Fiat gets nod to hike stake (to $465 million) in Fiat India
fiatgroup.com
madeinfiat.com
Fiat S.p.A. plans to invest $1 billion in India in the next five years, making the nation a key element in Fiat's international industrial strategy.
madeinfiat.com
Our Bureau (The Hindu Business Line)
NEW DELHI, July 27
THE Cabinet Committee on Foreign Investment (CCFI) today approved the proposal of Fiat Automobiles to increase its foreign equity from Rs. 910 crores to Rs. 2,000 crores ($465 million) in its wholly-owned subsidiary, Fiat India Automobiles Ltd (FIAL).
Briefing newspersons after the meeting, the Information and Broadcasting Minister, Mr. Pramod Mahajan, said since FIAL is already an existing 100 per cent subsidiary company, there would be no fresh royalty payment required. This proposal of increasing the foreign equity was cleared by the Foreign Investment Promotion Board (FIPB) on May 31.
This increase in equity was to be besides the investment made by the Italian car company in Ind Auto Ltd (IAL), its 50:50 joint venture with Premier Automobile Ltd, New Holland Tractors, Iveco and several other ancillary manufacturing ventures.
Fiat had proposed immediate foreign equity infusion in order to garner fresh capital for its greenfield facility, under construction at Ranjangaon, near Pune. This new plant was to produce Fiat's three-box sedan, Siena, the two-box hatchback, Palio and the station wagon, Palio Weekend for the Indian market.
With Fiat increasing its investment in FIAL, its Ranjangaon facility is expected to be complete soon. Once ready, the manufacturing of Siena which is currently being done at the Kurla plant would be done from the new plant. Also, Palio and the Weekend which are expected to be launched by the year-end or early next year would roll out of Ranjangaon.
|
