India Inc’s investment in foreign units falls 39% to $2.65 bn in Sept

Investment

India Inc’s investment in overseas ventures fell by nearly 39.3 per cent to $2.65 billion in September this year, according to the RBI data released today.

Domestic companies had committed $4.37 billion as outward foreign direct investment in the year-ago period, September 2016.

In August 2017, India Inc had invested $1.34 billion in their overseas ventures that were either fully-owned subsidiaries or joint ventures of the Indian parent companies.

The $2.65-billion worth of investment during September was in the form of equity stake, loan as well as issuance of guarantee by these Indian entities, the RBI said.

Of this, the highest portion of about $1.22 billion came in as guarantee issuance; followed by $1.06 billion as loan and $374.95 million was part of the equity holding.

Major investors included Tata Steel, which put $858.29 million in a wholly-owned subsidiary (WoS) in Singapore; TCS $356.29 million in WoS unit in the UK and Bharat Petroresources committed a collective $164.60 million in its two fully-owned units in the Netherlands and Singapore.

Chemicals, shipping and metal company Sanmar Group International invested $280 million in a WoS in Switzerland.

Government-owned Gail India invested a combined $101.50 million in a US-based wholly-owned company and Myanmar-based joint venture company, while Wipro put $79.52 million in a UK-based wholly-owned firm.

Source:-hindu

Written by Loknath Das