ZTE seeks nod to invest Rs 100 cr

ZTE Corporation, China's largest telecom equipment manufacturer and wireless solutions provider, has sought the Foreign Investment Promotion Board's approval for investing Rs 100 crore in India.

The investment is to made through its arm, ZTE Telecom India Corporation, for funding its expansion, that includes importing of telecommunications products and setting up service centres.

"Until date, ZTE has invested over Rs 5 crore in India. Further investments for broadening our scope of business is estimated at Rs 100 crore. The current paid-up capital of ZTE India is Rs 92 lakh and this is to be increased by allotting additional shares worth Rs 5.05 crore. At present, ZTE India had not issued any preference shares," the company said in a letter to the FIPB.

Additional business activities require an investment of Rs 2.25 crore initially, which would be met through further infusion of funds in equity of ZTE India by ZTE Corporation.

This would generate direct employment to over 100 skilled personnel and indirect employment to 200 people.

At present, the company employs 400 professionals directly and offers indirect employment to another 200, who provide support, maintenance and logistics services at the company's four centres.

According to sources, ZTE Corporation would increase investments in the country over a period of time and the total investment of Rs 100 crore would also depend on the availability of opportunities in the country.

ZTE China holds 92,046 equity shares, while ZTE Kangxun Telecom of China holds one equity share in order to comply with requirements of Indian Companies Act, 1956, that a private company should have a minimum of two shareholders.