Several Japanese investors and leading companies have promised AP Chief Minister Chandrababu Naidu huge investments in the State.
Several Japanese investors and leading companies have promised Andhra Pradesh Chief Minister Chandrababu Naidu that they would make huge investments in the State.
The 4th day of the Chief Minister's Japan visit started off with a meeting at Isuzu Motors headquarters. During the meeting, executive vice-president and director of Isuzu Motors Masanori Katayama said that the company wanted to establish a manufacturing unit for pick-up trucks in India. He added that they were concerned about the human resource and technical capabilities.
Isuzu is at the number 1 or 2 spots in the pick-up trucks segment in the world. The company has 10 production sites globally.
Katayama said that the company's policy was in line with the Centre's Make In India initiative, and also with the Make In Andhra Pradesh initiative.
He added that their new facility would be much more modern than the other 44 units across the world.
"The new production site will attract other accessories related to the automobile industry. Many suppliers will come," he said.
Katayama said that Sri City could be a good destination for them.
"Since you have come here yourself, I think many more Japanese firms might want to invest in Andhra Pradesh," he added.
Stating that the market awareness of Isuzu in India was low, Katayama said that that was a reason that the company was considering Make In AP.
"We hope that by coming to AP, we will have a good access to the Indian market. In this, we hope to have your cooperation," he said.
"I expect you to bring some more Japanese companies to AP. Bring some small and medium component manufacturers to our State," Naidu said.
The Chief Minister said that Japanese firms can transform the business culture in AP, and added, "There's a red carpet waiting for you in India."
He said that he was glad that Isuzu chose Sri City as its destination for the facility.
"I can assure you that you will have better margins in India than in other countries. Our PM had visited Japan even before going to the US. This reaffirms the fact that India wants to do business with Japan," he said.
"During Cyclone Hudhud, your company had donated vehicles to us," he informed the Isuzu executives.
Explaining that India's demographic dividend was an advantage, he said that India was showing signs of growth.
"Andhra Pradesh is strategically located and is accessible to Kolkata, Delhi, Mumbai, Bangalore and Chennai," he mentioned.
While AP was strong on technical education and had plenty of human resources, it also had a cultural similarity to Japan, the CM added. "Japan and AP both have Buddhism. We are going to develop Buddhist tourism circuits in our State. This will give a fillip to tourism, too."
The Chief Minister added that he was planning to introduce the Japanese language in one of AP's universities. He expressed happiness over Isuzu evincing interest in the State's skill development mission.
In the second meeting, the Chief Minister and his team visited the Mayewaka manufacturing company which makes compressors.
Chairman of Mayewaka Manufacturing Yoshiro Tanaka said that they were keen on working with Andhra Pradesh for establishing cold chains in the State's mega food parks.
Tanaka said that they could provide refrigeration compressors used in cold chains and hospitals.
The Chief Minister said, "The cold chain link is crucial for us. We want to make agriculture profitable, and we want to create a farm-to-fork model. Together, we can prepare an action plan for this. Since Andhra Pradesh has a strong agriculture base, our collaboration in cold chains will prove fruitful."
Pointing to the CII delegates accompanying the AP delegation, the Chief Minister said, "There's a big business team with me. Please speak to them and partner with them."
"Given that Andhra Pradesh is a top market for marine exports and the mango pulp industry, your cold chain technology will benefit our mega food parks," he added.
At the Japanese International Cooperation Agency (JICA), Chief Minister was welcomed by senior vice-president, JICA, Hidaeki Domichi.
Domichi, during his address, said that Naidu was one of the most progressive leaders of India. He informed the Chief Minister that JICA was now focusing on the Bangalore-Chennai Industrial Corridor, and also concentrating on the Krishnapatnam Node.
"We have a strong interest in Andhra Pradesh," Domichi added. To this, the Chief Minister said that their earlier projects in India were different, and now, because India was more open and was on its way to simplifying processes, their experience of India will change and become positive.
The Chief Minister added that Andhra Pradesh had a good land bank and had no issues with water and power. "Clearances will be faster. We want to become the best investment destination in India," he added.
He sought JICA's cooperation in developing industrial nodes and a road network, connecting all the ports in the state. He also requested JICA to set up an office in Andhra Pradesh.
Responding positively, JICA's Domichi said, "I'm impressed by your vision and passion. It reminds me of my meeting with Modi in 2007 when he was the CM of Gujarat."
He added that since AP was developing ports, it would be an attractive investment destination for Japanese businesses.
Given that Japan had a lot of industrial parks in South East Asia, the Chief Minister invited JICA to AP, and offered to set up a special authority for a Japanese industrial park.
Hiroshi Watanabe, Governor and CEO of the Japan Bank of International Cooperation, appreciated Naidu's visit to Japan. "You are engaging with the Government as well as private sector," he said.
The Chief Minister said that he planned to make Andhra Pradesh a logistics hub. "According to your own study, India is the No 2 destination. We want to make it No 1," he added. "We will give single-desk clearances and an industrial township authority," he said, and asked JBIC for ideas to work with the Japan External Trade Organisation (JETRO) and other private corporations.
To this, Watanabe said if private investors came forward, the JBIC would finance them. The JBIC CEO added that it could help the State in inter-city connectivity and in water treatment in the urban areas, and could fund Japanese private companies that were interested to invest in those projects.
He added that earlier Japanese companies made in Japan and sold outside. Now, they were thinking of locating their manufacturing in India.
"We will surely help those companies to set up in India," JBIC said.
The JBIC added that they can work jointly with banks in India. "We are in talks with SBI and ICICI," Watanabe said.
The Chief Minister said that JBIC had a great opportunity in the infrastructure sector in financing airports, ports etc. He explained to JBIC that Singapore was working on a master plan for building the capital city.
"They're comfortable with Japan," the Chief Minister reassured JBIC. (INN)