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At
its meeting on 16 August 1999 the Foreign Investments
Promotion Board approved the proposal of Honda Motor Company
of Japan to set up a wholly-owned subsidiary to manufacture
two-wheelers. The board said it has received no-objection
certificates from erstwhile partner Kinetic group, and
Hero Motor Company, with whom Honda has a joint venture
agreement.
Besides
two-wheelers, the proposed subsidiary will also make and
market spare parts and components, and export Honda brand
products from India. The company will bring in foreign
investment worth Rs 183 crore. The range of vehicles immediately
planned are scooters and motorcycles of range from 50
cc to 250 cc.
Honda
had an equal-stakes venture with the Firodia family''s
Kinetic group. Following some differences in perception,
Honda divested its entire stake in favour of the Firodias.
At
present, Honda has two joint ventures in the Indian automotive
industry -- Hero Honda, with the Munjals of Punjab, for
making Hero Honda motor cycles, and Honda Siel Cars India,
which makes Honda City cars.
The
FIPB also gave its approval to the proposal by Tech Pacific
of Mauritius to buy out Godrej & Boyce Manufacturing
Co''s stake in the marketing joint venture Godrej Pacific
Technology. Tech Pacific will have to bring in Rs 115
crore for the buy-out. The joint venture is engaged in
marketing office automation equipment.
Among
the other proposals approved are:
- Motorola of
the US to take over the entire stake in software company
Cross Check Technology at $2 million;
- Entry Line
Holdings of the UK to buy out Indian
partners'' stake in Usha Beltron at an estimated cost
of $5 million, and
- GE India,
the Indian arm of General Electric of the US to set
up a wholly-owned subsidiary for sourcing GE''s worldwide
requirements.
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