1. India-Japan Trade and Investment The Growing Dimensions

2. India: Growing Japanese Interest Source: Ministry of Commerce, Government of India 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 2.1 2.5 Growing Indo Japan Trade (US$ billion) 4.1 4.5 2006 2001 2002 2003 2004 2005

3. India: Growing Japanese Interest 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 Source: Ministry of Finance, Japan 150.8 149.6 125.9 139.8 254.9 Japanese FDI inflow into India (US$ million) 515.5 2006 2001 2002 2003 2004 2005

4. India: Growing Japanese Interest 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

5. India: Growing Japanese Interest India maintained its 2 nd 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 Source: JBIC report on Japanese Manufacturers' Overseas Business Operations (2006) Brazil Russia USA Thailand Vietnam India China 2006 Korea Korea Indonesia Korea 7 Indonesia India Vietnam USA Thailand China 2003 Russia USA Vietnam India Thailand China 2004 Russia USA Vietnam Thailand India China 2005 China 1 Vietnam 5 USA 3 India 6 Indonesia 4 Thailand 2 2002

6. India: Growing Japanese Interest Spread and concentration of Japanese Companies in India Source: Embassy of Japan in India, New Delhi Major Japanese clusters 12 Kolkata 58 Maumbai 18 Pune 61 Chennai 11 Hyderabad 76 Bengaluru 21 Noida 45 Gurgaon 103 Delhi No. of Companies Location

8. Stories of Japanese Success in 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

9. Stories of Japanese Success in India 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

10. Stories of Japanese Success in 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 cameras 20% 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

11. Stories of Japanese Success in 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

12. Stories of Japanese Success in 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