Japan's All Nippon in talks with GoAir, SpiceJet for India entry; held talks with Kingfisher too

 Japan's All Nippon Airways (ANA) has reportedly held talks with GoAir and SpiceJetBSE 0.32 % for a stake purchase. ANA spokesperson RyoseiNomura, however, told TOI over phone, "We do not offer comments on such media queries." A detailed questionnaire seeking details of ANA's interest in the two Indian carriers remained unanswered till the time of going to press.

Repeated calls and an e-mail query to Jeh Wadia, MD of GoAir, elicited no response. Sun Group's CFO S L Narayanan said in an e-mailed statement, "Some strategic investors have evinced interest in speaking to the company; however, we can neither confirm nor deny the names of any specific carriers, given the uncertainties of a viable transaction fructifying."

Narayanan, sources said, is spearheading the talks with ANA. Phone calls to Anand Rathi Financial Services CEO Praveen Chakravarty went unanswered. Ever since India relaxed ownership rules, allowing foreign carriers to buy up to 49% stake in domestic airlines, the sector has been buzzing with news of mergers and acquisitions. Jet AirwaysBSE 0.09 % and the grounded Kingfisher AirlinesBSE 0.39 % have been in stake-sale talks with Etihad Airways. However, the former is expected to clinch the deal with the Abu Dhabi airline soon.

Sources said that ANA also had discussions with Kingfisher Airlines but made no substantive progress. Malaysia's AirAsia too is exploring opportunities in India following the change in norms. SpiceJet has had an head-start in its talks with ANA but there has been no direct meeting between media tycoon and Sun Group founder Kalanidhi Maran yet.

Industry observers said several domestic carriers looked at raising funds from private equity firms, but have altered plans, preferring to settle down with a strategic investor. SpiceJet has had talks with private equity funds like Olympus Capital and TPG Capital and is now looking at strategic investors. GoAir too was looking at private equity money some time ago.

EAS Status Multi-Faceted for India

Though India has had close historical ties with the countries of Southeast and East Asia, it is only since the end of the Cold War that it started re-engaging them as part of its Look-East Policy.

India had drifted away from these countries as a result of decades of global conflict.

It has been a part of the East Asia Summit ever since the first one kicked off in Malaysia in 2005.

The idea of an East Asia Grouping was first proposed by the then-Malaysian Prime Minister Mahathir Mohamad, back in 1991. For India, it marked a big leap of faith as initially the response from the Association of Southeast Asian Nations and the East Asian countries for closer engagement with them had been lukewarm.

Many of the EAS member countries have been looking toward India to play some kind of a countervailing role to China in the region, especially in the light of China’s increasingly aggressive posture. China’s power projection in the region has increased significantly after it commissioned its first aircraft carrier, the Liaoning, last year.

However, at the same time, India has also been rapidly modernizing its defense forces and has now emerged as the world’s biggest arms importer. The Indian Navy is the strongest in the entire Indian Ocean region, through which a majority of imports and exports of many of the EAS member countries pass.

Not surprisingly, at the 7th East Asia Summit meeting in Phnom Penh in Cambodia on Nov. 20, Indian Prime Minister Manmohan Singh spoke about creating “an open, balanced, inclusive and rule-based architecture in the region.”

This assumes significance in the wake of territorial disputes between China and countries like Japan, Vietnam and the Philippines — all of which are members of the EAS. India is getting increasingly close to Japan and now, with the return of Shinzo Abe in Tokyo, the ties are set to grow even stronger.

For the first time, India held bilateral naval exercises with Japan in June last year as well as agreeing to jointly produce rare-earth elements with the country.

Singh also noted in his speech at the EAS that “for India, Asean has been the bridge to the East,” thereby emphasizing the centrality of Asean to India’s engagement with the Asia-Pacific region.

Trade with this region is critical for the health of the Indian economy, which has slowed of late. Many of the EAS member states are also worried that the major chunk of their trade is with China, and would like to expand their trade basket.

US President Barack Obama also attended the EAS in Cambodia, after the United States and Russia formally became EAS members in Bali in November 2011.

Prior to landing in Cambodia, Obama also visited Myanmar and Thailand, thereby making it clear that his administration’s “pivot” toward Asia would continue in his second term as well.

Since the signing of the Indo-US civilian nuclear deal in 2008, the countries have forged closer ties.

India can cooperate with other EAS countries like the United States and Japan in helping countries like Myanmar as it gradually makes the transition toward democracy. It can also help improve the infrastructure of Myanmar.

India already stands to gain a lot from the unexpected but gradual progression of Myanmar toward full-scale democracy as the country functions as a land-bridge to the Asean region.

Meanwhile, work is already progressing apace on the India-Myanmar-Thailand highway, which will be extended to Laos and Cambodia, while a new highway project is being planned that will connect India-Myanmar-Laos before entering Vietnam and then on to Cambodia.

The Cambodia summit also saw the start of negotiations on the Regional Comprehensive Economic Partnership agreement, which aims to bring together the 10 Asean countries with Japan, South Korea, China, India, Australia and New Zealand — with a total economic output of $20 trillion, or nearly one-third of the world economy.

In November last year, India hosted the EAS-India Workshop on Building a Regional Framework for Earthquake Risk Management which aimed to coalesce the expertise of the EAS member countries in responding to natural disasters like earthquakes.

The Indian prime minister also informed member countries that the prestigious Nalanda University project in India is on track and teaching expected to start from 2014-15. The Nalanda University was a historic place in India, attracting the best and brightest from all across Asia between the 5th and 12th centuries CE.

India’s ties with Asean have thus improved dramatically on all fronts. This year marks the 20th anniversary of the establishment of Asean-India bilateral ties and the 10th anniversary of the Annual Summits between the two sides. To mark this momentous occasion, the Asean-India Commemorative Summit was held in New Delhi on Dec. 20-21 last year.

India’s trade volume with Asean has already crossed the $70 billion target set for this year, but the Delhi summit also coincided with the successful ending of negotiations on an Asean-India free trade area in investments and services.

Additionally, India is working to create the Asean-India FTA, which will create a market of nearly 1.8 billion people and have a total GDP of $3.8 trillion.

But despite all the positive news, one of the problem areas for India in the EAS are its ties with China. Although trade volumes between the two countries are set to touch $100 billion by 2015, the unresolved border issue has dampened relations.

Initially, China was not in favor of India’s inclusion in the EAS, but due to the support of countries like Japan, India was able to make it to the inaugural summit.

Another problem area for India is that domestic political and agricultural lobbies have been pressing the government to rescind some of the favorable tariff rates given to the produce from the Asean countries as part of the Asean-India FTA in goods signed in 2009.

As India’s economic and military profile in the Asia-Pacific region grows, its role in the EAS is bound to increase in the years to come.

However, India will have to be ready to take a more proactive stand on issues like the territorial disputes in the South China Sea, if called upon by the EAS member countries.

At the same time, India will need the support of EAS member nations in its quest for a permanent seat on the UN Security Council.

Some deft diplomatic footwork will be required in these interesting times for India-EAS relations.

Japanese Solar Cos Looking To Enter India

Japan may be known as the land of rising sun but it is India that receives most of the energy that is generated by the powerful star. India always had the luxury of solar-based resources but has never been able to utilise its own potential. Things appear to be changing as India's nearby friend, Japan, may be looking to play a part in ensuring the growth of nation's solar sector that could benefit its own domestic solar manufacturers.

Major companies like Sharp, Kyocera, Toshiba and Kawasaki Heavy Machinery have decided to visit India's capital, slated to happen on 19 February, to meet representatives of Indian firms, to explore possible tie-ups in solar-based projects.

These companies have organised set of people that specialize in manufacturing of modules, inverters, tracking systems, module fabs, and photovoltaic materials and components.

Although India's government is yet to show any excitement to involve itself in the domestic solar power sector, even then the Indian solar market is rapidly showing promise, owing to particular state-side efforts in Gujarat, Rajasthan, Tamil Nadu and other regions. The energy ministry has also played its part by devising programs like Jawaharlal Nehru National Solar Mission (JNNSM) and encouraged separate state solar policies. All this seems to have gone to the notice of Japan-based solar firms.

To ensure that the quality of solar products coming in are of top quality, the in-coming companies should be instructed to seek strict domestic content requirements, which requires them to purchase controlling stakes in local companies that successfully develop solar power projects. If all goes well and India's targeted quota of 1,000 GW power capacity is achieved, then no one can stop the country from being in the reckoning.

Worsening global situation to impact India: ADB

Asian Development Bank (ADB) today cautioned that worsening global financial situation will have severe consequences for emerging economies like India and China.

"This global slump (in US, Euro area and Japan) will have a serious slump on the region's major economies, particularly on India and China" ADB president Haruhiko Kuroda said at a FICCI seminar.

The ADB chief said that despite signs of stabilisation, "downside risks to growth remain in Asia ... Recovery in the United States, Euro area and Japan remains elusive."

As per latest data, the US economy, after a gap of over three years, contracted by 0.1 per cent for the quarter ending December 2012.

Mr Kuroda said while the US is endeavouring to deal with the problem of fiscal cliff, the inability to Euro area countries to tide over the fiscal problems could undermine the recovery prospects in the coming months.

Referring to India, he appreciated the recent policy initiatives undertaken by the government and said ADB was maintaining its growth projection for the current fiscal year at 5.4 per cent and for 2013-14 at 6.5 per cent.

"India is also taking positive policy measures ... There is no clear evidence of growth recovery in India. Among many factors, the delay in implementing the necessary reforms has hampered India's competitiveness. But we expect that recent government reforms will help steer the economy back to a strong growth," he said.

The government has recently undertaken a host policy initiatives including hike in FDI limit in various sectors, including retail, deregulating the diesel prices and restricting subsidised LPG cylinders to 9 per family a year.

The Reserve Bank of India has recently lowered the growth projection for the current fiscal year to 5.5 per cent, from 5.8 per cent estimated earlier.

India, Japan hold first maritime affairs dialogue

Maritime security including non- traditional threats and cooperation in shipping were among key issues discussed during the first India-Japan Maritime Affairs Dialogue held here.

"Issues of mutual interest were discussed, inter alia, maritime security including non-traditional threats, cooperation in shipping, marine sciences and technology, marine biodiversity and cooperation at various multilateral forums," Ministry of External Affairs said.

Philips Electronics inks pact with Funai Electric

Philips Electronics India, consumer electronics major has inked pact with Japan's Funai Electric by signing an agreement to sell its audio, video, multimedia and accessories businesses for €150 million and a brand license fees. As per the deal, Funai will be expanding its operations in emerging markets, including India.

The company will benefit with the strong presence of Funai, in North and Central America, and Japan to create a promising future for the Dutch firm's audio, video and entertainment businesses. 

Datsun Comes one Step Closer to Launch in India, First car by 2014

Japanese auto major, Nissan has today announced the selection of TBWA Worldwide as the global agency of record for the Datsun brand. In March 2012, Nissan announced that the Datsun brand would return to usher in modern, reliable and accessible products for optimistic, up-and-coming customers in high-growth markets. Embodying this aspiration, and equipped with modern technology to assure an engaging driving experience, Datsun vehicle sales will commence in India, Indonesia and Russia in 2014.


The selection of its global agency marks an important step in the Datsun brand's development as it nears the launch of the first new vehicles. "Datsun" was the name of the Japanese brand that was marketed worldwide from the early years of Nissan throughout the company's rapid growth in the early 1970s and its globalization in the 1980s. Generations of customers coveted the contemporary styling, modern engineering, durability and reliability of Datsun vehicles. The Datsun brand was phased out from 1981, and after this the Nissan name was used as the company expanded globally.

Vincent Cobee, corporate vice president and global head of the Datsun Business Unit, said, "The company is counting on the Datsun brand to once again resonate with consumers in high-growth markets who seek attractive styling, an accessible price and - above all - an engaging driving experience.

"The choice of brand name was obvious. The Datsun brand remains in our portfolio as one of the most cherished brands in automotive history. And the connection between the Datsun of today and the Datsun of yesterday is authentic. Just as consumers in the 1930s, 40s and 50s wanted high-quality, durable and reliable vehicles, potential customers in high-growth markets -- who today have so few choices -- are eager for such vehicles. We are confident that the new Datsun will meet these expectations," Cobee continued.

Datsun will introduce the first product of the new line-up in mid-2013, and the first vehicles will go on sale in the 2014 model year. TBWA Worldwide will set up a dedicated Datsun team to run strategic and creative operations from London. Its Tokyo affiliate, TBWA HAKUHODO, will provide operational support to the Datsun team in Japan.

Tom Carroll, President & CEO at TBWA Worldwide, said, "To win an automotive account is always an honor, but when that involves the return of such an iconic brand, it is truly inspiring. The world is changing and we take tremendous pride in having been chosen to help Datsun engage the rising markets of Russia, Indonesia and India. We look forward to taking Datsun's great brand heritage forward and bring new value to our future customers."