The Hindu Business Line : Nod for Louis Vuitton retail trading proposal

Largest proposal
The largest proposal among those cleared involves an FDI inflow of Rs 345 crore by a consortium led by Mauritius-based Lotus Global Investments Ltd and Duncan Macneill (Holdings) Ltd of the UK for the cultivation, manufacture and sale of tea and also exploration of oil and natural gas.

New Delhi , Aug. 22

The Government today cleared 18 FDI proposals worth Rs 586.12 crore. The proposals, approved by the Finance Minister, Mr P. Chidambaram, based on the recommendations of the Foreign Investment Promotion Board in its meeting on August 11, include those by global luxury brands Louis Vuitton Malletier and Lifestyles International Holding Corporation.

It also includes the board taking note of the revised aggregate foreign holding, both direct and indirect, of 74 per cent in Bharti Airtel, a Government release said.

Largest proposal

The largest proposal among those cleared involves an FDI inflow of Rs 345 crore by a consortium led by Mauritius-based Lotus Global Investments Ltd and Duncan Macneill (Holdings) Ltd of the UK for the cultivation, manufacture and sale of tea and also exploration of oil and natural gas.

The proposal entails the issue of foreign currency convertible bonds amounting to $75 million for investment in oil exploration activities.

A proposal by Dutch firm Huntsman Investments (Netherlands) BV to undertake activities relating to the textiles sector was also among those cleared.

The proposal, involving an FDI inflow of Rs 122.50 crore, entails the acquisition of the Dutch firm's existing Indian company, thereby changing the status of the latter from an operating company to holding-cum-operating company.

Paris-based Louis Vuitton Malletier's (LMV) proposal, entailing an inflow of Rs 5.70 crore, aims at undertaking retail trading of single brand products under the brand name LMV and distribution and retail trade of LVM brand products including writing instruments, diary refills paper, shoes, leather items, sunglasses, watches and ready-to-wear.

Other offers

The other proposals include one by Cyprus-based Zepter International Trading Holding, involving an inflow of Rs 90 crore, for carrying out direct selling business of cookware, pots, pans and kitchen tools. The proposal by Lifestyles International Holding Corporation of Spain aims to set up a wholly owned subsidiary to undertake third party contract manufacturing, preferably small scale industries, to manufacture its products in the country. The proposal would entail an FDI inflow of Rs 4.5 crore.

Also, there are three proposals of Star group, of which one relates to undertaking additional activities of creating, owning and distributing non-news and current affairs television channels.

A proposal by Star ISP will bring in Rs 9 crore of FDI for transfer of shares from resident to non-resident and further induction of funds by way of subscribing to shares in PPV Movies and Content Ltd.

Another proposal by Star ISP Ltd, which will bring in Rs 2.75 crore relates to transfer of shares from resident to non-resident and further induction of funds by way of subscribing to shares in Star Games Development Company Ltd.

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