A statement from the Indian Finance Ministry on 26 October 2006 said that the government has approved a proposal by Guardian Industries Corp. to build a new float glass making unit in India at an inve…
A statement from the Indian Finance Ministry on 26 October 2006 said that the government has approved a proposal by Guardian Industries Corp. to build a new float glass making unit in India at an investment of USD 66.67 million. US Guardian has been allowed to establish a new fully owned subsidiary after objections from Modi Rubber Ltd., Guardian“s existing joint venture partner in the country were overruled by the Foreign Investment Promotion Board. Under Indian law, if an overseas company has an existing partnership with an Indian company, it cannot build a wholly owned subsidiary without the consent of its domestic partner. Modi Rubber holds a 21.24% stake in float glass and mirror making company Gujarat Guardian Ltd., in Gujarat. Guardian holds a 50% stake in the company, but intends to build a new glass unit at a location not yet announced.