Reliance records record Q-1 net
Mumbai: Reliance Industries has recorded a first quarter net profit of Rs 510 crore for 1999-2000, which was up 16 per cent from the previous year's first quarter figure of Rs 441 crore.

The company says it is for the first time that a private sector company has achieved a first quarter net profit of over Rs 500 crore. On the other hand, it says it is not sure of sustaining the level for the next three quarters. "The recovery has already showed signs of weakening. Based on the present market trends, we believe that the current momentum in earnings growth is unlikely to be sustained over the balance of the financial year," Anil Ambani, managing director, said.

Mr Ambani said the company would want to become one of the top three polyester-producing companies in the world in the next three years.

"The company will expand its polyester capacity to 1 million tonnes through expansions or acquisitions," he said. Reliance is at No 7 in the world now, the company claims.
Back to News Review index page

Telco truck sales up
Mumbai: Tata Engineering and Locomotive Company has recorded a sharp increase in the sales of medium and heavy commercial vehicles in June 1999. The company has sold 5,646 trucks in the month compared to 4,427 in the same month last year.

The company, however, has lower sales figures for light commercial and utility vehicles. For the quarter ended June 1999, sales of light commercial vehicles were down 6 per cent to 8,086 units and those of utility vehicles 16 per cent to 6,620 units. 
Back to News Review index page

Baroda Rayon loans rescheduled
Mumbai: Financial institutions have rescheduled Rs 110 crore worth of loans defaulted by the Baroda Rayon Corporation. The rescheduling is being done on the basis of a court ordered consent decree.

The rescheduling gives a 10-year breathing time for the beleaguered company, which can now repay the loans at an interest rate of 16 per cent over eight years after an initial two-year moratorium.

However, if the company fails to pay two consecutive instalments, a court receiver will be automatically appointed and the financial institutions will have the power to either run the company under the supervision of the receiver or liquidate its assets. 
Back to News Review index page

Alliance Air to lease aircraft
New Delhi: Alliance Air, the 100 per cent subsidiary of Indian Airlines, plans to lease up to four Boeing 737 aircraft this winter.

The company is studying the financial bids of leasing companies. It plans to meet the winter's high season traffic through this arrangement. The leasing will be done in conjunction with Indian Airlines.
Back to News Review index page

Indian banks have $50 m in Essar FRN
New Delhi: Indian banks -- State Bank of India, Bank of India and Uco Bank -- hold $50 million of the $250 million floating rate notes issued by Essar Steel.

Banks in the United States and Europe hold $75 million, while Far Eastern, Chinese and Korean banks hold $50 million in the FRN. The balance is with retail investors.

Essar Steel has sought refinance from financial institutions to redeem the FRNs, the deadline for which is 20 July. The group has rejected a suggestion by the financial institutions to roll over the FRN for five years or repurchase them at a discount. 
Back to News Review index page

Hughes Software to raise equity
Mumbai: Hughes Software is planning to raise Rs 300 crore of equity funds from the public through the book-building process.

The communications software company is a 100 per cent subsidiary of Hughes Network Systems of the US. It will be the first company to have a public issue through the book-building process. 
Back to News Review index page

Kale Consultants plans public issue
Pune: Kale Consultants, leading software products and services developer, is making a Rs 40-crore public issue before December 1999.

The company is also planning an employees' stock option plan simultaneously.
Back to News Review index page

Infosys to strengthen R&D
Mumbai: Infosys Technologies is refurbishing its research and development activities so that it can not only strengthen its core activity but explore other high-tech areas in software services.

Nandan Nilekani, the company's managing director, says, "We are exploring newer technologies like COM/DCO/CORBA and RML. In addition, we are looking at the role of information technology in the fast growing areas of e-commerce, e-business and telecom."

The thrust of the research and development activities will be on areas like internet, which account for just 3.7 per cent of Infosys's 1998-99 turnover of Rs 512.74 crore.
Back to News Review index page

Ampersand takes stake in US companies
Bangalore: Ampersand Corporation, the American unit of the Bangalore-based Ampersand Software Applications Ltd, has taken equity stakes in two US companies, The company is also planning to acquire a US company.

The equity stakes will be a combination of sweat equity and cash payments.  
Back to News Review index page

Diet Coke to hit Mumbai
New Delhi: Diet Coke bottled in India will be launched in the next few days in Mumbai, where Pepsi has already launched its Diet Pepsi.

Bottled at Coke's Pune plant, Diet Coke will be available in 330 ml cans and 1.5 litre bottles.

Coca-Cola is likely to price Diet Coke at around Rs 20 for the cans and Rs 40 for the pet bottles.

Diet Coke's launch has been delayed because the Union health ministry has taken the view that carbonated waters must contain 5 per cent sucrose.  A division bench of the Delhi high court has restrained the health ministry and other authorities from taking any action against Diet Coke.
Back to News Review index page

Bharat Glass revises open offer terms
Mumbai: Bharat Glass Tube has revised the terms of its open offer for acquiring 12,87,880 equity shares of Indo-Asahi Glass Company. It has revised the offer price from Rs 5.82 per share to Rs 5.91 per share. The new price is based on the average of weekly high and low of the closing prices of Indo-Asahi Glass Company for 26 weeks ended on 21 May 1999. 
Back to News Review index page

Coca-Cola gets go-ahead for Schweppes buy
Atlanta: Coca-Cola has been given the go-ahead by the regulators in South Africa to buy Cadbury Schweppes' soft drinks business in that country.

Coca-Cola has encountered opposition from regulators in Australia and Europe to the December 1998 deal with Cadbury Schweppes to buy its soft drinks business worldwide on grounds that it would cripple competition in soft drinks. 
Back to News Review index page

Sony plans pullout from North America
Tokyo: Sony is to pull out of the North American mobile phones market by end-September, as part of a worldwide reorganisation of its mobile phone operations.

Sony said it would discontinue the engineering, sales and marketing of its mobile phones in North America. Sony's handphones will not be manufactured by Qualcomm Personal Electronics, the joint venture of the company with Qualcomm.

The US comprises 40 per cent of Sony's worldwide mobile phones business. Japan constitutes only 30 per cent.  
Back to News Review index page

Toshiba to buy IBM's stake in JV
Tokyo: Toshiba, the Japanese electronics major, is planning to buy IBM's 50 per cent stake in Dominion Semiconductor, a joint venture of the two companies for chip-making.

Toshiba wants to use Dominion to increase its output of advanced flash memory chips.  
Back to News Review index page

Fiat wants higher stake in Landrover
Milan: Fiat Spa of Italy is in talks with the Hindujas for an hike in the company's stake in Landrover International Holdings, a joint venture between Fiat's Iveco and Ashok Leyland of the Hindujas.

Iveco holds 30 per cent equity in Landrover International and Ashok Leyland 70 percent.

The Fiat group wants to invest $2 billion in India by 2002. The talks with the Hindujas are part of this plan. The company would prefer a collaboration with Landrover to make a new range of diesel engines to be manufactured by Iveco and Ashok Leyland.  
Back to News Review index page

BNP gets go-ahead
Paris: Banque Nationale de Paris received the go ahead from the French regulator for its hostile bid on Societe Generale and Paribas.

However, the approval is conditional. BNP has to undertake three commitments regarding its offer of certificates of guaranteed value to Paribas' shareholders, reducing BNP's margin for manoeuvre in the future.

The regulator asked BNP to change the way it valued the certificates.

Societe Generale and Paribas are planning a friendly merger, but BNP has launched hostile bids for both the banks, planning to create the world's first bank with a trillion dollar of assets.  
Back to News Review index page