SRF has novel ESOP for workers
New Delhi: Shriram group company SRF has evolved an employee stock ownership programme for its shopfloor workers and non-officer staff, thus becoming the first company to devise an ESOP for these sections of employees.

The Economic Times, in a report, said the company wants to ensure that employees at all levels are rewarded if the company improves its performance and shareholder value in the future.

The scheme envisages allocation of notional shares of Rs 20 each to these categories of employees. They will not be required to make any payment for these shares, which will be encashable at the end of 18 months and the difference between the ruling market price and the notional price will then be passed on to the employees. If the market price is less than the notional price, the employee concerned will not incur any loss, as he has not made any financial investment.

Since the shares are notional, the company is not required to enhance its share capital or physically issue any shares. 
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Tata Industries wants partner to pick up rights
New Delhi: Tata Industries is expecting that its joint venture partner Jardine Matheson group of Hong Kong will subscribe to the company's rights issue, which is opening on 30 November. The Jardine Matheson group owns 20 per cent stake in Tata Industries through its subsidiary company, JSH Mauritius.

The Tata Industries board has cleared the rights issue of Rs 298 crore at par in the ratio of 2:1. This will bring the authorised capital of the company from Rs 200 crore to Rs 500 crore.
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Mitsubishi's Lancer tops in quality: survey
Mumbai: JD Power & Associates, the international automotive market research agency, has placed Mitsubishi's Lancer as the top car in terms of quality in its India survey for 1999. Lancer pushes Honda, whose City was adjudged the best car in 1998, to second place. 

The survey has bad news for the Tata Engineering and Locomotive Company, for its Sumo, Indica and Safari are at the bottom of the list with only Hindustan Motors' Ambassador below them. Daewoo's Matiz, Hyundai's Santro, Fiat's Siena, Opel's Astra, Maruti's Esteem, Ford's Escort and Marui's 800 follow the City in that order.

Honda scores over others in the customer satisfaction average index, where it tops the list. Mitsubishi does not figure in this list. Honda is followed by Daewoo, Maruti Udyog, General Motors, Ford, Mahindra & Mahindra, Fiat India, Telco and Hindustan Motors, in that order.
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Skoda gets approval
New Delhi: Skoda Auto of Czechoslovakia is all set to enter India. The company's proposal to set up a wholly-owned Indian subsidiary has received the Foreign Investments Promotion Board's approval.

Skoda, part of the Volkswagen family, will initially make its premium Octavia range of cars in India. The company will invest $56 million in a proposed subsidiary, Skoda Auto India.

The project, estimated to cost Rs 500 crore, is expected to come up at Aurangabad in Maharashtra and will have an annual capacity of 10,000 vehicles. The production is expected to start in mid-2000. 
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IA's winter schedule
Mumbai: Indian Airlines has announced its winter schedule, which comes into effect from 1 November. New flights between Mumbai and Jammu/Srinagar, Mumbai and Pune and Mumbai and Aurangabad, increased seat capacity in the Mumbai-Bangalore, Mumbai-Ahmedabad and Mumbai-Goa sectors and a new connection between Delhi and Kochi via Mumbai are the important aspects of the new schedule

The airline will offer 5,900 sets per day ex-Mumbai against the present 5,300 seats. It will operate 228 flights every week against the present 258 flights. A daily Mumbai-Delhi-Jammu-Srinagar flight has already been leaving Mumbai at 9 a.m. The new schedule has a direct link between Aurangabad and Delhi via Mumbai. The airline will continue to operate the nine metro shuttle flights between Mumbai and Delhi. 
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Coca-Cola merges bottling units
New Delhi: As planned, Coca-Cola India has announced merger of its four downstream companies into one -- Hindustan Coca-Cola Beverages. The four subsidiaries merged are Hindustan Coca-Cola Bottling North-West, Hindustan Coca-Cola Bottling South-West, Bharat Coca-Cola Bottling North-East, and Bharat Coca-Cola Bottling South-East.

The merger, however, becomes effective after an approval of the Delhi high court. 
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Coflexip buys Peerless' stake in shipping firm
Calcutta: Coflexip Stena Offshore, the Franco-Swede collaborator in Peerless Shipping & Oilfield Services, has bought the entire 49.8 per cent Peerless holding in Peerless Shipping, at around Rs 47 crore, taking its total stake to 58.3 per cent. The company's name is also likely to be changed to leverage Coflexip's global identity as a sub-sea field development and operations major. The company will have a new board.

Coflexip Stena will now become the sole service provider for all operations -- engineering and product supply -- of offshore oil exploration projects planned by the Oil and Natural Gas Corporation and of multinational companies. Peerless Shipping operates multi-support vessels and is engaged in sub-sea engineering and inspection of underwater structures. 
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Schwing to set up project in Chennai
Chennai: Schwing of Germany is setting up a Rs18-crore project near Chennai through its Indian subsidiary Schwing Stetter (India) to make construction equipment. The project is coming up at Sipcot industrial park at Irrungattukottai near the city.

The unit will make state-of-the art batching plants for concrete production, truck mixers for transportation and concrete pumps. Schwing Stetter has been supplying such equipment to the Indian construction industry for over two decades. The Indian subsidiary will be a global sourcing point for the German multinational, which hopes the Indian operations will achieve a turnover of Rs 100 crore in a few years from start. 
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IL&FS picks up stake in Auto Ignition
Bangalore: The Indian Auto Ancillary Fund, a unit of IL&FS Venture Corporation, has picked up 37 per cent stake in Auto Ignition, a New Delhi-based auto electricals company making products like starter motors, alternators, dynamos and voltage regulators, used in the tractor and truck segment. The fund has made an investment of Rs 13 crore in the company.
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Eurocopter to set up centre in India
Bangalore: Eurocopter is planning to set up a customer support centre in India to service and maintain the entire range of Franco-German family of helicopters. The $2 billion helicopter company is negotiating with Indian company Pawan Hans Helicopters for a collaboration in the venture.

Pawan Hans will be interested if it is entrusted with the business rights for the whole of Asia, and Eurocopter may concede this demand. Until now, a customer service centre in Singapore has been looking after the region.
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New tubes unit by Shree Rama Multi-Tech
Ahmedabad: Laminated tube maker Shree Rama Multi-Tech is setting up a full-fledged laminated tube plant at Pondicherry at a cost of Rs 50 crore as part of its Rs 306-crore expansion programme. The company is also expanding its capacity at the existing plants at Moti Bhoyan and Ambaliyarta near Ahmedbaad. The Pondicherry plant will cater to the company's bulk buyer, Emami.

The company is also planning to set up laminated tube units in Nigeria and China and a joint venture in South Africa.
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Merbanc to change name
Hyderabad: Merbanc Financial Services, a company registered as a merchant banker, is changing its name to MFSL Technology Services, in order to maintain its identity as an information technology training institution.

The company's managing director, Balakrishna Shetty, says the company will focus on IT and other businesses as merchant banking has lost its charm. The company is in the process of applying to the registrar of companies for the change in name. It had earlier started a separate wing called Merbanc Computer Academy and had entered into a tie-up with Microsoft for providing the Microsoft Certified Software Engineer course. It is also an authorised centre for Sylvan Prometric Testing.
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Bacardi introduces new rum
Mumbai: Global liquor company Bacardi has launched Bacardi Reserva, another premium rum brand, in India. Bacardi claims it has a 10 per cent share of the premium spirits market in the country. Bermuda-based Bacardi operates in India through a joint venture, Bacardi-Martini India, in which it has a 74 per cent stake. Mysore-based Gemini Distilleries is its partner in this venture.

Reserva has a distinct charred wood aroma, which is acquired from the charred oak barrels it is aged in. The rum is said to be smooth as it is filtered and its purity ensured.
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Moulinex plans JV
New Delhi: French home appliances company Moulinex is planning a joint venture project in India to market its products. The company says it has already tied up with Gravs Appliances, and is proposing to approach the Foreign Investments Promotion Board. Moulinex will hold a majority stake in the company, which will be named Moulinex Home Appliances.

At present, Moulinex is marketing its products through Gravs Appliances. It will not set up any separate manufacturing base in India.
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BMW to hike stake in Rolls-Royce
London: BMW of Germany plans to increase its stake in British company Rolls-Royce from two per cent to around 10 per cent as part of a deal that includes Rolls-Royce taking full control of its aero-engine joint venture. BMW had a two per scent stake in Rolls-Royce since 1990 when the two companies set up the BMW Rolls-Royce, a joint venture to develop the BR700 series of aircraft engines for the corporate and regional airline sector.

Rolls-Royce said it planned to work with BMW in areas such as research and development, purchasing and logistics. 
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Columbia says NiSource bid inadequate
New York: Columbia Energy Group said it has rejected a takeover bid from NiSource and opened the doors to other prospective bidders. Herndon-based Columbia said the $6.1 billion offer from utility major NiSource is inadequate.

Columbia operates an 18,500-mile gas network from the US Gulf to the northeast. NiSource, which had earlier made an offer of $5.7 billion, subsequently increased it to $6.1 billion. 
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NTT plans job cuts
Tokyo: Nippon Telegraph and Telephone said it is considering a reduction in its workforce to 2 lakh by March 2003. NTT has 2.24 lakh workers on its payroll at present.

The company is also exploring a plan to cut down the annual capital spending and restructuring measures as it drafts a medium-term management programme. 
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Viag Interkom denies takeover bids
Munich: Viag Interkom, the German telecommunications company, said it will remain under the control of German utility company Viag and British Telecommunications and dismissed reports of a possible takeover by British Telecom.

Viag and British Teelcom each hold 45 per cent in Viag Interkom's equity. Norway's Telenor holds the balance10 per cent.
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