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FIPB clears 30 plans entailing FDI of Rs 1.75 billion

The Foreign Investment Promotion Board today cleared 30 proposals, including that of $ 6.5 billion Taiwanese computer major Acer group and Swedish white goods giant AB Electrolux, involving foreign direct investment of Rs 1.75 billion.

The board gave nod to Acer to set up a 100 per cent owned subsidiary for manufacturing and assembling the company's branded personal computers, notebook computers and providing computer services, the FIPB sources said.

The Taiwanese computer major would bring Rs 502 million of FDI through its Singapore-based subsidiary: Acer Computer International Limited, for the new venture to be set up in Bangalore.

Acer had filed an application with the FIPB to set up the subsidiary following dissolution of its joint venture with Wipro in April this year.

Wipro had bought out the 45 per cent stake of the Taiwanese giant in the venture.

A proposal by AB Electrolux to increase paid-up capital by about Rs 450 million in Electrolux Kelvinator Limited, formerly known as Maharaja International Limited, was also approved. With this, total paid-up capital will increase to Rs 1.24 billion.

However, equity structure in EKL will remain unchanged with AB Electrolux holding 55.8 per cent of shares, while the remaining equity is shared by Maharaja International and public.

The board also cleared a proposal by Siemens Limited, manufacturer of electronics and electrical goods, to increase its stake to 60 per cent from the existing 51 per cent. Siemens Limited will bring foreign direct investment of Rs 750 million. The company is allowed to buy rights issues upto 60.80 per cent.

However, the company has to notify whose rights issue it has acquired, the sources said.

In food processing sector, a proposal by Snowman's Frozen Foods Limited to increase its stake to 74 per cent from the existing 34 per cent was also approved. The company would bring Rs 290 million of FDI.

The other proposal cleared by the board in this sector was MBA Gelatine, which would bring Rs 40 million of FDI.

The FIPB also gave a nod to Discovery channel to increase its paid-up capital by Rs 552 million in its existing 100 per cent subsidiary.

A proposal by Diamond Board of Belgium to set up a 100 per cent subsidiary was also approved. The company would bring in Rs 5 million of FDI.

The other proposals cleared included that of Lazard Credit Capital Limited, Birla Software, Sehgal Software, Data View and Shipping Forbes.

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