28.6.08

Japan eyes India

A recent survey conducted by the Japan Bank for International Cooperation (JBIC) shows that India has become the most-favoured destination for long-term Japanese investment. While nearly 70% of Japanese manufacturers regard India as the most attractive country to do business over the next 10 years, around 67% preferred China. Russia came third with a 37% rating, followed by Vietnam at 28%.During 2007, Anchor Electricals was sold out to Osaka-based Matsushita and Lumax industries was acquired by Japan’s Stanley Electric world leader in illumination products. In 2006, the Poonawala Group sold its stake in Eagle Seals and Systems to Japan’s Eagle Industry. And 2005 witnessed two acquisitions, one was the stake purchase in International Tractors by the Yanmar group and the other was the acquisition of Chennai’s SRP Tools by Mitsubishi Heavy Industries.
The automobile sector has been the area where the Japanese presence is the most noticeable. But their interest has now spread to various sectors like machine tools, electronics and IT. According to India Brand Equity Foundation, Japan ranks fifth in terms of cumulative FDI equity inflow into India. Japan’s FDI in India is projected to be around $5.5 billion over 5 years from 2006 to 2010.Many sectors in the developed Japanese economy, which have a negligible growth rate, do not have much scope to grow. In view of this, Japanese companies need a presence in emerging markets to grow.

No comments: