India Inc warms up to Japanese cos
Over past 2 years, Japanese cos have increased their presence in India by investing $10 bn.World's top country brands | Indian entrepreneurs turn Global Gurus
By Rajesh Unnikrishnan & Kiran Kabtta, ET Bureau |
MUMBAI: It was the US in the 1980s. In the nineties, it was Europe. After a brief fling with China, Corporate India seems to be warming up to Japanese alliances. NTT DoCoMo on Wednesday announced a deal to buy 26% in Tata Teleservices, joining a growing list of companies which have bought varying quantum of equity stakes in Indian firms.
Japanese presence is most noticeable in the automobile sector. This interest is now extending to various sectors like machine tools, electronics and IT. According to India Brand Equity Foundation, Japan ranks fifth in terms of cumulative FDI inflow into India. Japan���s FDI in India is projected to be around $5.5 billion over five years from 2006 to 2010.
In recent times, Japanese banks have been more willing to loosen their purse strings to fund the acquisition plans of their corporates.
Recently, Japanese financial services firm Nomura Holdings acquired the Indian back office and technology operations of the bankrupt investment bank Lehman Brothers, and Daiichi Sankyo took over Ranbaxy Laboratories for $4.6 bn. In 2007, Anchor Electricals was sold to Osaka-based Matsushita, and Lumax Industries was acquired by Japan���s Stanley Electric, a world leader in illumination products.
Over the past two years, Japanese companies have been increasing their presence in India by investing close to $10 billion in the country. A recent survey conducted by the Japan Bank for International Co-operation (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%. 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.
���India is a growing economy, hence a lot of Japanese companies want to invest here. However, given the limited work experience in terms of language as well as culture, acquisition route is one of the better alternatives to enter the Indian market.���
Canon India president & CEO Kensaku Konishi told ET a few months ago. The financial services segment has attracted Shinsei Bank which has set up its investment arm in India. Similarly, Nomura Holdings is also scouting for acquisitions in India.
Japanese presence is most noticeable in the automobile sector. This interest is now extending to various sectors like machine tools, electronics and IT. According to India Brand Equity Foundation, Japan ranks fifth in terms of cumulative FDI inflow into India. Japan���s FDI in India is projected to be around $5.5 billion over five years from 2006 to 2010.
In recent times, Japanese banks have been more willing to loosen their purse strings to fund the acquisition plans of their corporates.
Recently, Japanese financial services firm Nomura Holdings acquired the Indian back office and technology operations of the bankrupt investment bank Lehman Brothers, and Daiichi Sankyo took over Ranbaxy Laboratories for $4.6 bn. In 2007, Anchor Electricals was sold to Osaka-based Matsushita, and Lumax Industries was acquired by Japan���s Stanley Electric, a world leader in illumination products.
Over the past two years, Japanese companies have been increasing their presence in India by investing close to $10 billion in the country. A recent survey conducted by the Japan Bank for International Co-operation (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%. In 2006, the Poonawala Group sold its stake in Eagle Seals and Systems to Japan���s Eagle Industry.
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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.
���India is a growing economy, hence a lot of Japanese companies want to invest here. However, given the limited work experience in terms of language as well as culture, acquisition route is one of the better alternatives to enter the Indian market.���
Canon India president & CEO Kensaku Konishi told ET a few months ago. The financial services segment has attracted Shinsei Bank which has set up its investment arm in India. Similarly, Nomura Holdings is also scouting for acquisitions in India.
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