32 SOCIAL SCIENTIST Brothers (India) on November 27, 1956. A special resolution was passed in the extraordinary general meeting of the company approving of the changed status of the company—from a private limited company to a public limited company, and this was sanctioned by virtue of a Bombay High Court order on October 1, 1956. The Company Law Administration approved the existing memorandum and the inclusion of more business activities, allowing the company (i) to carry on business in and manufacture vegetable products, margarine, all kinds of fats and Oleogenous emulsions, (ii) to manufacture and cteaT in articles of food of al[ kinds. It is important to note here that the government of the independent Indian Republic approved the existing memorandum in a period when there was a hue and cry about reducing the power of foreign companies in India. Equity Dilution In 1956, Unilever, for the first time, released 10 per cent of equity shares for Indian participation. But by releasing 10 per cent of the shares, Unilever did not lose its control over the subsidiary. In absolute terms, the paid-up capital increased from Rs. 200 lakhs in 1955 to Rs. 501 lakhs in 1956. Only Rs. 55.7 lakhs worth of paid-up capital was transferred to Indian shareholders. In 1965, Unilever further diluted the foreign shareholding by 14 per cent, but the paid-up capital in its hand increased to Rs. 794.64 lakhs. Thus, in the name of handing over financial control of the company to Indians, Unilever, first of all, consolidated its position. Secondly, whenever it diluted foreign equity participation, it further consolidated its business by extending its operation to new lines of production. Thirdly, by extending to new lines of production it convinced the government that it was helping in the industrialisation of the country, and on that ground could plead for holding a majority of the equity shares. After the 1956 equity dilution, the company entered into another line of production, i.e., synthetic detergents, the production of which started in 1959.2 The production of chemicals also started in 1958. On this basis, the company started claiming that it had entered into a line employing sophisticated technology and thereby was qualified to maintain its majority shareholding. After the second phase of dilution in 1965, the company entered into the production of synthetic detergent cake (Rin)in 1969. Afterwards, more chemicals production was introduced, like Cintronella, in 1970. The HIMA range of food products, milk products, talcum powder and Signal tooth-paste were introduced at that stage of the Indianisation of capital. It is interesting to note that the MRTP Act and FERA were passed during this period, in 1969 and 1973 respectively, when Hindustan Lever was going ahead with