NEW DELHI: The Foreign Investment Promotion Board (FIPB) has cleared the 3540 million dollar proposal of the leading U.S. food processing firm Kellogg Company, to set up manufacturing facilities in India, the Economic Times reported Friday.
This is the fourth major foreign investment proposal cleared by the Narasimha Rao government.
BMW of Germany, IBM and Ford of USA have already been cleared to start joint ventures with Indian companies.
The Kellogg proposal visualizes in inflow of foreign capital of nine million dollars and an out flow on imported capital goods 7-8 million dollars.
According to the paper the proposal contends that in the first 8 to 10 years dividends will not be remitted to the parent company. Consequently the net effect on India’s balance of payments, would be positive in the first 10 years, the daily reports. The Kellogg proposal, aims. at, pro viding “ready to eat” central manufacturing facility involving creation of export markets in neighboring countries, Pakistan and Sri Lanka with subsequent addition of Nepal and Bangladesh and also achieve an export tum over of 20-25% of production from the facilities set up here.
The “ready to eat” cereal manufacturing facilities of Kellogg’s will generate substantial benefits in the secondary and tertiary sectors, the paper added.
Article extracted from this publication >> October 18, 1991
