AHMEDABAD: A flurry of investment announcements by Japanese corporates are set to be made during the visit of their Prime Minister Shinzo Abe here next week.
While 15 companies from ‘the Land of the Rising Sun’ have committed to invest in the second Japanese industrial park in Gujarat, 55 others are expected to visit the proposed exclusive cluster to explore investment opportunities, said top officials. Gujarat is hosting the Japanese premier for two days starting Wednesday. The state government is setting up another industrial park -spread across 1,555 hectares -dedicated for Japan-based companies at Khoraj near Sanand in Ahmedabad district. The first Japanese industrial park has been developed by Gujarat Industrial Development Corporation covering 120 hectares at Vithalapur, some 66 km from Sanand. The first cluster has already seen investments worth Rs 1,500 crore by Japan-based companies in joint venture with Indian firms. There has been increased number of enquiries from Japanese com panies for setting up units here. Hence, the state government has decided to establish the second such park near Sanand for companies from Japan. Several memoranda of understanding (MoUs) are scheduled to be signed during the visit in the presence of Prime Minister Narendra Modi and his Japanese counterpart,” a government official said.
These companies are mainly looking at sectors such as auto parts, defence, machinery, food and fabrica tion to name a few. However, the government officials remained tight lipped about the names of these companies and investment figures.Industry insiders say that even if an average Rs 100 crore is invested by each company, the investment could be to the tune of Rs 7,000 crore.
In addition to these 70 Japanese companies, some 46 Indian as well as Japanese companies have also shown interest for investments in Suzuki Motor Corporation’s (SMC) vendor park at Hansalpur, located 32 km from Vithalapur. Honda Motorcycle and Scooter India Pvt Ltd, the Indian subsidiary of Japan’s Honda Motor, also operates its scooter plant in Vithalapur.
Commenting on the investments in Vithalapur, vice-chairman and MD, GIDC, D Thara said, “The state government has already sanctioned land to some 10 companies, out of which four to five companies have started their operations here. Some 2,000 people are directly or indirectly employed with the park.” Mitsubishi Aluminium Company’s MA Extrusion, Roki Minda Co Pvt Ltd and Techno Trends Auto Parts Ltd and T S Tech Co Ltd at present operate their units at Japanese park in Vithalapur.