World Biz+ India: Working with Local Businesses to Pave the Way for New Societal Development in India

In 2023, India overtook China to become the world's most populous nation. With the world's fifth largest GDP in 2023 and a year-on-year growth rate of 7.6% (forecast for FY23/24), the country is expected to overtake Japan and Germany to become the world’s third largest economy in the years ahead. Sumitomo Corporation established its first international outpost in Bombay (now Mumbai) in 1950. The Calcutta Office was established in 1954, the New Delhi Office in 1956, the Madras (now Chennai) Office in 1961, and the Bombay Office in 1964. In 1997, Sumitomo Corporation India Private Ltd. was established.

Currently, Sumitomo Corporation India has four offices, including branches. We are also working with eight Group companies in India to capture the steadily growing market. Our business in India is diverse, including trading activities regarding automobile manufacturing equipment and parts, chemicals and agricultural chemicals, steel products, carbon materials and coal. We are also investing in the manufacture and sale of automobile parts, automobile leasing, industrial park development and operation, and agricultural chemical businesses. For our business investments we have selected experienced partners for each of our strategic units, including joint ventures with major conglomerates, and are developing businesses that take advantage of our mutual strengths. Through these investments, we are also working to strengthen relationships and build a foundation for future business development, both in India and beyond.

In recent years, we have begun to engage in real estate development, city gas projects (natural gas and LNG) and the development of next-generation energy sources such as biomass and renewable energy.

In 2018, Sumitomo Corporation entered India's specialty steel business through a joint investment with Mukand, the oldest specialty steel manufacturer in India. The company is engaged in the rolling, secondary pressing and sale of specialty steel, with Sumitomo Corporation being primarily responsible for operations and sales through its global network. Around 80 percent of the products sold through this venture are automotive parts. Maruti Suzuki, the Indian subsidiary of Japanese auto manufacturer Suzuki Motor Corporation, enjoys a share of around 50 percent of the passenger car market in India. To meet the needs of this Japanese-affiliated company, which has rigorous quality standards, we use the Japanese word "kaizen" (improvement) as a watchword. We share an awareness of the importance of creating high quality products by identifying issues and always looking for new ways to implement kaizen with local employees on the ground.

I am currently Co-CEO of a new plant that was completed in 2021, and my duties include plant management, human resources and materials development, and quality control. I have faced many challenges during my time in India, but was able to overcome them because of the trust between Mukand and its employees. The pandemic was particularly challenging as the lockdown delayed construction on the plant, and demand plummeted overnight. However, believing in a mantra of "if you make good products and provide them to customers, results will follow," I have continued to communicate to my employees our philosophy regarding Sumitomo Corporation’s reasons for participating in this business. The trust we’ve forged is now a major pillar of our continued success.

The Indian automotive market will continue to grow. Maruti Suzuki has announced plans to double its annual production from two million to four million units by FY30. Naturally, a major challenge will be to expand our production capacity in a timely manner. Expanding production will contribute to employment, industry and ultimately to the development of India as a nation. Looking ahead, our goal is not only to become India's No. 1 specialty steel manufacturer, but also to grow our business to a world-class level, to meet the ever-increasing global demand for steel.

Currently, we are participating in "Krisumi City,” a project under development in Gurugram. Sumitomo Corporation became involved in this project in 2016. At the time, we were the first Japanese company to enter the tower development and sales business in India. Krisumi Corporation, a 50-50 joint venture between Sumitomo Corporation and its local partner, the Krishna Group, is a company that handles everything from land acquisition to sales, management and administration.
This is a large-scale development project with a total price tag of approximately 75 billion yen that involves the construction of 2,770 residential units, commercial facilities and office buildings on about 13 hectares of land. The project will be implemented in four phases, with the first phase involving the construction of three towers (433 units) on approximately two hectares of land, and the second phase, in which one tower (320 units) will be built on about one hectare of land. All units in these four towers have already been sold. Sales for the third phase of the project will begin this April, and the fourth and final phase is scheduled for completion in 2030.

I am assistant to the Co-CEO of the operating company and the Japan Relationship Manager for this project. In the former role, I participate in meetings as a member of the management office, including meetings with design firms, internal meetings on construction and sales progress, and meetings on finance and accounting matters. I also act as a liaison with Sumitomo Corporation. In the latter role, my main task is to serve as the point of contact for Japanese tenants when Indian customers who have purchased condominiums lease their units. The condominiums we have developed were designed and built by a Japanese company, and their stylish design incorporating cool, gray tones – a rarity in India, is a selling point. Japanese appliances such as air-conditioners and toilets were also incorporated in the apartments as high-end interior design features.