Modi Investments, Cabouchon Mull Fresh Proposal

K K Modi Investments & Financial Services is reworking a joint venture proposal with the UK-based Cabouchon for manufacturing high fashion jewellery and accessories here after the Foreign Investment Promotion Board (FIPB) recently rejected the proposal.

Now that the Exim policy has put so many items on the OGL list, well have to rework the joint venture proposal and add various factors like export commitments too which will help the plan get government nod, a senior executive from the K K Modi group said.

Though originally the application submitted to the FIPB had envisaged a 50:50 joint venture with the products to be marketed directly, the Modi executive clarified the equity participation by the collaborators will have to be looked into too. If the government allows Cabouchon to hold a minority stake in the JV, then well have to discuss the issue with the UK company, the executive added.

K K Modi Investments & Financial Services and Cabouchon had earlier sought to set up a 50:50 joint venture to manufacture, contract manufacture and market in India Cabouchons products through direct sales. A production facility had also been proposed to be set up here. Cabouchon is a world leader in fashion jewellery and accessories which are sold via direct marketing.

The foreign firm had intended to invest into the proposed joint venture, christened Nuco, up to a maximum of