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Taiwan, Japan, focus on stronger collaborations with Indian companies

India has advantages such as market scale, growth, potential, low labor cost, etc. Risks include time-consuming tax procedures, time-consuming administrative procedures, increasing labor costs, high employee turnover rate.

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Pradeep Chakraborty
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Taiwan Expo 2024 is running successfully in Pragati Maidan, New Delhi, India, and will continue till July 10. There is presence of several leading companies from Taiwan, Japan, and India at the event.

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Opening the conference jointly with Taiwan, Japan, and India, Sandeep Kumar Singh, Assistant Director, JETRO, said that we have strong presence in Japan with 45 offices. We have offices across India, in Delhi, Bangalore, Ahmedabad, etc. We are also working with business associates like CII, Assocham, etc. 

There are over 1,400 companies from Japan in India. Lot of them are based in Delhi, Haryana, Karnataka, TN, Maharashtra, etc. Japanese companies are exploiting opportunities in India. 70% of the Japanese companies are currently making profit from India. 75% of the Japanese companies have expansion plans in the next 1-2 years. India has advantages such as market scale, growth, potential, low labor cost, etc. Risks include time-consuming tax procedures, time-consuming administrative procedures, increasing labor costs, high employee turnover rate.

There is currently a shortage of professionals across the globe. India has shortage of about 15.7% IT professionals. Automation has seen 37.5% adoption. Taiwanese and Japanese firms can come together, and help India automate further. There have already been seven possible collaborations between Japan and Taiwan, and India. We recently had the Taiwan and Japan EV and electronics industry cooperation seminar. 

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Toyodo Takafumi, Marubeni Corp. shared views on India's market potential. It was founded, in 1858, from humble beginnings. Company founder, Chubei Itoh, began the company by peddling Ohmi linen on a market circuit. Marubeni has made progress as a Sogo Sosha, expanding its business. Sogo shosha are Japanese wholesale companies that trade in a range of products and materials. 

Marubeni was incorporated in 1949, and, today, has 480+ consolidated companies. We have good presence in several areas, including LNG, food, chemicals, power generation. metal businesses, cereal and paper pulp trading, electrical and industrial plant business, etc.

We can capture new business areas that can grow significantly by 2030. We can also implement successful strategies. We are paying attention to FMCG, industry, and startups. We see potential in high value-add products in FMCG. We are also investing in other B2C businesses. We are also looking at startups. We are investing in startups from Indian companies. For industry, India has made significant growth in the past decade. 

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Encouragement from the Indian Central government has enabled opportunities in manufacturing, components, etc. These are still imported from China, Taiwan, Thailand, etc. India will see high-value manufacturing grow in the future. We develop and operate industrial parks across Asia, and also in Bangalore. We are also looking at semiconductor and electronics supply chain. Power, water, waste management, sustainability, and digital are key areas.

There are issues are in industrial area for India. We need utility connection and stability, lack of maintenance work in industrial areas, etc. We need to develop sustainable projects. We are developing projects in South India. We are also working in Haryana.

GCCs coming up

Manish Sharma, MD, Panasonic Life Solutions India and South Asia, said that when FDI norms were getting relaxed in the 1990s, Panasonic had moved faster. Real growth happened around 2008. We have existed in India since 1972, and already have nine factories. We are now building the global capability centres (GCCs) in India to serve other markets. We are also investing in developing products and solutions from India.

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We are working on building IoT and AI-enabled solutions, robotics R&D, hardware and software solutions for wiring devices and related products. We also have avionics GCC, and Hussmann R&D. Besides all the rest in Bangalore, the last one on avionics is located in Pune. We are setting up a new GCC in Pune this month. Panasonic focuses  on consumer appliances, electric works, supply chain solutions, industrial solutions, automotive systems, energy solutions, etc. 

We are now looking at future opportunities. Geopolitical events have disrupted global supply chains. About $4.6 trillion will be spent. India has an opportunity to grab 20% of the market. ESDM value add was $23 billion n FY23. Mobile phones are expected to account for ~40% of the total market. 

Taiwan and Japan have a three-step approach: assembly, backward integration, and exports. We proposed subsectors for partnership, such as PCBA, CCTV, motors, and electronic components. Electronics has also been cutting across all applications. To enable backward integration, we are now working with Taiwan. 

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Rachna Kango,  Head of Marketing & Strategy Planning, Delta Electronics, said it was founded in 1971. It is a leader in switching power supplies, etc. We have 166 global sales offices, and 73 R&D centers. In India, we are spread across the country. We have leadership in telecom power solutions, EV charging solutions, display solutions, etc. We are leading players in industrial automation, smart city solutions, data center solutions, etc. We have two R&D centers in India -- Gurugram and Bangalore.

We are opening a new corporate office and R&D center in Hosur, Bangalore, with lot of R&D engineers. Ping Cheng, CEO, had earlier shared the dias with PM Modi during Digital India launch. Tamil Nadu government has allotted land to Delta at attractive rates in Krishnagiri. We had electricity duty exemption, stamp duty exemption, single-window clearance, and capital subsidy. Krishnagiri plant is now growing at 30% YoY. There will be four mini factories. 

As a Taiwanese company, we are working with Japanese companies. We are working with Mushashi for motor assembly factory and a drive unit assembly factory. With Honda Japan, we are working on battery exchange station project. Delta India will focus on the installation. With NTT, we have also supported 12 data centers, with 150MW capacity. 

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Growth opportunities

Cho. Tc Kung, CEO, Ahamani EV Technology, Taiwan, presented at the event. Ahamani is based in Kaohsiung, Taiwan. We have developed 2W and 3W EV technology and been in production since 1998. We have been developing drone technology and components since 2020,

Ahamani has set up a manufacturing unit in Delhi in 2023 to produce drones, motors, and batteries. In 2023, Ahamani obtained orders for 500 transport drones yearly from India.

She said that we are offering UrDA AIoT, UAV, and EV businesses. We have over two decades experience in EV powertrains. We have the UrDA app and cloud software, platform operation, Black Box, operation knowhow, and smart charging station. We are looking forward to work with Japanese and Indian companies. 

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Ahamani developed the first lithium model SWAP e-scooter in 2007. In drones, we have developed flight controller, and also do auto visual search, dynamic PID, etc., with AI. Drone industry will grow very fast in the next decade. One Japanese company is already working on developing air taxis. We are working on motor, battery, flight control systems, etc. We can also do manufacturing in India. There is lot of growth possibility in India. 

In future, we can propose more drones. Ukraine has shot down drones by themselves. Drones will have some regulations coming in the future. We have also exported e-scooter to over 30 countries. Ahamani Group is now proposing to enter the Indian EV market. We came to India in 2018. Last year, we had joined TAITRA in Thailand and Mumbai. 

India is a huge market and has potential to become production base for global. We have innovated cooperation with Indian companies. We are understanding the different culture and business mindset. Delhi has extremely cold winter, dry high heat, etc. We set up Ahamani India in Gurugram in 2023. We set up Ahamani Drone and EV supply chain to meet the Make in India policy. Ahamani 2W electric motorcycle will be produced in India from 2025.

We are working with a Japanese drone company to develop transportation drone. We are also working with USA, Poland and Lithuania, Japan, Philippines, etc. We are looking for lot of partners in all these countries and product areas.

Prateek Lohiya, GM, New Business Development Strategic Alliance and Business Development, Sumitomo Corp. India, stated it has presence in 129 locations, and 66 countries and regions. We have been Fortune 500 company since the last 28 years. We have business partnerships with Mahindra, Bajaj, Hero, Krishna Group, Mukand Sumi Steel, etc. We have new initiatives in corporate PPA renewable energy portfolio. We are looking to expand EV business. We are looking at city gas distribution and real estate. 

ORIGINS Chennai industrial park has been developed by Sumitomo. We are present in six countries with nine projects. ORIGINS is led by Mahindra, Chennai. There are 15 companies, with four Taiwan companies. Mahindra owns the land, and the tenants have 99-year lease. The location is about 40km from Chennai. 

Collaboration between Japan and Taiwan firms is nothing new. Some Taiwan companies are now producing cables and machinery. A Mitsubishi AC factory will open by end of the year.

We have invited 22 Taiwan companies, across India and the world, for our industrial parks. Sumitomo also has presence in Taipei and Kaohsiung. In India, we have strong industrial presence in Tamil Nadu. Tamil Nadu itself has strong presence from Taiwan companies, especially in electronics.

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