The appetite for Indian assets is growing among investors from the land of the samurai. An appreciating yen, combined with slow economic growth, has persuaded many Japanese investors to explore opportunities beyond their national boundary, and India appears to be one of their preferences.
In the past couple of years, Japanese investors have come here to form partnerships, acquire stakes and develop alliances with domestic companies to enter sectors like financial services, automobiles, information technology, metals and others.
The appreciation in the yen has made foreign assets very attractive for investors. Also, the growth in their economy is muted, compared to India and China. India has a demographic advantage over China. The growing trade between India and Japan is also driving some of these investments.
BELOW ARE FEW OF THE SAMURAI SWEEP IN INDIAN MARKET
In the past couple of years, Japanese investors have come here to form partnerships, acquire stakes and develop alliances with domestic companies to enter sectors like financial services, automobiles, information technology, metals and others.
The appreciation in the yen has made foreign assets very attractive for investors. Also, the growth in their economy is muted, compared to India and China. India has a demographic advantage over China. The growing trade between India and Japan is also driving some of these investments.
BELOW ARE FEW OF THE SAMURAI SWEEP IN INDIAN MARKET
FINANCIAL SERVICESRs 3,000 crore was paid by Nippon Life for a 26% stake in Reliance Life in May 2011
Rs 2,731 crore is what Mitsui Sumitomo paid for a 26% stake in Max New York Life in March 2012
Rs 1,450 crore was paid by Nippon Life for a 26% stake in Reliance Capital Asset Management in January 2012
INFORMATION TECHNOLOGY
Rs 900 crore was paid by NTT Communications for acquiring majority stake in Netmagic in January 2012
Rs 900 crore was paid by NTT Communications for acquiring majority stake in Netmagic in January 2012
AUTOMOBILES
Denso had set up a joint venture with Subros for designing air-conditioning for cars in June 2010
Denso had set up a joint venture with Subros for designing air-conditioning for cars in June 2010
SHIPBUILDING
Mitsubishi Heavy Industries announced technological and licencing agreement with Larsen & Toubro’s shipbuilding arm
Mitsubishi Heavy Industries announced technological and licencing agreement with Larsen & Toubro’s shipbuilding arm
STEELRs 4,800 crore was shelled out by JFE Steel for buying a 15% stake in JSW Steel in July 2010
Kobe Steel and Steel Authority of India Limited formed a strategic collaboration in November 2010
Rs 2,400 crore was what Nippon Steel agreed to invest in Tata Steel for producing steel for the auto industry in January 2011
INDUSTRIALS
Hitachi set up a joint venture with BGR Energy System in August 2010
$200 million is what Softbank invested in InMobi in September 2011
OTHERS
Kokuyo bought stake in Camlin in May 2011
Japan today is characterised by an ageing population, slow growth rates, and near-zero interest rates. In contrast, India’s demographics and long-term growth potential are a perfect hedge to its own macro situation. Initial successes in the auto industry have spurred subsequent interest in a range of sectors, including industrials, chemicals, telecom, financials, pharmaceuticals, logistics and metals. Japanese investors, with their long-term (and) non-intrusive approach make good partners for Indian business families.
I like how you presented it in this manner. Really interesting to read. The ideas being used were also new in some way. Really nice.
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