Japanese firms ready to cook up a storm

At present, Japan invests a little over $6 bn in India per annum

Around 10 major Japanese food processing companies have shown interest in either investing in India or sourcing raw materials from here through contract farming or otherwise.

The names include Ise Foods, Marubeni Corporation, Kagome and House Foods Groups. There is also interest for establishing mega egg processing units and importing high-quality machines for mechanised deboning of chicken.

Officials said the assurance to either invest in India or expand the sourcing came during a meeting between the companies and the Indian government, represented by food processing minister Harsimrat Kaur Badal in Tokyo on Thursday. 

“As compared to Western countries which are more interested in packaging and retailing of food products in India, I found the Japanese were keen on setting up a manufacturing base in India, from where they could meet their demand and also re-export,” she told this newspaper over the phone. 

After the passage of the law on a national goods and services tax here, Japanese companies will have a greater chance to expand their investment in cold-chains and other infrastructure, said the minister. She said the companies in question had adequate funds and technological know-how. 

“The companies were also eager to source lots of fruits and vegetables from India and set up manufacturing bases, which also suits out purpose,” Badal added.

Japan is now the fourth largest investor in India, of a little over $16 billion annually. There was a commitment during the December 2015 visit of Prime Minister Shinzo Abe to invest $33.5 billion in India, doubling of Japanese investment and the number of companies in India, over the coming five years. 

Exports to Japan in 2015-16 were $4.7 billion; imports were $9.8 bn. Bilateral trade is in a narrow range of products, with India’s exports dominated by raw materials and minerals — mineral fuels, mineral oils, marine products, iron and steel, chemicals. Japan’s export to India is dominated by capital and knowledge-intensive manufactured goods — electronic goods, non-electrical machinery and transport equipment, among others.