Some hints to do joint business Japanese companies

2000/1

  FICCI  Japanese Cell
Expert  Y. SEI
It is said that the number of Japanese investment to China is more than 5,000. While, same to India is only about 200-250. Why does Japanese not come to India?

According to JETRO research which was done last year, about 75% of Japanese companies in India are black figures, while in China only 25% are getting profit. This fact show profitability is not necessary for Japanese to come in certain markets.

There is psychological distance between Japan and India. Japanese are not familiar with Indian way of thinking and hospitality and Indian are not qacustom to Japanese rhetoric and silence. It is said that role of chairperson of international conference is how to make Japanese to speak and how to stop India to speak. Food may be also not a small issue for Japanese. Chinese food are acceptable or welcome but Indian dishes are not so. Indian hospitality sometimes makes surprise Japanese.

It is a great regret to mention the fact that so far as financial corroboration is concerned, no new relation has established between Indian companies and Japanese companies except a few cases as on now. There are about 200 numbers of Japanese manufacturing units here in India who made financial joint ventures with Indian partners or 100% Japanese own capital. Those who established partnership are on line of extension of their traditional business. A trade partner becomes technical corroboration partner and financial corroboration partner. Technical corroboration became financial corroboration. Very few numbers of companies newly made partnership.

Float glass of India is corroboration between Tata(ACC Cement ) and Asahi Glass Japan, and this is one of rare new tie between two companies. Asahi looked for an Indian partner and decided to shake hands with Tata. Toyota case also new tie but we could not neglect relation between Toyota and Kilroskar with textile machinery. Daikin recently announced corroboration between SIEL, which can be, considered new one. Daikin has been looking for girl friends and found. Those three companies studied India well in advance.

Other cases of new joint ventures are made by certain pressure or guide line by bigger houses. Such as in case of Maruti, they introduced some Indian companies to their component suppliers in Japan and Japanese component makers will take decision to do joint venture even they has no experience with India. Some auto components makers in Japan asked India consultant to find out partner and they made agreement.

Other cases are on the extension of traditional relations. That means Japanese people are rather conservative so they always want to make tie who are expert on the business. So if any India want to make new venture on new items, it will be extremely difficult to satisfy Japanese. So when India opened door for foreigner in 1991, some of Indian approached Japanese trading firms to ask to find out any items which Japanese can show interest, for which we India side will prepare land, money and any necessary things. But no such cases are entertained at all.

It is said that by 2030 total numbers of automobile production in India will exceed ten millions. Presently numbers of production are little less than one million. If numbers of automobile will be ten times, how other items are - - mineral water bottle may be 1000 times, bear may be 100 times, ice cream 200times. Yes, Indian economy is sure to change. In such case Japanese wise and conservative businessmen will sure to change their attitude and come to India.

Japanese businessmen will come in the field of making profit. If you can proof your proposal is profitable any industries will willingly come.

Gujarat is big state, but not known to Japanese at all. Name is no known, what is specialty, which is people, what type of food, fruits, sweet, what is different from other states, what is charm for foreigners? There are many question marks.

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