Financial Daily from THE HINDU group of publications
Tuesday, Feb 05, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Corporate - New Projects
Government - Policy


Manufacturing facilities in India -- Heraeus Kulzer plea for more time turned down

Ambarish Mukherjee
Nithya Subramanian

NEW DELHI, Feb. 4

DENTAL products manufacturer Heraeus Kulzer Dental India Pvt Ltd's proposal seeking more time for setting up its manufacturing facilities in the country has been shot down by the Government.

The company had sought an extension of the validity period of its foreign collaboration (FC) agreement for setting up manufacturing facilities in the country after test-marketing its products.

The Secretariat of Industrial Application (SIA) pointed out that under the existing policy, the company had failed to meet test-marketing conditions and had also applied for deletion of the entry-level condition.

The company was initially granted approval to manufacture and distribute dental products, including alloys, denture vase, laginate, composites, teeth and dental equipments. Last year, the company was permitted to test-market products that are manufactured in India.

However, in its latest application to the Foreign Investment Promotion Board (FIPB), the company said that after last year's import policy, whereby quantitative restrictions were removed and imports freed, it has been finding it difficult to put together an economically viable plan for manufacturing activities for its product in India immediately. Meanwhile, it has introduced a range of products in the Indian market.

The company said that to make a manufacturing operation viable, it was important to attain a critical mass. At this juncture, it did not make business sense to commence production for its entire range of products.

Heraeus Kulzer has now sought permission to undertake import and wholesale trading of various brands of dental products in India and provide marketing and after-sales support to various distributors and retailers.

The company has also given an undertaking that it will not be involved in any retail trading activity. It has said that it is committed to manufacturing its products in a phased manner. Its business plan includes product selection. An agreement with the business partner would be finalised by the end of this quarter.

Send this article to Friends by E-Mail

Stories in this Section
Reliance hikes polymer prices


Fiat increases prices of Palio models
SCI to trim Govt debt with loan from BoB
US accounting industry in for `major overhaul'
Arthur Andersen in another mess
Corporates may have to pay more for insurance cover
Maruti unveils Versa in super deluxe version
EPCOS to relocate more facilities to India
Indian Oil set to acquire IBP
Manufacturing facilities in India -- Heraeus Kulzer plea for more time turned down
Best Western plans more hotels in India
Royal Dutch seeks extension of Hazira pact
L&T eyeing IT ventures in Gulf region
IPCL exit price from GE Plastics at Rs 49.03 cr
Wind screen claims -- Shield Autoglass teams up with IFFCO-Tokio Marine
HAL to go civil with Boeing
Fortune Info, NRG ink marketing deal
CAs must help in cost-cutting, says Jaitley
Becton scouts for biotech opportunity
RINL forges ahead of other steel units


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line