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FIPB allows ABB to buy out stake in Thapar group company

The Foreign Investment Promotion Board today permitted Asea Brown Boveri Limited to buy out the joint venture partner of a Thapar group company -- CG-Elsag Bailey Limited.

ABB will invest Rs 45 million to purchase 2.04 million shares held by Hartmann and Braun (HAB) of Germany, amounting to 51 per cent stake in CG-Elsag, a joint venture company between Crompton Greaves and HAB. The JV is engaged in the business of producing process control equipment, FIPB sources said in New Delhi.

This formed part of the 28 proposals cleared by the board today amounting to a foreign direct investment inflow of Rs 1.38 billion.

The purchase by ABB is under an international restructuring exercise which the power major has embarked on under which ABB worldwide has acquired CG-Elsag Bailey.

ANZ Grindlays has been allowed to set up a non-banking finance company in India through its subsidiary Esanda Finance and Leasing Limited. ANZ would control 75 per cent stake in the venture amounting to Rs 40 million.

The Indian partner for the project would be finalised later. Besides, it will also subscribe to preference shares of Esanda worth Rs 180 million. The proposal was cleared subject to the condition that both the projects would tantamount to a minimum investment of $ 5 million.

The board also allowed Modi-Telstra to increase paid-up capital in the existing venture by Rs 50 million to Rs 1.60 billion. Woolmark has been allowed to set up a 100 per cent owned subsidiary in India for conducting research and development activities and providing training regarding wool. It will be investing Rs 420 million for the purpose.

A Non-Resident Indian, Captain Deepak Sethi, has been given the nod to set up a wholly-owned subsidiary by investing Rs 3 million for freight forwarding and related activities.

Hunter Industries of the United States has been given the green signal for setting up a venture in India for producing and marketing ready-to-cook items. Hunter would hold a 55 per cent stake in the venture by investing Rs 5.5 million.

Marc Medicines of Russia has been allowed to produce drugs and medicines here through a venture, in which the Russian company would pick up 73 per cent stake for Rs 185 million.

Track Polymers has been allowed to set up a venture for providing Internet services. The foreign partner in the venture would hold a 49 per cent stake by investing Rs 1.47 million.

The board, however, deferred decisions on proposals by Dupont and Mitsubishi Electric.

UNI

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