India (Strategic Region)
Targeting Domestic Demand and Infrastructure
India continues to sustain high economic growth rates, supported by strong domestic demand. MC is pursuing broad ongoing business development in India based on the two themes of capturing domestic demand and developing infrastructure business, with the goal of creating future earnings drivers.
Key Themes: Infrastructure and Capturing Domestic Demand
India recorded GDP growth of 8.5% in the year ended March 2011, and is expected to maintain growth at a high level over the next 5 years. Since export dependence is low and domestic demand is the primary driver of economic growth, India is forecast to continue growing rapidly over the next 30 years. Investment in infrastructure is one of the main driving forces behind the country's high economic growth. The Indian government plans to invest upwards of US$1 trillion in infrastructure projects over the 5-year period starting in 2012. MC's wide-ranging business development in the country is guided by the twin themes of capturing domestic demand and getting actively involved in the infrastructure sector.
In terms of internal demand, automobile-related businesses such as chemical products and steel products are growing rapidly, and we are also involved in a frozen products distribution business. In the infrastructure field, business development is focused on railway and transportation system-related areas, and we are also involved in activities related to smart communities and other environmental businesses. We have created two working groups (WGs) to upgrade MC's engagement in India: "Gas & Power" and "Transportation Material." These WGs are working to realize first-class projects within these two sectors based on Groupwide cooperation. The Gas & Power WG aims to build gas value chains, including receiving terminals for liquefied natural gas (LNG), demand for which is projected to grow significantly in India in the future, and gas-fired power generation. The Transportation Material WG is focusing on entry into India's rapidly expanding market for vehicle tires. Plans are being studied to create a sales and distribution network for tires, along with raw material purchasing capabilities.
Going forward, the Indian market's dynamic growth will continue to present many business development opportunities that MC aims to pursue aggressively by harnessing its collective capabilities.
India is attracting growing attention, and MC has designated the country as a Strategic Region under its Midterm Corporate Strategy 2012. Our key strategies in India are to capture domestic demand and to develop infrastructure business.
We have been working to promote the infrastructure business and investment projects related to internal demand since 2008, while also focusing on building human networks in India during this time. We have now developed the multi-functional project capabilities needed to create new business. It is increasingly important for MC that project development occurs across the boundaries between different business groups and business divisions, which is why all the staff at MC's Indian operations try to share information to enable better cooperation with other offices and business groups. I am sure this approach will foster business opportunities.
Senior Vice President, Chairman & Managing Director, Mitsubishi Corporation India Pvt. Ltd.