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FIPB nods to Pfizer plan for 100 pc drugs arm

The Foreign Investment Promotion Board today permitted pharma giant Pfizer Corporation to set up its second wholly-owned subsidiary in India even as a final decision on Honda-Siel Cars' plea to become the indenting agents for Honda Motor Company of Japan was deferred for four weeks.

Hotline has also been allowed to set up a joint venture company with Qingdao Haier Overseas Electronics Limited of China for producing a range of white and brown goods, FIPB sources said here.

This comes in the wake of Hotline pulling out of its previous joint venture with Konka, also of China, and Wittis.

These formed part of the 38 proposals approved by the board amounting to a foreign direct investment inflow of Rs 2.60 billion.

Pfizer has been allowed to infuse $ 1 million into India for setting up the 100 per cent subsidiary. It would manufacture and market five drugs from the basic stage. These include sulbactum, flucanazole and droloxifene, which is an anti-cancer medicine.

Regarding the Hotline Hayer appliances venture, the sources said Haier would hold a minority 30 per cent stake in the venture by infusing Rs 135 million. The joint venture company would produce refrigerators, freezers, airconditioners, washing machines and other domestic appliances.

Hicks Muse Tate and First of the US has been allowed to bring in Rs 770 million through its Mauritian subsidiary -- India Seed Holdings -- for setting up a joint venture company in India for producing hybrid seeds. The foreign partner in the venture would have the controlling 75 per cent stake while the remaining equity will be held by Mahindra Hybrid Seeds.

The Modi group and Modi Rubber are reducing their holding in a joint venture with Alstom Engines from 49 per cent to 25 per cent.

Their partner Alstom Engines Limited has been permitted by the board to hike its holding from 51 per cent to 75 per cent by infusing Rs 10 million. With this, the total foreign equity in the venture has been hiked to Rs 18 million. Alstom has also been allowed to expand operations related to diesel engine spare parts and components.

In the electronics sector, 14 cases were approved amounting to a foreign direct investment of Rs 410 million. These include applications by SEEC Technologies, Data Entry Systems, Wilco International Systems, Sehgal Software, Fluor Daniel Holdings Inc, HCL Comnet, Infotech, Temenor Services and Systems Excellence.

JP Morgan Asia Capital Holdings has been allowed to pick up 19.6 per cent stake in HCL Comnet by investing Rs 225 million. The company would provide multimedia-based integrated networks solutions and services, the sources added.

Fluor Daniel of the US would be sourcing its entire software requirements from India. For the purpose, the company is setting up a wholly-owned subsidiary with an investment of Rs 126 million.

The board also gave a green signal to Orica Limited of Australia to set up a joint venture company in India with the ICI-promoted Indian Explosives Limited to manufacture, distribute and sell bulk and packaged explosives. Orica would invest Rs 90 million to pick up a 49 per cent stake in the venture.

Meanwhile, Stena Offshore of Mauritius has been allowed to hike its holding in Peerless Drive Limited from the present 25 per cent to 58 per cent by investing Rs 170 million.

CMS India Operations has been allowed to set up a wholly-owned operating and maintenance services company for the power sector by infusing Rs 212.5 million.

In the textiles sector, Savvy Impex would set up a 50-50 joint venture with an investment of Rs 1 million for producing cotton garments while American Pacific has been allowed to set up a wholly-owned subsidiary for Rs 110 million.

Toyota Motor Corporation has been allowed to set up a separate company in its technology park coming up near Bangalore.

British Gas has been allowed to capitalise assets owned by its liaision office in India which they now want to wind up. Visa International has been allowed to set up a venture for providing management support and services for Visa cards.

However, the board deferred decisions on proposals by Bloomberg and Bayer Industries.

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