FDI worth Rs2,000 cleared

Spain's Inditex SA, the world's largest clothing retailer and the owner of the Zara brand, is all set to start sale of its Massimo Dutti line of clothing, apparel, footwear and other products in India with the Indian government granting final approval for its proposal.

The government approval follows the Foreign Investment Promotion Board's clearance of the proposal as part of FDI clearance to 15 foreign direct investment proposals involving overall foreign investment worth over Rs2,000 crore.

The government had, earlier, rejected an application by Inditex unit Zara Holdings BV to sell the more upscale brand through a joint venture with Tata Group's retail arm, Trent Ltd, in July 2012.

In addition, the finance ministry recommended two proposals for the consideration of the Cabinet Committee on Economic Affairs (CCEA), as the investment involved in the proposals were above Rs1,200.00 crore,

The two proposals include one by IDFC Trustee Company Ltd (as proposed trustee for India Infrastructure Fund II) proposal seeking approval to set up an AIF category I and for receiving contributions from international investors.

The other proposal is by Mumbai and US-based Mylan Inc to invest around Rs10,668.00 crore in the pharma sector.

Most of the FDI proposals approved by the finance ministry involved investments in brownfield projects despite opposition from the commerce ministry to increased brownfield FDI in the pharma sector.

Accordingly, Rohto Pharmaceutical Company Limited, Japan, has been allowed to buy a 40-per cent stake in an existing pharma company, Deep Care Health Private Limited, for product diversification.

Jubilant Pharma Pte Ltd, Singapore has been allowed to set up a wholly owned subsidiary in India, which will engage in brownfield pharma activities.

Laurus Labs Private Limited, Hyderabad, a foreign owned and controlled Indian company has been allowed to acquire shares held by two non-resident entities in an existing pharma company, Viziphar Biosciences Private Limited.

Premier Medical Corporation Limited, Mumbai, a brownfield Pharma company has been allowed to infuse further capital from its existing foreign investor.

Advanced Enzymes Technologies Limited, an existing pharma company, has been allowed to receive foreign investment pursuant to an IPO and an offer for sale.

Ferring BV, a foreign company, has been allowed to infuse additional capital into Ferring Therapeutics Pvt Ltd through its 100 percent subsidiary Ferring Pharmaceuticals Pvt Ltd.

Fresenius Kabi India Private Limited, an existing pharma company has been allowed to issue equity shares to Fresenius Kabi AG, Germany, its parent company.

Symbiotec Pharmalab Limited, an existing pharma sector company based in Madhya Pradesh, has been allowed to transfer and issue equity shares up to a maximum of 70.86 per cent to a foreign company.

Lotus Surgical Specialities Private Limited, an investing company, has been allowed to issue/transfer shares to a foreign investment company Samara Capital Partners Fund II Limited and make downstream investment in Lotus Surgical Private Limited.