India Inc's March overseas investment at $1.88 bn

Indian companies invested $1.88 billion (around Rs 10,260 crore today) in other countries last month, up from $1.65 billion in February, according to the Reserve Bank of India. Companies committed the money by the way of equity, loans and issuing guarantees to their wholly-owned subsidiaries and joint ventures in foreign countries.

The majority of money was invested in the form of guarantees. Companies issued guarantees worth $1.46 billion, while they had equity contribution of $217 million and gave loans worth $201 million.

Major companies that invested in foreign countries include Escorts Ltd, Videocon Industries Ltd, ILF&S Group and Glenmark Pharmaceuticals Ltd.

Videocon Group, in two different transactions, issued guarantees worth $853 million in its subsidiary Videocon Hydrocarbons Holdings Ltd. This company, which is into mining and agricultural activities, is located in the Cayman Islands in the Caribbean Sea. ILF&S gave guarantees worth $105 million to its subsidiary ITNL International Pte Ltd in the US.

Glenmark invested six different countries in March. Its biggest transaction among the six was the $60.58 million investment it made in its subsidiary Glenmark Holdings SA, located in Switzerland. Out of the $60.58 million, $57 million was in the form of guarantees, while it gave a loan of $3.58 million to this company. Kenya, Mexico, Peru, Russia and Venezuela are the other countries where Glenmark invested during the month.