FIPB clears Honda, Nestle proposals

NEW DELHI, MAR 6: The Foreign Investment Promotion Board (FIPB) has approved 36 proposals involving foreign direct investment to the tune...

NEW DELHI, MAR 6: The Foreign Investment Promotion Board (FIPB) has approved 36 proposals involving foreign direct investment to the tune of Rs 325 crore including Honda Motor Company’s proposal to roll out a whole range of automobiles and that of Nestle to buy 20 per cent in Excelsia Food Ltd from the Dabur group.

The board, however, deferred decisions on Allianz Credit and Investment Ltd’s application to increase foreign equity by 41.53 per cent, and all proposals pertaining to the Union information and broadcasting ministry including that of Readers Digest, Sony, Bloomberg, Mudra, Chaitra, Zen Communications, Discovery and RK Swamy, till its next meeting.The other major proposals approved by the board on Saturday included Whirlpool’s application for hiking stake in its Indian venture from the existing 81 per cent to 92 per cent by bringing in Rs 63.4 crore.

Further, Birla Global’s plan to set up a 50-50 stock broking and asset management joint venture, De Beers’ proposal to set up a wholly-ownedsubsidiary and Goodlass Nerolac’s plan to offload 1.9 per cent equity in favour of its long time technology partner Japan-based Kansai Paints were also approved by the FIPB.

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With Kansai Paint acquiring two per cent stake in Goodlass Nerolac, the Japanese company’s holding in the venture would go up from the existing 36 per cent to 38 per cent. Tata group holds 28.56 per cent Goodlass Nerolac while 13.65 per cent is held by public.

The board also approved the proposal envisaging acquisition of 50 per cent stake by Canada-based Sunlife in an existing joint venture of Birla Global for asset management and stock broking activities.

De Beers has been allowed to invest Rs 126 crore for setting up a 100 per cent-owned subsidiary in the country to conduct prospecting and mining activities. However, the activity would not include coal and iron ore mining. The nod is also subject to the condition that De Beers would seek prior approval from the FIPB at the mining stage.

The board further gave a go-ahead toDaewoo Power to get its share of 50 per cent stake in its Indian venture at a later date. The equity structure would remain the same but the inflow would be delayed.

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Netherlands-based Akzo Nobel Intervet International has been allowed to bring in Rs 10 crore for increasing its equity in vaccine manufacturing joint-venture from 75 per cent to 92.86 per cent.

In the tourism sector, South Korea-based Arirang Hotels Pvt Ltd has been given the green signal to set up a wholly-owned subsidiary in India by bringing in Rs 50 lakh for hotel and catering services in Chennai.The Foreign Investment Promotion Board also allowed United States-based Tellabs International, Technology Deployment and Apex Software International to set up wholly-owned subsidiaries for manufacturing computer components, developing software technology and making computer software.

Ind Telesoft has been given the nod to increase NRI-holdings in its software development venture by 25 per cent to 40.8 per cent. The company would be bringing inFDI to the tune of Rs 65 lakh for the purpose. The FIPB also allowed transfer of shares between the foreign and NRI partners in Mattrix CFB Solution’s software technology park unit.