Growing Japanese Investment into India

India-Japan Trade and Investment

The Growing Dimensions

India: Growing Japanese Interest

India’s import from Japan

India’s export to Japan

Japan is among India’s top 5 trading partners

2.2

1.8

2.7

3.2

4.1

1.5

1.9 1.7

2.12.5

Growing Indo Japan Trade (US$ billion)

4.14.5

20062001 2002 2003 2004 2005

Source: Ministry of Commerce, Government of India


Only by totaling 27 FDI projects reported in Japanese media, Japan’s FDI to India will amount to around US$ 5.5 billion over 5 years from 2006 to 2010

150.8 149.6 125.9 139.8

254.9

Japanese FDI inflow into India (US$ million)

515.5

20062001 2002 2003 2004 2005

Source: Ministry of Finance, Japan


Maruti Suzuki

Toyota

MCC PTA

Nissan Motors

Honda Siel Cars

Asahi India Glass

2546

386

364

231

175

111

Major Japanese FDI Projects in the Pipeline (2007-2012)

Source: Embassy of Japan in India, New Delhi


India maintained its 2nd rank among “Promising countries/regions For business development in the Medium term for Japanese Manufacturers’ overseas business operations”

India achieved this for the first time in 2005 　

2006 2005 2004 2003 2002

1 China China China China China

2 India India Thailand Thailand Thailand

3 Vietnam Thailand India USA USA

4 Thailand Vietnam Vietnam Vietnam Indonesia

5 USA USA USA India Vietnam

6 Russia Russia Russia Indonesia India

7 Brazil Korea Indonesia Korea Korea

Source: JBIC report on Japanese Manufacturers' Overseas Business Operations (2006)


Spread and concentration of Japanese Companies in India

Source: Embassy of Japan in India, New Delhi

DelhiNoida

GurgaonFaridabad

Mumbai

Pune

Thane

Aurangabad

Chennai

Bangalore

Hyderabad

Thiruvananthapuram

Kochin

Kolkata

HaldiaBhubaneswar

Barodara

DelhiNoida

GurgaonFaridabad

Mumbai

Pune

Thane

Aurangabad

Chennai

Bangalore

Hyderabad

Thiruvananthapuram

Kochin

Kolkata

HaldiaBhubaneswar

Barodara

Major Japanese clusters

Location No. of Companies

Delhi 103

Gurgaon 45

Noida 21

Bengaluru 76

Hyderabad 11

Chennai 61

Pune 18

Maumbai 58

Kolkata 12

Stories of Japanese Success in India

Hitachi entered Indian power generation equipments market in 1948

Presently seven operating companies in India

• Hitachi India (holding company for India operations)

• Hitachi India Trading

• Hitachi Home Life & Solution India

• Hitachi Data systems India

• Hitachi Koki India

• Hitachi Metaglas

• Hitachi Metals

In 2005 Hitachi established its Global Solution Centers in Hyderabad and Bangalore to provide customers global outsourcing solutions leveraging India’s vigor in this field

Hitachi India


India's largest automobile company

A joint venture with of Government of India with Suzuki Corporation of Japan

The first cars rolled out on 14th December 1983

Maruti reached a total production of one million motorcars in March 1994 and crossed two million mark in 1997

The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987 and further to 50% in 1992.

Government now holds only 18.5 per cent in Maruti, while Suzuki has 54.2 per cent

Aims to increase its annual car sales to one million units by the year 2010

Maruti is planning to invest US$ 1.5 billion to build a new car plant, a diesel engine unit and a transmission facility

Maruti Udyog


India’s largest and one of Asia’s largest manufacturers of automotive safety glass

Total production capacity of Indian manufacturing facilities is 2.5 million car sets Sole supplier to almost the entire Indian passenger car industry

Enjoys a market share 81 % in the automotive glass segment Significant presence in the after-market, with a market share of over 50 percent Exporting auto glass to after-market in Europe and Pakistan

AIS Float Glass enjoys a total market share of over 20% in the Indian float glass industry

The company registered annual sales of US$ 173 million in the financial year 2006

Asahi India


Started business with sales of fax machines and copiers in 1997

Initially there were only 150 agents in 14 branches

In 2004, launched digital cameras and digital video camcorders focusing professionals and amateurs

Canon now operates through 7 national retail chains and 28 city chains.

It has 227 flagship stores including 140 IT Imaging Zones, 40 Digiclick Zones and 30 Canon Care Centres

Plans to increase these to 442 by the end of 2007

Canon has touched a turnover of US$ 100 million (Gross proceeds) in the financial year 2006

It now has a market share of 40% in Digital-SLR cameras20% in Digital copiers and Digital Cameras

Canon India received its 151st product award in Oct 2006

The company crossed the 1 million customer mark in India in December 2006.

Canon India


100 % subsidiary of Sony Corporation, Japan

Entered India in 1995

Operates through a III tier distribution model of retailer, corporate partner and IT retailers.

It has a distribution network of 4,500 dealers and distributors, 58 Sony World outlets, 112 Sony Exclusives and 17 direct branch locations

Sony’s sales activities are concentrated around the metros and the B class cities only.

Present expenditure in advertising and marketing accounts 4-5 % of turnover

It test market its products and maintain continuous consumer research through the Sony World outlets

Of late, focusing on smaller retail formats-Sony Digital Kiosks target at the growing young consumer groups

Sony India


Founded in 1984 as a joint venture between Indian-owned Hero Cycles and Japan's Honda Motor

Delhi-based Hero Honda has grown its sales 730 percent in the past eight years, to US $1.9 billion in 2006

The company now commands a market share of nearly 50 percent

Hero Honda sold more than three million unit of two wheelers in the financial year 2006

India’s largest two-wheeler maker is planning to invest US$ 137.5 million in capacity expansion

Hero Honda has manufacturing facilities in Gurgaon and Dharuhera and is planning to establish units in other two locations

Honda