India and Japan Trade and Investment Bulletin published by Japan Desk of Corporate Professionals---
Highlights:::
1. India to become 3rd largest Auto Market by 2016,
2. Japan's Imaging Solutions Provider keeps its top line aims robust
3. Honda targeting a greater presence in India
4. Instant Messaging Apps make it big in India
Knowledge Center: Trade Mark Law - Madrid Protocol Becomes Effective in India
2. Indo-Japan Trade & Investment Highlights
India to become the Third Largest Auto Market by 2016
Japan’s Imaging Solutions Provider keeps its Top-Line Aims Robust
Former Japanese Ambassador becomes Adviser to Sri City SEZ
Toyota Kirloskar to delay launch of Lexus
Instant Messaging Apps make it big in India
Honda Targeting a Greater Presence in India
Japanese PM Abe to schedule an India visit later this year
Panasonic turns to Other Businesses to Achieve Bigger Presence in India
Nissan Renews its Export Agreement for a period of Ten Years
Renault – Nissan increase investment in India by USD 2.5 Billion
Japanese Cosmetic Maker to enter India
Nissan launches its First Datsun Car after Three Decades
Japanese Restaurant Chain Inakaya to be brought to India
Consumer Electronics players in India complain against Sony
Japanese Agricultural Equipment Maker Plans to Set a Manufacturing Unit in
India
Japan’s Tsubamex enters into Joint Venture with Indian Auto Component Maker
Panasonic hopes to Make it Big in the Indian Smartphone Market
Japanese Agricultural Machinery Major launches a New Tractor
Japan’s Royals to make an India Trip in November
Titan Industries and Japan’s Seiko Expand their Strategic Partnership
Defiance Technologies of the Hinduja group working with Nissan on a Car
Japanese Gift exhibition proves Fruitful for Indian Exhibitors
ICICI Bank to raise funds through Yen Bonds
Knowledge Centre
Trade Mark Law: Madrid Protocol Becomes Effective In India
INDEX
3. India to become the Third Largest Auto Market by 2016
The Indian Auto Market is all set to overtake Germany, Brazil and Japan by 2016, falling behind
only China and the US. As per senior principal economist with the IHS, the auto industry world
over is shifting high on focus on growing nations owing to high fuel costs, urban driving
restrictions and effects of global recession in mature markets. It has been said that India’s Light
Vehicle Production will reach 7 million by 2020 with Indian citizens’ purchasing power acting in
favour of the auto makers.
Japan’s Imaging Solutions Provider keeps its Top-Line Aims Robust
Imaging solutions provider Ricoh India, a subsidiary of Japan’s Ricoh Company Limited is
keeping its aims high by targeting a turnover of INR 1000 Crore1
by the end of this fiscal
compared to an INR 633 Crore turnover at the end of FY 2013. The Company is also going to
concentrate on its IT services business which was started by it a couple of years back and has
now become a 25 percent contributor to the Company’s revenue. The Company has just
launched three new printers and plans to launch digital cameras later this year.
Former Japanese Ambassador becomes Adviser to Sri City SEZ
Yasukuni Enoki, the Japanese Ambassador to India from 2003-2007, has been taken in as an
adviser to the Sri City Special Economic Zone in Andhra Pradesh. The induction has been done
keeping in mind the increasing Japanese investment in India.
Toyota Kirloskar to delay launch of Lexus
Owing to the heavy import duty and sluggish market, Toyota Kirloskar Motor may further delay
the launch of its premium brand – Lexus in India. Though the Company was very keen on this
launch, it seems that the challenges in the Indian economy will cause the management to re-
evaluate the feasibility of the project. Apart from this, it is being said that the ongoing talks about
1
1 Crore = 10 million
Indo-Japan Trade & Investment Highlights
4. India’s free trade agreement with the European Union is a cause of concern for the Japanese
firms.
Instant Messaging Apps make it big in India
A number of global instant messaging applications have entered the promising market of India,
thanks to the constantly declining tariffs and increasing penetration of smartphones in India. In
past one year for example, China’s Tencent and Japan’s Naver have launched their IM
applications, WeChat and LINE respectively, with LINE achieving five million users in India in
just three weeks of its launch in India.
Honda Targeting a Greater Presence in India
Honda Cars India, the Indian arm of Japanese automaker Honda is aiming to achieve a greater
presence in India on the basis of volume and also plans to increase its offering in the diesel
segment. Honda Cars India is targeting an optimistic fifty percent share in the Indian market in
two years time, jumping high above its current ten percent presence. To achieve this, Honda is
planning to start manufacturing at its Rajasthan plant and assembling at its Greater Noida facility
apart from preparing for the launch of three new models.
Japanese PM Abe to schedule an India visit later this year
Japanese premier Shinzo Abe’s victory in the Upper House Elections has painted a picture of
him as one of the most powerful political leaders in Japan’s history. The Indo-Japan relationship
reached another notch when Indian Prime Minister visited Abe after his success. Abe has hinted
at visiting India if the negotiations regarding the nuclear agreement succeed.
Panasonic turns to Other Businesses to Achieve Bigger Presence in India
To beat the ever weakening rupee and to earn more profits, Panasonic India, a subsidiary of
Japanese electronics giant Panasonic, is contemplating deviating from the B2C segment and
focus on the B2B segment instead. This move is definitely quite a prominent one especially
because 85 percent of Panasonic’s global revenues have come from the B2B segment whereas in
India it was the B2C segment that contributed close to 95 percent to the profit it derived from
India.
Nissan Renews its Export Agreement for a period of Ten Years
The Indian arm of the Japanese car maker Nissan has renewed its agreement with Ennore Port
Limited to export vehicles for the next 10 years and the Company has committed to export a
minimum of 60,000 units a year, a target that doesn’t sound unachievable especially because
5. Nissan exports its vehicles from India to more than 100 countries in Africa, Middle East and
Europe. The step has been taken in lines with Nissan’s objective of establishing India as an
export hub.
Renault – Nissan increase investment in India by USD 2.5 Billion
Renault SA and Nissan Motor Co Ltd will jointly invest USD 2.5 Billion in India over next five
years to work towards increasing their market share by launching new cars. Renault – Nissan
have together already made investments worth USD 2.5 Billion earlier in India and utilized them
on a technology centre and development of cheap car platform. Despite a cooling demand in
India, car makers continue to remain big on investment in the economy as some experts expect
India to become the third largest car market by 2020.
Japanese Cosmetic Maker to enter India
Japan’s prime cosmetics maker, Shiseido Co is looking to turn to India to improve its penetration
in the emerging markets and to recover from the brunt it bore in China owing to political
tensions. The Company which will be setting up a wholly owned subsidiary in the country plans
to target the fastest growing middle income group. Shiseido has been in the Indian market since
2001 but only through a local distributor and has been focused on high end consumers only.
Nissan launches its First Datsun Car after Three Decades
Nissan has reached another milestone in the Indian auto market by launching its latest 5 – seater
Nissan Datsun GO. The brand Datsun has been used by Nissan after a break of 30 years. The car
which has a modern shape will be available in funky colours in early next year for a price of
around INR 4 Lakhs2
.
Japanese Restaurant Chain Inakaya to be brought to India
The JSM Corporation Private Limited, a leading Indian franchise running US food & beverage
chains like Hard Rock Cafe and California Pizza Kitchen, is soon going to launch a popular
Japanese restaurant chain: Inakaya. First opened in Tokyo in 1970, Inakaya serves traditional
Japanese grilled food. The Company, a closely held Company has 22 percent equity stake owned
by the prestigious PremjiInvest, the private equity arm of Azim Premji whereas the founders
hold 60 percent of the stake together.
2
1 Lakh = 100,000
6. Consumer Electronics players in India complain against Sony
The major consumer electronic players in India, LG, Samsung and Videocon under the aegis of
the Consumer Electronics and Appliances Manufacturers Association have made representations
to the ministries of commerce, finance, communications and IT contending that the Japanese
companies like Sony and Toshiba enjoy nil or concessional duties despite not fulfilling the value
addition norms specified under the Free Trade Agreements. This according to them is disrupting
a level playing field for consumer electronics companies. Sony on the other hand has dismissed
the situation as corporate rivalry and has strongly claimed itself to follow the best form of
corporate citizenship.
Japanese Agricultural Equipment Maker Plans to Set a Manufacturing Unit in India
The Indian arm of Kubota Corporation, Japan’s largest agricultural equipment manufacturer is
planning to set up a manufacturing facility in Pune, India to tap the rising demand of agricultural
machinery in the country. The company which has been growing at a rate of 30-35 percent over
the last three years, hopes to set up this plant in less than five years.
Japan’s Tsubamex enters into Joint Venture with Indian Auto Component Maker
Japan’s Tsubamex Co. Ltd. and India’s auto components and bicycles maker Tube Investments
of India Ltd. have signed a Joint Venture Agreement to make sheet metal dies for the Indian
automobile industry and the white goods sector. The venture will be formed with an initial
capital outlay of INR 7 Crores.
Panasonic hopes to Make it Big in the Indian Smartphone Market
Japanese electronics giant Panasonic hopes to receive the majority of its revenue of its upcoming
smart phone business that kick-started only a month ago from the Indian market. India’s
smartphone market, barely two and a half to three years old, is one of the largest in the World.
The Company is aiming to more than double its top-line by 2015-16. Panasonic will also focus
on batteries and UPS business in India.
Japanese Agricultural Machinery Major launches a New Tractor
The Japanese agricultural machinery major Kubota has announced the launch of narrowest
tractor in India’s largest cotton producing state, Gujarat and a simultaneous launch in the states
of Maharashtra and Madhya Pradesh. The new tractor is touted to help farmers deal with labour
shortage, weeding and inter-cultivation of a wide variety of crops.
7. Japan’s Royals to make an India Trip in November
Japan’s Emperor Akihito and Empress Michiko will be visiting India for the first time from
November 30th
to December 05th
this year. It is hoped that through this visit, the countries will be
able to further strengthen their relations of goodwill and friendship between each other. The
Emperor and the Empress will be spending the majority of their time in Delhi and will later visit
Chennai.
Titan Industries and Japan’s Seiko Expand their Strategic Partnership
Titan Industries, an Indian lifestyle giant leading the market for watches and jewellery among
other products, is soon going to expand its strategic partnership with Japanese conglomerate
Seiko Epson Corporation. The partnership was born last year when the two entities had signed a
strategic pact for the purpose of manufacturing high-end stainless steel cases for watches.
Through the pact, Titan can make use of Seiko’s knowhow through a technical services
agreement while it is setting up the Coimbatore manufacturing plant. With this partnership
expanding, Titan will now supply stainless steel cases to Seiko to meet their global demand.
Defiance Technologies of the Hinduja group working with Nissan on a Car
Defiance Technologies, a company of India’s Hinduja Group is currently working with Nissan to
help develop a small car although the Company, a truck and bus maker, plans to keep distance
from the car business. The group which focuses mainly on commercial vehicles is open to
acquisition of entities in the commercial vehicle segment as it moves on its path to become one
of the top five bus companies and one of the top ten truck makers in the world. The final product
of this Joint Venture between Hinduja and Nissan may be exported in a shared manner.
Japanese Gift exhibition proves Fruitful for Indian Exhibitors
A three day exhibition GIFTEX WORLD 2013 held in Tokyo had Indian handicrafts companies
participating for the first time and in huge numbers. The Indian participants had a very positive
experience as they brought back business of worth over USD three million. The exhibition which
saw participation of around 1800 exhibitors attracted nearly 70,000 trade buyers. Handicrafts
sector holds a very important place in the Indian economy for various reasons like foreign
earnings, employment of economically and socially backward classes and promotion of Indian
culture.
ICICI Bank to raise funds through Yen Bonds
ICICI Bank of India is looking to exploit the opportunities of raising institutional investment
from Japan by issuance of bonds to the tune of Yen 50 billion. The issue of Yen bonds will be
8. first of its kind by an Indian entity. The bonds carrying coupon rate of 3.5% - 4% and having
maturity of 2 years will be issued in tranches as the first trache of Yen 10 billion will help the
Indian bank determine investor confidence and appetite. ICICI has appointed Barclays Securities
Japan and Mizuho Financial Group Inc. to manage the issue in Japan.
Trade Mark Law: Madrid Protocol Becomes Effective In India
Marking a significant progress of the Indian subcontinent in the area of trademark law, India
acceded to the Madrid Protocol on 8th
April 2013, making the same effective in India beginning
8th
July 2013, as per the Information Notice No. 15/2013 dated 29th May, 2013 issued by WIPO
and Public Notice issued by the Controller General of Patents, Designs and Trade Marks
(CGPDTM) on 8th
July 2013.
A notification dated 5th
July 2013, issued by the Ministry of Commerce and Industry, DIPP, also
notified that the Trade Marks (Amendment) Rules, 2013 which incorporate provisions relating to
international registration of trademarks as under the Madrid Protocol, and brings in some
amendments to the existing Act, have also come into force from the 8th
of July 2013.
The accession to the Madrid Protocol comes as a major advantage to the domestic applicants of
India, as it gives the applicant an ability to file international application on the basis of a pending
application in a Contracting Party to the Protocol or for a registered mark in the jurisdiction of
the Contracting Party.
What is the Madrid Protocol?
The Madrid Protocol is a treaty that provides for the international registration of trademarks, by
filing of a single application in one language, for ensuring registration in several countries. The
Madrid Protocol, along with the international treaty called the Madrid Agreement, governs the
Madrid system (as it is known), for the international registration of trademarks. The system is
administered by the International Bureau of the World Intellectual Property Organization
(WIPO), which maintains the International Register of marks. The Protocol is an offshoot of the
Madrid Agreement, and came into existence in the year 1989, and came into force on 1st
April
1996.
Knowledge Center
9. India amends Trade Marks Law (Effective 8th
July 2013)
The notice issued by the CGPDTM also makes effective, the amendments to the existing Trade
Marks Rules. The registration of a trademark under the Madrid Protocol would require adherence
to a number of procedural formalities laid down in Chapter IVA of the Trademark Amendment
Act, 2010 and the corresponding Trademark Rules, 2013 (The Trade Marks (Amendment) Rules,
2013 introduces Chapter III A to the existing Trade Marks Rules, 2002 relating to ‘Special
Provisions relating to Protection of Trademarks through the International Registration under
Madrid Protocol’.) By virtue of these amendments, India has brought about the necessary
amendments and changes in its existing trademark law to be in harmony with the Madrid
Protocol.
Madrid Protocol comes into force in India from 8th
July 2013
On 8th
April 2013, India became the 90th
member of the Madrid Protocol (and not the Madrid
Agreement). By virtue of this, India has now become a party to the Protocol, and as agreed, the
Protocol is effective in India with effect from 8th
July 2013.
This comes as a cost effective step for any natural persons and legal entities established in,
domiciled in, or a national of India, having a registered trademark or a pending application for
registration of trademark in India, as this system will allow an applicant to make online
application for the international registration of the trademark in the member parties to the
Protocol.
Thus, an Indian applicant can make an application for registration in as many as 89 member
countries to the Protocol, apart from India through a single application. Simultaneously, this also
implies that trademark owners can get their trademarks protected in the Indian jurisdiction, as
well as in the jurisdiction of the 88 other member countries plus the European Union, through a
single application.
A list of the Contracting Parties to the Protocol can be found at
http://www.wipo.int/treaties/en/ShowResults.jsp?lang=en&treaty_id=8.
The Protocol Advantageous..
The system is advantageous to an applicant as it cuts short the requirement of filing many
national applications in several or all countries of interest, in several different languages, and
understanding the several procedural laws of the countries the mark is intended to be registered
in. To some extent, it also saves the separate filing fees to be paid for registration in each
jurisdiction.
10. Thus, under the system now, an international registration may be obtained by simply filing a
single application with the International Bureau of the WIPO, in a single language (English in
case of India), and on payment of single set of fees, though the application has to be made
through the Office of Origin.
These advantages also exist for renewals, and for recording of transactions such as assignments,
etc, where such recordings can be made at one place itself.
What must be understood though, is that registering through the Madrid Protocol does not create
an international right per se, it only creates a bunch of national rights, administered centrally.
Registering trademarks across 90 countries, by filing of a single application will be a very
attractive solution for corporate and individuals alike. Though what remains to be seen is the
challenge that this will be for its implementation in India, given the requirement of processing of
the application by the Registrar of Trademarks within time limits, and the known backlogs in the
processing of these applications in India. Nonetheless, the Protocol becoming effective does
increase the international protection and opens up avenues for growth and recognition in newer
business markets.
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11. CONTACT US
PANKAJ SINGLA
Japan Desk, Corporate Professionals
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