Google’s day-one keynote from the 2012 I/O developer conference has officially wrapped up. We’ll have plenty of analysis directly from the show, but here’s a quick look at what’s been announced so far.
Nexus 7 Tablet
Google officially unveiled the $199 Nexus 7 tablet, built by Asus. Its feature list is as follows:
Android 4.1 (Jelly Bean) operating system
7-inch, 1280×800-resolution touchscreen
Quad-core Tegra 3 chipset with a 12-core graphics processor
8GB of storage (16GB version available for $249)
Front-facing camera
Wi-Fi, Bluetooth and NFC
Nine hours of HD video playback
Weighs 0.75 pounds
Google says the Nexus 7 tablet is “optimized for Google Play” – meaning it’s geared toward consuming music, movies, games, books, magazines and more. The feature-set and price tag will certainly put a whole lot of pressure on similarly-priced (but less powerful) 7-inch tablets like Amazon’s Kindle Fire and Barnes & Noble’s Nook Tablet. It’ll be interesting to see if it’s able to lure away would-be iPad owners as well.
The Nexus 7 tablet can be pre-ordered now and will ship in mid-July. More info here.
Android 4.1 (Jelly Bean)
Google previewed some features of its next-generation Android operating system, such as:
Intelligently-resizing home screen widgets that play nicely with home screen icons
Offline voice typing – no need to have a data connection anymore
Actionable notifications that expand and collapse with two-finger gestures
Siri-like natural voice search with spoken answers
Google Now, which uses your search history, calendar and location to figure out what you might need. It’ll show you nearby public transit, stores and how long it’ll take you to get to the location of the next appointment in your calendar, for example.
Android 4.1 (Jelly Bean) will be rolling out to Galaxy Nexus devices and Motorola’s Xoom tablet in mid-July. You can read more about the new platform here.
Nexus Q
And finally, Google also rolled out the Nexus Q, a $300 orb-shaped “social streaming media player” measuring 4.6 inches in diameter. It can be hooked up to your TV to stream YouTube videos as well as music, movies and TV shows from the Google Play store – all of which is controlled from your phone or tablet and your friends’ phones and tablets (hence the “social” part). It also features a built-in 25-watt amp for directly powering a pair of speakers, should you want to use it solely for music.
Success in my Habit
Tuesday, July 3, 2012
Satyamev Jayate yielded donations of Rs 30 lakh through text messages
Nearly seven weeks after the show went on air, Aamir Khan Productions’ TV reality show Satyamev Jayate has revealed that it has received donations around Rs 25 to Rs 30 lakh through text messages. According to a MoneyLife report, the show has received Rs 1.9 crore through Axis Bank which means “Rs 3 crore plus” of donations after adding “Rs 85 lakh donated by Reliance”.
The report further suggests that advertisers have been paying Rs 8 to Rs 10 lakh for a 10 second spot on the show and Bharti Airtel, the presenting sponsor, is understood to have paid Rs 17 to Rs 20 crore while associate sponsors (Skoda, Coca Cola, Axis Bank, etc.) have paid around Rs 7 crore each.
Star India officials have updated the website to say that the show had yielded—630,298,439 connections, 8,839,494 responses, 2,778,984 community members and Rs 30,160,678 in donations. However, there was still no clarity about how much came through online transactions.
The report further suggests that advertisers have been paying Rs 8 to Rs 10 lakh for a 10 second spot on the show and Bharti Airtel, the presenting sponsor, is understood to have paid Rs 17 to Rs 20 crore while associate sponsors (Skoda, Coca Cola, Axis Bank, etc.) have paid around Rs 7 crore each.
Star India officials have updated the website to say that the show had yielded—630,298,439 connections, 8,839,494 responses, 2,778,984 community members and Rs 30,160,678 in donations. However, there was still no clarity about how much came through online transactions.
Meet on UK-India teaching partnership
Mangalore: Manipal University and the University of Nottingham began a two-day workshop on teaching partnership in Delhi on Tuesday.
A press release from Manipal University said here that the objectives of the two-day workshop on ‘UK-India Teaching Partnership Development Forum’ are to foster relationships between universities of India and the UK, and to promote joint and dual degree programmes. Another objective is to facilitate collaborative research.
Over 150 delegates consisting of vice-chancellors, heads of institutions and researchers from India and the UK are attending the workshop, it said.
Welcoming the gathering, Prof Christine Ennew, Pro Vice-Chancellor of the University of Nottingham, stressed the need for fostering partnerships by bringing together universities from both the countries.
Speaking on the occasion, Dr Vinod Bhat, Pro Vice-Chancellor of Manipal University, said that India is witnessing a sea change in higher education.
“While some reforms have already been ushered in, we are awaiting the enactment of a few more bills, especially those related to National Council on Higher Education and Research, entry of Foreign Universities and amendments to UGC Act for deemed universities,” he said.
Dr Samir Brahmachari, Director General of Council for Scientific and Industrial Research, and Dr Rob Lynes, Director of British Council in India, spoke on the occasion, the release added.
A press release from Manipal University said here that the objectives of the two-day workshop on ‘UK-India Teaching Partnership Development Forum’ are to foster relationships between universities of India and the UK, and to promote joint and dual degree programmes. Another objective is to facilitate collaborative research.
Over 150 delegates consisting of vice-chancellors, heads of institutions and researchers from India and the UK are attending the workshop, it said.
Welcoming the gathering, Prof Christine Ennew, Pro Vice-Chancellor of the University of Nottingham, stressed the need for fostering partnerships by bringing together universities from both the countries.
Speaking on the occasion, Dr Vinod Bhat, Pro Vice-Chancellor of Manipal University, said that India is witnessing a sea change in higher education.
“While some reforms have already been ushered in, we are awaiting the enactment of a few more bills, especially those related to National Council on Higher Education and Research, entry of Foreign Universities and amendments to UGC Act for deemed universities,” he said.
Dr Samir Brahmachari, Director General of Council for Scientific and Industrial Research, and Dr Rob Lynes, Director of British Council in India, spoke on the occasion, the release added.
Coke sees big India fizz; to pump in $5 b over 10 years
New Delhi: Beverages giant Coca-Cola plans to more than double its investments in India over the next decade.
The beverages major will pump in $5 billion (around Rs 28,500 crore) over the next ten years as it ramps up capacities in India, which is likely to be the world’s largest youth market by 2020.
Since its entry into India in 1993, when it acquired Parle’s soft drinks brands Thums Up and Limca, Coca-Cola has invested close to $2 billion.
The company operates on a “hybrid model” in India, running a mix of owned and franchisee-operated bottling plants.
Announcing the investment scale-up in New Delhi on Tuesday, Coca-Cola’s global Chairman and Chief Executive Officer, Mr Muhtar Kent, said India had “near limitless growth potential.”
The revised investment is “more than twice” the previously announced $2 billion for India, Mr Kent said.
Coca-Cola expects India to be among its top five markets worldwide by 2020, Mr Kent said, adding that the India story was one of “remarkable turnaround.”
Six years back, Coca-Cola had hit the nadir in India, with growth plunging and the company’s flagship brand buffeted by the pesticide controversy.
Mr Kent declined to reveal whether the new investments will result in a change in its product mix, away from flavoured, carbonated water to more of juices and other ‘healthier’ beverages.
But that shifts appears unlikely.
Mr Kent underscored the low per-capita consumption in India — an average of 12 units a year, or a bottle a month — in contrast to China’s per-capita average of 38 and Coke’s global average of 92 units.
Observers who track the sector closely said the company, unless compelled by legislation, is unlikely to look at diversifying the mix until consumption reaches close to the global per-capita average .
Coca-Cola India President Mr Atul Singh said sales in India grew at over 20 per cent last year.
India, Australia team up for 13 research projects
Hyderabad: Indian and Australian scientists will jointly undertake 13 new research projects.
Developing new batteries for electric vehicles, recycling of hazardous e-waste, method to manage wastewater discharged from ethanol distilleries, new vaccines against tuberculosis, etc will be the focus of some of the collaborative work.
The broad areas of research identified are environment science, materials science, stem cells and vaccines. The Australian and Indian Governments will support these projects as part of a joint multi-crore rupee program. A few workshops also will be organised.
An Australia-India Strategic Research Fund has been created for which the Australian Government has committed a total Fund of Australian $64 million.
For the current joint projects, Australia has committed Rs 23 crore . The Indian Government will fund the Indian teams’ participation.
In a press release, the Australian High Commissioner to India, Mr Peter Varghese said: “This program brings together leading scientists in both countries for truly world-class research. This is Australia’s largest science fund with any country and one of India’s largest sources of support for international science”.
Developing new batteries for electric vehicles, recycling of hazardous e-waste, method to manage wastewater discharged from ethanol distilleries, new vaccines against tuberculosis, etc will be the focus of some of the collaborative work.
The broad areas of research identified are environment science, materials science, stem cells and vaccines. The Australian and Indian Governments will support these projects as part of a joint multi-crore rupee program. A few workshops also will be organised.
An Australia-India Strategic Research Fund has been created for which the Australian Government has committed a total Fund of Australian $64 million.
For the current joint projects, Australia has committed Rs 23 crore . The Indian Government will fund the Indian teams’ participation.
In a press release, the Australian High Commissioner to India, Mr Peter Varghese said: “This program brings together leading scientists in both countries for truly world-class research. This is Australia’s largest science fund with any country and one of India’s largest sources of support for international science”.
Government sets up cell to track big projects
New Delhi: The finance ministry on Tuesday announced setting up of an Investment Tracking System for all major projects in the private sector and those under the public private partnership (PPP) worth Rs 1,000 crore and above.
The promoters of these projects have been directed to feed regular updates to the ministry's monitoring cell on the status of their projects and provide reasons if there was any delay in their implementation.
The monitoring cell has been set up in the department of financial services in the ministry which will coordinate with the promoters on all implementation issues.
The ministry on Tuesday released a format for monitoring such projects and promoters have been asked to update the information online. The government has now made it mandatory for promoters to provide details of their projects along with reasons behind delay to the monitoring cell on a monthly basis.
The initiative has been taken in view of tardy progress of major infrastructure projects. The government has set up a proposed target of $1 trillion worth of investment in the infrastructure sector during the 12th Plan period between 2012-17, a majority of them in the private sector and under the PPP mode.
For the current fiscal, the prime minister had said the government targets at least Rs 2 lakh crore of investments in the core sector. Projects have been delayed for various reasons, including land acquisition problems faced by private sector companies and fuel supplies bottlenecks.
The promoters of these projects have been directed to feed regular updates to the ministry's monitoring cell on the status of their projects and provide reasons if there was any delay in their implementation.
The monitoring cell has been set up in the department of financial services in the ministry which will coordinate with the promoters on all implementation issues.
The ministry on Tuesday released a format for monitoring such projects and promoters have been asked to update the information online. The government has now made it mandatory for promoters to provide details of their projects along with reasons behind delay to the monitoring cell on a monthly basis.
The initiative has been taken in view of tardy progress of major infrastructure projects. The government has set up a proposed target of $1 trillion worth of investment in the infrastructure sector during the 12th Plan period between 2012-17, a majority of them in the private sector and under the PPP mode.
For the current fiscal, the prime minister had said the government targets at least Rs 2 lakh crore of investments in the core sector. Projects have been delayed for various reasons, including land acquisition problems faced by private sector companies and fuel supplies bottlenecks.
India fifth most attractive retail market
New Delhi: Despite the recent flip-flops over enhancement of FDI cap in the retail sector, India has emerged as the fifth most favorable destination for international retailers, outpacing UAE, Russia, Indonesia and Saudi Arabia.
"India remains a high potential market with accelerated retail growth of 15-20% expected over the next five years. Growth is supported by strong macro economic conditions, including a 6-7% rise in GDP, higher disposable incomes, and rapid urbanization," said a recent report by global management consultancy firm A T Kearney.
The approval of 100% FDI in single brand retail, especially, will give a fillip to the sector in the country prompting several international retail chains to explore the market either on their own or through local partners, the report said.
Companies such as GAP, IKEA, Abercrombie & Fitch have already stepped up inquiries for an entry into the market, despite the rider of 30% local sourcing for single brand foreign retail chains.
According to the entity's Global Retail Development Index (GRDI) 2012, India ranks fifth after Brazil, Chile, China and Uruguay.
With the developed markets witnessing an economic turmoil, emerging countries are fast becoming the retail hotspot for foreign brands, with most of them seeing faster growth here compared to their home markets.
In the past five years, retail chain giants like Walmart, Tesco, Metro Group, saw revenues in developing countries grow 2.5 times faster than their home markets, the report said.
Even in the food and beverage industry, India is fast becoming an important investment destination for foreign players with companies like Starbucks which is planning to enter India this year and American brand Dunkin' Donuts which recently entered the country in partnership with local franchisee Jubilant FoodWorks.
"India remains a high potential market with accelerated retail growth of 15-20% expected over the next five years. Growth is supported by strong macro economic conditions, including a 6-7% rise in GDP, higher disposable incomes, and rapid urbanization," said a recent report by global management consultancy firm A T Kearney.
The approval of 100% FDI in single brand retail, especially, will give a fillip to the sector in the country prompting several international retail chains to explore the market either on their own or through local partners, the report said.
Companies such as GAP, IKEA, Abercrombie & Fitch have already stepped up inquiries for an entry into the market, despite the rider of 30% local sourcing for single brand foreign retail chains.
According to the entity's Global Retail Development Index (GRDI) 2012, India ranks fifth after Brazil, Chile, China and Uruguay.
With the developed markets witnessing an economic turmoil, emerging countries are fast becoming the retail hotspot for foreign brands, with most of them seeing faster growth here compared to their home markets.
In the past five years, retail chain giants like Walmart, Tesco, Metro Group, saw revenues in developing countries grow 2.5 times faster than their home markets, the report said.
Even in the food and beverage industry, India is fast becoming an important investment destination for foreign players with companies like Starbucks which is planning to enter India this year and American brand Dunkin' Donuts which recently entered the country in partnership with local franchisee Jubilant FoodWorks.
Tuesday, June 26, 2012
Toyota Kirloskar Auto Parts to set up third plant in Bangalore
Bangalore: Toyota Kirloskar Auto Parts is setting up its third manufacturing plant for automotive components at Bidadi, about 32 km from Bangalore. The company is investing Rs 500 crore to set up the plant.
Toyota Kirloskar Auto Parts is a joint venture between Toyota Motor Corporation, Japan, Toyota Industries Corporation, Japan, and Kirloskar Systems, Bangalore. The Toyota group holds 90 per cent stake in the company, which already operates two manufacturing plants at Bidadi — for exports, as well as the domestic market. At these plants, the company manufactures manual transmissions for ‘Fortuner’ units manufactured in India, Thailand and Argentina. It also produces front and rear axles and propeller shafts for the ‘Innova’ units made in India.
According to an official notification issued by the Karnataka government, a high-level clearance committee, headed by Chief Minister D V Sadananda Gowda, had recently approved the company’s proposal to set up a third plant to manufacture castings and machine parts, the memorandum of understanding (MoU) for which was signed at the Global Investors’ Meet in Bangalore on June 7 and 8.
With the fresh investment, which would create 150 jobs in Bangalore, total investment in the company would rise to Rs 1,000 crore.
At the proposed plant, Toyota Kirloskar Auto Parts plans to manufacture 240,000 castings of engine parts and 120,000 units of machine parts. The company has sought an additional 17 acres from the government. The Karnataka Industrial Areas Development Board would acquire the land for the company, provided the company secures consent for this from 80 per cent of farmers who own the land. The board has also sanctioned 6,00,000 litres of water a day for the new plant.
“We have signed an MoU with the state government for an investment of Rs 500 crore for the new capacity. As part of the new investment, we would manufacture petrol engine parts and transmission units for Toyota’s small car, the Etios Liva, and the Etios sedan. We will export 55 per cent of the 2,40,000 transmission units to Toyota’s Brazil facility, while the remaining 45 per cent would be used for domestic consumption,” T R Parasuraman, senior vice-president (administration, finance and human resources) told Business Standard.
Toyota Kirloskar Auto Parts has about 50 acres adjacent to the Toyota car plant at Bidadi. In the export-oriented first unit here, the company manufactures 1,80,000 units of R-Type transmissions a year. The company’s axle plant, where it manufactures front and rear axles and propeller shafts for the Innova, has a capacity of 75,000 units a year. As a part of the company’s localisation project, the new plant would manufacture engines and expand its export-oriented unit to supply transmissions for the Etios. Production of transmissions for the Etios and Etios Liva models is scheduled to start by early 2013.
A senior company official said the new plant would start producing engines for the Etios and the Etios Liva by end of July or early August.
Two years ago, Toyota Kirloskar Auto Parts had announced the setting up of an engine plant, as well as the expansion of its export-oriented unit for transmissions.
The company serves as a production and supply base for manual transmissions for Toyota’s international multi-purpose vehicle series vehicles to India, Thailand and Argentina.
Toyota Kirloskar Auto Parts is a joint venture between Toyota Motor Corporation, Japan, Toyota Industries Corporation, Japan, and Kirloskar Systems, Bangalore. The Toyota group holds 90 per cent stake in the company, which already operates two manufacturing plants at Bidadi — for exports, as well as the domestic market. At these plants, the company manufactures manual transmissions for ‘Fortuner’ units manufactured in India, Thailand and Argentina. It also produces front and rear axles and propeller shafts for the ‘Innova’ units made in India.
According to an official notification issued by the Karnataka government, a high-level clearance committee, headed by Chief Minister D V Sadananda Gowda, had recently approved the company’s proposal to set up a third plant to manufacture castings and machine parts, the memorandum of understanding (MoU) for which was signed at the Global Investors’ Meet in Bangalore on June 7 and 8.
With the fresh investment, which would create 150 jobs in Bangalore, total investment in the company would rise to Rs 1,000 crore.
At the proposed plant, Toyota Kirloskar Auto Parts plans to manufacture 240,000 castings of engine parts and 120,000 units of machine parts. The company has sought an additional 17 acres from the government. The Karnataka Industrial Areas Development Board would acquire the land for the company, provided the company secures consent for this from 80 per cent of farmers who own the land. The board has also sanctioned 6,00,000 litres of water a day for the new plant.
“We have signed an MoU with the state government for an investment of Rs 500 crore for the new capacity. As part of the new investment, we would manufacture petrol engine parts and transmission units for Toyota’s small car, the Etios Liva, and the Etios sedan. We will export 55 per cent of the 2,40,000 transmission units to Toyota’s Brazil facility, while the remaining 45 per cent would be used for domestic consumption,” T R Parasuraman, senior vice-president (administration, finance and human resources) told Business Standard.
Toyota Kirloskar Auto Parts has about 50 acres adjacent to the Toyota car plant at Bidadi. In the export-oriented first unit here, the company manufactures 1,80,000 units of R-Type transmissions a year. The company’s axle plant, where it manufactures front and rear axles and propeller shafts for the Innova, has a capacity of 75,000 units a year. As a part of the company’s localisation project, the new plant would manufacture engines and expand its export-oriented unit to supply transmissions for the Etios. Production of transmissions for the Etios and Etios Liva models is scheduled to start by early 2013.
A senior company official said the new plant would start producing engines for the Etios and the Etios Liva by end of July or early August.
Two years ago, Toyota Kirloskar Auto Parts had announced the setting up of an engine plant, as well as the expansion of its export-oriented unit for transmissions.
The company serves as a production and supply base for manual transmissions for Toyota’s international multi-purpose vehicle series vehicles to India, Thailand and Argentina.
Sidbi to invest Rs 5,000 cr in MSME sector
New Delhi: The Small Industries Development Bank of India (Sidbi) on Monday said it would utilise the Rs 5,000 cr venture fund allocated to it for investments in micro, small and medium enterprises (MSME) in the next four years.
The Lucknow-based development bank said small and medium enterprises (SME) sector, which contributes around 17 per cent to India's GDP, was facing a slow down.
Sidbi chairman and managing director Sushil Muhnot told reporters that the utilisation of Rs 5,000 crore fund has started with a commitment of Rs 180 crores in the series one of the India Opportunities Fund. Sidbi Venture Capital Ltd, a subsidiary of SIDBI would float the fund that will have a corpus of Rs 600 crore.
“Sidbi Venture Capital has got commitments from various investors including domestic banks and insurance companies. The Rs 600-crore India Opportunity Fund would be operational soon,” Muhnoot said.
The fund would focus on development of the MSME sector and Sidbi is expecting returns of around 15 per cent from the fund. The government had allocated Rs 5,000 crore to the development bank for venture funding in MSME Sector in the budget for 2012-13.
Sidbi Venture Capital has two funds since its inception. The first one, the National Venture Fund for Software and IT Industry, had a corpus of Rs 100 crore.
The development bank's second fund, SME Growth Fund, has a corpus of Rs 500 crore and is under divestment phase at present.
When asked if Sidbi’s interaction with the SME sector gives an impression of a slowdown, the Sidbi chief said there were low business sentiments in many small industries which were postponing their expansion plans.
Talking about Sidbi, Muhnot said, the financial institution was working on a new business model in consultation with the government.
The new business model envisages to fill not only financial gap but also non-financial gaps for the MSME sector, he said. The non-financial gaps include, consultation, advisory services, loan syndication, etc.
Moreover, Sidbi is also looking at a three-level development and support plan for entrepreneurs.
At the first level, a website would be launched to guide a layman on how to start an industry. At the second level, these aspiring entrepreneurs are expected to approach Sidbi which would guide them through its credit facilitation centres on various nuances of setting up an industry including financing. In the last stage, Sidbi would assist them in preparing project reports that can help in getting loans for the project.
100 MSME clusters have already been identified for the establishment of credit facilitation centres, Muhnoot added.
The Lucknow-based development bank said small and medium enterprises (SME) sector, which contributes around 17 per cent to India's GDP, was facing a slow down.
Sidbi chairman and managing director Sushil Muhnot told reporters that the utilisation of Rs 5,000 crore fund has started with a commitment of Rs 180 crores in the series one of the India Opportunities Fund. Sidbi Venture Capital Ltd, a subsidiary of SIDBI would float the fund that will have a corpus of Rs 600 crore.
“Sidbi Venture Capital has got commitments from various investors including domestic banks and insurance companies. The Rs 600-crore India Opportunity Fund would be operational soon,” Muhnoot said.
The fund would focus on development of the MSME sector and Sidbi is expecting returns of around 15 per cent from the fund. The government had allocated Rs 5,000 crore to the development bank for venture funding in MSME Sector in the budget for 2012-13.
Sidbi Venture Capital has two funds since its inception. The first one, the National Venture Fund for Software and IT Industry, had a corpus of Rs 100 crore.
The development bank's second fund, SME Growth Fund, has a corpus of Rs 500 crore and is under divestment phase at present.
When asked if Sidbi’s interaction with the SME sector gives an impression of a slowdown, the Sidbi chief said there were low business sentiments in many small industries which were postponing their expansion plans.
Talking about Sidbi, Muhnot said, the financial institution was working on a new business model in consultation with the government.
The new business model envisages to fill not only financial gap but also non-financial gaps for the MSME sector, he said. The non-financial gaps include, consultation, advisory services, loan syndication, etc.
Moreover, Sidbi is also looking at a three-level development and support plan for entrepreneurs.
At the first level, a website would be launched to guide a layman on how to start an industry. At the second level, these aspiring entrepreneurs are expected to approach Sidbi which would guide them through its credit facilitation centres on various nuances of setting up an industry including financing. In the last stage, Sidbi would assist them in preparing project reports that can help in getting loans for the project.
100 MSME clusters have already been identified for the establishment of credit facilitation centres, Muhnoot added.
Infosys opens second development centre in Japan
Bangalore: Infosys has opened a second development centre in Japan as it prepared to have a more evenly distributed geographic spread across the globe.
In a statement on Monday, the IT major said its Japanese subsidiary is targeting the local manufacturing clients and accordingly, it has set up an office in Chibu.
Manufacturing sector
“We are aggressively targeting the manufacturing sector in Japan where at present we have 40 clients,” said Mr S.D. Shibulal, CEO and Managing Director, Infosys.
According to Infosys officials, apart from manufacturing, there are clients in financial services and consumer packaged goods sectors. This second development centre in Nagoya (apart from the one in Tokyo) is due to increasing business coming from Infosys’ Japanese clients.
Rising clients' list
In the last two years, the number of clients in Nagoya and Tokyo has gradually increased and the office in Nagoya will focus on addressing these clients’ requirements, as well as pursuing new business opportunities, according to Mr V Sriram, Head - Japan Operations, Infosys.
According to Japan Electronics and Information Technology Industries Association, in April, the electronics industry was estimated to be ¥4,162,813 million.
Infosys does not give out revenues from Japan, but reports it as a part of rest of world. In FY12, rest of world posted revenues of Rs 3,554 crore, a 30.5 per cent growth over FY11, which was higher than revenue growth from the US.
Big opportunity
With increasing globalisation, Japanese companies like Sony and others have operations in places like China for manufacturing, which, in turn, throws up a huge opportunity to offer after sales and support services. Indian IT companies are waking up to this opportunity and trying to crack the Japanese code, according to analysts.
“Indian companies have to look at offering services to Japanese markets and establish a toe hold first,” said Mr Sanjoy Sen, senior director at Deloitte.
Last year, Infosys had said that it plans to reduce its exposure to the US market and was looking at a 40:40:20 ratio across the US, Europe and the rest of the world. Currently, it is about 60:30:10, according to company data.
In a statement on Monday, the IT major said its Japanese subsidiary is targeting the local manufacturing clients and accordingly, it has set up an office in Chibu.
Manufacturing sector
“We are aggressively targeting the manufacturing sector in Japan where at present we have 40 clients,” said Mr S.D. Shibulal, CEO and Managing Director, Infosys.
According to Infosys officials, apart from manufacturing, there are clients in financial services and consumer packaged goods sectors. This second development centre in Nagoya (apart from the one in Tokyo) is due to increasing business coming from Infosys’ Japanese clients.
Rising clients' list
In the last two years, the number of clients in Nagoya and Tokyo has gradually increased and the office in Nagoya will focus on addressing these clients’ requirements, as well as pursuing new business opportunities, according to Mr V Sriram, Head - Japan Operations, Infosys.
According to Japan Electronics and Information Technology Industries Association, in April, the electronics industry was estimated to be ¥4,162,813 million.
Infosys does not give out revenues from Japan, but reports it as a part of rest of world. In FY12, rest of world posted revenues of Rs 3,554 crore, a 30.5 per cent growth over FY11, which was higher than revenue growth from the US.
Big opportunity
With increasing globalisation, Japanese companies like Sony and others have operations in places like China for manufacturing, which, in turn, throws up a huge opportunity to offer after sales and support services. Indian IT companies are waking up to this opportunity and trying to crack the Japanese code, according to analysts.
“Indian companies have to look at offering services to Japanese markets and establish a toe hold first,” said Mr Sanjoy Sen, senior director at Deloitte.
Last year, Infosys had said that it plans to reduce its exposure to the US market and was looking at a 40:40:20 ratio across the US, Europe and the rest of the world. Currently, it is about 60:30:10, according to company data.
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