NEW DELHI, Jan 9: The Foreign Investment Promotion Board (FIPB) on Saturday cleared Hyundai Motor Company of Korea's proposal to bring in an additional equity of $138 million in its Indian subsidiary. With this, the parent company's total equity in Hyundai Motor India would go up to $350 million over the next four years.The company has dropped plans of divesting 14.2 per cent stake in Hyundai Motor India Limited to foreign institutional investors (FIIs). Earlier, the FIIs were funding this amount. The Hyundai proposal was among the 41 applications, amounting to a foreign direct investment of Rs 720 crore, which was cleared by the FIPB.The other major proposal include applications by the Toyota group to set up component manufacturing units, Novartis Holdings for producing seeds and Henkel-SPIC to issue non-convertible redeemable preference shares.Novartis Holdings has been allowed to invest Rs 3.10 crore foreign equity for setting up a 100 per cent subsidiary in Pune for production of seeds. Theapproval is subject to the condition that the company would not produce terminator seeds and the requirements of the bio-technology policy would be applicable on them.Nine proposals in the automobile sector were given the nod, including two applications of Toyota Tsusho Corporation (TTC), the trading arm of Japan-based Toyota Motor Corporation. Both the ventures would be part of the component network which Toyota is setting up for its India venture under which the first multi-utility vehicle would roll out by the year-end. The units would be located at the Toyota ancillary park in Bangalore.TTC has been allowed to set up a joint venture with Kirloskar Systems for fabrication and processing of steel products and components for automobiles.The company would bring in Rs 12 crore foreign equity to pick up 95.40 per cent stake in the joint venture.Besides, TTC along with Aisin Seike - a component manufacturing arm of the Toyota group - is setting up a unit to manufacture several automotive components.Together, the foreign partners would hold 70 per cent stake in the venture. Aisin Seike is engaged in the manufacture of door locks, window regulators, brakes, clutches and fuel injection systems.Mannesmann Sachs of Germany has been given the nod to bring in Rs 2.03 crore to pick up an additional 29 per cent stake in its joint venture company, in Solan, Himachal Pradesh. This is as per the revival package prepared by the Board for Industrial and Financial Reconstruction. Besides hiking its holding in the joint venture from 51 per cent to 80 per cent, Mannesmann would also provide technology support to introduce newer and more competitive products in the Indian market. The joint venture is presently engaged in the manufacture of shock absorbers and other automobile components, the sources added.The other automobile proposals approved include Penta Daewha Auto Parts Limited and Sirmour Sudburg Auto Limited, Jamna Nhk Alewd Suspension Components Limited and Walker Exhaust India Private Limited.TheNetherlands-based Prebon holdings has been allowed to set up a venture for stock broking and merchant banking activities. The company would invest Rs 2.5 crore to pick up 51 per cent stake in the venture.Corn Products India has been allowed to invest an additional equity of Rs 3.5 crore into its existing venture. Incepta Corporation of England has been given the go-ahead to set up a wholly-owned subsidiary and is bringing in Rs 4.55 crore for providing fee-based consultancy in varied fields.The Board, however, deferred a decision on the proposals of Cambatta Aviation, GE Capital, Morgan Stanley and Rothchilds for two weeks. In the mining sector, Chatenet Transworld Micronised Garnet Private Limited has been given the nod to set up a 100 per cent export-oriented unit in a joint venture in Tuticorin for producing micronised garnet powder.
