Sumitomo, Honda, JFE Drive New Wave of Japanese Investments

• Sumitomo invests ₹2,345 Cr in Koppal steel facility; Honda ₹600 Cr EV unit.
• JFE Shoji ₹400 Cr for NGEF revival; 50% Japanese firms in Karnataka.
• Sectors: semiconductors, EVs, automobiles; aims manufacturing hub status.

Karnataka is witnessing an influx of Japanese investments after a recent visit to Japan by the Commerce and Industries Minister, M B Patil, and other senior members of the government. Major firms such as Sumitomo Corporation, Honda, and JFE Shoji committed a total of approximately ₹7000 crore, targeting critical industries. The report, which appeared in ETMANUFACTURING Desk explains how Karnataka stands as an attractive destination, home to around 50% of Japanese companies in India.

Some of the most significant investments relate to Sumitomo Corporation's ₹2,345 crore greenfield steelmaking facility at Koppal, Honda's ₹600 crore electric vehicle (EV) unit at Narasapura, Kolar, and JFE Shoji's ₹400 crore planning to revamping NGEF at Hubballi. Other notable investments include Shinko Nameplate's ₹100 crore project, along with and Cataler's ₹140 crore expansion. Strategic partnerships include Yaskawa, Air Water, Yamaha Robotics, Konoike, Mitsubishi Electric, and Yokogawa Electric.

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The other projects include the Development Center of Hitachi, the Center for Research and Development expansion of Renesas, the airbag manufacturing unit of Asahi Kasei, and new units of Saginomiya and Inabata. The coverage of these projects includes semiconductors, electric mobility, automobile, electronics, automotive components, decorative items, EVs, automation, and steel, aimed at elevating Karnataka's economic significance.

Minister M B Patil emphasized the industry's friendliness, stating, "Karnataka is witnessing a boom in foreign investments... Japanese companies are showing great interest in key industries, which will multiply our state's economic power." He added, "With these solid alliances and investments, we will be elevating our strategy to make Karnataka a leading manufacturing hub." This boom reinforces Karnataka's strategic positioning in India's manufacturing sector, creating momentum for growth, prosperity and employment through partnerships and innovation.