Will Linde India really benefit from semiconductor business?
₹8,370.65, up 1.08% on the BSE. Questions also linger regarding the execution of a deal announced by Linde last year with Indian Oil to supply hydrogen, nitrogen, and compressed dry air to its Panipat facility. Although the deal was announced by parent Linde plc, there has been no confirmation from Linde India on its involvement in the project.
Earlier, these questions were raised by proxy advisory firm IiAS in a report dated 28 March. IiAS alleged that Linde plc had started competing with its India-listed unit in which public shareholders own 25%. “As the India business grows, and newer opportunities like chip manufacture pick up in India, the additional and more complex gas requirements of the economy, will need to be met.
Which group entity gets to service the sector – the parent company directly, the wholly owned subsidiary or one in which the economics are shared with public investors?" the proxy advisor asked in its report. In a rebuttal to the IiAS report, Linde India pointed out multiple factual inaccuracies in the report. However, it did not clarify its position on the underlying key allegations of competition within the group for new business in India and on related party transactions.
When contacted for this story, a spokesperson for Linde India directed Mint towards its rebuttal to IiAS without any additional commentary. At the heart of the matter lies a global merger between Germany’s Linde AG and American Praxair Inc to form Linde plc in 2018. While Linde was present in India through listed Linde India, Praxair operated as a privately held unit in the country.
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