Source: The Hindu Business Line, Jan 19, 2017
New Delhi: The government has cleared six Foreign Direct Investment (FDI) proposals totalling Rs.1,186.5 crore. These include four from pharmaceutical companies including Sanofi-Synthelabo and Boehringer Ingelheim.It also deferred a decision on six proposals and rejected three, according to an official release circulated on Thursday.
The decisions were taken by the Finance Ministry based on the recommendations of the Foreign Investment Promotion Board in its meeting on December 29.Approval was given to Sanofi-Synthelabo (India) Private Ltd (SSIPL) to acquire the consumer health care business of Boehringer Ingelheim India Private Ltd (BI) as a going concern on a slump sale basis.
The non-compete covenants that have been agreed by BI International GmbH as part of the global transaction with Sanofi France was also approved. The transaction did not involve any flow of funds.
As part of a separate proposal, BI India was allowed to acquire the animal health business of Sanofi in India which includes certain assets of SSIPL at Rs.156.5 crore. The non-compete covenants set out in the Global AH Agreement to be implemented in India were also approved.Recipharm Participation B.V. Netherlands’ FDI proposal worth Rs.950 crore for 100 per cent FDI in a proposed Recipharm Group Indian Investing Company (to be incorporated) and 100 per cent investment in an existing pharmaceutical manufacturing company Dagny Pharma Private Ltd was also given the go-ahead.
Idea Cellular Infrastructure Services Ltd’s proposal to take on record the increase of foreign investment in ICISL beyond 50 per cent and allow foreign investment in ICISL up to 67.5 per cent was another proposal to get the approval.
Star Den Media Services Private Ltd’s proposal to discontinue its current business of providing support services to broadcasters in relation to TV channel distribution business, and thus continue to act only as investing company was approved too.
The proposals that were rejected include ones from Tandberg Technology India Pvt Ltd, AMP Solar India Pvt Ltd and Bashundhara Paper Mills India Pvt Ltd.