Japanese majors to invest $10 bn

Twenty-two Japanese companies including giants like Suzuki, Honda, Sony, Matsushita, Mitsubishi among others on Tuesday committed investments worth $10 billion into India.

The investments are expected to happen in the Delhi-Mumbai Industrial corridor.

Today a high-powered Japanese delegation led by Akira Amari, minister of economy, trade and industry, Japan, met industrialists such as Tata Group Chairman Ratan Tata and Reliance Industries CMD Mukesh Ambani.

On the sidelines of the meeting, Indian government officials said that the Japanese were bullish on the prospects of investing in India. However, the delegation refused to comment on the discussions.

However, electronics and electricals major Matsushita told Business Standard that it aims for a turnover of $1bn (Rs 4,100 crore) by the end of 2010 from its Indian operations.

The world's largest consumer electronics company, Matsushita Electric Industrial Company subsidiary Matsushita Electric Works recently acquired Anchor Electricals.

MEW had a minor turnover of just $6 million (Rs 24 crore) through independent sales operations from India by the end of the last financial year.

Although through the acquisition of Anchor, the company's turnover is expected to touch in excess on Rs 1,000 crore in the Rs 2,300 crore electrical switches and accessories market.

MEIC, through its fully owned subsidiary company, Panasonic, is aiming to launch newer products into the domestic market. The company currently sells flat screen and LCD television sets in the Indian markets.

Arjun Balakrishnan, director-operations, Panasonic Sales and Services India, said, "The focus for Matsushita until now had been growth in China, but now the company is aiming to make India (market) as big China (market). As most of our products are imports, we may set up a manufacturing base in India for our products."

 The company refused to talk about its investments plans stating the reason that "the plan is still on the table and yet to be finalised."

"When the prime minister of Japan visits India with other dignitaries, we are expecting to make the announcement on our expansion plans in India," added Balakrishnan.