TANAKA Establishes New Base in India
– The group will be better positioned to respond to demand in the automotive catalyst, semiconductor, and hydrogen energy markets
– New base will strengthen sales activities in the Middle East and Africa based in India
TOKYO, Dec 16, 2019 – (ACN Newswire) – TANAKA HOLDINGS Co., Ltd. (Head office: Chiyoda-ku, Tokyo; Representative Director & CEO: Akira Tanae) announced that TANAKA KIKINZOKU KOGYO K.K. (Head office: Chiyoda-ku, Tokyo; Representative Director & CEO: Akira Tanae), which operates the TANAKA PRECIOUS METALS manufacturing business, will establish TANAKA KIKINZOKU (INDIA) Private Limited in Mumbai, India on December 23, 2019, as a new base of operations for sales strategies in India, the Middle East and Africa.
Until now, sales activities in India, the Middle East and Africa have mainly been conducted by TANAKA KIKINZOKU (SINGAPORE) Private Limited. The newly established subsidiary will aim to expand sales channels for precious metal products in the growing markets in India, the Middle East and Africa and enable more strategic sales activities. Mumbai, where the new office is established, is located in the geographical center of India, enabling quick and flexible support for customers throughout India. Moreover, TANAKA will be able to greatly increase sales activities in the Middle East and Africa region. The new Indian base aims to achieve annual sales of 3 billion yen five years from now in 2024.
In the current Indian market, there is movement from China in the manufacturing industry against the backdrop of US-China trade friction and increasing wages. On September 20, 2019, the Indian government announced a significant corporate income tax cut. The effective tax rate is expected to go from 35% to 25% and the manufacturing industry established after October 1, 2019 is expected to be taxed at the world’s lowest level of 15%. Further increases in manufacturing demand in India are expected in the future.
In addition, regarding automotive catalysts in India, the Bharat Stage 6 (BS-6) emission standards (equivalent to the Euro 6 European emission standards) are scheduled to begin in April 2020. Demand for a stable supply of precious metals required for exhaust gas purification, including automotive precious metal catalyst compounds, is expected to increase, and TANAKA PRECIOUS METALS, a global precious metal specialist manufacturer, is able to achieve stable supply of precious metal materials to the indian market.
In the energy field, India has traditionally relied heavily on oil and other fossil fuels, but in recent years, environmental awareness has increased and global trends including the shift to clean energy and combined technologies are gaining popularity. Precious metal products used for environmental measures, including TANAKA fuel cell catalysts, which have the top share in the global market, are expected to be used in a wide range of applications in India to realize a next-generation energy society that uses hydrogen energy and renewable energy.
In addition, with regards to the semiconductor market, which has mainly been limited in China and other countries, the National Policy on Electronics 2019 (NPE 2019), a government policy that aims to make India the hub of global electronic equipment system design and manufacturing (ESDM), was announced as a successor to the National Policy on Electronics 2012 (NPE 2012) announced in 2012. The Indian government has set a new goal to achieve sales of $400 billion across the entire value chain of electronic equipment design and manufacturing by 2025, and demand for precious metal products required for semiconductors is expected to increase further.
Further, the branch office is also looking forward to joint research with companies, universities, and other research institutions in the vicinity.