Consider the following investments in an economy by a foreign company :
1. Purchase of the ownership of a transport company
2. Setting up a new company to produce transport equipment
3. Acquisition of a Public Sector Unit
4. Building a storage facility to expand the production capacity
Which of the above are examples of brownfield investments?

Foreign Direct Investment (FDI) is generally classified into two types based on the entry strategy: Greenfield and Brownfield investments.

• Brownfield Investment: This occurs when a foreign company purchases or leases existing production facilities or infrastructure to launch its operations. It typically involves Mergers and Acquisitions (M&A). Statement 1 (purchase of ownership) and Statement 3 (acquisition of a Public Sector Unit) are classic examples of acquiring existing assets, hence they are brownfield investments.
• Greenfield Investment: This occurs when a company starts a new venture from scratch by constructing new facilities. Statement 2 (setting up a new company) and Statement 4 (building a new storage facility) involve the creation of new assets and infrastructure, which are characteristics of greenfield investment.

Since only statements 1 and 3 represent the acquisition of existing entities, option C is the correct answer.