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June 27, 2001
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Money > Business Headlines > Report June 27, 2001 |
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Chinese firms rush to form JVs with Indian partnersPartha Ghosh Chinese companies, ranging from mobike manufacturers to mobile phone and liqour firms, are making a beeline for investing in India through joint ventures with small domestic partners. Chong Qing Anhui Wargguan Motorcycle Co Ltd has applied to the Foreign Investment Promotion Board to go in for a financial and technical collaboration with the Bombay-based Vision Power. The JV proposes to launch motorcycles, scooters and step-through mopeds in the Indian market. The equity base of this company is Rs 40 million, 50 per cent of which is being subscribed by the Chinese firm. Sources told Business Standard that the JV had proposed to import the vehicles in knocked down form and then assemble them in India before they were retailed. The Hong Kong-based Wahtak Group Ltd is investing a little more. It is picking up a 50 per cent stake in a JV with the Madras-based R&R Engineering Management Services at a consideration of Rs 40 million. The capital base of the JV, which will also import, assemble and sell motorcycles, scooters and mopeds, will be Rs 80 million. Consumer durables manufacturer TCL, which has a joint venture with the Baron group for manufacturing and marketing televisions and other consumer durable products in India, has a separate company in China for manufacturing and marketing mobile phones. According to sources, TCL Mobile Communication Co Ltd is entering into a JV with the Madras-based Global Marketing and Distribution Co. It plans to pick up 50 per cent stake in the mobile phones marketing company with an equity investment of Rs 10 million for which it has already applied to the FIPB. Government sources say that most of these companies will essentially market the products in the country and may have small assembly operations. None of them are looking at large investments. A Chinese company has also moved the FIPB with a proposal to import and sell cigarettes and liquor. The existing FDI guidelines, however, does not permit trading of cigarettes and liquor and hence, the secretariat for industrial assistance in the industry ministry may suggest rejection of the case. Powered by YOU MAY ALSO WANT TO READ:
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