The novel coronavirus outbreak had brought many countries to a grinding halt as people stay home and most businesses remain shut.
On Monday, Union Minister of Chemicals and Fertilizers Shri DV Sadananda Gowda suggested that Indian corporates especially PSUs under his Ministry should try to convert COVID-19 adversity into an opportunity of attracting investments from abroad.
Taking heed of the same, HIL (India) Limited, formerly known as Hindustan Insecticides Ltd, has sent proposals to Indian embassies and missions in China, Japan and South Korea. The company is looking to expand its business area and has invited interested agro-chemical manufacturers in these countries to invest in India for business tie-up with HIL including contract manufacturing or plan-on-lease arrangement.
This was announced on Monday via a PIB press note.
HIL incidentally is one of three Central Public Sector Undertakings (CPSU) in the chemical sector. The others are Hindustan Organic Chemicals Ltd (HOCL) and Hindustan Fluorocarbons Limited (HFL), which is a subsidiary of HOCL.
The Press note added that as a whole the Department of Chemicals and Petrochemicals had taken initiatives to overcome challeges created by the viral outbreak. To this end, the Department was now looking into “exploring Joint Ventures with global enterprises looking for investments”.
PIB said that despite facing hurdles HIL has managed to ensure that the health segments and the seeds and pesticides in agriculture segments received a supply of essential chemicals such as DDT.
While the lockdown has affected production, the company “has now shown a good sales performance during the last week ended on 24th April”. Reportdly, it has sold 37.99 MTs of agro-chemicals, despatched 97 MTs of DDT and executed an export order of 10 MTs of Mancozeb 80% WP to Peru.
“HIL has also drafted an agreement which has been shared with the Ministry of Agriculture for supply of Malathion Technical for Locust Control Programme,” PIB added.
It must be mentioned that earlier this month the Centre had made it mandatory to get its prior approval for foreign investments from countries that share land border with India to curb “opportunistic takeovers” of domestic firms. This includes investments from China.
The decision comes amid fears that companies in China might attempt takeover bids as domestic companies grapple with the novel coronavirus.
Other countries that share borders with India are Bangladesh, Pakistan, Bhutan, Nepal, Myanmar, and Afghanistan.
A PTI report had added that the amended policy is intended to halt “opportunistic” takeovers and acquisitions of Indian companies as the country combats the novel coronavirus outbreak. It had also said that government approval will be mandatory for any transfer of ownership of any existing or future FDI in a company in India, which results in change in beneficial ownership, falling under this new restriction.
(With inputs from agencies)