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27 Japan firms evince interest in Pune auto zone

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Pune has always been a hotbed for not just industrial development, but for automotive companies in particular.

With some of the biggest names in the business like Tata Motors, Volkswagen, Bajaj Auto, Mercedes-Benz, General Motors, Fiat, etc based in and around the Peshwa city, it opens up a lot of avenues for small and medium auto component businesses -- which up until now has remained elusive for Japanese companies.

The Japan External Trade Organisation (JETRO) aims to bridge exactly that gap and has undertaken a major initiative to boost bilateral trade and investment between India and Japan with a dedicated emphasis on Maharashtra. JETRO is the official promotion body for trade and investment with Japan and has 73 offices all around the world, including a network in India spanning four cities — New Delhi, Mumbai, Chennai and Bangalore.

JETRO’s activities in India have been on the rise in recent times, with the number of Japanese companies in the country having risen to 926 in October 2012 from 267 in January 2006. The trade body’s brief in the country has been predominantly not only to offer advice to companies looking to set up shop in India through their Business Support Centres, but to identify and recommend industrial land for new set-ups. A direct result of this has been an MoU signed in April between JETRO and MIDC to set up an area exclusive for Japanese manufacturers. The prime candidate for this dedicated Japanese zone should be at the Supa MIDC industrial estate near Ahmednagar though the exact details of the set-up are yet to be announced. Land acquisition for the expansion of the industrial premises is under way and 500 hectares are said to be allotted to JETRO for the initiative.

JETRO’s contribution to the scheme of things is to invite Japanese manufacturers to Pune to either set up their own businesses or tie up with Indian companies and provide investment. Further to this objective, JETRO organised the Business Matching for Market Development of Auto Parts 2013 in Pune, where the participants included 8 from Japan, 14 from India and 3 from Thailand.

Speaking on the occasion, Takehiko Furukawa, director general, JETRO Mumbai, said: “Japanese companies are noticing huge business opportunities in Pune, and the flourishing automobile industry in this region provides a major investment opportunity for Japanese auto component manufacturers in the proposed industrial zone.” At the moment, some 27 companies have already shown interest in the dedicated Japanese zone and more are coming in. The arrangement works in everyone’s favour — while participating Japanese companies will get a piece of the auto components pie in the region, it will not only generate more opportunities for Tier 2 and 3 suppliers and enable them to further develop on a strong base of advanced technology in manufacturing, but also empower OEMs with better quality components.

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