The Reserve Bank of India (RBI) said on Monday that Indian companies invested $1.65 billion abroad in February.
Companies committed the money by the way of equity, loans and issuing guarantees to their wholly-owned subsidiaries (WOS) and joint ventures (JVs) in foreign countries. In outward foreign direct investment, Indian companies had an equity contribution of $291 million, while they gave loans worth $258 million. Companies issued guarantees worth $1.1 billion.
Major companies which invested in foreign countries included Escorts Heart Institute, Crompton Greaves and Punj Lloyd. Escorts issued guarantees worth $400 million to its WOS in Singapore, Fortis Asia Healthcare PTE Limited and also gave a loan of $9 million to this company. Crompton Greaves issued a guarantee of $202 million to its JV in the Netherlands, CG International BV. This JV is engaged in wholesale and retail trade and also in restaurants and the hotels business.
Punj Lloyd give a guarantee of $107 million to its WOS Punj Lloyd PTE Limited which was formerly known as Creighton PTE Limited. It also gave a loan of $1.3 million to this company. This company is engaged in finance, insurance and business services according to RBI data.
In January, 2013, Indian companies had invested $3.30 billion in other countries.
RBI publishes monthly data of Indian companies’ investments outside the country.