FIPB clears Pfizer subsidiary, defers Honda proposal

NEW DELHI, AUG 23: The Foreign Investment Promotion Board on Monday approved Pfizer's proposal to set up a wholly-owned subsidiary while ...

NEW DELHI, AUG 23: The Foreign Investment Promotion Board on Monday approved Pfizer8217;s proposal to set up a wholly-owned subsidiary while deferring the Honda-Siel Cars application to become the indenting agents for Honda Motor Company of Japan for four weeks.

The board, which approved 38 approvals amounting to FDI inflows to the tune of Rs 260 crore, also gave the nod to Hotline8217;s proposal to set up a joint venture company with Qingdao Haier Overseas Electronics Ltd of China to manufacture refrigerators, freezers, airconditioners, washing machines and other domestic appliances, said FIPB sources.

Haier will hold a minority 30 per cent stake in the venture by infusing Rs 13.5 crore. Pfizer has been allowed to infuse 1 million into India for setting up its second wholly owned subsidiary, which would manufacture and market five drugs from the basic stage. These include Sulbactum, Flucanazole and Droloxifene, which is an anti-cancer medicine.

The board deferred decisions on proposals by Bloomberg and Bayer Industries. The board has also allowed Alstom Engines Ltd to hike its holding in a joint venture with the Modi group from 51 per cent to 75 per cent by infusing Rs 1 crore. With this, the total foreign equity in the venture has been hiked to Rs 1.8 crore. Alstom has also been allowed to expand operations related to diesel engine spare parts and components.

US-based Hicks Muse Tate and First has been allowed to bring in Rs 77 crore through its Mauritius-based subsidiary 8211; India Seed Holdings 8211; for setting up a joint venture company in India for producing hybrid seeds. The foreign partner in the venture will hold controlling 75 per cent stake while the remaining will be held by Mahindra Hybrid Seeds.

The board has also allowed JP Morgan Asia Capital Holdings to pick up 19.6 per cent stake in HCL Comnet by investing Rs 22.5 crore. The company will provide multimedia-based integrated networks solutions and services.

US-based Fluor Daniel has been allowed to set up a fully owned subsidiary with an investment of Rs 12.6 crore to source its entire software requirements from India, said sources.

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The board gave a green signal to Orica Ltd of Australia to set up a joint venture company in India with the ICI-promoted Indian Explosives Ltd to manufacture, distribute and sell bulk and packaged explosives. Orica would invest Rs 9 crore to pick up a 49 per cent stake in the venture.

British Gas has been allowed to capitalise assets owned by its liaison office in India which they now want to wind up. Visa International has been allowed to set up a venture for providing management support and services for Visa cards.

Mauritius-based Stena Offshore of Mauritius has been allowed to hike its holding in Peerless Drive Limited from the present 25 per cent to 58 per cent by infusing Rs 17 crore.