From Our Special Correspondent
Daijiworld Media Network -  Bangalore

Bangalore, Oct 31: Japanese leading auto component maker Aisin is planning to invest around Rs 500 crore while Toyota Group companies like Denso, Toyota Tsusho, Toyota Gosei, Toyota Boshoku, Toyota Tekkoo etc are planning to streamline and step up their activities in Karnataka.

This was revealed by Jiro Takahashi, Chairman of the Nagoya Chamber of Commerce and Industry (NCCI) and a team of 25 industrialists from Japan after their tour of the State during an interactive session with the senior officials of the State Government in Bangalore on Wednesday.

The delegation comprised of members from various sectors like Auto components, Machinery, Steel, Logistics etc.

In addition to the Toyota Group and Aisin Company, Japanese companies like Sony, Komatsu, Honda and Hitachi are also intensifying their activities in the State.

Honda is setting up its manufacturing base for motorcycles and scooter in Narsapur, which will be operational by mid-2013.

With the presence of Toyota and Honda, Bangalore has witnessed huge upsurge in Japanese investment in the state.

As per Jetro’s estimate, at present, Bangalore is housing around 230 Japanese companies and has added around 50 new companies in last one year. On an average, the number of Japanese companies is increasing at an rate above 20 % every year.

Bangalore has witnessed the FDI inflow of around US $ 9.3 Billion in last 10 years and investment from Japan comprises around 15 to 20 %.

The Japanese delegation also showed concern about the situation of public infrastructure in the state and requested the state government to take up adequate measures to attract more Japanese companies in the state.

Investments are not only happening from Auto or allied sectors only, it is happening in varied sectors like machine tools, Engineering goods, Construction equipment, IT and electronics, Infrastructure, Hospitality sectors etc.

Some significant upcoming investments are happing in social sectors. Secom is establishing a first Japanese Hospital in India by April next year forming a joint venture with Toyota Tsusho and Kirloskar Group with the investment of around Rs 154 crore.

Similarly, Toyota Enterprise, a subsidiary of Toyota Group involved in hospitality business has joined hands with Bangalore Hyagreeva group and is in the process of renovating, the star hotel, The Chancery Hotel as a Japanese business hotel, which will be operation by January next Year.

The Japanese Chamber of Commerce and Industry, Bangalore has also proposed a collaborative driving school in the state to provide the training on adequate driving manner.
The State government assured the full cooperation to Japanese companies to resolve their concerns.

Karnataka’s Commerce and Industries Department Principal Secretary M N Vidyanshankar, State Additional Chief Secretaries Subir Harisingh, Arvind Jadhav and Pricipal Secretary I S N Prasad as well as State Government’s Economic Advisor Dr K V Raju represented the State Government officials.