NEW DELHI, April 9: Industrialist and the Federation of Indian Chambers of Commerce and Industry president KK Modi's plans to diversify into the fashion jewellery business have been nipped in the bud. The union government has rejected the UK-based Cabouchon Ltd's proposal to enter into a 50:50 joint venture with KK Modi Investment and Financial Services.Cabouchon had sought government approval to pick up a 50 per cent stake in the proposed venture as well as a technical know how fee of 2 per cent on net sales made by the venture in the country. Though government officials refused to give reasons for rejecting the proposal, sources said the company's plans to import jewellery from Cabouchon worth 1 million for test marketing before setting up the project was not acceptable.
Cabouchon had proposed import of jewellery to determine local needs and receptivity to the product range. However, Cabouchon has not given any commitment to exports products from India. Cabouchon has also not specified the totalinvestment in the proposed manufacturing facility and the time frame to indigenise its Indian operations. Cabouchon had merely mentioned that it would indigenise the operations as soon as it is feasible.
It had also said efforts will be made to procure the maximum amount of raw materials from local suppliers as long as they are competitive and meet Cabouchon's technical and quality specifications.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
