Reliance bids for stake in HPCL, BPCL, EIL
New Delhi: The Reliance group has formally informed the government that it is interested in acquiring a stake in Hindustan Petroleum Corporation, Bharat Petroleum Corporation, Engineers India and IBP. The group is looking at managerial control in these public sector corporations and it is willing to pick up equity when the government disinvests its stake in these companies.

The Economic Times in a report said that the Reliance bid for the government stake in the three petroleum companies was a foregone conclusion, but Engineers India is a new addition to the list.
Back to News Review index page

Govt to allow FIs to sell Modi Rubber stake
New Delhi: The government is not intervening in the sale of stake by financial institutions in Modi Rubber.  The financial institutions had placed an advertisement in newspapers inviting bids for their 44 per cent stake in the company and the bid is to close on 5 November.

The Modi group is understood to be owing nearly Rs 1,000 crore to the financial institutions by way of principal and interest. The financial institutions and banks had blacklisted the Modi group and had refused to give any funds unless the group  resolved the Modi Rubber issue  and repaid the dues. However, there has been no progress in the matter.

The matter has been worsened by the fact that the financial institutions are both lenders and bulk shareholders. Besides, the Modi family had split and the current owners of Modi Rubber are stating that they are not the original borrowers of the loan and hence not willing to settle it.
Back to News Review index page

ABB sets up holding arm or India power projects
New Delhi: ABB Power Investments (India), set up recently, will be the holding company for all present and future investments of ABB Energy Ventures in Indian power sector. ABB Energy Ventures will transfer all its interests in Indian independent power projects in favour of ABB Power Investments.

The company has stakes in Bina power project in Madhya Pradesh, North Madras and Neyveli Lignite in Tamil Nadu and Jegurupadu in Andhra Pradesh. The company will also surrender its holding in Daewoo Power India’s Korba East power project in Madhya Pradesh to the new company.
Back to News Review index page

Murugappa group restructuring
Chennai: The Murugappa group is restructuring itself by infusing professional management at all levels of the top management.

The Economic Times, quoting family sources, said family members will not hold the posts of managing director or joint managing director in group companies. Instead, they will be designated as vice-chairmen. The group proposes to introduce a system of supervisory board for the group, replacing the corporate board. The board will be headed by M.V. Subbiah as chairman. Senior family members will be part of the supervisory board, which will also have eminent outside persons as members.

Broadly, the family members will have functional responsibilities. Accordingly, M.A. Alagappan will be in charge of group strategy and marketing services, A, Vellayan will look after marketing, including exports, M.M. Murugappan, technology, and M.M. Venkatachalam human resources.
Back to News Review index page

Marico acquires coconut oil brand
Mumbai: Marico Industries has announced that it is acquiring Oil of Malabar, a coconut oil brand, from West Coast India for an undisclosed amount. Marico will acquire the brand and all associated business and commercial rights, including distribution network and manufacturing facilities.

Marico leads the branded coconut oil market in India with a share of over 50 per cent, through its flagship brand Parachute. Oil of Malabar is said to have a 3.2 per cent market share. Rival Hindustan Lever, which is a distant No 2 in the segment with a market share of 14.5 per cent, has recently acquired Cococare (market share 8.5 per cent) from Recon Oil Industries.
Back to News Review index page

ABX Logistics in alliance with Clearship
Mumbai: ABX Logistics, a division of Belgian National Railways and one of the top players in the global logistics area, has entered into a worldwide strategic alliance with Clearship Forwarders of Mumbai. The alliance is part of the Belgian company’s plans to create a world-integrated network.

ABX has recently acquired a majority stake in Saima Avandero, the $515 million leader in Italian transport and logistics. The company is also to acquire stakes in Dubois of France and Eurofrete of Portugal.
Back to News Review index page

Honda chief coming to appease Hero group
New Delhi: Honda Motor Company’s chief executive officer Hiroyuki Yoshino is visiting India to clear Hero Honda’s apprehension once the Japanese major creates and makes operational its own wholly-owned subsidiary, Honda Motorcycle & Scooter India..

The Business Standard, in a report, said a joint team of Honda and the Hero group has been set up to draw a 10-year strategy to ensure that Hero Honda and Honda Motorcycle & Scooter India complement each other in the market place. The joint team is working out which model will be introduced by Hero Honda and which by the Honda subsidiary. Recently a team of senior officials of Hero Honda, led by managing director Pawan Kant Munjal, had visited Japan and held discussions with Honda officials.
Back to News Review index page

Enron seeks equity in Hazira project
Ahmedabad: Enron India is willing to pick up equity stake in the Rs 560-crore power plant at Hazira in Gujarat. The company is understood to have written to the state government seeking permission to pick up equity in the power plant to be set up by the Gujarat State Petroleum Corporation.

Industrial Development Bank of India is providing Rs 200 crore as debt to the gas-based power project. Of the Rs 560-crore capital, the debt portion will be Rs 400 crore. Apart from IDBI, Power Finance Corporation, banks and other financial institutions are expected to provide loans to the project.
Back to News Review index page

Exide order for Comsat Max
Calcutta: Comsat Max, the second largest VSAT service provider in India and the joint venture between Comsat International of the US and Max India, has bagged a Rs 2.5 crore order from Exide Industries. The network is to connect Exide’s 35 offices and factories in the country.
Back to News Review index page

Chase-led group acquires stake in ASAT
Hong Kong: A consortium led by Chase Asia Equity Partners said it has acquired 50 per cent stake in Hong Kong-based ASAT, which assembles integrated circuit packages for semiconductor industry and has annual sales of over $250 million. It is part of the debt-ridden QPL International Holdings.

The acquisition is the first US-style leveraged buyout in Asia after the economic crisis began. The transaction included cash equity of $112 million paid to QPL International Holdings for its 50 per cent stake in the company.
Back to News Review index page

BT to hike stake in Airtel
London: British Telecommunications is said to be planning an increase in its stake in Airtel, the Spanish telephone joint venture.

The company refused to comment on a report in the Sunday Telegraph paper, which said British Telecom will pay $2 billion to double its 17.8 per cent equity in Airtel. Airtel is also owned 30.45 per cent by Spanish bank Banco Santander Central Hispano and 21.7 per cent by London-listed mobile operator Vodafone Airtouch.
Back to News Review index page