Adani inks pact with Japanese firm

Adani Enterprises Ltd (AEL), the flagship company of leading infrastructure conglomerate Adani Group, has entered into a partnership with Kowa Company Ltd of Japan, for cooperation in areas like infrastructure and trade. With the signing of partnership agreement, AEL has firmed up its business plans in Japan, the company said in an official announcement.

The agreement was signed between Kowa Company President and CEO, Yoshiro Miwa, and Adani Group Chairman, Gautam Adani, in Japan today. Kowa Company Ltd is a diversified business house in Japan, with interests in trading, shipping, pharmaceutical, industrial, chemicals, textiles and apparel businesses.

“This partnership will help us foster new business ties in Japan, which is a leading global economy. I am confident that Kowa will help us derive synergy for fast-track growth in the highly competitive APAC region. We look forward to a long, mutually beneficial and strategic partnership with Kowa,” said Adani.

On his part, Miwa, said, “We are happy to partner with India’s leading infrastructure conglomerate. We look forward to collaborating with the Adani Group to create unique synergies in the Japanese market.”According to the agreement, Kowa will facilitate Adani’s initiation into business with Japanese firms and help it develop its key businesses such as ports, shipping, coal mining, transportation of coal and power. The pact will also allow Kowa to act as a first contact for Adani’s business operations in Japan, and Adani will act in a similar capacity to facilitate Kowa’s business interests in India.

Kowa will also be Adani’s contact in Japan to procure heavy engineering machinery for thermal and solar power generation, ships and tugboats. In line with this, Adani Enterprises will buy another five tug boats from Kowa, to be deployed at the Mundra and Hazira ports on India’s west coast. Kowa will also facilitate the purchase of two new capesize cargo vessels of 1,80,000 Dwt (dead weight tonnage) each for the Adani Group. These are meant for loading dry cargo like iron-ore, coal, grains and other materials. Earlier this month, Adani Shipping Pte had acquired two capsize vessels to bolster the infrastructure major’s integrated logistics coal chain.

The Group’s decision to expand business in Japan is part of its goal to emerge as a global infrastructure and energy player. On January 25, it signed agreements for setting up a port and railway infrastructure in Indonesia and has already announced its plans for coal mining in Australia.

Kowa would play a significant role in attracting investments from leading Japanese firms to the special economic zone (SEZ) at Mundra, on the western coast of India. The tax-free zone is being developed by Mundra Port and SEZ Ltd, another Adani Group company.