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.

Kabbadi: Japan's Masayuki Shimokawa, Takamitsu Kono in Mumbai to get used to Indian conditions

Kabaddi might have originated in India but it has trickled down to rest of Asia, becoming popular in Bangladesh, Iran, Japan and other nations. So much so that a couple of Japanese players – who are up for auctions for the forthcoming Pro Kabaddi League to be held in India – thought of dripping their sweat on Indian mats and flew down a week before they were scheduled to arrive.

Masayuki Shimokawa and Takamitsu Kono were easy to spot amongst the Japanese contingent due to their agility and fitness while they played a practice match against a local team at the Bharat Petroleum Corporation Limited (BPCL) ground in Chembur on Wednesday.



Miles away from the heart of the city, the Japanese stretched, ran and spoke in their own language much to the amusement of the locals. No, they don't speak English, becoming even more difficult for an Indian opponent to read their moves.
Derived from the Tamil word 'Kai-pidi', meaning 'let's hold hands', the sport is painting an all new picture of brotherhood with the upcoming league where foreign players and Indians will play in the same team, like the Indian Premier League in cricket.

The Japanese duo has been fighting on the mat for a while now. Kono, a 22 year-old-student who plays as a right cover, has three gold medals in three years of professional career.
"In Japan, schools provide the early kick when it comes to kabaddi. It is introduced early in the educational institutions and hence the kids become experts at a young age," said Kono, who is born to a priest.
None of his family members are connected to the sport as it was only in 1979 when it was introduced in Japan.

About coming to India, the duo said: "We wanted to train in adverse conditions. In Japan, the temperature is cool and favourable. In India, it is hot and humid and our real test lies here. It is also preparing us for the League and getting to read an Indian player's mind."
Talking about player auctions, the first thing that comes to an Indian's mind is the IPL but Shimokawa and Kono seem unaware of its popularity. "We definitely know cricket but in Japan, baseball is more popular. You have auctions in cricket also?" asked Shimokawa, who has eleven gold medals to his name and is also a baseball enthusiast.

"All professional players are up for the auctions of the League and that is why we are very excited and honoured. It makes us feel important," he added.
But one of Japan's biggest asset is also their football team. Though they are focussing on the League and training, the FIFA World Cup fever has caught their attention too.
"We wish we could be there (in Rio) to support our national team. We wish the Japanese team all the best. It will be exciting if they can win the World Cup. It will also motivate us in the long run," the duo said.

Before jumping on the mat for the friendly, they said: "Now that we are going to play in the Pro Kabaddi League, we would love it if the sport becomes the main sport in our country apart from baseball."

Isuzu rolls out D-Max pick-up trucks

Isuzu Motors India, a subsidiary of Japan’s Isuzu Motors, has launched its global range of pick-up trucks - D-Max - in India with prices ranging between Rs. 5.99 lakh and Rs. 7.09 lakh (ex-showroom Mumbai). 

The company has launched D-Max range in three models.

“In India, the pickup truck segment is one of the largest and fastest growing segments in commercial vehicles (CV) segment, accounting for 35 per cent of the total CV market. We estimate India to be the world’s largest one tonne pick-up truck market by 2023,” said Takashi Kikuchi, Managing Director of Isuzu Motors India. 

“With this launch (in Mumbai), we look forward to growing our market in West India and gradually across the country. In addition to Mumbai, we will also be opening dealerships in Pune asnd Nasik this year,” he said. 

The D-Max is propelled by a 2499cc, 4-cylinder intercooled turbocharged diesel engine, mated with a 5-speed manual transmission. This engine pumps out 134 hp power at 3600 RPM and 294 Nm torque @ 1800-3200 rpm range. 

As a part of Isuzu’s expansion plans, the company has opened its first dealership in Mumbai. It intends to open 60 outlets across India by end of 2015-16.

Trial run of JICA-aided water project under way

The trial run of transmission of drinking water under the multi-crore Japan International Cooperation Agency (JICA)-assisted drinking water project is under way. 

Project Director K.G. Harshan on Tuesday said on-ground checking of the main transmission lines across 23 km till Balussery had been completed. “We are in the final stages of the project,” he said. However, on the flipside, the drinking water project will not benefit domestic users this summer as the checking of mainlines would be tentatively completed only by May 30.

The Rs.805.6-crore project, set to provide 174 MLD (million litres per day) water from the Peruvannamuzhi reservoir, is expected to benefit 13 lakh people and provide over 1 lakh domestic connections for consumers across 13 panchayats in the district. 

The project, once commissioned, would supply drinking water to Kozhikode city and the panchayats of Balussery, Nanmanda, Kakkoor, Kakkodi, Chelannur, Narikuni, Kunnamangalam, Kurivattoor, Peruvayal, Perumanna, Kadalundy, Olavanna, and Thalakkulathur.

Currently, the city requires 140 MLD water, but the Kerala Water Authority (KWA) is able to supply only 50 MLD after distribution loss. This results in erratic supply of water. The JICA-assisted project will ensure that water is supplied on a daily basis. 

“We have to check the entire pipelines across 123 km. As the exercise has been completed till Balussery, we will move on to pipeline systems in Kakkoor, Chelannur, Kakkodi and Kozhikode city, which has the highest number of consumers,” Mr. Harshan said.

Though work was scheduled to be completed by April 31, issues like a stop memo from the Peruvannamuzhi village officer owing to protests by local people, the controversy over the Kasturirangan panel recommendations and a prolonged quarry owners’ strike leading to shortage in raw materials had delayed the rolling-out of the project.

“Till Balussery, we countered minor repairs in the pipeline. The rectification work has to be minutely done on mainlines and so we cannot give a specific deadline. But as of now, we hope the work will be completed by May 30,” said the project director.

Modi's first foreign visit could be Japan

With economic resurrection to top the agenda of the next government, Japan could be the destination of the first stand-alone bilateral visit of new prime minister, as Tokyo's support to boost infrastructure is likely to be tapped.

While the new PM is expected to travel to Brazil in July for the BRICS summit, to New York for addressing the UN General Assembly in September, followed by the Asean summit in Myanmar and G-20 meet in Australia, both in November, a stand-alone bilateral visit to Tokyo by the head of the government is on the cards towards the later part of the year, a government source told ET. The purpose of the trip would be a bilateral annual summit. Such summits are held alternatively in India and Japan.

This visit would not only mark continuity in India's policy towards Japan but also signify Japan's importance for India's economic and strategic needs.

Japanese PM Shinzo Abe was the chief guest at this year's Republic Day parade - the first Japanese premier to be given the honour.

Abe, who wants to shed Japan's pacifist image, is a votary of strong ties with India in the backdrop of heightened tensions with China. During his January trip the two countries decided to launch National Security Adviserlevel dialogue and Japan was invited to participate in India-US joint naval exercise to be held this year in East Asia. Ties have prospered, particularly with Manmohan Singh at helm.

If Modi becomes the next PM, bilateral ties may receive a further boost as he has special ties with Japan during his tenure as Gujarat CM, when the US refused to give him a visa.

He received a warm welcome in Japan during his visit in 2012. Japan is engaged in 19 projects in India, of which seven are proposed in Gujarat.

Corporators set to leave for Japan

Elected members and a Pune Municipal Corporation (PMC) official will leave for a week-long study tour of Japan on May 25. During the visit, they will study development projects and attend a conference on infrastructure development.

The civic body had organised a study tour to South Korea last year. The tour drew flak from activists and citizens alike for its extravagant expenses on corporators who took their family members along. "No family members of elected members will go to Japan because there is no such invitation," said Bapu Karne, chairman of PMC standing committee.

"The group includes leaders of all political parties in the house, the mayor and a PMC official. The standing committee on Tuesday gave its approval to bear expenses of the civic body official, while the corporators will have to fund their own expenses," said Karne.

The Okayama-Pune friendship park, developed by the PMC, was inaugurated in January 2006.

The Japanese-style park is spread on four hectares of land inside the P L Deshpande garden on Sinhagad Road. Designed by a Japanese architect, the park is developed on the lines of a famous garden in Okayama.

To improve relations between Pune and Okayama, a Memorandum of Understanding (MoU) will be signed between the two cities on the inaugural day of the conference.

Daikin India eyes 25% growth in turnover this fiscal

Daikin Airconditioning India is looking at a 25 per cent growth in its business in the current financial year.

The company had registered a turnover of Rs 2,200 crore in the last fiscal and is eyeing at least 25 per cent growth in the current financial year, Daikin India Vice President (Residential air-conditioners) Rajesh Jain said.

"With anticipation of rising economic activities in the domestic market, we are expecting a 15-20 per cent growth in room (residential) air-conditioner business," Jain said.

At present, Daikin has 15 per cent market share in room air-conditioner segment in the domestic market, he claimed.

Terming Madhya Pradesh as the 'growing market' in the air condition segment, Jain said the company had done a business of Rs 50 crore in the state last fiscal and is aiming at a turnover of Rs 75 crore in 2014-15.

He also added that Daikin India is working on capacity expansion plan for its only plant located in Neemrana, Rajasthan.

Daikin Airconditioning India is a 100 per cent subsidiary of Daikin Industries Ltd, Japan.

Itochu in talks to buy Redington India for $500 million

Various news reports floating around suggest that Japanese trading conglomerate Itochu Corporation is in discussions to acquire Redington India — a distributor of IT and telecom products, and a large reseller of Apple phones — for as much as $500 million.

Singapore-based NRI family Kewalram Chanrai, Standard Chartered Private Equity and Taiwanese IT distributor Synnex together own over 55% stake in the Chennai-based Redington, which is run by an independent management team under R Srinivasan. The three could offload shares to Itochu at a premium to the prevailing market price, if talks fructify.

Itochu, with a history dating back to 1858, is Japan’s third largest trading giant after Mitsubishi Corporation and Mitsui & Co. It has used acquisitions to bulk up trading presence in IT and communication products. Redington would provide Itochu a big boost in India and Middle East markets.

A possible majority share acquisition followed by a mandatory open offer could cost Itochu between $450-500 million, a banking source privy to the matter said. He didn’t want to be named since talks are private and not yet finalized.

Chanrai holds 21% stake in the Chennai-headquartered Redington India, which reported $1.73 billion turnover in FY13. The distribution of telecom and IT products is a high-volume, low-margin business as reflected in the company’s net profit of $28.5 million reported in the last fiscal.

Chanrai is paring Redington stake to focus on the other business ventures such as Olam International, the Singapore-listed $10 billion commodities giant.

Redington India was incorporated as G Kewalram Private Limited in 1961. It entered distribution of IT products in the ’90s and later expanded into distribution of telecom products to capture the growing demand for mobile handsets. Over time, the group consolidated a significant part of its worldwide trading operations under Redington India.

Yamaha Motor enlists cute mascot character to crack India's scooter market

For years, Japanese motorbike manufacturer Yamaha Motor has been struggling in India, the world's second-largest motorbike market after China.
     The company is still lesser-known in the South Asian country, with only about a 3% share of the market. By contrast, its rival Honda Motor controls more than 20% of the Indian two-wheeler market.
     To boost its brand recognition, Yamaha Motor has come up with a unique way to appeal to Indian consumers: creating its own mascot character, what is known as a "yuru chara" (cute and friendly mascot character) in Japan.

 

Yamaha Motor's original mascot for the Indian market, nicknamed Zippy.

     Its original mascot for the Indian market, nicknamed Zippy, has a bear-like body and a face shaped like a heart to symbolize the company's corporate slogan, "Revs Your Heart." Zippy, the name chosen from nearly 10,000 entries in India, arrived in the country from outer space, according to the character's story supplied by the company. Zippy made its official debut to promote road safety when the company unveiled its new family scooter in February this year.
     For a long time, Yamaha Motor had introduced a series of large sport motorbikes to boost the "cool" factor of its brand. But their price ranges are not attractive for local Indian consumers and sales have been languishing.
     To turn itself around, the company changed strategy and launched scooters in 2012 as many Indian people use scooters in daily life. This strategic shift paid off and sales of its scooters have been strong particularly among female consumers. In February this year, Yamaha Motor released the Cygnus Alpha, a larger model with a 115cc engine for families with small children.
     For Yamaha Motor in India, Zippy represents a change in its brand image from adoration to friendliness. At its local dealerships, the company even offers various Zippy goods such as magnets.
     What's more, employees in full-body Zippy costumes appear in road safety workshops at residential areas and schools to interact with children. Through these efforts, Yamaha Motor aims to raise its profile among children first.
     But it remains to be seen how well this Japanese-style mascot character approach will appeal to Indian consumers.

Lupin to set up Japan-focused manufacturing unit in India

The focus is to get India's cost advantage and move bulk of production for Japan to India, a plan which Lupin has being attempting, but has taken longer than it anticipated earlier. But now, the plan is on track to set up a facility dedicated to Japan, which sources say could have a capacity to make 2 billion tablets a year, reports CNBC-TV18’s Archana Shukla. The new plant is expected to be operational by end 2014, post which the company will start applying for product approvals in Japan. Also Read: Why did Ranbaxy board not invite bids for sale?: Espirito Nilesh Gupta, MD, Lupin told CNBC TV18, “We are looking at regular optimization of capacities for Japan and are also setting up a separate suite in Goa dedicated for Japan.” Currently about 12-15 percent of production for Japan comes from Goa. The existing unit in Goa makes finished dosages for four products for Japan and will be adding two more products in this year. But since this plant caters both to the US and Japanese markets, it has been difficult for Lupin to manage and adhere to two sets of quality norms. Japan has different specifications for generic drug approvals and is considered even more stringent than the USFDA, the reason why the initial take off for shifting production to India took longer for Lupin. Now it plans a completely dedicated plant that will adhere to Japan and its requirements. Japan is a major focus market for Lupin, being the third-largest revenue contributor. Japan accounted for 11 percent with Rs 1,296 crore to consolidated revenues in FY14. Lupin had earlier mentioned that moving bulk production to India will help it rationalise at least 25-30 percent of costs. Lupin has strategised to not invest in expanding tablet manufacturing in Kyowa beyond what it currently has. So Goa unit will make most of the API and finished dosage and Kyowa will take care of re-packaging and quality assurance in Japan. It will start with approvals for new products and will slowly also move the existing products to new unit. Though this will take time as a product approval in Japan takes around 18-24 months to come, but the process at Lupin has begun.