It has also been prohibited from acquiring an equity stake in any existing small scale unit and has directed it to look set up only a new joint venture as the company has not furnished the name of its joint venture partner. The government has also attached riders with the approval granted to Appco of UK for a joint venture with a non-resident Indian (NRI) businessman. The proposal has been cleared subject to the condition that the company would confine its activities to advisory services and consultancy and not venture into domestic trading. Tupperware had sought the approval of the Foreign Investment Promotion Board (FIPB) to set up a joint venture in the small scale sector for manufacture of food containers, children's toys, cookware, kitchen aids etc. All these items arereserved for the small scale sector.

Tupperware's proposes to hold 80 per cent equity stake in the proposed venture. The company stated that it would furnish the name of the Indian partner later. The FIPB has stipulated the 50 per cent export obligation on the company on the ground that equity participation by a non-small scale sector entity in the SSI sector is subject to industrial license and necessary export obligation as per the extant policy. The FIPB has once again rejected the proposal of Sunrider International of USA for manufacture and marketing of herbal based nutritional and personal care products with 100 per cent foreign equity amounting to $27.5 million.

Sunrider wanted to establish a direct selling business. The proposal was rejected last year on the basis of the commerce ministry's stance that it was predominantly for domestic trading, which is not allowed to foreign companies. The company, however, approached the FIPB again this month claiming that it was looking at contractmanufacturing only for a brief period and would subsequently set up its own manufacturing facilities. The proposal was referred to the commerce ministry which against rejected the proposal on the grounds that it would still involve local trading.