Business Investments in India & Australia
The number of Australian Joint ventures in India that were approved during the period August '91 to December 2001 was 417. Of these 276 collaborations were financial and 141 technical.
According to accumulated total of approvals upto December 2001, Australia ranked as the 8th largest source of foreign investments in India.

Source: SIA & Indian Investment Centre

There were 31 approvals granted in 2001 with a cumulative value of Rs 843.8 million. In the year 2000, 32 approvals were granted with the total value being Rs 616.95 million (A$ 24.6 million*). The largest amount invested in India for
Australian joint ventures during any calendar year since 1991 was in 1998 when approvals granted were valued at Rs 26,377.2 million (A$ 1055 million* ).

The total value of Australian investments in India during the period August 1991 to December 2001 was Rs 67013.2 million (A$ 2680.5 million at the exchange rate of 25 Rs /A$* ) million. This accounts for 2.44% of the total approved investment from all countries.

Some significant ventures that were granted approvals during the year 2001

· Lexmark Asia Pacific obtained approval to establish an evaluation unit for software and development for Lexmark products world wide.

· BHP petroleum is to set up a joint venture company with Kakinada Energy Pty Ltd to develop, construct, own and operate a liquid fuel terminal.

· Australia New Zealand banking Group has obtained approval to set up a subsidiary to undertake merchant banking, project finance, corporate finance and other financial advisory services.

· M/s Clough Ltd., an Engineering and Construction Company, has won a US$ 44 million (A$86 million) share of an oil and gas contract off India's west coast. A consortium of Clough Engineering and South Korea's Hyundai Heavy Industries awarded the US$80 million contract to develop the Lakshmi field for joint venture partners Cairn Energy India Pty. Ltd., Oil and Natural Gas Corporation Ltd. and Tata Petrodyne Ltd. The field is in the Gulf of Cambay, 260 km north of Bombay.

Source: SIA & Indian Investment Centre

· AMP Australia, one of the world's largest infrastructure investment fund, which manages about $200-billion investments, is acquiring close to 4% equity stake in Gujarat Pipavav Port, India's first private sector port. It is understood that AMP and GPPL have
already finalised the stake acquisition deal at a price of a little over Rs80 a share. The stake acquisition will cost AMP a total of about $12 million (close to Rs.60 crore). The equity investment by AMP is to be used for part-funding the second phase expansion of the Pipavav port, located at the western cost of Gujarat. The second phase expansion of the port will include construction of an additional terminal and installing container cranes (quay cranes) at the port.

· Chennai-based Sanmar group has signed an agreement with AMP (Australian Mutual and Prudential) Ltd of Australia for starting an insurance company in India. The new company, AMP Sanmar Assurance Co. Ltd., will be based in Chennai and will initially focus on the life insurance business. The venture is reported to kick off in the next 4-6 months, provided all the approvals are obtained by that time. The investment in the venture would be around Rs.100 crore, with the Sanmar group holding 74% and AMP 26%. AMP is Australia's largest international financial service business providing wealth creation and protection products and services to around 10 million customers worldwide. It manages assets of about $ 300 billion.

· AMP is also partner with UTI in asset management. The two companies launched an infrastructure fund for bringing in offshore funds of A$ 500 million for infrastructure sectors.

· India's Oswal Group would construct an A$ 600 million ammonia plant at Karratha close to North-West Shelf project (Western Australia). Most of its di-ammonium phosphate (DAP) fertiliser production, which is likely to start next year subject to final Government approvals etc. are granted, would be sold to India. It is estimated that this plant would produce 700,000 tonnes fertiliser a year, which would be the largest ammonia facility in the world and would generate export earnings of A$ 200 million a year.

ACC / Rio Tinto Minerals have set up and exploration company to undertake exploration of minerals including not limited to Gold, Silver, Diamonds, Copper, Lead, And Zinc

Other Business Information

· Satyam Computer Services opened its Sydney Software Development Centre in November 2001 This was inaugurated by the Minister for Financial Services and Regulation, Mr. Joe Hockey. In the presence of Mr Rathore, High Commissioner of India and the Chairman of the Satyam Computer Services, Mr. B. Ramalinga Raju.

· Australian Indian Resources' subsidiary Rama mines is ready to commence drilling on its granted mining leases near the Kolar Gold Fields. AIR's other licences in India approved include parts of Goa prospective for Chromite, nickel and platinum group metals, a potential zinc resource in Maharashtra State and areas around the Wairagarh diamond field.

· Two Australian companies Leverage and Asia Pulse have decided to launch operations in Chennai for Intellectual Property - related work like market research, contact aggregation, data research, integration and analysis.

· Air International and Australian air conditioning designer and manufacturer has won a contract to supply systems to India. Air Intl will design and supply 480 high capacity rail car air conditioning systems and 120 driver cabin A/C systems. The deal is worth A$ 20 million over three years.

· The P&O Ports offer for development of a container terminal at the country's busiest port has been accepted. The Board of Trustees of Kandla Port Trust has awarded the Rs.300 crore project on build, operate and transfer (BOT) basis to the Australian company. The Board, however, has reportedly deleted the monopoly clause from the concessional agreement.

· The Reserve Bank of India has conveyed its approval for upgradation of the State Bank of India's Sydney Representative Office into a full-fledged branch. The project now awaits formal clearance by the Australian authorities. SBI's Representative Office in Sydney was established in November 1998. The upgradation would greatly help in business-transactions between the two countries.

· ABL organised a successful trade mission to India recently led by Department of Industry Science and Resources (DISR). It visited Mumbai, Chennai, New Delhi and Hyderabad and produced a number of significant outcomes for Australia's environmental industries. Seminars and meetings held in each city enabled ABL's Indian counterparts to appreciate what Australia offers by way of cost-effective, sustainable solutions in areas such as waste water treatment and water conservation, waste management, clean air technologies and renewable energy. Some notable outcomes attributable include:

a. An MOU between Andhra Pradesh and Queensland promoting collaboration on environment projects;
b. A demonstration project being established in Mumbai in cooperation with the Municipal Corporation of
Greater Mumbai to showcase drainage management systems.

c. Proposals to provide a Solar Mass Conversion Water System for treating brackish ground water for a community of 320 families and a water recovery and effluent treatment plant for a tannery in Tamilnadu, with funding to be provided by the UN Industrial Development Organisation.

Some of the major Australian companies having offices in India are

ANZ Bank Fosters Brewing P & O Australia
AMP Futuris Industries Pasminco
Ansell Gerard Industries Qantas
Argyle Diamonds GIO Reinsurance RTZ_CRA
BHP Co Ltd JNA Telecommunications (Lucent) S M E C Ltd
Boral Ltd John Holland Group Southern Pacific Hotels
Britax Rainsfords Lumley Technologies Telstra International
Burns Philp Melba TNT Express
Cottee Corporation MIM Holdings Village Road Show
CMPS & F Pty Ltd Olex Cables Warman International
CPH Orica White Industries

© 2003 Consulate General of India ,Sydney