Japan-based Tanaka Holdings has announced that it will set up a new subsidiary, Tanaka Kikinzoku (India) in Mumbai on December 23. This will act as its new operation base for sales strategies in India, the Middle East and Africa. The India, Middle East and Africa sale were so far being handled by Tanaka Kikinzoku (Singapore).The new subsidiary will aim to expand sales channels for precious metal products in India, Middle East and Africa. They are targetting annual sales of 3 billion yen (Rs 194 crore) by 2024. Tanaka representatives said that the recent government initiatives like the cut in corporate income tax cut, which is expected to reduce to 25 percent from 35 percent and the 15 percent manufacturing industry tax is likely to spur demand. In addition, the demand for automotive catalysts is set to rise in India after the BS VI emission norms kick in from April 2020.Tanaka Holdings already has manufacturing operations in the country through Tanaka Precious Metals. Tanaka Precious Metals, a leading metal specialist manufacturer, is targeting to drive sales by providing stable supply of precious metal materials. The supplier added that the introduction of the National Policy on Electronics 2019 (NPE 2019), that aims to make India the hub of global electronic equipment system design and manufacturing (ESDM) will also drive the demand for semiconductor manufacturing in the country. The Indian government has set a new goal to achieve sales $400 billion (Rs 28 lakh crore) sales 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.