FIPB approvals for foreign investments in India

At its 12 July 1999 meeting, the Foreign Investment Promotion Board has approved several foreign investment proposals. These included:

Acer: The Foreign Investment Promotion Board has approved the proposal of Acer Computer International, Singapore, to create wholly-owned subsidiary in India to make personal computers, desk-top computers and providing customer service.

Brawil Agencies: The 50:50 joint venture between Forbes Shipping Corporation of India and Brawil Agencies AS of Malaysia has been approved by the Foreign Investment Promotion Board. The venture will provide water transport support services.

Diamond Boart: Belgium''s Diamond Boart SA will set up a wholly-owned subsidiary for marketing and trading of diamond and diamond tools.

Discovery Channel: Discovery Channel will increase its equity in its Indian subsidiary from $7 million to $20 million.

Electrolux: The FIPB has permitted AB Electrolux to increase its holding in its Indian subsidiary Electrolux Kelvinator by Rs 45 crore. After the infusion of the fresh capital, the paid-up capital of the Indian venture will rise to Rs 120 crore.

Infotech Enterprises: Infotech Enterprises of India will acquire a 3.75 per cent equity stake in Dataview Solutions, a UK company.

Siemens: The Foreign Investment Promotion Board has permitted German multinational Siemens AG has been permitted to step up its holding in Siemens India from the present 51 per cent to 60.8 per cent. Siemens India proposes to come out with a rights issue in which the German parent will subscribe to the unsubscribed portion subject to the ceiling of 60.8 per cent.

The electronics and electrical major will bring in Rs 7.5 crore for the equity hike. The FIPB has specified that Siemens India will have to give full information to the board about the Indian shareholders, whose rights it would be picking up, and the exact number of shares.

Some of the major approvals given the by FIPB in June and May 1999 are:

ANZ Banking Group: The ANZ Banking Group has been permitted to form an asset management company with 75 per cent equity. The banking major will bring in the $5 million minimum capitalisation amount required for foreign direct investment projects in the non-banking financial business.

Daewoo Motor: Korean auto major Daewoo Motor Company has been permitted to replace Daewoo Corporation as the holding entity in Daewoo Motor India.

Fiat: Italian giant Fiat Spa has been permitted to increase its equity in Fiat Isovar to 100 per cent. This will be accomplished by transferring the 65 per cent shares held in Fiat Isovar by a number of Fait subsidiaries to Fiat Spa.

Future World Investments: A non-resident Indian has been permitted to build an entertainment complex in Chennai with an equity investment of Rs 77.5 crore. The NRI is a 51 per cent shareholder in the proposed venture. The remaining 49 per cent will be held by Future World Investments of the US.

General Electric: American conglomerate General Electric has been permitted to form a 50:50 joint venture with Tata Consultancy Services to provide software-based consulting services for aircraft maintenance and engineering services.

Matsushita: Lakhanpal National, manufacturer of zinc chloride and paperline batteries has been permitted to extend its technical collaboration with Matsushita of Japan for another five years on existing terms and conditions.

Pizza Corner: FM Investments Inc of the US has been permitted to increase its stake in Pizza Corner India from 51 per cent to 96 per cent.

Reckitt & Colman: Madison Square Holding of the Netherlands, a Reckitt & Colman subsidiary, has been permitted to invest Rs 33.6 crore in a wholly-owned subsidiary, involved in manufacturing, research and development for a product line of hair care and fabric care products and shoe polish.

Revron: Australia''s Revron Pty has been permitted to form a joint venture with WSIL Minerals Sands for the manufacture of synthetic rutyl and titanic dioxide. Revron will take a 72 per cent stake in the venture''s equity.

Xerox: Modi Xerox has been permitted to establish itself as a non-banking finance company, subject to minimum capitalisation norms as laid down in government guidelines.