A Japanese delegation of Small and Medium Enterprises from the auto component sector is in Chennai looking for potential buyers for their products, and partners for technological collaboration, including licensing of their technology.

The Japanese SMEs showcased their products and technology at a seminar on, ‘Auto Component Industry in South India- Exploring Sourcing Opportunities from Japan’ organized jointly by the Confederation of Indian Industry, Japan External Trade Organization and the Auto Component Manufacturers’ Association of India here in Chennai.

Mr Shinya Fujii director general of JETRO Chennai said that JETRO which had opened its office in Chennai in May 2010, has been receiving several hundreds of enquiries and over 200 Japanese business visitors from diverse sectors including automobile, engineering and machinery, electronics, logistics, infrastructure, trading, IT and IT enabled services.

He said Tamil Nadu was known as the Detroit of India and there were 131 Japanese auto component companies operating in and around Chennai.

Mr Fujii suggested the creation of `factories on rent’ in India as in China and Taiwan, to facilitate easy investment and production by the SMEs.

Mr Kensuke Ichihara head of the delegation and director general manufacturing and environment industry department of JETRO, Tokyo said that more and more Japanese companies, in addition to over 280, already in Tamil Nadu, were keen on investing in the State and India in general for manufacturing for local sales and exports, though they were concerned about the infrastructural constraints like roads and power supply.

Mr Ichihara said that Japanese auto industry was facing saturation in the domestic market and in China, which was a focus country for long. They have to diversify and they have identified India as the best bet. He said that these companies have to find new markets as the automobile and auto component sectors have been the major contributors to Japanese GDP and employment.

The Japanese interest in India was owing to its strong economic fundamentals, a large and expanding market, skilled human resources, and the facilities for exports to Asian, African and European countries.

(Sourced from Orissadiary.com)