The Hindu Business Line : BMW seeks FIPB nod for $40-m plant in TN

BMW group, the German automobile major, has sought FIPB permission to set up a modern plant at Chingleput in Tamil Nadu at an investment of around $40 million.

The company would be taking the wholly owned subsidiary route for setting up the plant, for which it will acquire 100 per cent stake in BMW India Private Ltd (BMWIPL).

This company was incorporated in 1997 when BMW tried to enter India by forming a joint venture with the Munjals of the Hero group. The plans were abandoned the next year on grounds that the objectives of the venture could not be realised.

Now, the company plans to set up a facility for assembly of imported completely knocked down (CKD) units. However, certain components would be procured locally, the application said. It also seeks permission for import of completely built up units from its overseas plants.

BMWIPL has paid-up capital of Rs 1 lakh and authorised capital of Rs 3.5 crore.

The German auto major wants to purchase the domestic shareholding and issue fresh equities to itself for raising the share capital.

The principal company in the group - Germany-based BMW AG - would acquire 30 per cent of the stake while its Netherlands-based subsidiary, BMW Holding, would acquire the remaining 70 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
`New pension subscribers may have option of investing 100 pc in G-sec'

Households giving less importance to financial savings: Study

BPL Mobile in Rs 4,400-cr deal with Hutchison Essar — The biggest M&A in Indian telecom space

Tea industry worried over rising imports; Vietnam major supply source

Jet Airways Q1 net up 84 pc

BMW seeks FIPB nod for $40-m plant in TN

VAT slows down auto sales

Overheated equity market — Mutual funds keen to restrict inflows

Harry Potter sets online sales market on fire