Japanese firms keen to widen India reach

Even as Prime Minister Manmohan Singh kicked off his four-day visit to Japan today, several top Japanese financial houses are keen to expand their operations in India, while others are looking to enter the country afresh, enthused by the fast growth of the country's economy.

Some of the biggest financial houses in Tokyo such as Sumitomo, Nikko, Mitsubishi USJ, Mizohu Financial group, Daiwa, Nippon Life and Sompo Japan Insurance are charting out their plans for India, sources said.

Sanjay Sachdev, Country Manager India & Regional Manager (Fund Management) of Shinsei Corporate Advisory Services Pvt.Ltd., which recently tied up with UTI Mutual Fund for raising $ 3 million, said, "Japan is already among the top three investors in India with an investment of $ 5.5 billion in the equity market. Japan is expected to double its investment in the next 12-18 months."

Nomura Holdings Inc, Japan's largest securities firm, will be either acquiring a company or forming a subsidiary to offer a full range of brokerage services in India. Nomura has invested over $1.5 billion in the Indian equity market through the AMC route.

Daiwa and Nikko have similar plans in the securities business in India. US fund house Fidelity already manages $ 1 billion for Nikko in the Indian stock markets.

Similarly, Nippon Life and Sompo are looking to be a part of the Indian insurance sector.

Analysts said the low interest rates in Japan, rapid economic expansion in India and the domestic stock markets, which have risen by about 50 per cent this calendar, make India an ideal investment destination.

Daiwa Securites SMBC's Executive VP-India Head, Investment Banking, Vaishali Sinha said,"We have sought Sebi nod for entering the Indian capital market through the FII route. We are looking at other revenues also. AMC is also on our agenda."