In a first, Japan Chamber of Commerce and Industry in India (JCCII) achieves record 500 plus membership mark  

Takuro HORIKOSHI, Chairman & Managing Director, Sumitomo Corp India Pvt. Ltd (SCIN) disclosed that more Japanese companies were looking forward to India in newer sectors such as hospitality, food and semiconductor. In a candid interview with Sanjeev K Ahuja of Asian Community News (ACN) Network, HORIKOSHI san who heads Japan Chamber of Commerce and Industry in India (JCCII) as President said that due to more G2G and business friendly bilateral interactions, and cross state visits by the Prime Ministers of both sides there has been an India-centric trend in Japanese media which is carrying more positive articles about Indian development and potential than ever before. It is improving the image of India in Japan. Working with Sumitomo Corp for 31 years, the JCCII chief is of the opinion that many improvements and policy-related initiatives taken by the Indian government succeeded in attracting more Japanese investor’s attention.  Also owning responsibility in Sumitomo Corporation Asia & Oceania Group, he spoke boldly about other matters including some challenges Japanese companies are facing in India but said that things were improving drastically in India especially in last 9-10 years. Following are the edited excerpts from his interview:

Q. It is for the first time that the Japan Chamber of Commerce and Industry in India (JCCII) has crossed the 500-membership mark. Please comment on this. Ans. We as Japan Chamber of Commerce and Industry in India (JCCII) always promote Indian business potential for Japanese companies. In India we have witnessed a business friendly approach by the government because of which the Japanese companies are more bullish about Indian market. The JCCII is the pivotal organization working for the welfare of Japanese companies in India. In India, JCCI started in 2006 with 147 Japanese companies as members and today we have grown to 513 (as on 1^st October 2023) , and we are hopefully targeting to bring the membership to 620 Japanese companies in the year 2025, at the growth rate of 10 percent.

The Japanese companies entered India long back but it was for the first time the number grew significantly between the year 2006 and 2014 when the JCCII membership witnessed a healthy growth of 10% from 147 companies in 2006 to 381 companies in 2014 because of certain factors such as formation of BRICS in the year 2009. But after 2014, there was kind of a slowdown because of reasons like COVID-19 pandemic, and global slump in the automotive market. But now again we are experiencing a third wave of expansion and foresee a 10 percent growth in the membership of JCCII between the period of 2022 and 2025, and expect to take the number to 620. There are around 1500 total Japanese companies in India and we expect similar growth trajectory on that front as well and expect more Japanese companies come to India, and JCCII will continue to play an important role in effecting the boom of Japanese companies in India.

JCCI represents most of Japanese companies situated in Delhi and surrounding NCR Towns. There are other similar organizations in other part of India as well as such as Chennai, Bengaluru, Mumbai, and Pune in different name such as Japanese Chamber of commerce in Chennai, etc. Some are known as trade committees etc. The JCCII is the biggest and leading organization of Japanese companies in India and is also in the heart of India in New Delhi and close to Japanese embassy.

The JCCII give suggestions to the Indian Government departments DPIIT but collect feedbacks and suggestions from other Japanese chamber of commerce of other parts of country. It is an annual activity. This year also the head of the Trade Division has submitted the suggestions to DPIIT in November also. During our meeting on this subject, we have all committees such as Trading Division, Finance Division, Logistics Division, Transport Machinery Division, Material, Chemical Industry Division, Electrics & Electronics Machinery Telecommunication and Software Division, Social Infrastructure, Plant Heavy Industries, Construction and Steel Division, and Japan Medical Device Association Division.

Q. In which industry/sectors (segments) the Japanese companies have increased their presence in Delhi and NCR towns recently?

Ans. Some of the consumer goods companies such as food and restaurants, as well as in real estate and allied sectors have come to in Delhi and NCR area, and elsewhere. Also some are coming in energy and semiconductors field from Japanese into India. Seeing this trend, we recently added Hospitality Service Division and Food Division as we have witnessed more Japanese companies coming to India in this sector as well. To name a few: Beam Global Spirits & Wine (India) Pvt. Ltd.  that owns Japanese No1. Whisky bland Suntory,  They brew Oaksmith in India exclusively for India. Another key member is Kirin Holdings Singapore Pte. Ltd. that owns Kirin, Japanese No.1 beer brand. They have a stake in Indian beer company BIRA.

ACN EXCLUSIVE INTERVIEW 

Takuro HORIKOSHI, Chairman & Managing Director, Sumitomo Corporation India Pvt. Ltd (SCIN) & President, Japan Chamber of Commerce and Industry in India (JCCII)

Education:

1992: Department of Economics at University of Tokyo Experience

Professional career:

1992: Steel Business Dept., Steel Management Division, Sumitomo Corporation (Tokyo)

2011: Director, Unit Head, Railroad, forging & casting Unit, Steel & Non-Ferrous Metal Group, Sumitomo Corporation of America (Chicago)

2016: Deputy General Manager, Plate & Construction Steel Products Business Dept., Steel Sheet & Construction Steel Products Division, Sumitomo Corporation (Tokyo)

2017: General Manager, Structural Steel & Line Pipe Business Dept., Tubular Products Division, Sumitomo Corporation (Tokyo)

2021: Chairman & Managing Director, Sumitomo Corporation India Pvt. Ltd. (New Delhi)

2022: Corporate Officer, Assistant General Manager for Asia & Oceania, Sumitomo Corporation Asia & Oceania Group, Chairman & Managing Director, Sumitomo Corporation India Private Limited

However, certain challenges remain on the policy front but even though India can look forward to large investment due to the immense potential of this country. We have seen Indian government trying to improve, such as ease of doing business ranking and it will attract more Japanese companies. Some companies are facing challenges in certain area such as taxation, land reforms, customs, and others. But there are areas where we see improvement such as simplified tax structure regime GST, and dividend tax matter also has improved. Many think India is still a tough country but we tell them that many changes have happened in the last 9-10 years. Still there are many SMEs for whom India is far away destination as they don’t have past experience. Many feel they are closer and similar and more experience with East Asian countries. But in recent years, the Japanese have started to feel more closer to Indian may be because of increased G2G relations.

Q. We have witnessed a positive India-centric trend in Japanese media which is carrying more articles about Indian development and potential. Why has this trend changed recently?

Ans. This year we have witnessed many articles about India in the Japanese media. It is totally different from the last two years back when I came to India. It is a positive development. Media is playing an important role in image building of India in Japan. Strong support of the Japanese and Indian governments and policy initiatives to promote business between the two countries. And these government-led activities are being highlighted in the media such as the visit of former PM Suga san, and that of Japan foreign minister leading the business delegations to India. Last year, Japan and India celebrated 70 years of establishment of diplomatic relations and a score of events were organized to commemorate that. PM Kishida san also visited India three times to assert Japan’s commitment to invest 5 trillion yen in India. Same way, PM Modi also went to Japan three times. This year marked many cross state -visits in the year 2022 and 2023. And all that was very well covered by media. Also the Ideathon event in which 20 students from Japan joined Indian students to travel by road from New Delhi to Varanasi attracted a huge amount of media coverage in Japan and India.

India’s global ranking on ease of doing business is increasing drastically but there is a room to improve as it is not the Japanese companies who are concerned but others from other countries as well. India carries all the good intentions on this front.

Q. What are your priorities as the President, JCCII for the term 2023-24? As regards the activities of JCCII for the FY 2023-24, can you please explain JCCII’s five-pillars activity plan?

Ans. One of the most important activities is submitting the suggestions to the Indian government. Other four pillars include enrichment of 3^rd Thursday monthly meetings in which the representatives of Japanese member companies participate and get benefitted. Also some seminars and experts’ sessions are arranged there to support the members.

Third pillar is flourishing the community and arrange cultural section meetings and these are regular activities amongst committees. We continue to keep asking for feedbacks from the member companies on regular basis as we want to keep the communication alive and active with the JCCIII members. It’s not only just a business organization and we are an active organization. JCCII’s Secretary General Kenji Sugino san is one of the key persons who tries hard to promote the exchange and improve the communication to ensure more satisfaction to the members. This also helps JCCI in getting more members.

The fourth pillar is the improvement of JCCII newsletters and webpages. It is also to make the member engagement stronger.

Fifth pillar is the expansion of the JCCII organization to get more members and expand in its base in Delhi and NCR region. Though we are biggest Japanese organization in India but comparatively to other countries Vietnam, Thailand, and China we need to do more as there we have bigger number of members. It is also because those countries have higher number of Japanese companies presence there.

Q. What can be done to attract more young Japanese entrepreneurs and startups to India, and in which sectors?

Ans. Some of the Japanese companies trying to connect with higher level institutions such as IIT and other schools for some young people. We see some activities individually by some companies. Organizing Ideathon was one such initiative during 70^th anniversary last year. We are attempting to repeat this year also and Indians students were supposed to go to Japan. Some events in Japan and India happening, though not fixed activities but we can think of something like this as well.

Looking at the new trend of business coming from Japan, that’s was the reason to introduce hospitality and food division is the JCCII. However, for such companies entering India, the JCCII would continue to play a supportive role.