FIPB CLEARS 10 FDI PROPOSALS WORTH RS 2,857 CRORE

The government has cleared 10 foreign direct investment (FDI) proposals entailing Rs 2,857 crore worth of investment. Hong Kong-based single brand retailer Wacoal International has received Foreign Investment Promotion Board’s (FIPB) approval to set up a Joint Venture (JV) with 51% equity participation for undertaking of single brand retail trading under the brand name Wacoal.

Remaining 49% of the equity share will be held by an Indian JV partner. Others approved proposals include Delhi based Ostro Energy which will invest Rs 1,400 crore over the next 4-5 years in wind energy assets in India. Pharma firm IPCA Laboratories have also received approval for foreign institutional investment of Rs 900 crore.

The proposal of Reckitt Benckiser India to acquire 24.88% share of Reckitt Benckiser Healthcare India from its foreign investor was also approved. The deal would result in a foreign fund outflow of Rs 750 crore.

Based on the recommendations of FIPB, the government has approved 10 proposals of Foreign Direct Investment amounting to Rs 2,857.83 crore approximately. However, the proposal of Ambuja Cements for acquisition of 24% shares in its holding company Holcim (India) for a share swap worth Rs 3,500 crore has been referred to the Cabinet Committee on Economic Affairs (CCEA) by FIPB. Biogenomics proposal to increase the foreign equity to 92.28% from 74% of the existing foreign shareholders by further infusion of capital amounting to Rs 75 crore has also got FIPB’s nod.

The company is one of the fastest growing biopharmaceutical firms. Bengaluru based pharma firm Syngene International, which is engaged in contract R&D and manufacturing to third parties, has received approval for 10% foreign equity participation.
The company would be injecting Rs 380 crore. Eighteen investment proposals have been deferred by FIPB and four have been rejected.