With Tamil Nadu emerging the largest investment hub for Japanese companies, the region is looking at creating the right environment with dedicated space for Japanese companies.

One move is to establish industrial parks to facilitate Japanese investments. These include the Omega township, a 1,500-acre industrial and residential zone about 50 km south of Chennai. This facility is a joint venture between the Singapore-based Ascendas, the developer, Mizuho Corporate Bank and JGC Corporation, with the Tamil Nadu industry promotion agency, Guidance Bureau, facilitating the project. It will provide 600 acres for industrial units and the rest is for an integrated township with social infrastructure.

The agreement was signed in 2011, the environment impact assessment report has been cleared by the Centre while the State Government has issued approvals from the Directorate of Town and Country Planning, according to officials concerned. Ascendas has begun marketing the project, according to sources in the know. Sojitz Corporation in partnership with Motherson Group, a domestic auto components manufacturer, is setting up a 200-acre industrial park in Kanchipuram District, about 50 km west of Chennai on the Bangalore highway. Sojitz has industrial parks in Indonesia and Vietnam and sees India as a major opportunity.

Ravindra Sannareddy, founder and Managing Director of Sri City, about 75 km north of Chennai in Andhra Pradesh, says the facility has over 500 acres in the domestic tariff area for Japanese companies and work is also on to create the required social infrastructure.

With Japan evincing keen interest in creating a Chennai-Bangalore industrial corridor which is likely to include the stretch up to Krishnapatnam Port in Andhra Pradesh, the region is set to see significant development.

Sri City’s ready factories

The most recent investment by a Japanese company was that of Isuzu Motors which is planning to set up shop in Sri City. Over 15 Japanese companies are present including engineering and auto components companies such as NHK Springs, Kusakabe, PIolax, Imop, Aisan, Unicharm (manufacturer of hygiene products). The investments, including that of Isuzu Motors, will be close to Rs 2,500 crore.

Sri City is also keen on attracting small and medium enterprises and has launched ready-built factories in sizes of 5,000, to 20,000 sq feet. Over 20 acres of such factory buildings will be ready for lease in the next two years. The Japanese are known for their penchant for golf and Sri City plans to establish an 18-hole golf course and build golf villas. Soon to follow are Japanese restaurants. It will also have a Japanese language institute. The idea is to make the Japanese working in Sri City as comfortable as possible.

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