Groupe Danone, FT among 23 proposals cleared by FIPB

The government today approved 23 foreign direct investment (FDI) proposals worth Rs 564 crore on recommendations of the Foreign Investment Promotion Board (FIPB).

The largest was Damas LLC’s Rs 180-crore investment to set up a joint venture company with Gitanjali Lifestyle for retail trading of jewellery and related accessories. Damas will hold 51 per cent equity in the venture.

The FIPB also gave its nod to a proposal from French food major Groupe Danone for investing and setting a solo company in the areas of food, beverages, biscuits, cereals, dairy, baby food and medical nutrition sector.

The Groupe Danone application attracted Press Note 1 of 2005, which requires prior government approval for proposals where the foreign investor has an existing joint venture or technology transfer or trademark agreement in the same field in India.

The FIPB also gave its nod to a proposal from The Financial Times (India) to induct foreign equity amounting to Rs 1 lakh by way of transfer of existing equity shares from the resident shareholders to fresh equity shares.

The Financial Times (India) is a wholly owned subsidiary of FT Singapore and Pearson Amsterdam. The FIPB’s nod will mean FT Singapore and Pearson Amsterdam will now own 100 per cent of the issued and paid-up share capital of FT India. FT India was incorporated in 2005 with two Indians as its 100 per cent shareholders. FT’s rival, Wall Street Journal, has already launched a facsimile edition in the country.

Thirteen proposals were deferred, including Unitech Wireless (Tamil Nadu) Pvt Ltd’s application to increase its foreign shareholding to 74 per cent.