The Hindu Business Line : Dutch firms looking at India for investments

Among those looking to set up shop in the country are Quark Media House and Star Diamond Group, which together propose to pump in around Rs 6 crore into the country in phases. CSG Netherlands BV too has decided to convert its Indian operations, CSG Systems India Pvt Ltd, into a wholly-owned subsidiary through minor equity restructuring, sources said here.

The Star Diamond Group Holdings B.V. (SDGH) plans to set up a joint venture company in India to import and sell diamonds with about Rs 4 crore investment.

In the proposed joint venture company, to be called Firestar Diamond Pvt Ltd, the Netherlands-based group and Firestone Group of India will each take 50 per cent equity, the sources said, adding that the investment will come in three phases.

Star Diamond at present has a branch office in Mumbai for importing rough diamonds from its principals and selling it to Indian diamond traders. Over a period of time, this branch office will reduce its activities and will ultimately be transferred to the proposed joint venture company.

It has cited reasonable prices, significant employment opportunities and incremental export revenues from India as reasons for expanding operations in the country.

Meanwhile, Quark Media House B.V. Netherlands plans to set up a wholly-owned subsidiary, Fauja Singh Infrastructure Pvt Ltd, in the county to deal in floriculture, organic vegetables, pisiculture and organic fruit orchards with Rs 2 crore investment.

CSG Netherlands B.V., which already owns 96.1 per cent of CGS Systems India, plans to convert the Indian operations into a 100 per cent owned subsidiary by buying out resident Indian shareholding. The Dutch parent plans to buy out 9,999 equity shares of Rs 10 each from two resident shareholders to covert CSG Systems India into a 100 per cent owned arm.

The Foreign Investment Promotion Board is believed to have cleared Star Diamond's proposal for establishing the subsidiary as well as CSG India's plan to convert into a wholly-owned arm.