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State firms push foreign investment,Rs 670 crore capital outflows in July

British Virgin Islands,Tunisia favourite investment destination for Gujarat PSUs

Written by Avinash Nair | Ahmedabad | Published: August 20, 2013 5:03:20 am

Gujarat firms,including the state public sector units (PSUs) and their joint venture companies,were at the forefront in contributing about Rs 670 crore to foreign direct investment (FDI) outflows from the state in July alone. British Virgin Islands,Tunisia,Ireland,Egypt,Switzerland and Cyprus were some countries where the money from Gujarat went to.

On August 14,though the Reserve Bank of India tightened the rules of overseas investments,capital has been flowing out of the country,unabated. During the month of July alone,it was the Gujarat government-controlled PSUs and pharmaceutical companies that were one of the biggest overseas investors.

Interestingly,the Gujarat government-run PSUs were one of the biggest overseas investors in July. One of the biggest sums that was invested from Gujarat was in Tunisia,an Arabic country in North African. Gujarat State Fertilizers and Chemicals Ltd (GSFC),through its joint venture firm,Tunisian India Fertilizers,invested about Rs 315 crore in the manufacturing sector,states the latest monthly figures for the FDI outflows released by the RBI.

Another state PSU that operates in the oil and gas sector — Gujarat State Petroleum Corporation — invested about Rs 12 crore in a joint-venture project for petroleum exploration in Egypt. The company,through a joint venture company OILEX,invested about Rs 73 lakh in agriculture and mining sector in Australia.

Among the private sector companies,Sun Pharmaceutical Industries Ltd invested about Rs 215 crore through its owned subsidiary in the manufacturing sector in British Virgin Islands,while Pankaj Patel promoted Cadila Healthcare Pvt Ltd through its wholly-owned subsidiary Zydus International Pvt Ltd invested Rs 89 crore in manufacturing sector in Ireland. Other Gujarat-based pharma companies who contributed to the FDI outflows from Gujarat include Torrent Pharmaceuticals (Rs 9.7 crore in France),Cadila Pharmaceuticals (Rs 1.8 crore in the UK) and Alembic Ltd (Rs 6 crore in Switzerland).

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