Adani Group finalizes business strategy for Japan, to partner Kowa Company Ltd, a leading diversified Japanese company
Adani Enterprises Ltd, the flagship company of India’s leading infrastructure conglomerate the Adani Group, today firmed up its business plans in Japan by announcing a long term tie up and signing a partnership agreement with the Kowa Company Ltd, Japan’s leading diversified business group, entailing joint cooperation in common areas of business like infrastructure and trade such as exports in both Japan and India.
As per the “Business Alliance Agreement”, Kowa will facilitate Adani’s initiation to do business with Japanese firms and help the Indian conglomerate develop its key businesses such as ports, shipping, coal mining, transportation of coal and power. The pact will also empower Kowa to act as a first contact for Adani’s business operations in Japan and Adani will act in similar capacity to facilitate Kowa’s business interests in India.
The agreement was signed between Yoshiro Miwa, President & CEO, Kowa Company and Gautam Adani, Chairman of the Adani Group in Japan today.
Commenting on the business alliance agreement, Gautam Adani, Chairman, Adani Group said: “This historic partnership with the Kowa Company will help us foster new business ties in this land of the rising sun, which is a leading global economy. I am confident that Kowa will help us derive synergies for fast track growth in the highly competitive APAC region. We look forward to a long, mutually beneficial and strategic partnership with Kowa.”
The Adani Group’s decision to expand business in Japan is significant development pursuant to the group’s ambition to emerge as a global infrastructure and energy player. On 25th January, the group signed definitive agreements for setting up a port and railway infrastructure in Indonesia and has already announced its plans for coal mining and transportation in Australia.
Interestingly, this business alliance is over an arching one and includes several businesses for both the partners to explore together, in Japan and India. Kowa would also play a significant role in attracting investments from leading Japanese firms to the special economic zone at Mundra, on the western coast of India. The tax-free zone is being developed by Mundra Port and SEZ Ltd, another Adani Group company.
Commenting on the pact, Yoshiro Miwa, President & CEO, Kowa Company said, “We are happy to partner with India’s leading infrastructure conglomerate. We look forward to collaborating with the Adani Group to create unique synergies in the Japanese market. I am sure our partnership will grow into something more concrete that will inspire us to join hands and work together at a global level.”
Kowa will be Adani’s contact in Japan for variety of business operations, primarily to explore possibilities to help Adani Enterprises procure heavy engineering machinery for Thermal and Solar Power generation, ships and tugboats.
Earlier this month, Adani Shipping Pte had acquired two capesize vessels to bolster the infrastructure major’s integrated logistics coal chain.
In line with this development, Adani Enterprises will buy another 5 tug boats from Kowa to be deployed at Mundra and Hazira ports, on the west coast of India. Kowa will also facilitate purchase of two new capesize cargo vessels of 180,000 DWT each for the Adani Group meant for loading dry cargo like iron-ore, coal, grains and other materials.