It has also approved the proposal of General de Confiteria, a subsidiary of Agrolimen group, to source confectionery products from independent small scale units for marketing and distribution through its network. In both the cases, FIPB overruled the advice of the food processing ministry which had sought deferment of a decision on the proposals.

The Board has, however, rejected a proposal by Foley Management International Inc of USA to establish a 100 per cent owned subsidiary to provide market support service and establish local distributors and marketing network for Amway Corporation in the country. The proposal was rejected on the recommendation of the commerce ministry which stated that the capitalisation of the project at merely $ 15000 was too low.

This is the second proposal related tosetting up of marketing support company for Amway Corporation to be rejected by FIPB in the last two weeks. FIPB gave its nod to Indo Nissin Foods case on the ground that it was a simple case of increase in equity participation by foreign partner which was duly supported by a board resolution of the Indian company and similar cases have been approved in the past.

Similarly, the proposal of General de Confiteria was also approved on the basis of the company's undertaking that it would not manufacture any item reserved for the small scale sector and only wanted to source them from small units. Such cases have also been approved by FIPB in the past.

Nissin Food's stake in the company will go up to 80 per cent in the total paid up equity capital of Rs 45.50 crore. Nissin will pay HLL about $2.95 million for buying additional 40 per cent stake, sources said.

Itochu Corporation of Japan will continue to hold 10 per cent equity stake in Indo Nissin Foods, which manufactures instant processed food.

The boardalso cleared the proposal of General de Confiteria India Ltd, which manufactures chewing gums and confectionery products, to market and distribute confectionery items manufactured by small scale sector. The company will also provide assistance in procurement of high quality raw material to the SSI units, access to appropriate international standard technology at no additional cost, establish benchmarks for quality of the products and marketing and advertising of the products.