Financial Daily from THE HINDU group of publications
Tuesday, Jun 28, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jun 28, 2005 |
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Industry & Economy
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Foreign Direct Investment Cussons allowed to retain 100% control in Indian operations Our Bureau
New Delhi , June 27 THE Government has allowed waiver of the divestment clause for Cussons India Pvt Ltd. Cussons, which markets Imperial Leather brand of soap and talc in the country, had sought permission from the Foreign Investment Promotion Board (FIPB) to be allowed to retain 100 per cent control of Indian operations. At the time of Cussons' entry into the country in 1996, the Government had imposed a divestment condition on the company, asking it to divest 26 per cent stake in the Indian arm in favour of the resident Indian shareholder, Mr S.N. Talwar. In its submission before FIPB, the company stated that foreign direct investment up to 100 per cent is allowed under the automatic route and as per current FDI policy, no divestment condition is applicable. It said that the "proposal may be considered as per the decision of the ex-Finance Minister, that a consistent view be taken in all such cases where a liberalised policy dispensation is available. Based on this decision, FIPB had deleted the divestment condition for companies, such as JP Morgan Securities India Pvt Ltd and Muller Martini (India) Pvt Ltd in the recent past."
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