Yf Asia Gets Fipb Nod For Subsidiary

The Foreign Investment Promotion Board (FIPB) has cleared a proposal of YF Asia to set up a wholly owned subsidiary to manufacture and market frozen yoghurt, ice creams and fruit juices under the brand name of Yogen Fruz. The proposed investment is $ 40 million.

While clearing the YF Asia proposal, the FIPB observed that no royalty would be payable since the company would be a wholly owned subsidiary. It also said the condition of dividend balancing would be applicable.

YF Asia had proposed to make 6 million litres of ice cream, frozen yoghurt and juices annually. It had also proposed a royalty payment of 5 per cent on domestic sales and 8 per cent on exports, net of taxes, for 10 years from the date of agreement.

YF Asia also undertook export obligations of 60, 70 and 80 per cent in the first, second and third year, respectively. The company expects Rs 59.65 crore in exports during the first seven years of operation.

The FIPB has deferred a decision on Banque Nationale de Paris (BNP)'s proposal to undertake non-bank finance activities in India. The delay was in response to a request from the department of economic affairs. The proposed initial investment envisaged by BNP is $7.5 million.

Sources pointed out that the delay in deciding on BNP proposal was routine and its proposal was "under active consideration". One of the causes for the delay may be the Reserve Bank of India's delay in sending its recommendation.

BNP's proposal stands a good chance of being cleared because the government has been okaying proposals from German, Italian and French companies in its bid to lessen the effects of sanctions imposed by the US and Japan.

The FIPB has also cleared a proposal of Axel Gerrit Honselaar to set up a 100 per cent subsidiary to establish a food processing unit for products like pies, cakes, pastries and related products like sauces and seasonings in Panjim. The unit is proposed to be set up under small-scale sector and the foreign equity would amount to $40,000.

The FIPB has okayed the proposal subject to the condition that the company shall undertake 50 per cent export obligation for items reserved for small scale industries.

Meanwhile, the FIPB has also decided to restart the process of issuing press releases highlighting the number of proposals cleared by it and the quantum of foreign investment envisaged under these proposals as part of a publicity blitz.

In June alone the FIPB cleared proposals worth about Rs 4,700 crore. Industry minister Sikander Bakht said recently that in the first three months of the BJP-led government, FDI proposals worth Rs 8,000 had been cleared. In its meeting held on June 27, the FIPB cleared foreign direct investment proposals worth a record $ 710 million.