Japan & India: Suntory looking to invest ‘much more’ in India

Japanese multinational Suntory is looking to invest “much more” in India, chief executive Takeshi Niinami has said, while taking a cautious stance on business in China, The Drinks Business reported on January 25.

Suntory is looking to expand its drinks and nutrition businesses in India with local partners, Niinami said in an interview. The multinational brewer and distiller is looking to invest “much more” in the India market its chief executive said, and is eyeing possibilities both for building new factories and for acquiring existing businesses.

“Both are very feasible, but the key thing is how to locate a good, worthy local partner,” he said. “That’s very important.”

He acknowledged that while China is still an attractive market, spy laws recently used to detain foreign workers have raised alarm bells for businesses.

Niinami said that considering the current climate in China, he could not justify sending in international staff for an investment push. “We are willing, but there is a hampering factor that is the espionage act,” he said in an interview last week at the Reuters Global Markets Forum (GMF) in Davos.

China’s spy agency, the Ministry of State Security (MSS), is pursuing a more public and political role, releasing its first advert to mark National Police Day this month. The MSS recently accused a foreign consultant of spying for MI6, arresting the consultancy boss.

Japanese companies are moving supply chains to Vietnam and other Southeast Asian countries to lower risks, according to Niinami. However, “it can’t be done overnight”, he said, as China has a lock on production for some basic inputs.

China and Japan are the second and third largest global economies respectively. A delegation of senior Japanese business leaders, led by Shindo Kosei, the head of the Japan-China Economic Association (JCEA), has been visiting China this week for the first time in four years.

“We hope that through exchange and dialogue with the Chinese side, the two countries could rebuild a trustworthy and friendly cooperation environment, and develop complementary, mutual learning and improving cooperation mechanisms,” the JCEA said in a statement sent to the Global Times.

“It is of increasing necessity for the two countries to strengthen cooperation based on a spirit of mutual trust,” the association added.

25 January, 2024