Success stories in Japan
Hinduja Tech Success Story in Japan
motive, Aerospace, Defense, Industrial
and General Manufacturing industries.
Hinduja Tech, headquartered inChennai, has subsidiaries in the US
and Germany; and branch officesin the UK, France and Dubai. In
April 2015, when Hinduja wanted
to expand their operations anddecided to set up an office in Japan, they contacted JETRO (Japan
External Trade Organisation, under
the Ministry of Trade, Economy andIndustry of the Government of Japan).

Mr. Sanjay Sinha
Hinduja Tech Ltd., a part of the prestigious 100 year-old Hinduja Group,incorporated in 2009 to provide Engineering, Manufacturing and Enterprise(EME) Services and Solutions for Auto-Guidance on step by step process ofestablishing an office in Yokohama
was meticulously planned and executedby JETRO Chennai and Yokohama. The
various services include identifying aplace, documentation, opening of bankaccounts, registering the branch office,guidance on compliance and corporate governance, bilingual support etc.,
besides providing free office space
temporarily were all completely coordinated.
“All suggested agencies were screened
and only those shortlisted were presented to us. The various meetingsplanned were systematic and fruitful.
Visits to agency offices were also facilitated. We got our approval in approximately one month after we submitted the documents. JETRO also
helped us in our follow-up after theteam returned to India. Our relationship with JETRO continues even today”,
says Mr. Sanjay Sinha, Senior Vice
President and Global Head - HR.

Satven’s Success Story in Japan
62 locations around the globe andprovides end to end engineeringsolutions in various automotive domains.

Mr. Krishna KumarJapan is the world’s biggest producerof cars with 20 million units produced
worldwide. This makes the country thelargest market for automotive parts,technologyandexpertise.
Understanding that enterprises withexisting Japanese customers canstrengthen their client relationships andbuild new customers with a strong
presence in the country, Satven had
forayed into the Japanese market byopening their first office in Japan in
Hiroshima in January 2013.

Satyam Venture Engineering Services
Pvt. Ltd. (Satven), established in theyear 2000, is one of the leading
Automotive Engineering Solution
providers in India to Global Automotive
OEMs & their Tier-1 suppliers with offices
in Germany, US, Japan and China.
Satven has over 1600 engineers in

Hiroshima Prefecture is one of thefamous manufacturing centres in theworld. The presence of famous
automobile manufacturers like Mazda,
the world-class machinery manufacturer,
Mitsubishi Heavy Industries as well asJapan Steel Works etc. contributed tonarrow down the option of selecting

Hiroshima Prefecture for establishing
office for Satven.
Mr. P. V. Krishna Kumar, Vice-President ofSatven recalls the business support services
by Hiroshima Prefecture. “Information
about the local area in Hiroshima,procedural compliance of the variousrequirements, identification of suitablelocation for establishing office, introduction
to potential clients, launch support etc. wasprovided by the International Business
Division of Hiroshima Prefecture.”“JETRO – Tokyo and Hiroshima offices
provided us with temporary office space,free of charge for our initial operation inHiroshima. JETRO introduced us to experts
in the areas of taxation, labour and legal
issues, and to the local government
authorities etc. All these were wellplanned, and smoothly coordinated andimplemented. Thanks to JETRO and theHiroshima Prefectural Government, wecould get all these done in a month’stime” said Mr. Krishna Kumar.

New Sectors for Investment in India
Business between India and Japanis booming and this is clearly seenby the number of JapaneseCompanies entering India - either
setting up branches or
subsidiaries or acquiring existing
Indian businesses. Interestingly, it
is not just the auto, autocomponents and chemicalindustries that interest Japanesebusinessmen in the Indian market,
but recently, the software (IT)industry and the pharmaceuticals
sector also. India’s growth heralds
growinginfrastructure
opportunities that are being
keenly observed by the Japanese
heavy engineering sector for it
provides ample opportunities forinvestment.
With the expansion of the Indian
markets, the booming ecommerce industry and theGovernment’s focus on easing
rules for doing business in India,
the time is ripe for Japanese
investors and companies toconsider broadening theirinvestment horizon into more
sectors in India. Recently, in June
2016 and October 2016, theGovernment of India, vide Press
Note No. 5 (2016 Series) and Press
Note No. 6 (2016 Series) issued
by the Department of IndustrialPolicy and Promotion, Ministry ofCommerce & Industry, further
liberalised investment in India.
Some of the sectors that may beof specific interest to Japanesebusiness with India are listed
below.

1. Agricultural Sector – One of
the more interesting sectors thathave been opened up is
specialised types of agriculture.
India now permits 100% foreign
investment under the automaticroute, in (a) Floriculture,Horticulture and Cultivation ofvegetables and mushrooms undercontrolled conditions (whereinrainfall, temperature, solar
radiation, air humidity and culture
medium are controlled artificially)(b) Development and Productionof seeds and planting material (c)Animal Husbandry, Pisciculture,Aquaculture (the rearing ofaquatic animals or the cultivationof aquatic plants for food) and afew other related fields. Withreference to the growing market
in India for Japanese food and theJapanese
proclivity
tospecialisation, this sector may beof special interest to Japanese
entrepreneurs.
2. Single Brand Retail –Investment in Single Brand Retailtrading is now permitted up to
100% (with up to 49% under theautomatic route and the remaining
under the government approvalroute). The most interestingchange here has been that suchretail trading entities are now
permitted to undertake retailtrading through e-commerce (i.e.
online trading) provided they also
operate brick and mortar stores(i.e. physical stores) in India. Ecommerce is clearly the way
forward in India with consumer

interests growing exponentially.
3. Pharmaceuticals – Foreign
investmentingreenfield
pharmaceutical projects is allowed
up to 100% under the automaticroute and for brownfield (existing)projects, up to 100% (with 74%
under the automatic route).
Interestingly, FDI up to 100%
under the automatic route ispermitted for manufacturing of
medical devices such asinstruments, apparatus andappliances as well as the relevant
software used for specified
purposes.
4. Airports and Air Transport
Services – Foreign investment is
now permitted up to 100% under
the automatic route (i.e. withouta requirement to seek approval
to invest) in airports, bothgreenfield and existing projects
and in non-scheduled air transport
services, helicopter and seaplane
services. While 100% foreign
investment is also permitted in
Scheduled Air Transport Services/
Domestic Scheduled Passenger
Airline, only 49% is permitted
under the automatic route.
Government approval is required
for foreign investment beyond
49%.
5. Financial Services – In October
2016, the Government of India(and the Reserve Bank of India)
have further opened up thefinancial services market bypermitting 100% foreign
investment under the automatic(Continued on page 4)

New Sectors for Investment in India(Continued from page 3)
route in financial services activities
that are regulated by the financial
sector regulators such as theReserve Bank of India, Securities
and Exchange Board of India,
Insurance Regulatory andDevelopment Authority, National
Housing Board, etc. Financial
Services Activities that are notregulated (or are only partlyregulated) by a regulator in India,will require approval under theapproval route but will still be
eligible for up to 100% foreign

investment. With the opening upof the financial services sector andthe success of several Japanesebanks in India, it is hoped thatIndia and Japan have greater
coordination in this sector as well.
Gone are the days when only
large companies were looked atfor investments. Today, more andmore Japanese entrepreneurs andcompanies want to acquire
specialised small and medium
sized companies often in thesoftwareorinformation
technology sector and also in thep h a r m a c e u t i c a l s e c t o r. I t i s

predicted that investments will
also grow in the above newly
opened sectors. Whether the drive
behind acquisition, is to ultimately
acquire the product or the service
or to acquire the human capital(often considered the mostvaluable), it is evident that qualityof products, services and highly
skilled, specialised employees are
the need of the hour and India isclearly in the game.
– Ms. Hufriz Wadia, Partner andMr. Dheeraj Mani, Senior Associate,
Kochhar & Co.

Every smartphone’s best friend - The 400-CL N023 Smartphone Cooler & Charger

Arrangements areon, in full swing, for
I J C C I ’s I n d u s t r i a l
Delegation visit toJapan.
The
delegation
members had a predelegation briefing
meet in Chennai.
Consul-General of Japan Mr. Seiji Baba joined
the meeting and gave his valuable advice to themembers.

JETRO-IJCCI Joint Seminar on Japan
Your Investment Destination

Consul-General, Mr. Seiji Baba addressing the potential investors.

The Annual General Meeting of IJCCI wasconvened this month. I had apprised the membersof the various activities of IJCCI and appealed tothe members to contribute to the IJCCI corpus to
support the various initiatives taken by theGoverning Council Members.

Sanwa Direct, an online shop ofSanwa Supply Inc., has developed
the industry’s first smartphonecooler that can also be used as acharger.
Called the 400-CLN023, it isequipped with a seven-blade
cooling fan that rotates at a
speed of 4,000rpm to cool thesmartphone. It can prevent
thermal leaks when a phone iscontinuously used for long hours
or with a high load.
battery can be used forcharging.
Powered by an embedded
1,000mAh lithium-ion (Li-ion) When the cooler is held by hand, its
rechargeable battery, it can possible that the ventilation hole may
rotate the fan for about five be blocked. Therefore there is ahours when fully charged. It support on the back side of the cooler
h a s a U S B - A p o r t a n d t h e so that it can stand on a surface.

President’s Message

I look forward to the cooperation and support ofevery one of you in strengthening our hands –both by participating in all our activities andhelping to build a sound corpus for theorganisation.
The cooler can hold a smartphonewith a width of 53-95mm and a
thickness of 15mm or less. It
measures 61 x 41 x 118mm andweighs 99gms. It is priced at¥3,980.

With warm regards,

Mr. Hidehiro Ishiura, Director-General, JETRO Chennai addressing the audience.

N. Kumar- Shweta Nichani

EDITORIAL BOARD: N Kumar, President, IJCCI; N Krishnaswami, Chairman, IJCCI; Krishna Prasad, Managing Director, Mot Juste Communication
S e r v i c e s P v t . L t d . ; P S S u m a n , Pa r t n e r, A K M y l s a m y & A s s o c i a t e s L L P ; H u f r i z Wa d i a , Pa r t n e r, Ko c h h a r & C o. ;Suguna Ramamoorthy, Secretary-General, IJCCI. For Private Circulation Only.
Editor: Suguna Ramamoorthy; Publisher: IJCCI; Designing & Printing: Mot Juste Communication Services Private Limited, 98410 15081.
Indo-Japan Chamber of Commerce & Industry (IJCCI): No. 21, Kavignar Bharathidasan Road, Teynampet, Chennai 600 018, Tamil Nadu, India.
Phone: 044-24352010 / 044-24354779. Email: indo-japan@ijcci.com. Web: ijcci.com

Mr. Veera Babu, JETRO, making a presentation on Japan.

A cross-section of the audience.