L&T picks up equity in oil major
Mumbai: Larsen & Toubro has acquired a 10 per cent stake in the Indian subsidiary of Irish oil company, Tullow Oil. The stake has been acquired in exchange for L&T's assets in two oil exploration blocks in Gujarat, which have been handed over to Tullow. The holding will entitle L&T to have equity interests in seven licences that Tullow holds in India -- four in Gujarat, two in Assam and one in Andhra Pradesh.

Tullow is the single largest international company to have exploration and production licences of oil and gas fields in India.
Back to News Review index page

ABB plans 2 new divisions
New Delhi: ABB India is planning to set up two new business divisions -- services and oil & gas -- following the group's decision to hive off its power division into a joint venture with Anglo-French engineering group Alstom worldwide. This is part of the company's strategy to focus on its transmission and distribution division.

The company is also planning a big export push, as it will become the exclusive sourcing base for ABB group companies worldwide for certain types of switchgears.
Back to News Review index page

Asahi Glass to inject fresh funds in Floatglass
New Delhi: Asahi Glass Company of Japan, a partner in Floatglass India, is bringing in Rs 19 crore fresh capital into the ailing company in order to save it from being declared sick. Floatglass will issue 10 per cent cumulative redeemable preference shares of Rs 100 each to Asahi Glass on a preferential allotment basis.

Floatglass has been referred to the Board for Industrial and Financial Reconstruction as its cumulative losses have crossed the 50 per cent of its net worth.
Back to News Review index page

Becton Dickinson plans new products
New Delhi: Becton Dickinson, the $3.1 billion healthcare devices major, will make fresh investments in its Indian subsidiary Becton Dickinson India, and launch new products. The fresh investment will be in addition to the Rs 300 crore for which the company has got approval from the government.

Becton Dickinson's new state-of-the-art plant at Bawal, in Haryana, commenced commercial operations in 1997 and makes medical devices. The company has invested nearly Rs 200 crore in this plant. The products include hypodermic syringes, needles, insulin syringes, alcohol swabs, epidural catheters, needle destroyers and scalpveins. The company will introduce IV catheters, central venous catheters, and medical waste segregation systems.
Back to News Review index page

Foreign holding in CESC comes down
Calcutta: A number of GDR holders have relinquished their stake in CESC, the power supply company in Calcutta, by converting the GDRs into underlying shares, which have then been sold in the Indian market. This has brought down the foreign holding in the company to 10 per cent from an earlier 13 per cent. As a result of this, Bank of New York which held nearly seven per cent of the equity has dropped its holding to three per cent.

CESC has closed 31 March 1999 with a net loss of Rs 121.71 crore against a profit of Rs 35.35 crore in the previous financial year. This could be one of the reasons for the GDR holders to relinquish their holdings, sources in the company said. The promoters of the company, the RPG group, have an official holding of around 38 per cent, financial institutions 23 per cent and domestic commercial banks 2 per cent.
Back to News Review index page

15 companies in list for Delhi rail contract
New Delhi: A consortium led by Impreglio of Italy, Spain's Nesco, Japan's Kamagai Gumi, Korea's Samsung and Hyundai and Germany's Dykerhoff &Widmann are among the 15 foreign companies shortlisted for constructing the Delhi underground mass rapid transit system. The system envisages an investment of Rs 3,000 crore.

Two companies will be selected from this list to implement the project, which has been divided into two separate packages. The first part is design and construction of the section between north of Delhi University station and the south end of the Inter State Bus Terminal covering four km and the second part between the ISBT station and the south end of the Central Secretariat station covering seven km.
Back to News Review index page

HDFC Bank order for Ramco system
Chennai: Ramco Systems has bagged an order for implementation of the Ramco Fixed Assets Management systems from HDFC Bank. Earlier the bank had placed an order for the implementation of Ramco Human Resources Management System

The system ensures a fully automated integrated fixed asset procurement, maintenance, monitoring and disposal method and takes care of the financial management and tax angles.
Back to News Review index page

Apollo Hospitals in cardiac JV in Tanzania
Hyderabad: The Apollo Group of Hospitals and the government of Tanzania have entered into an agreement to set up a cardiac centre at the Muhimbili Medical Centre in Dar es Salaam. Apollo Hospitals will also jointly conduct a socio-techno market survey for which the government of Tanzania is providing the funding.
Back to News Review index page

Boeing 717 in Mumbai on test-flying
Mumbai: Boeing has demonstrated the prowess of its new 100-seater passenger jet, Boeing 717 on the Indian skies. The aircraft has been on display in Mumbai and Boeing is marketing it with a theme -- the profitable choice -- and is being touted as the best aircraft for short routes. The company is hoping to sell the aircraft -- some 15 in number -- to Indian Airlines' subsidiary, Alliance Air.

Boeing 717 is priced at $31 million and is a product developed by McDonnell Douglas, before the company was taken over by Boeing Corporation, two years ago. It is the only Boeing aircraft with engines in the rear. The aircraft is competing with Airbus A318, a member of the Airbus A320 family, which is getting readied for introduction in the market by 2002.
Back to News Review index page

Shasun to hike Ranitidine output
Chennai: Shasun Chemicals and Drugs is increasing its production of anti-ulcer drug, Ranitidine. The capacity at its Cuddalore plant is to go up from 22 tonnes to 45 tonnes per month.

The company has outlined a project costing Rs 8 crore for the purpose. The project will be funded through a private placement of redeemable preference shares, internal accruals and an EXIM Bank loan.
Back to News Review index page

New Holland plans 50 hp tractors for Gujarat
Ahmedabad: New Holland Tractors (India), makers of the Ford brand of tractors, is introducing 50 horsepower tractors in Gujarat market, which accounts for an annual sale of 22,000 tractors. New Holland expects a 35 per cent growth in this market in the next 3-5 years.

About 60 per cent of the tractors used in India is in the 35 horsepower range and New Holland plans to upgrade farmers in this range to the 50 horsepower tractor.
Back to News Review index page

K. Raheja group theatre gets THX technology
Mumbai: The K. Raheja group has secured Lucasfilm TFX technology for its new state-of-the-art and centrally air-conditioned theatre in Mumbai, Starcity, that is due to be inaugurated by October end. The technology provides for a high quality and exciting movie experience.

The group has signed up for the Lucasfilm THX Theatre Alignment Programme, which is the only comprehensive, independent quality assurance organisation in the world that ensures optimisation of quality in movie presentation in commercial theatres. The stringent quality norms to be followed to get a THX association start even before a theatre is built up.
Back to News Review index page

Iridium losses at Rs 57.5 crore
Mumbai: Iridium India Telecom, the Indian subsidiary of Iridium LLC, a Motorola-sponsored satellite telephony company, has incurred a loss of Rs 57.5 crore on a total income of Rs 1.50 crore in the financial year ended March 1999. While the company's total income from 1997 to 1999 is around Rs 9.05 crore, its total accumulated losses in the period are up to Rs 106.96 crore. The accumulated losses have nearly wiped out the Rs. 125.73 crore equity capital of the company.

The domestic promoters of Iridium India include Infrastructure Leasing and Financial Services and the Industrial Development Bank of India. IDBI also has a loan exposure in the company. The Iridium LLC has filed a bankruptcy petition in the US.
Back to News Review index page

HP announces cheap PC for small companies
Palo Alto: Hewlett-Packard has unveiled a new PC for small businesses, which comes with pre-loaded Windows 98, (upgradable to Windows 2000) and internet and e-commerce capabilities and other small business tools. The system is priced at a new low of $499, less by $100 than the cheapest business PC of the company.

The machine, the HP Brio BA200, is designed for small and medium-sized businesses with less than 100 employees. The machine will operate as part of a network and has smaller hard drive than typical home PCs.

Besides the lower price, a buyer in the US can avail of the rebate of $400 announced by American Online subsidiary CompuServe to customers who subscribe to CompuServe's Internet service, thus making the effective cost of the PC $99.
Back to News Review index page

General Motors to make Isuzu SUV
Tokyo: General Motors may manufacture and sell a Chevrolet version of the next generation Isuzu Motors' sport utility vehicle around the world.

Tom Matsubayashi, executive director of Isuzu product planning and design centre, says Isuzu and General Motors are considering expanding sales of the vehicle not only in Asia but in South Africa, South America and Eastern Europe. The production of the vehicle is expected to start next year at a General Motors truck plant. The platform of the truck plant is almost the same as that of the multi-utility vehicle.
Back to News Review index page

Mannesmann in takeover talks with UK telecom co
London: Mannesmann of Germany has said it is in talks with British mobile company, Orange plc, for a possible takeover.Mannesmann confirmed the move in a statement to the London Stock Exchange. Orange is Britain's third largest mobile phone group, whose name has often been linked with the German company in the past. Mannesmann had in October split itself into two groups, one covering telecom and other its traditional engineering activities. A purchase of Orange will give the German company a strong foothold in Britain in addition to its major presence in Germany and Italy.
Back to News Review index page

Delta acquires Comair
New York: Delta Airlines has acquired Comair at $1.8 billion. Delta already owned 22 per cent of the regional operator. It had also bought Atlantic Southeast Airlines, another local carrier, in February for $700 million.

Delta wants to consolidate its network in the regional jet market, a fastest growing segment of the airline industry in the US.
Back to News Review index page

Telia, Telenor to merge
Stockholm: Swedish and Norwegian governments have signed an agreement to merge state-owned telecom operators Telia and Telenor. The merger will create Europe's sixth largest telecom group and lead the Nordic region's largest ever float with the first tranche of the new group expected to be sold in April 2000.

The deal had encountered initial problems with personnel in the two companies vying for the top slots in the merged entity.
Back to News Review index page

Nortel to acquire Clarify
Toronto: Nortel Networks said it is acquiring Clarify Inc, a San Jose, California-based company, for $2.1 billion in a share transaction. Nortel will give 1.3 Nortel shares for each Clarify share.
Back to News Review index page