Japanese cos say 'Konichiwa' to Tamil Nadu

From automobile companies, to firms manufacturing elevators, Japanese corporates seem to have fallen in love with Tamil Nadu. This attraction goes beyond just the state government's incentives, reports Poornima Murali of CNBC-TV18.

Yamaha, Isuzu, Nippon, Asahi, Epson, Mitsubishi, Yamaha music, Iffco Tokyo; these are just a small sample of over 350 Japanese companies that call Tamil Nadu, a second home. Also read: Small is big for Japan automakers eyeing Indonesia, India The Japan Chamber of Commerce and Industry says that over 40 percent of the Rs 20,350 crore in Japanese investment that came into India went to Tamil Nadu. “In October 2008, there were 77 projects. In October 2012, there were 347 projects. Tamil Nadu is good connection between India and Asia. They are other important thing is human resources”, says Shinya Fujii, DG, Japan External Trade Organisation.  Why does Japan find TN attractive? The state's is an export hub to other countries in Asia. Also, there is another reason why Japanese companies, spanning over 50 sectors, have come calling. From automotive engineering to textiles, chemicals to metal works and finance, every Japanese player has found a local partner with cost effective manufacturing capabilities. This has led to a surge in investment in the form of joint ventures (JVs). The Murugappa group's JV with Japan's Tsubamex to manufacture dyes for the automotive industry is one such case. L Ramukumar, MD, TII said, "Expertise interms of software that converts consumer requirments into design they horned the skils over the last 30-40 years. Levels of technology is far superior. They wanted a local partner who has access to customer base. We got into a JV to design dies ." 350 Japanese companies in Tamil Nadu The next wave of Japanese investment into the state will come from small and medium enterprises. The Tamil Nadu government is keen to make the most of this too. It is moving to provide the infrastructure that these companies will want as an added attraction. It has also begun planning dedicated industrial parks and townships.