Reckitt Benckiser Plc will set up a new, wholly-owned subsidiary investing company with a 100% foreign equity to make a downstream investment to fully acquire Paras Pharma
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved fast moving consumer goods (FMCG) giant Reckitt Benckiser's plan to invest around Rs3,300 crore via a subsidiary to fund its acquisition of Paras Pharmaceuticals, reports PTI.
A meeting of the CCEA held here cleared the proposal of Reckitt Benckiser Plc to set up a new, wholly-owned subsidiary investing company with a 100% foreign equity to make a downstream investment to fully acquire Paras Pharma.
"The approval is expected to result in foreign direct investment (FDI) amounting to Rs3,300 crore approximately in the wholly-owned subsidiary of Reckitt Benckiser Plc UK," an official statement said
In December last year, Reckitt Benckiser had agreed to fully acquire Ahmedabad-based Paras Pharmaceuticals for Rs3,260 crore.
The shares of the new subsidiary will be 100% subscribed by Reckitt Benckiser (Singapore) (entire equity except 10 shares) and R&C Nominees (10 shares), it added.
Paras Pharma is a privately-owned firm with a portfolio of leading over-the-counter health and personal care brands including, Moov, D'Cold, Dermicool, Krack, Itch Guard and Ring Guard.
It also has a personal care business led by Set Wet, a leading hair gel and deodorant brand.
Reckitt Benckiser had acquired the firm as to expand its business in India.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up 29% stake in HIPL for Rs3,650 crore
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) today approved a proposal for Rs4,500 crore foreign direct investment (FDI) in Hero Investments Pvt Ltd (HIPL), one of the main shareholders in the country's largest two-wheeler maker-Hero Honda-by two private equity firms, reports PTI.
"The CCEA today approved the proposal of Hero Investments Pvt Ltd to receive FDI amounting to Rs4,500 crore approximately in the investing company from Bain Capital and Lathe Investment Pvt Ltd," an official statement said.
The proposal was recommended to the CCEA by the Foreign Investment Promotion Board (FIPB) in February 2011.
The Hero Group had earlier stated that the two private equity firms, BC India Investors II, part of Bain Capital, and Lathe Investment Pvt Ltd, will together pick up 29% stake in HIPL for Rs3,650 crore.
HIPL is one of the main shareholders in the country's largest two-wheeler maker, Hero Honda. It held a 17.33% stake in the company as of 31 December 2010.
In December last year, the promoters of HIPL, the BM Munjal family, had agreed to buyout the entire 26% stake of Japan's Honda in Hero Honda for Rs3,841.83 crore.
After buying out Honda from Hero Honda, HIPL will own 43.33% of India's largest two-wheeler maker.
The Hero Group had earlier this month signed definitive agreements with the PE firms-BC India Private Investors II, an affiliate of Bain Capital LLC, and Lathe Investment Pvt Ltd, a wholly-owned subsidiary of state-run Singapore Investment Corporation (Ventures) Pvt Ltd-for the stake sale in HIPL.
The group said the funds raised from the PE firms will be used to retire a significant portion of the debt that was raised by HIPL recently for financing the acquisition of Honda Motor Company's stake in Hero Honda.
The suppliers have been blacklisted for supplying sub-standard medicine while paying no heed to deadlines for supply and violating procedures
Colombo: Sri Lanka's ministry of health has blacklisted at least a dozen Indian drug suppliers for violating tendering procedures and supplying low quality medicines, reports PTI.
Health minister Maithripala Sirisena has directed his officials to look elsewhere for supplies to meet urgent requirements, officials added.
"I have been told by my officials that Indian companies have violated tender procedures or have supplied low quality drugs," Mr Sirisena was quoted as saying in the local press.
The Indian companies' shortcomings have led to shortages in some urgently needed medicines, officials charge.
Around 100 Indian drugs suppliers are in the Colombo health ministry's suppliers roll, but the companies in the spotlight have been blacklisted for supplying sub-standard medicine while paying no heed to deadlines for supply and violating procedures.