students won Japan's MEXT scholarships of Ministry of Education, Culture, Sports, Science and Technology. Addressing a send-off reception for the students at his residence here, Japanese Ambassador Takeshi Yagi Friday said he hoped the students would have a useful stay in Japan. Yagi said: "Not only for your academic career, but also for expanding your knowledge about Japan. Please convey your experience to your friends in India so we will be having more Indian students in Japan." Of the 38 students, 29 are going to start their higher education in Japan from April this year. The remaining will be leaving for Japan in October this year. Of these, 32 are joining as research students and will attend a programme for research as well as master's and doctoral course, a Japanese embassy statement said. Four students are going for an undergraduate course while two are going for specialised training. Details of the MEXT scholarships are available at the Embassy of Japan's website

Thursday 20 March 2014

Nikon launches D4S, D3300 DSLR cameras in India

Japanese camera giant Nikon Corporation today said it expects 20 per cent growth in the digital single-lens reflex (DSLR) camera segment in India in 2014-15.
"We expect a very steady growth in the coming year. We would expand with another 20 per cent growth," Nikon India Managing Director Hiorshi Takashina told PTI.
"This year, although the economy is slowing down, we would have very steady growth of 20 per cent," he said.

The total market size of DSLR cameras in 2013-14 was 3 lakh units. It is expected to be 3.6 lakhs in the next financial year. Nikon expects to maintain its lead with 55 per cent market share.
Despite slowdown in the economy, DSLRs would remain in demand as customers having compact cameras (point and shoot) and smart phone are upgrading to get a better picture result, said Takashina.
Nikon India, a fully owned subsidiary of Nikon Corporation today introduced two new DSLRs - D4S and D3300.
Overall, the company expects a turnover of Rs 1,050 crore by the end of this financial year, ending March 31, and has a target of Rs 1,100 crore for 2014-15.
Nikon India, currently contributes around 3 per cent of its global turnover and plans to grow it to 5 per cent in the next three years.
According to Takashina, Nikon has 55 per cent market share in the DSLR segment. It is going to air TV commercials to promote its DSLRs from mid of April, featuring its brand ambassador Priyanka Chopra.
"India has a huge potential for DSLR segment due to its growing number of youths... We assume that over 5-10 years, a growth of up to 20 per cent would continue. This is very important market for us," he added.
Apart from DSLR, Nikon is expecting to hold around 38 per cent of the compact cameras in the financial year 2014-15.
"In the compact camera, we are having 33 per cent market share in India. In the coming fiscal, we would like to expand our share in this segment to 38 per cent," he said.
On being asked that whether Nikon has any plans for local assembly line, he said: "At this moment, we do not have. We are importing DSLR's from Japan and Thailand rpt Thailand. But in future, if it becomes necessary, then we would."
Apart from cameras, Nikon has also introduced its binoculars in the Indian market last year and is expecting 10 per cent growth in this segment.

Japan's Toyota suspends some workers at India auto plants

Toyota Motor Corp's Indian unit said on Thursday it had suspended some workers for misconduct at its domestic plants, which have been closed since Sunday over a pay dispute.
The factories near the southern city of Bangalore are Toyota Motor's only vehicle plants in the world's sixth-biggest auto market, where the Japanese manufacturer generates just a sliver of global sales.

"A decision to suspend some of the members pending inquiry, for serious misconduct, was taken earlier in the week. This is in line with the company's rules and regulations," the company said in a statement.
It did not say how many workers were suspended.

On Sunday, Toyota Kirloskar Motor (TKM), the world's biggest car maker's Indian unit, said some workers had disrupted business as the management, labour union and local government negotiated wages.
The company and the factories' union are currently in discussions through meetings with the state's labour commission.

The company employs about 6,400 people.
The two plants have about 4,000 workers that belong to the union, union president Prasanna Kumar says.

Monday 17 March 2014

RBI in pact with Japanese financial regulator for co-ordination

The Reserve Bank of India (RBI) on Friday said it has signed an agreement for co-operation in the area of banking supervision with Financial Services Agency (FSA) of Japan, the regulator for financial services in that country.
The central bank has been signing similar agreements with regulators of other countries to promote co-operation and sharing of supervisory information among international financial regulators. Till date, the apex bank has signed 19 such agreements, it said in a press release.
The agreement was signed by Masamichi Kono, vice-commissioner for International affairs, FSA; and deputy governor, on behalf of RBI.

Sunday 16 March 2014

Indo-Japanese group appeals to bring back remains of Netaji

A group of activists from India and Japan here today made an appeal to the President and Prime Minister to bring back the remains of Netaji Subhash Chandra Bose from Tokyo to his home land.
"We request to bring back the ashes of Netaji Subhash Chandra Bose, which are safely kept in Renkoji temple in Tokyo, to the motherland India," said the activists.
The group, named as 'Netaji Subhash Chandra Bose Memorial Indo Japan Foundation', has also submitted representations to the PM and the President setting a deadline till August 18, the death anniversary of 'Netaji' this year.
"We want to bring back the ashes before the 68th death anniversary of Netaji," the foundation's president B S Deshmukh told reporters here.
"We have given representation to various political leaders including BJP's prime ministerial candidate Narendra Modi," Deshmukh, an RSS associate, said.
"Narendra Modi is the only leader who can bring the ashes of Netaji back," he said.
When asked if it was proved that the remains lying in Japan temple were that of Bose, he said, "It is not clear but we believe that those are the remains of Netaji."
He also said that several Indian leaders had visited the temple in the past but they did not make efforts to get back the remains.
"India is not sensitive towards Netaji, while Japanese government has made several memorials in the name of soldiers who sacrificed their lives in world war- II," said Kazuo Kaneko, chairman of the foundation.
"We have been making efforts for the last four years to return the remains of Netaji Subhash Chandra Bose," he said.

Saturday 15 March 2014

Panasonic to make India regional hub

India may be reeling under growth pangs and severe structural issues but that hasn't stopped Japanese electronics giant Panasonic from putting India bang at the centre of its global strategy. The Osaka-based, $76-billion company has decided to make India its regional hub to service the subcontinent, Middle East and Africa. It is also moving one of its top honchos — Yoshihiko Yamada — to be headquartered in New Delhi to directly take care of these regions as also create synergies between India, Asean and China.

Besides, India will now be developed as the hub for product development, R&D, business solutions and would also serve as the global sourcing base for mobile phones, the production of which has been discontinued lately in Japan, as part of a global restructuring.

"India will be the second version of Panasonic Corporation as it has a huge potential and is the most promising country from future growth perspective because markets in the US, Europe and Japan have matured. We look at India from two perspectives, one from a capability creation and the other from a region perspective. India, Asean and China have been categorized as strategic regions and we see India on the top now from a business perspective," Kazuhiro Tsuga, global president of Panasonic Corporation, told TOI in an exclusive interview, unveiling what is being seen as the second chapter of both its India story and its global business. The company describes the first version as the process of its formation in 1918, when its founder encountered the same conditions in Japan that are prevalent in India today.


The new region headquartered in India would be only Panasonic's sixth such region globally. India was earlier housed under the Asia-Pacific, Middle East and Africa region.

Though present in India for about 40 years now, with a clutch of seven companies manufacturing an entire range of electric equipment from TVs to batteries, the interest has been rather sporadic. Tsuga, who is now restructuring the global operations after spiraling losses, said that India by 2015 will contribute 3.5% to the global turnover, up from 2% now.

As part of the global restructuring, which came on the back of $15 billion in losses over the last two financial years, Tsuga — who has been at the helm for a similar period about two years now — will transform the company globally from a consumer maker to a supplier for other businesses. In effect, this means that the focus globally will shift from B2C to B2B. "However, the focus in India would continue to be on consumer products," Tsuga said.

As part of this global restructuring, he pulled out of the smartphone business in Japan, trimmed circuit boards businesses and sold semi-conductors, and got out of plasma TVs too. The company has also decided to close down businesses which do not throw up operating margins above 5%. The restructuring appears to have yielded results already after Panasonic posted a third-quarter profit recently, which was 68% higher than analyst estimates. The company's stock also surged the most since 1974.

In India, too, the focus has been beneficial. Panasonic has increased its market share in the AC segment to 15% and in TVs to 9%, making it the third and fourth largest player in the industry, taking on entrenched and aggressive Korean competition.

Earlier this year, Panasonic set up the India business development centre to focus on the challenges in rural India like clean water, food issues, remote services like tele-education and telemedicine, and providing power to off-grid population. The centre would develop products and services which could be adopted globally.

The company now plans to be an aggressive player in India, focused on expanding existing portfolio and creating a strong lineup of entry products, including smartphones for which it would create robust products focused on local needs and insights. Besides, Panasonic also wants to target the lifestyle segment and B2B businesses, including security and surveillance solutions. It sees 4G services as a catalyst for offering security services to homeland security.

Friday 14 March 2014

Japanese Envoy Optimistic about Trade Ties with Kerala

Japanese ambassador to India Takeshi Yagi said that his country is exploring the opportunities to cooperate with Kerala in IT and Tourism sectors. He was speaking at a press conference here on Thursday.
Takeshi added that the Japanese companies are looking to expand their operations in South India because there are more Japanese citizens working in the region compared to the rest of the country.
Later, the ambassador inaugurated the Indo-Japan Chamber of Commerce Kerala (INJACK), which is a non-profit organisation to connect the small and medium enterprises (SMEs) in Kerala with Japan.
“The bilateral trade between Japan and India is worth $20 billion, which is only 2 percent of the total trade of India. But the trade has increased by seven times in the past decade. The foreign direct investment from Japan has increased by 7-8 times during the last three years. At present, 1,072 Japanese companies are operating in India, half of them in its southern part,” he added. While commenting on the Japanese companies operating in Kerala, Takeshi said that though only 15 companies have presence in the ‘God’s own country’, the number of branches is increasing rapidly.
“The number of branches of Japanese companies in Kerala has increased from 53 to 105 in an year. With INJACK, we are positive about the future of trade between Kerala and Japan,” he said.
“Japanese companies are already participating in efforts to provide better connectivity within India. The major flagship projects in this regard are the Delhi-Mumbai and the Chennai-Bangalore industrial corridors. Japan is also interested in collaborating with the projects aimed at increasing water connectivity among ASEAN nations,” he said.
Yagi visited the Nippon Toyota showroom and the Nitta Gelatin company.  INJACK president T Balakrishnan, secretary Jacob Kovoor, Kerala State Higher Education Council Vice-chairman T P Sreenivasan, V P Nandakumar and Babu Moopan spoke.

Thursday 13 March 2014

‘Japan ready to consider proposals on Smart City’

Takeshi Yagi, Ambassador of Japan to India, said on Thursday that his country was ready to consider investment in Smart City if the Kerala government brought out suitable proposals.
He was addressing a press conference here. He said his country did not have immediate plans for launching any flagship programme in Kerala. Pointing out that South India was one of the priority areas for Japan, he said the number of Japanese citizens in Bangalore exceeded 1,000, the highest in any city in India. He also promised cooperation in energy networking and port operations. There was a seven-fold increase in trade volume between India and Japan during the last decade, but it was small in relation to the potential. FDI from Japan had gone up by 7-8 times in the past three years, he said. T. Balakrishnan, president of the chamber, and Jacob Kovoor, Secretary, were present at the press meet.
He later inaugurated the Indo-Japan Chamber of Commerce Kerala here. He said Japanese companies were establishing stronger foothold in Kerala, recognising its potential. He said his country would like to forge ties with India in general and Kerala in particular in a variety of fields.
The number of Japanese companies in India has reached 1072 in 2013. Though there are only 15 Japanese companies operating in Kerala, the number of branches has almost doubled from 53 to 105 in the past one year.
The Japanese Ministry of Economy, Trade and Industry and Indian Ministry of Communications and IT started a Joint Working Group on IT and Electronics last year A memorandum was signed between Japan tourism agency and the Ministry of Tourism of India in January.

Wednesday 12 March 2014

TOYO wins LNG regasification project in India

Japan -- Toyo Engineering Corporation has been awarded a regasification plant project by Petronet LNG Ltd, India. The plant is to be constructed at Dahej, located in the state of Gujarat on the west coast of India, to expand the LNG receiving capacity from 10 to 15 mtpa. Toyo-India will lead EPC work on a turnkey basis, from engineering to construction and commissioning. The plant is scheduled to be completed at the beginning of 2017.
Construction of Dahej Terminal (original capacity: 5 mtpa), the first LNG receiving terminal in India, was awarded in 2000 to a consortium consisting of IHI Corporation, TOYO, ITOCHU Corporation, and Mitsui & Co., Ltd. In 2006, a consortium of IHI and TOYO received an order again to expand the receiving capacity.
To meet the growing demand for natural gas for electricity and fertilizer, more than 10 additional LNG import terminals are now planned to be built in India.

'High speed trains can boost India's growth'

Linking India's growth to high-speed trains, chief of a Japanese rail company said quicker movement will help the country in realising its ambition of pushing development and progress.

Yoshiyuki Kasai, Chairman of the Central Japan Railway Company which runs bullet trains in that country, said India has the potential of running high-speed trains, particularly between various cities in the range of 500 and 600 kms.

"High-speed railway makes travel time between cities shorter by several hours. Due to this, different cities are integrated into a single economic lifezone," he said while addressing a seminar.
To buttress his argument that India can achieve higher growth with the help of high-speed trains, he highlighted Japan's experience in this aspect.

"Japanese high-speed railway system is designed to minimise travel time for commuters, which has a great economic benefit," Kasai said.
The Central Japan Railway Company (JRC) operates the Tokaido Shinkansen bullet train system that links Japan’s principal metropolitan areas of Tokyo, Nagoya, and Osaka.
Reflecting on the potential for replication of Japan’s bullet train model in India, Kasai said, "India has a strong conventional railway network. However, there is an immense potential for high-speed trains in an industrialising India.

"There will be cost implications to setup a high-speed railway network between important Indian towns and cities lying within a 500 km to 600 km radius, but the long-term economic and social impact will be huge. This can be done through public-private partnership to minimise the financial burden." 

Tuesday 11 March 2014

Suntory plans to purchase stake in Radico liquor unit for $100m

Japanese beverage firm Suntory is planning to purchase around 20% stake in India-based alcoholic drinks company Radico Khaitan's liquor unit for about $100m.

The move forms part of the company's strategy to increase its sales outside Japan, as the country's beer market is reporting slow growth due to declining population.

The proposed transaction will be the latest in a series of Suntory's investments.

Radico Khaitan manufactures and sells liquor primarily in India. Its principal products include rectified spirits, country liquor, and Indian made foreign liquor.

Earlier in January 2014, Suntory has agreed to purchase US-based whiskey producer Beam for $16bn.

Suntory manufactures and sells beverage and food products in China, Japan, Southeast Asia, Oceania, the Americas, and Europe. It operates through Beverages and Foods, and Beer and Spirits.

Why India should boldly push forward for an alliance with Japan

Japan has the capital and needs to pull out of China, which has been its major destination. India, on the other hand, desperately needs capital especially for infrastructure, argues Rajeev Srinivasan.
March has two big anniversaries for Japan: March 11, 2011 is when the giant Tohoku/Fukushima earthquake/tsunami killed some 19,000 people. March 10, 1945 is the day of an even bigger catastrophe: The American fire-bombing of Tokyo, which resulted in an estimated 100,000 deaths, and made 1 million homeless: Bigger than the initial toll of Hiroshima.
The fact that the country has recovered from these is a testament to their iron will and discipline, and this is something India should learn from them.
In fact, Japan is signaling that it wants friendship with India. The recent visits of both Emperor Akihito and Empress Michiko in December, and Prime Minister Shinzo Abe in January, were not celebrated by the chatterati with anywhere near the symbolic importance they deserved.
In my opinion, these were quite likely to be the most important visitors in the last decade or so; certainly more so than the much-ballyhooed visit by United States President Obama.
Critics may carp that there have been false dawns in Indo-Japanese relations before. I was personally disappointed that when an earlier prime minister, Junichiro Koizumi, made overtures, India was unwilling or unable to take them forward.

But hope springs eternal: Maybe this time there really is far greater urgency to cooperate.
The reason is that both India and Japan are changing in ways that dramatically emphasise their complementarity. Each has what the other lacks. Besides, there is a deep civilisational affinity between the two, and none of the well-cultivated rancor that some East Asians have for Japan. Thirdly, the two share a common goal: The containment of a rampaging China.
But the Indian government failed to take full advantage of the recent visits. If I am not mistaken, the Japanese Emperor hardly ever travels out of the country; and according to Brahma Chellaney, geostrategist and Japan expert, in the 2,600 years of the Japanese monarchy, this is the first time one of their Emperors visited India, even though Japanese are positive towards India as the Holy Land of the Buddhist faith.
Abe made his second trip in a few months, this time as the chief guest at the Republic Day parade. The reception, however, was distinctly low key. Instead of Manmohan Singh himself breaking with protocol and meeting Abe at the airport, it was a junior minister, Rajeev Shukla, who did it.
The Japanese, exquisitely sensitive to 'face', would have considered this a snub.
The rest of Abe's January visit also did not set the world on fire: there were no earth-shaking agreements inked. It seemed as though the two sides were just going through the motions: The Indians acknowledging grudgingly that Japan had just gone out if its way to offer its hand in friendship.
Perhaps, Abe was keenly aware that Singh is a lame duck; maybe he was saving his best for the new government, post May.
This is a shame, and is a lost opportunity for India. For this is perhaps the most opportune time to push forward boldly with an Indo-Japanese alliance. For one thing, the Japanese are throwing off 60 years of reticence, and considering how to re-position themselves in the Indo-Pacific region as a power to reckon with.
For another, they have soured on China, and wish to invest their money elsewhere, possibly in India.
There are many hurdles that make the Japanese reluctant business partners for Indians. The Nikkei Asian Review bemoaned the lack of punctuality, habit of making empty promises, the regulatory jungle, the lack of high-quality Japanese food, the amount of empty talking Indians do, and the class hierarchy in India as either baffling or difficult for the Japanese to deal with Indians.
An Indo-Japanese partnership, which may be incorporated into the Security Quadrilateral (Japan, India, the US, Australia) that Japan has proposed, may grow into a strong regional mechanism to keep the Chinese under control, just when they are attempting to turn the East China Sea and the South China Sea into Chinese lakes using their rapidly expanding naval power.
This is an era in which Japan no longer feels confident about the implicit American security umbrella under which it has prospered ever since World War II. The lacklustre American reaction to China’s bold move of creating an air defense zone conveniently covering the Japanese-administered Senkaku Islands has shown that the US has no stomach to take on China even in peacetime; the question of the US going to war with China to help Japan doesn't even arise.
One of the big issues in the US-Japan relationship is the post-war constitution that was written by the occupying American forces. It forced Japan to forswear the right even to defend itself, in Article 9, which Abe has vowed to overturn.
Chinese sabre-rattling in the East China Sea (as well as the South China Sea) has alarmed the pacifist Japanese. Article 9 says '... land, sea, and air forces, as well as other war potential, will never be maintained. The right of belligerency of the State will not be recognised.'
This is all good, and it reminds me of the Panchasheel (the five moral precepts in Buddhism), but these good intentions are now running up against a bellicose China. As things stand, even the relatively innocuous discussion of India producing the amphibious search-and-rescue aircraft named the ShinMaywa US-2 (used by the Japan maritime self-defense forces) is debated as a possible violation of Article 9.
Maritime security, and the right to free passage in the high seas, especially in the Indian Ocean shipping lanes from the Straits of Hormuz to the Straits of Malacca (through which the vast majority of both India's and Japan's energy imports pass) is an area where the two countries see eye to eye.
The other major area of mutual interest is commercial. Japan has the capital and needs to pull out of China, which has been its major destination. India, on the other hand, desperately needs capital especially for infrastructure.
The $100 billion, 1,454 kilometre Delhi-Mumbai freight corridor, with four new ports and seven new cities, is the model: This should transform the western part of the country. There is a similar Chennai-Bangalore IT/auto corridor planned.
On a smaller scale, there is the drinking water project in Thiruvananthapuram, funded by Japan. Similarly, there are other major infrastructure projects where there could be synergy.
India is the fourth largest recipient of FDI from Japan, with $14.5 billion. Trade has tripled between 2005 and 2012, to $18.5 billion. However, there is a long way to go: each country only accounts for about 3 per cent of the other's total trade ('Why India and Japan are becoming closer', Nikkei Asian Review, January 2014).
Over a thousand Japanese companies have invested in India. One of the biggest investments was Daichi Sankyo buying Ranbaxy for $4.6 billion (although this may have gone sour with the latter's problems with the US authorities, and also allegations that the deal was priced too high).
On the other hand, Suzuki has seen its (now wholly-owned) venture with Maruti become the market leader. Mitsubishi Electric talks about its sales growing 40 to 50 per cent a year, while Hitachi held its global board meeting in India recently.
There is really only one complicating factor: Japan's extreme allergy to India's nuclear programme (perhaps understandable in a country that has faced Hiroshima and Nagasaki). This is acting as a serious deterrent to warming relations. However, Abe himself is generally pro-nuclear and is bringing back the nuclear power plants mothballed after Fukushima.
If he can persuade his parliament, the Diet, to ratchet down tensions, that would ease the way greatly.
Thus, on multiple fronts: Security, industry and culture, this is a perfect match with two partners that complement each other well. The Indian government would do well to not drop the ball.
On the other hand, if the Bharatiya Janata Party's prime ministerial candidate Narendra Modi were to come to power, he and Abe, both nationalists, would get on better.
At last, the vision of Nobusuke Kishi, Abe's grandfather and a former PM, and a friend of India, would be fulfilled.

Monday 10 March 2014

TWENTY YEARS AGO TODAY

Japanese await more financial reforms
India is emerging as a good investment market for Japan and it is likely that the Japanese will pump in more funds here in the near future, according to Mr. Erne Yamashita, Chairman of the Japan-India Business Cooperation Committee (JIBCC). “The most important issue now is to explain and sometimes convince the Japanese that this is the right time to invest in India,” Mr. Yamashita, the leader of the Japanese delegation, told newspersons.
Damania's permit suspended
The air taxi operator (ATO) permit for Damania Airways has been suspended by the Director-General of Civil Aviation, citing safety violations. It has been prohibited from operating its flights for a month from March. The action has been initiated under Rule 19 (3) of Aircraft Rules, 1937- Damania Airways has been directed under Rule 19 (5) to submit its ATO permit to the DGCA office for necessary endorsement. The suspension order is valid for one month or till such time as they take positive steps and institutionalise a system to the satisfaction of DGCA.
Mixed reaction to new SEBI formula
Reactions to the renewal of the carry forward system by the Securities and Exchange Board of India met with mixed reactions. While welcoming SEBI’s decision to remove the ban on badla, most brokers are not clear on the ‘modus operandi’ of the proposed changes. Mr. M. G. Damani, President of the BSE Brokers’ Forum, commented that unless SEBI had sent them the letter detailing the manner in which the new proposals would unwind itself, there would be difficulty in implementing them. For example, SEBI had said that short sellers would have to obtain shares to effectdelivery. Presently, the practice of lending shares did not exist on the bourses.

Sunday 9 March 2014

Assessing Japan-India Relations: A Japanese Perspective – Analysis

Since the Japanese Prime Minister Yoshiro Mori visited New Delhi in August 2000, Japan-India relations have changed dramatically. While only four Japanese Prime Ministers visited India from 1957 till 1999, six Japanese Prime Ministers and over forty other ministers have visited India since 2000. Remarkably, beyond mere economic or cultural cooperation, the two governments have also enlarged bilateral activities in the domain of security. In October 2008, Indian Prime Minister Dr Manmohan Singh and Japanese Prime Minister Taro Aso signed the ‘Joint Declaration on Security Cooperation between Japan and India’. Tokyo and New Delhi also held the Subcabinet/Senior Officials-level 2 plus 2 dialogues in July 2010 and October 2012. In July 2012, the first Japan-India naval exercise ‘JIMEX 12’ was held in the Bay of Sagami, followed by the second ‘JIMEX’ in the Bay of Bengal in December 2013. Although there is no doubt that the rise of China is one of the push factors for this honeymoon between Tokyo and New Delhi, it should not be forgetten that this would have not happened without the reform of Japan’s security policy and the expansion its Japan Self-Defense Forces (SDF)’ sphere of activities. By focusing only on the China factor, what Tokyo expects from Japan-India security cooperation will be misunderstood.
After World War II, Japan adhered to the Yoshida Doctrine, which relied upon the American security guarantee, permitting the country to have a minimal defense capability and to concentrate on economic development. Article 9 of the Japanese Constitution, which bans Japan from using its military forces, has been a convinent excuse to avoid such burdens. The trigger for the drastic change in Japanese security policy was the Persian Gulf War in 1991. Minesweepers were dispatched to the Persian Gulf in April 1991; this was the first overseas operation of the SDF. Since then, the SDF has participated in over thirty peace-keeping and humanitarian missions and a number of bilateral/multilateral joint excercises. The security cooperation between New Delhi and Tokyo can be seen as a continuation of this activism and expansion of the SDF.
The same school of Japanese strategic thought seems to have promoted the activism of SDF and Japan-India security cooperation. According to Mike Mochizuki, there are four schools of strategic thought in Japan: political realist, unarmed neutralist, Japanese gaullist, and military realist. The differences between political realism and military realism are the motives and approaches to expand the SDF’s activities. The political realists are concerned with the political and diplomatic implications of Japan’s security policy, so they stress that Japan’s contribution to international security should be commensurate with its economic strength. On the other hand, the military realists promote a strategy that would address the most likely military threat and advocate closer military cooperation between Japan and the US. They differ from the Gaullists which are call for an independent policy from Washington.
Although the expansion of the SDF’s capability and sphere of activities is often seen as the rise of Japanese gaullism, the mainstream of Japanese politics is still political realism which is not comfortable with a rapid military rise. However, due to North Korean missile and nuclear developments, Chinese assertive actions and some other domestic issues such as the Tokyo Metro Sarin gas terror attack, military realism is gradually catching up with political realism today. It could be concluded that the military realists, such as Prime Minister Shinzo Abe, are promoting the SDF’s overseas activities and security cooperation with India. Political realists were reluctant to accept the opinions of military realists who insist that Japan should take more responsibility to contribute to international security, and hope that this will enhance the US-Japan alliance.
While military realists believe that Japan still needs the US to meet its military threats, they also find merit in the Japan-India security cooperation. First, it enhances the US-Japan alliance in a multi-layered way. Second, it provides Tokyo the ability to show Washington that it has other options. Third, bilateral exercises with India will help the SDF (especially the Maritime Self-Defense Force) officers to gather more expertise. Fourth, it will also help to increase Japanese diplomatic influence to dispatch the SDF abroad. Although military realists do not expect that the MSDF will fight with the Indian Navy against China in the near future, they tend to emphasise the achievements of the Japan-India security cooperation to cover the SDF’s limitations.
Japan cannot rely upon the US-Japan alliance forever, Indian strategists might say. However, the Japanese political mainstream is still populated by political realists who believe that the US-Japan alliance could be enough to counter military threats. The more China builds up its military capability and acts aggressively, the more military realists will rise. Although they will not abandon the alliance, military realists have been trying to adjust Japanese capability both militarily and legally in light of the evolving security environment. When the time comes, military realists will strengthen and utilise India-Japan strategic ties more flexibly.

Saturday 8 March 2014

Japan's Aeon denies Indian retail JV talks, Carrefour silent

* India's Bharti in talks with Carrefour, Aeon for retail JV - report
* Aeon denies report Carrefour, Bharti silent
* New retail JV would replace similar Bharti tie-up with Wal-Mart- report

By Dominique Vidalon and Ritsuko Shimizu

Japanese retailer Aeon denied a newspaper report that it was in talks with India's Bharti Group to set up a retail joint venture in India, while France's Carrefour declined to comment on whether it was also talking to Bharti.

India's Economic Times said earlier on Friday that Bharti Group was in talks with Carrefour and Aeon to set up a joint venture with one of them after the collapse of a similar venture with the world's largest retailer, Wal-Mart, last year.

"This is not the case," an Aeon spokesman told Reuters, when asked about the report.
Both Carrefour and Bharti declined to comment.
"Discussions with Carrefour were at an advanced stage. However, the talks were put on hold due to the entry of Japanese retailer Aeon," the Indian paper cited one of two sources familiar with the negotiations as saying.

"Some of the senior officials of Bharti Retail are in favour of tying up with the French major as it has an existing footprint in India's cash and carry space that would be a perfect match for Bharti Retail," the source added.
Bharti - which is also the parent of Bharti Airtel India's biggest mobile phone carrier - and Wal-Mart broke up their six-year-old joint cash and carry venture in October 2013.
The move left Bharti to find another deep-pocketed partner to support its retail expansion

Carrefour, which has five cash and carry stores in India, would fold this business unit into a joint venture with Bharti, the Economic Times said.
Carrefour would also invest in back-end support and commercial real estate companies owned by Bharti, it added.

Commenting on his plans for India at Carrefour's 2013 earnings conference earlier this week, Chief Executive Georges Plassat told investors: "We are currently thinking about
India. We have a small business in India, it does not bring any losses or gains but the true challenge is to know how we tackle India for the next 20 years."
Describing India as "a very complex, very challenging country", Plassat said Carrefour would not expand there "on our own anyway".

Global foreign firms have long been frustrated in their efforts to set up shop in India due to complex and restrictive retail legislation.
In late 2012, the government of Prime Minister Manmohan Singh opened India's $500 billion retail industry to foreign operators, allowing companies such as Wal-Mart and Tesco to own majority stakes in Indian chains for the first time. However, India left it up to individual states to decide whether or not to allow foreign retailers.
So far, fewer than half of India's 28 states have adopted the policy, making it harder for retailers to exploit economies of scale by setting up sourcing and cold storage networks that could serve stores in neighbouring states.

Polls show that India's main opposition party Bharatiya Janata Party (BJP) is on track to win the most seats nationally in elections due by May.
The BJP is considered to be more investor-friendly than India's ruling Congress party but opposes foreign direct investment in supermarkets because of its impact on small shopkeepers. It unseated Congress in Rajasthan's state elections in December.

BJP Leader Narendra Modi's Bromance With Japan's Shinzo Abe

If the prime minister of Japan, Shinzo Abe, could vote in India’s upcoming elections, he would surely cast a ballot for Narendra Modi, the prime ministerial candidate for India’s right-wing opposition Bharatiya Janata Party (BJP). Abe and Modi are not only fellow nationalist, hawkish conservatives, but also long-time friends with shared views on many issues and could help each other greatly in the years to come. 

ForeignPolicy.com reported that when Abe was elected to a second term as Japan’s prime minister in a landslide in late 2012 (he previously held the top job from 2006-2007), one of the first foreign dignitaries to congratulate him was none other than Modi, the chief minister of the Indian state of Gujarat, not the leader of a sovereign nation.

Shrey Verma of ForeignPolicy.com noted that a phone conversation between the Japanese prime minister and the Gujarat chief minister was rather “odd by strict standards of protocol,” but underscored how the “personal relationship between the two men and the economic partnership between Japan and Gujarat has thrived over the years.”

Verma noted that in the wake of the deadly communal riots that swept through Gujarat in 2002 and killed about 1,200 people (a tragedy many blamed on Modi for not using his authority to prevent, or at least control), the U.S. and some western countries turned their backs on Modi, prompting his provincial legislature to “look east” for trade opportunities, especially Japan. Modi himself journeyed to Japan in 2007 (the first such official visit there by an Indian chief minister), an event that opened up new investment conduits between Gujarat and Tokyo. During that trip, Modi met with Abe, other cabinet ministers, as well as many of Japan’s most powerful industrial and banking executives.

Ever since, Verma said, Gujarat has attracted significant foreign investments from Japan for infrastructure projects, and new automobile plants, among other ventures. In 2012, almost 120 Japanese investors visited Gujarat to discuss future financial deals and investments in the province. For example, Japan's Suzuki Motor Corp. will invest $488 million for a car factory in Gujarat, which is expected to be operational by 2017. By 2015-2016, private Japanese investment in Gujarat is expected to reach $2 billion. (For the whole of India, Japan reportedly plans to spend billions of dollars on infrastructure projects.)

Thus, Japanese diplomatic and trade delegations have consistently treated Modi like a cabinet member or even head of state, not just the chief minister of a state, suggesting an ever-closer relationship between Modi and Japan’s power structure. Now, in the spring of 2014, with polls predicting that Modi’s BJP will defeat the incumbent Congress Party, thereby elevating Modi to the top position, the warm relationship between India and Japan is likely to strengthen even further, a bulwark against not only China’s looming dominance in Asia, but also the United States, which has “pivoted” much of its military presence towards the Asia-Pacific region.

But Abe also enjoyed friendly ties with the outgoing Indian prime minister, Manmohan Singh, of Congress. The Economic Times reported that Abe admires Singh, considering him a “mentor.” Under Singh’s two terms and 10 years in office, India and Japan formed closer strategic ties, as their greatest mutual rival on the Asian continent, China, has grown in economic and military power. Indeed, aside from Russia, Japan is the only other country on earth that India holds annual summits with. New Delhi and Tokyo have also firmed up energy partnerships, defense programs, maritime security arrangements and economic investments.

Leaders from both countries have exchanged high-profile visits in recent years. In fact, even when Abe was the leader of the Japanese opposition in 2011, he visited New Delhi to confer with Singh. Even Japanese Emperor Akihito and Empress Michiko made a historic visit to India late last year [their first trip there in fifty years], while Abe attended India’s Republic Day celebration in January 2014 in New Delhi as an honored guest. Now, with Modi waiting in the wings in New Delhi, Abe is very well positioned to embrace India even deeper.

As relations between China and Japan continue to sour – over territorial and maritime disputes, over North Korea, over China’s stridently militaristic stance, among many other issues -- an India led by Modi could serve to further rankle the leaders in Beijing. Consider that India invited Japan to participate in the U.S.-India Malabar Naval exercises scheduled for later this year. Already, in recent months, the Japanese and Indian Coast Guards conducted joint exercises off the coast of Kochi in southwestern India, while the Japan Maritime Self-Defense Force and the Indian Navy performed their second bilateral exercise off the coast of Chennai in southeastern India. ForeignPolicy.com also noted that India is considering buying military aircraft from Japan for $1.65 billion – which would make India the first country since World War II to make such a purchase from the North Asian power.

India and China also have their own territorial disputes along their 2,500-mile border, including imbroglios over Kashmir and Arunachal Pradesh. But it is well worth remembering that Modi has not rejected China – indeed, he visited China in 2011 (at a time when the west, especially the U.S., was closed off to him) and he was received like a visiting head of state. Modi, for his part, also invited Chinese investments in Gujarat, as he had similarly extended such entreaties to Japan.

However, despite Modi's appeals for Chinese investments in India, he has expressed his strident opposition to China's expansionist policies in no uncertain terms. The Financial Times reported that Modi warned China to shelve its “expansionist attitude” during a recent speech in Arunachal Pradesh, a Himalayan state that neighboring China claims as its own (and which Beijing refers to as “South Tibet”). “No power on earth can take away even an inch from India,” he said a rally in the town of Pasighat while attired in native garb. “I swear by this land that I will not let this nation [India] be destroyed, I will not let this nation be divided, I will not let this nation bow down.”

Sanjaya Baru, director for geo-economics and strategy at International Institute for Strategic Studies and honorary senior fellow at the Centre for Policy Research in New Delhi, wrote in the Indian Express that if Modi is elected prime minister, he will, like his Japanese counterpart, follow a more nationalist foreign policy, partly to revive the “national mood in a dispirited country.” 

“Modi seems to recognize the value of Abe’s combination of investing in domestic economic capability and external strategic capacity for nation-building,” Baru noted. “Modi’s domestic policy focus, drawing from Gujarat’s experience, has been on building India’s economic capability. His political rhetoric focuses on the need to revitalize a moribund economy, which is exactly how Abe came to power in a depressed and depressing Japan.” Now, both Abe and the next-would-be Indian leader Modi, might need a third Asian partner to counter China. 

The prominent Indian political analyst Jaswant Singh has proposed that India, Japan as well as South Korea could form a three-pronged cooperative security front to challenge China. Writing in Gulf News, Singh, a former Indian finance minister, foreign minister and defense minister, noted that South Korean President Park Geun-hye and Japan's Abe were both alarmed by China's “unilateral declaration last November of a new Air Defense Identification Zone, which overlaps about 1,158 square miles of South Korea’s own ADIZ, in the Sea of Japan,” prompting a move to upgrade defense and security links (including joint cooperation deals on nuclear energy) with India on China's southern flank.

In January of this year, Japanese Defense Minister Itsunori Onodera conferred with Indian defense officials for four days to hammer out specifics of a bilateral security arrangement to “strengthen the strategic and global partnership between Japan and India,” including regular joint-combat exercises and military exchanges to cooperation in anti-piracy, maritime security and counter-terrorism.”

Michael Kugelman, senior program associate for South and Southeast Asia at the Woodrow Wilson International Center for Scholars in Washington, commented that the India-Japan relationship is arguably one of the most cordial partnerships in Asia. “The two countries have grown particularly close in the last few years, as both have become increasingly concerned with China's rising influence in Asia,” he said. “Concern about China, in fact, is probably the chief reason why Tokyo and Delhi are so close.”
But Modi must also focus on India's sluggish economy, and here again Japan could come to the rescue. Bilateral trade between Asia's two largest democracies is ripe for expansion. In 2011-2012 such volume amounted to only $18.4 billion, versus $65.5 billion in India-China trade (in 2013) and an astounding $329 billion in annual trade between erstwhile “enemies” China and Japan last year. Indeed, some 90,000 Japanese companies are now based in China, versus less than 2,000 in India, according to the Free Press Journal. Consequently, the potential for India-Japan trade is huge. Kugelman noted the “very strong economic dimension” to the blossoming India-Japan relationship. “And as a businessman, this is something that a Prime Minister Modi would want to build on,” he said.

However, in the event that Modi wins the election, he will likely face bigger challenges than his apparent ally in Tokyo who gained a dominant mandate in the 2012 elections in Japan. As Andy Mukherjee explained in Reuters, Abe's Liberal Democratic Party now controls both houses of parliament in Tokyo, while Modi's BJP (if it win the elections) are unlikely to gain a decisive majority in the Delhi parliament, which would lead to the formation of coalition partnerships that would dilute the potency of Modi's domestic and foreign policy measures. But, Mukherjee noted, Modi could find some help from Abe. “Japanese businesses, banks and pension funds want to invest, but Japanese society is too old to utilize many new investments,” he wrote. “The solution might be to invest more in India, which has a young population and desperately needs infrastructure.”

Friday 7 March 2014

Sun Pharma keen to enter Japan's generics market

Sun Pharmaceutical Industries Ltd, India's biggest drugmaker by market value, is looking for partnerships or acquisitions to enter , an especially lucrative market for manufacturers of low-cost drugs, a senior executive said.

Politicians are lobbying for more generic drugs to go on sale in Japan to bring down healthcare costs for a rapidly ageing population.

Indian pharmaceutical firms are the world's biggest manufacturers of , but Ltd is the only Indian drugmaker that has so far made significant inroads in Japan.
"At an intent level, we would like to participate in the Japanese generic market. But we are still thinking through as to what's the best way to participate," Uday Baldota, senior vice president for finance and accounts at Sun, told Reuters.
"It could be a partnership, or an acquisition. We haven't really narrowed down the specific way of doing it."

Mumbai-based Sun gets more than half its sales from the United States, the world's biggest pharmaceuticals market.
Sun has expanded in the last few years, mainly through acquisitions, and Baldota said the company was on the look out for more purchases. He declined to give details, however.
"We will do acquisitions and remain keen to do acquisitions, but it's not necessary for us to do an acquisition just to grow our business," Baldota said. "We feel comfortable doing large deals. That is not something that will deter us."

Sun was said to be in talks last year to buy speciality drugmaker Aptalis from private equity firm TPG Capital. In January, Forest Laboratories Inc agreed to buy Aptalis for $2.9 billion.

Sun's talks in the same year to buy Swedish drugmaker Meda , a maker of speciality products, over-the-counter drugs and branded generics, foundered on valuation, sources with direct knowledge had told Reuters.

In 2012, Sun bought US-based Dusa Pharmaceuticals Inc for about $230 million, as well as URL Pharma from Japan's Takeda Pharmaceutical Co for an undisclosed amount - boosting its growth and market share in the United States.

Sun also sought to take full control of its US-listed Israeli unit Taro Pharmaceutical Industries Ltd , but the deal was terminated last year after a long-drawn battle.

Thursday 6 March 2014

Toyota records one million vehicle sales in India

Toyota Kirloskar Motor Pvt Ltd (TKM), the Indian arm of Toyota Motor Corporation, Japan, recorded one million vehicle sales with the hand over of its Toyota Etios to a customer in Cochin.

"The sale of Toyota's one millionth car in India marks a very important milestone for us. Since its inception, Toyota has been present in the MPV/SUV segment in India and we have been market leaders ever since in these segments. It is only in 2011 that we forayed into the mass segment with the Etios & Liva and still have been able to realize this milestone in such a short duration," said N Raja, senior VP, TKM.

Since its establishment in India in 1997, Toyota has grown many folds. This growth has significantly been in the form of increased localization in products, enhanced network of dealers and supplier partners, increased dealership outlets across India, and a phased capacity expansion of up to 3, 10,000 units.

Tuesday 4 March 2014

India, Japan to set up lab to promote research

India and Japan today signed an agreement for setting up a laboratory to focus on research in health sciences, medicine and agriculture.

While the two countries established a joint research laboratory--DBT-AIST International Laboratory for Advanced Biomedicine (DAILAB)-- in Japan in 2003, the new lab will come up in India to give a further boost to scientific collaboration, said chairman of the Indian Scientists Association in Japan Sunil Kaul.

"Now, we are trying to make a parallel kind of sister laboratory in India to have easy exchange of personnel from India to Japan and Japan to India and do the same thing together or complement each other. We would like to encourage more students, researchers to come to India and vice versa," he said.

Secretary in the Department of Biotechnology Vijay Raghavan said the engagement today reflects a very deep understanding and friendship in the scientific sphere between India and Japan.

The lab to be set up would focus on bio-imaging research through advanced microscope, a key component in health science and biology research.

The partners in the initiative include the National Institute of Advanced Industrial Science and Technology of Japan and Regional Centre for Biotechnology under the Department of Biotechnology.