Japan signs 16 MoUs with Tamil Nadu government
It will focus on tourism and setting up of Japanese language training centres to enhance the skills of youngsters so they can be employable in Japanese companies.
Published: 24th January 2019 03:07 PM
For representational purposes (File | Reuters)
By C Shivakumar
Express News Service
CHENNAI: Sixteen memorandums of understanding (MoUs) have been signed between Japanese companies and the Tamil Nadu government as Japan plans to diversify its business interest in the South Indian state. It will focus on tourism and setting up of Japanese language training centres to enhance the skills of youngsters so they can be employable in Japanese companies.
Tatsushi Tamoto, director general of Japan External Trade Organisation (JETRO), told Express that 14 memorandums of understanding, worth Rs 1180 crore, had been signed by Japanese companies. The Yanmar Engine Manufacturing Company, which is opening a plant in Chennai, and Yamaha Music India, which is tapping the music market in India by starting commercial operations next month, have also signed MoUs.
However, the value of these deals could not be ascertained. Yanmar was targeting Chennai as the city had developed component supply chain and could be helpful in supply of engine components, said Hajime Hirai, director of Yanmar Engine Manufacturing India. The plant, which will be set up in Gummidipoondi at Mahindra Industrial Park, will not only cater to India but also to global markets, said Hirai, while refusing to provide details of the investment.
"We will be starting production by 2020 and rolling out 80,000 units," said Hirai, who is also planning to tap the skilled labour force of Chennai. Katsunobu Suzuki, general manager of Yamaha Music India, said that after opening their first factory in Gurgaon, Yamaha had planned to open a plant in Chennai at One Hub.
Under the Chennai factory project, musical instruments will be manufactured in India and sold in India. "By 2022, we have committed an investment of Rs 500 crore which will generate jobs to 800 people," said Suzuki, thanking the state government for helping in starting the project on schedule.
Under phase I the company will be manufacturing acoustic guitars and portable keyboards. From 2020, the company will diversify to producing to portable audio speakers. The contribution of Japanese companies to Tamil Nadu’s economy has been huge. According to Hiroshi Shibasaki, president of the Japanese Chamber of Commerce and Industry, Japanese companies contribute about 9.22 per cent of foreign direct investment in Tamil Nadu and Puducherry.
Kenji Hiramatsu, Ambassador of Japan to India, said that Japan was planning to diversify its business interest in Tamil Nadu and said that it was one of the prime reasons to have a direct flight from Chennai to Tokyo. Starting from cotton business to automobiles and spare parts, Japan is planning to diversify into food services, textiles, Information Technology and small and medium enterprises (SMEs).
It is learnt that Japan is trying to lure its small and medium enterprises to invest in Tamil Nadu as there is a huge potential here with the state government creating a better atmosphere for SME investment. Interestingly, through SMEs, Japan is not only trying to tap the domestic market but also looking at exports to Africa and South East Asia, he said.
It will focus on tourism and setting up of Japanese language training centres to enhance the skills of youngsters so they can be employable in Japanese companies.
Published: 24th January 2019 03:07 PM
For representational purposes (File | Reuters)
By C Shivakumar
Express News Service
CHENNAI: Sixteen memorandums of understanding (MoUs) have been signed between Japanese companies and the Tamil Nadu government as Japan plans to diversify its business interest in the South Indian state. It will focus on tourism and setting up of Japanese language training centres to enhance the skills of youngsters so they can be employable in Japanese companies.
Tatsushi Tamoto, director general of Japan External Trade Organisation (JETRO), told Express that 14 memorandums of understanding, worth Rs 1180 crore, had been signed by Japanese companies. The Yanmar Engine Manufacturing Company, which is opening a plant in Chennai, and Yamaha Music India, which is tapping the music market in India by starting commercial operations next month, have also signed MoUs.
However, the value of these deals could not be ascertained. Yanmar was targeting Chennai as the city had developed component supply chain and could be helpful in supply of engine components, said Hajime Hirai, director of Yanmar Engine Manufacturing India. The plant, which will be set up in Gummidipoondi at Mahindra Industrial Park, will not only cater to India but also to global markets, said Hirai, while refusing to provide details of the investment.
"We will be starting production by 2020 and rolling out 80,000 units," said Hirai, who is also planning to tap the skilled labour force of Chennai. Katsunobu Suzuki, general manager of Yamaha Music India, said that after opening their first factory in Gurgaon, Yamaha had planned to open a plant in Chennai at One Hub.
Under the Chennai factory project, musical instruments will be manufactured in India and sold in India. "By 2022, we have committed an investment of Rs 500 crore which will generate jobs to 800 people," said Suzuki, thanking the state government for helping in starting the project on schedule.
Under phase I the company will be manufacturing acoustic guitars and portable keyboards. From 2020, the company will diversify to producing to portable audio speakers. The contribution of Japanese companies to Tamil Nadu’s economy has been huge. According to Hiroshi Shibasaki, president of the Japanese Chamber of Commerce and Industry, Japanese companies contribute about 9.22 per cent of foreign direct investment in Tamil Nadu and Puducherry.
Kenji Hiramatsu, Ambassador of Japan to India, said that Japan was planning to diversify its business interest in Tamil Nadu and said that it was one of the prime reasons to have a direct flight from Chennai to Tokyo. Starting from cotton business to automobiles and spare parts, Japan is planning to diversify into food services, textiles, Information Technology and small and medium enterprises (SMEs).
It is learnt that Japan is trying to lure its small and medium enterprises to invest in Tamil Nadu as there is a huge potential here with the state government creating a better atmosphere for SME investment. Interestingly, through SMEs, Japan is not only trying to tap the domestic market but also looking at exports to Africa and South East Asia, he said.
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