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Mint
2 days ago
- Business
- Mint
Japanese developers bet big on Indian realty, lured by long-term growth promise
Bengaluru: Japanese investors and developers are placing large bets on India's real estate sector, prompted by a turnaround in the office, logistics and residential sectors, and convinced about the country's long-term economic growth prospects, analysts said. Post-pandemic, Japanese companies such as Sumitomo Realty & Development and Sumitomo Corp. (both Sumitomo Group firms), Mitsubishi Estate Co. Ltd, Mitsui Fudosan Co. Ltd, Mitsui O.S.K Lines Ltd and its subsidiary Daibiru Corp. and Marubeni Corp. among others have poured in millions into real estate projects and land parcels, primarily in Mumbai and National Capital Region (NCR). The deal momentum has gained further pace this year. Also read: Global firms Hines, Sumitomo partner for Mumbai condominium project In June, Goisu Realty, a group firm of developer Sumitomo Realty, which accounts for the highest share of India investments among Japanese firms, was allotted two land parcels in Mumbai's Bandra Kurla Complex, by Mumbai Metropolitan Region Development Authority (MMRDA), for a total of ₹3,138 crore. It paid 39-40% premium over the bid price for both the land patches. Similarly, Sumitomo Corp. partnered with other companies this year for two projects—an office project in suburban Mumbai's Kalina, near BKC, and a luxury condominium project in Powai. Mitsubishi Estate is also an equity investor in the office project. 'India is expected to continue experiencing a demographic dividend, along with maintaining economic growth in the 6% range. In addition to its domestic demand-led economic structure, the country is increasingly recognized as a global business hub, particularly in the IT, financial and service sectors," Sumitomo Corp. said in a June statement, announcing its entry into the Mumbai office market. 'Based on the shared recognition that India remains a resilient growth market even amid today's increasingly uncertain global economy, we have decided to participate in this project," the firm added. Also read: Prime Offices Fund makes ₹750 crore debut with Delhi office buy Japanese real estate investors and developers entered India much after the American, Canadian, West Asians and Singaporeans did. The Japanese, however, are patient, equity investors betting on land and early-stage projects, and not shying away from taking development risks, experts said. 'Japanese capital is demonstrating rare conviction by backing early-stage development deals across India's core real estate segments—office, logistics and residential. This is not opportunistic investing, but a strategic bet on the country's long-term growth trajectory," said Nishant Kabra, head—land & capital markets (North and West) India, JLL, a property advisory. 'In the last five years, we've seen over $1.5 billion flow into development equity—a clear signal that Japan Inc. sees India not just as a market, but as a multi-decade growth partner," Kabra added. Japanese investors entered India's realty sector via direct investments, or alliances with local partners or other international investors. Last year, Daiburu, with a century-old experience in constructing office buildings in Japan, said it has made its first India real estate investment, pumping in $123 million in 'Atrium Place', a premium office project in Gurugram, being developed by Hines India and DLF Ltd. 'India is a key pillar of the MOL Group's (Mitsui O.S.K Lines) strategy to diversify its business portfolio by increasing non-shipping, stable revenue businesses that counter-balance the volatile shipping market," Daibiru said. Meanwhile, Japanese shipping giant MOL Group has been actively expanding its presence in India. 'The Japanese came to the party late, but they are very long-term investors. Unlike other international investors and funds, they are not married to returns. Japanese real estate investors have no pressure to sell or exit investments, don't operate in a fund structure and rarely manage third-party money, which makes them different from the others," said Shobhit Agarwal, managing director and chief executive officer at Anarock Capital. As the real estate sector continues to perform on all fronts, Japanese investors are also eyeing multi-city investments, diversifying their portfolios and doing follow-on funding. Also read: India office Reits report higher FY25 income, leasing on strong GCC demand Last year, Mitsubishi Estate partnered with Alta Capital-backed logistics platform Logicap Management to develop industrial and warehousing assets in Chennai, Pune and NCR, betting on a sector that is highly fragmented but with growth potential. This year, the joint venture was extended with an additional investment to develop more assets. Earlier this year, Mitsubishi Estate also invested ₹560 crore in Birla Estates Pvt Ltd's residential project in Bengaluru, marking its maiden residential investment in India.
Daily News Egypt
21-05-2025
- Business
- Daily News Egypt
PM inaugurates SE Wiring Systems Egypt factory in 10th of Ramadan City
Prime Minister Mostafa Madbouly took part in the inauguration of SE Wiring Systems Egypt's latest manufacturing facility in 10th of Ramadan City on Tuesday. The company is a subsidiary of Sumitomo Electric Wiring Systems (Europe), operating under the global conglomerate Sumitomo Group. The newly launched plant is considered one of the largest automotive wiring harness production facilities worldwide. It features fully integrated departments equipped with state-of-the-art technologies and advanced production lines, as well as a dedicated training academy and a research and development center. Notably, the facility is environmentally friendly and powered in part by a comprehensive solar energy system. Mohamed Hammam, Deputy Managing Director of Sumitomo Electric Egypt, presented an overview of the new plant, noting that the total project area spans 150,000 square meters. The current built-up area occupies approximately 23,000 square meters—about 15% of the total land area—comprising the first phase of development. Hammam stated that the existing production hall covers 12,500 square meters, with 60% currently in operation and the remaining 40% allocated for future expansion. Full utilization of the facility is anticipated by 2027. At present, the factory employs 2,000 workers, with plans to increase the workforce to 3,000 by the end of 2025. All operators, technicians, and engineers at the facility are local hires who have undergone certified training provided by the parent company. Their performance has demonstrated skill levels comparable to European factory standards. 'For the first time in Sumitomo Egypt's history, all machinery installation and preparation work was carried out entirely by our local technical team,' Hammam emphasized. 'This unprecedented challenge was successfully accomplished by the Egyptian team.' He further noted that the 10th of Ramadan factory currently operates 53 machines for various applications, with a production capacity of 10 million wires per month. This number is expected to rise to 130 machines, enabling a monthly output of 26 million wires. Hammam added that the facility currently houses 170 wire cutting and preparation machines—making it the Sumitomo site with the highest number of such machines in Europe, and operating at peak efficiency. He also highlighted an ambitious initiative to localize the production of wiring harness components. This effort is led by a permanent in-house team dedicated to innovation and reducing reliance on imports. All locally produced components have successfully passed rigorous testing and calibration, with many performing on par with—or even exceeding—the quality of parts imported from the European headquarters. As a result, several other companies in the sector are now seriously considering sourcing these components from Egyptian suppliers. 'We currently produce 1.8 million wiring harnesses per month in Egypt,' Hammam stated. 'At the 10th of Ramadan facility alone, we manufacture 650,000 harnesses each month, with plans to increase to one million by year's end.' He also revealed that wiring harnesses for a specific car brand have been entirely produced in Egypt. Production for a locally assembled version of that brand will begin at the 6th of October factory in March 2025, with a maximum daily capacity of 270 harnesses. Hammam went on to explain that the company has equipped all its Egyptian factories with integrated solar power systems to support clean energy use and reduce carbon emissions. This investment aligns with Egypt's Vision 2030 and its climate commitments. The solar system, representing an investment of approximately €1 million, generates up to 3.2 megawatts of energy. Founded in 2008, SE Wiring Systems Egypt S.A.E. operates under the Private Free Zones system. It specializes in manufacturing electrical wiring systems and cables for various vehicle types. With investments totaling around €160m, the company provides over 12,000 jobs across its facilities in 6th of October City, 10th of Ramadan, and Port Said. SE Wiring Systems Egypt currently operates five factories in Port Said and two in 6th of October City. The company exports its entire production to countries such as the UK, France, Turkey, Italy, the Czech Republic, and Slovakia, achieving annual exports exceeding €300m.
14-05-2025
Sumitomo Pavilion: Toward a Future from the Forest
Expo 2025 Osaka Kansai Guide to Japan Global Exchange Travel May 14, 2025 A look at the Sumitomo pavilion at the 2025 World Expo in Osaka. The Osaka-based Sumitomo Group, which boasts a 400-year history, has created a pavilion with the slogan 'Toward a future from the forest.' The impressive timber roof was inspired by the ridgeline of the Besshi Copper Mines, in Ehime Prefecture, to which the business traces its roots. Exhibits leveraging digital technology include 'Unknown Forest, Stories Waiting to be Discovered,' and 'Plant a Tree.' Through encounters with forests and nature, visitors can discover a range of ideas for shaping the future. The Sumitomo Pavilion is located in the East Gate zone. ( See the official map for details.) The Sumitomo Pavilion. (© ) (© ) (Originally published in Japanese. Reporting and text by Uchiyama Ken'ichi and . Photographic assistance by Kuroiwa Masakazu of 96-Box. Banner photo © .) Osaka Kansai Expo
