NEW DELHI, April 19: Multinationals Motorola, Owens, Adidas, Delphi Automotive Systems and Tupperware have received clearance from the centre to inject fresh capital in the local subsidiaries. Owens, which bought out Ballarpur Industries' stake in Owens Bilt a few months ago to increase its holding to 100 per cent, is making a fresh investment of over $15 million.Owens is subscribing to 5.05 crore equity shares at a premium of Rs 2.50 per share, which will increase its equity base to Rs 106.80 crore from the present Rs 56.21 crore.
Motorola is investing another $10 million in Motorola India, which will expand its equity base to $20 million. The fresh equity is being brought in through Motorola Investments Development Corporation and Motorola International Capital Corporation of USA. Delphi Automotive Systems, a subsidiary of General Motors Corporation of USA, is infusing fresh investment of Rs 16.50 crore by way of non-cumulative redeemable preference shares with an option to convert them into equityshares within 10 years.
Injection of fresh capital became necessary due to expansion of its operations and initial losses which have turned out to be higher than the company anticipated at the time to set up business in the country. Delphi's equity base at present is Rs 28.50 crore. It manufactures automotive components including brakes, catalytic convertors, condensers, drive shafts, steering elements and wiring harnesses.
Tupperware India, which markets food containers, children's toys, cookwares and kitchen aids plans to expand its equity base from $5 million to $18 million in three to four years.
Adidas is stepping up capital investment in its wholly owned subsidiary, Adidas India Pvt Ltd, by $1.2 million. Adidas India will in turn invest the money in Adidas India Trading Pvt Ltd, in which it holds 80 per cent stake. The equity base of the company will go up to $3.2 million.
Motorola is venturing into a number of new business areas in the country. These include establishment and development of anadvanced semi-conductor design centre for large and very large scale integrated circuits; providing consultancy to Indian and global companies in basic, cellular, paging, trunking and telecom networks and services; functioning as a source base for various technical, financial and engineering services for Motorola's regional and global needs and supplying equipment for cellular, value-added network among others.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
