The Hindu Business Line : Ministry opposes Cargill 100% outfit

THE External Affairs Ministry is believed to have opposed the Singapore-based Cargill International's proposal to set up a 100 per cent subsidiary in India. The US-based commodity trading giant Cargill Inc has firmed up plans to set up its second wholly-owned subsidiary in India at an investment of Rs 25 crore.

The company already has a wholly-owned subsidiary in India, Cargill India Ltd, and has established a substantial presence in the retail branded commodity market in the country through its Naturefresh brand of atta, rice, refined oils and salts.

The proposed new subsidiary will be set up by Cargill Inc's 100 per cent subsidiary in Singapore, namely, Cargill International Trading Pte Ltd (CITPL), and will be engaged in wholesale trading activities and related advisory and consulting services.

The Singapore-based CITPL acts as the regional headquarters for Cargill's Asia-Pacific operations and is mainly involved in trading of commodities such as steel, food and feed grains, tropical oils, rubber and cocoa.

CITPL has approached the Foreign Investment Promotion Board (FIPB) seeking permission to set up the new subsidiary. The proposal is likely to be taken up by the FIPB at its next meeting.

Sources familiar with the developments said the move was aimed at expanding the Cargill group's activities in India where a number of specialised commodity exchanges are expected to become operational over the next few years.

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