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Plans of Reckitt and Coleman, Daewoo, Fiat get FIPB nod

The Foreign Investment Promotion Board today permitted Madisson Square Holdings, a subsidiary of Reckitt and Coleman, to set up a wholly-owned venture in India for manufacturing and marketing its range of polishes and toiletery products in India.

Besides, Daewoo Corporation of South Korea has been allowed to transfer its entire 92 per cent stake holding in Daewoo Motor India Limited to Daewoo Motor Corporation, FIPB sources said here.

Isvor-Fiat has been granted the nod to acquire the entire shareholdings of Fiat group companies in India and convert the 65-35 joint venture into a 100 per cent owned subsidiary.

These formed part of the 26 proposals cleared by the board today amounting to a Rs 2.02 billion foreign direct investment inflow into the country.

Madisson Square Holdings of the Netherlands has bagged the nod for brand development, providing technical services, research and development and setting up alliances for manufacturing and marketing various products. The 100 per cent owned venture would be set up with an FDI infusion of Rs 336 million.

On the Isvor-Fiat proposal, the sources said the restructuring would not result in a change in the original equity base of $ 500,000. Pursuant to the approval, Isvor-Fiat India Limited would acquire the stakes held by Fiat group companies -- Fiat India Auto Limited, Magneti Marelli, etc.

A Non Resident Indian -- Natarajan Ramaiah -- got the nod to set up an entertainment complex in Madras through a Rs 775 million FDI infusion. The venture would have 49 per cent foreign equity while the remaining would be in the form of NRI equity. The complex would feature a bowling alley, a restaurant, multiplex cinema theatres and sightseeing and tour operators.

In the software and electronics sector, six proposals were approved by the board today, which included MCS Software Solutions, India Interistech, Nichin Software, Tumlare, DTS Information Systems and Math Engines Private Limited.

Rose Corner Trading of the UAE has been permitted to hike its equity holding in Magnum papers from 74 per cent to 89 per cent by infusing Rs 252.4 million. Modi Xerox's proposal to restructure its operations and act as an NBFC has also been cleared by the board.

However, the board deferred decision on the proposals of SHV Energy, JT Mobiles and Woolmark even while pleas of De Nocil Crops and KSM Ingenieurgemeinschaft GMBH were rejected.

Lakhanpal National Limited has been allowed to extend its technical collaboration agreement with Matsushita Battery and Matsushita Electric for a period of five years on the same terms and conditions of royalty payment. The company is engaged in the busines of manufacturing zinc chloride mercury free battery.

Besides, Ikegawa of Japan has been allowed to hike stake in its existing venture with Sona for making precision gears from 30 per cent to 31.2 per cent. Besides, a new collaborator -- Owari Products of Japan, will also be inducted into the venture.

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