Virgin to operate Delhi-London flights
New Delhi: Richard Branson’s Virgin Atlantic has concluded a five-year code-sharing agreement with Air-India for the British airline to operate three flights a week in the Delhi-London sector from July 2000. While announcing the tie-up, Branson and Air-India’s managing director Michael Mascarenhas said that, besides seat-sharing, the agreement covers training of Air-India’s cabin crew, handling cargo services and yield management.

The two airlines are likely to extend the code-sharing arrangement to US routes as well. Mr Branson said Virgin will fly its Boeing 747 on the Delhi-London route.

Air-India has a quota of 10 flights a week on the route, of which six are unutilised. Three of these are now being offered to Virgin against payment. Air-India may consider giving the rights of the other three to Virgin later. Air-India sources said the agreement could lead to a new relationship between Air-India, including a shareholding for Virgin in Air-India. Virgin will invest $150 million in airline operations in India. The terms and conditions of the arrangement are still being worked out.

Mr Branson said India is the latest jewel in Virgin’s crown. His plans for India include hotels, health clubs, cinema halls and soft drinks.
Back to News Review index page

Tata Tea finalises Tetley deal
Calcutta: Tata Tea is finally acquiring Tetley of the UK. The 270-million deal is expected to be concluded in the next 10 days. The acquisition is being described as the largest ever by an Indian company overseas. With the Tetley brand under its fold, Tata Tea is expected to become a truly multinational brand as Tetley has large markets  for tea bags in North America, Europe and Australia. Tata Tea sources said the existing joint venture between the two companies, Tata Tetley, will become a division of Tata Tea.

The company has already received shareholders’ approval for the acquisition. It intends to raise a part of the funds required for the acquisition through syndication of loans from international markets, and the balance from group companies.
Back to News Review index page

Pigment Specialities becomes Ciba subsidiary
Mumbai: Pigment Specialities India, a 51:49 joint venture between Ciba Speciality Chemicals India and Indian Dyestuff Industries, has become a wholly-owned Ciba subsidiary. Ciba Speciality Chemicals India has bought the entire 49 per cent shareholding of Indian Dyestuff Industries in the company at a total consideration of Rs 1.96 crore, indicating a price of Rs 10 per share.

The joint venture was set up in 1997 with an equity capital of Rs 4 crore, and IDI was to supply the entire pigment requirement of the company. However, this could not be fulfilled, and the two have decided to part ways. Pigment Specialities India has a turnover of Rs 30 - 40 crore. Ciba intends to meet the pigment requirements of the company locally and through imports.
Back to News Review index page

Siddharth Shriram plans JV with Daikin
New Delhi: The Siddharth Shriram group is selling 80 per cent of its holding in its air-conditioner and water cooler business to Daikin Industries of Japan for a consideration of Rs 15 crore. The group is partnering with Daikin Industries in a joint venture, Daikin Shriram Airconditioning, with group company Siel contributing 20 per cent of the total equity of the joint venture, and Daikin Industries the rest. The company will produce and market air-conditioners and water coolers.

The joint venture will purchase the production facility and other assets of Siel Aircon, the Siel subsidiary making air-conditioners and water coolers. The acquisition will cost Daikin Shriram Rs 13 crore. The sales and service network of Usha International’s air-conditioning division will also be transferred to the joint venture.

Siddharth Shriram said the funds received from the sale will be used to retire the company’s liabilities and for investment in the equity of the joint venture.
Back to News Review index page

Softnet plans India venture
New Delhi: Softnet Systems of the US is planning to enter the Internet-through-cable sector in India. The company is in talks with leading players in the country possibly to create a joint venture. It will use a VSAT-based system for the project. Softnet today is one of the leading providers of Internet services through cable TV networks in the US.
Back to News Review index page

Nutricia gets approval for  HLL dairy buy
New Delhi: Dutch company Nutricia has got the Foreign Investment Promotion Board’s approval for the takeover of Hindustan Lever’s dairy plant at Etah and the assets and nutritional foods business of Criticare Laboratories. The deals will cost Nutricia nearly Rs 40 crore.

Nutricia has been in India for two years through a wholly-owned subsidiary.
Back to News Review index page

Piaggio JV to make four-wheelers
Mumbai: Piaggio Greaves Vehicles, the joint venture between Greaves and Piaggio of Italy, will make four-wheelers in India. Ravi Chopra, managing director of the company, said Piaggio intends to make India its second manufacturing hub, for which it will expand the capacity of its Pune plant from the present 25,000 vehicles to 50,000 per annum in the next three years. The company makes the Ape brand of three-wheelers.
Back to News Review index page

Pentafour into Net broadcasting
Chennai: Pentafour Software & Exports is planning to relay live a music festival through the Internet. This will mark the company's entry into the Internet broadcasting area.

Company sources said the programme at the current music festival in Chennai on 11 December will be relayed live. V. Chandrasekharan, chairman and managing director of the company, said the company had already built an infrastructure for Internet broadcasting. The broadcasting is aimed at NRIs in the US and Europe, he said. While the uplinking will be done through Videsh Sanchar Nigam Ltd, much of the bandwidth for the project will come from Singapore Telecom.
Back to News Review index page

SSI in talks with Nasdaq for software supply
Mumbai: SSI is planning to provide software services to the US technology stock exchange, Nasdaq. SSI has written to the Bombay Stock Exchange saying it is in discussions with the exchange, but did not give any details. The letter to the stock exchange comes in the wake of a rally in the company’s stock, which appreciated nearly 70 per cent in about a month. The company has also disclosed that it is planning acquisition of three software product companies at a cost of $3 to $5 million.
Back to News Review index page

Philips employees’ plea dismissed
Calcutta: The Supreme Court has dismissed the review petition filed by some employee shareholders of Philips India against the sale of Salt Lake factory to Videocon, Philips India’s counsel said.  Some employee-shareholders of the company had filed a review petition against an earlier Supreme Court order dismissing their special leave application.
Back to News Review index page

Satyam, Citibank tie up for payment gateway
Mumbai: Satyam Infoway and Citibank have tied up to build a secure gateway for e-commerce business. Satyam Infoway said it will use the a software made by Open Market to build the gateway. The work on the gateway is to begin late in December.
Back to News Review index page

GM picks up 20% in Fuji Heavy
Tokyo: General Motors formally announced that it is picking up a 20 per cent shareholding in Subaru car maker Fuji Heavy for $1.4 billion. The alliance is expected to supplement General Motors’ presence in Asia. General Motors said Fuji Heavy will exchange its all-wheel drive technology, which has made it a strong player in the US and Japanese markets for the fuel technologies and components of General Motors. Besides, General Motors will make use of Fuji Heavy’s production facilities, and the two auto majors will develop General Motors vehicles on the basis of existing car platforms.

In Japan, General Motors already has holdings in Suzuki Motor Corporation and Izuzu Motors.
Back to News Review index page

KPN Telecom acquires E-Plus
Frankfurt: Dutch company KPN Telecom said it is partnering with BellSouth to buy E-Plus, Germany’s third largest mobile phone operator, in a $19.1 billion acquisition. France Telecom has been vyng for E-Plus. KPN Telecom said it has concluded the deal that will give it a 77.5 per cent holding in E-Plus, with BellSouth retaining 22.5 per cent. KPN Telecom will control some 16 per cent of the fiercely competitive mobile phone market in Germany.
Back to News Review index page

Daewoo request on write-off rejected
Seoul: Foreign creditors have rejected a proposal from the Daewoo group to write off up to 82 per cent of their loans. Daewoo’s advisors and lawyers in New York had proposed to the creditors that a company would be established to buy Daewoo’s foreign debt at ratios ranging between 18 and 65 cents per dollar.

The group owes foreign creditors nearly $6.7 billion in mostly unsecured loans and bonds. Most of the creditors have lent their money to Daewoo Corporation, the flagship company of the sinking Korean conglomerate. Daewoo Corporation, with liabilities of $28 billion, is by far the most indebted of the Daewoo units.
Back to News Review index page

Honda’s Insight in US
California: Honda Motor Company is pricing its Insight, the first vehicle sold in the US powered by both a traditional engine and an electric motor, at $18,800. The price of the two-seater with a factory-installed automatic climate control, will be $20,080. The Insight’s hybrid gasoline-electric engine, light aluminium body and aerodynamic styling has helped it to gain the Environmental Protection Agency’s top mileage rating ever – 61 miles per gallon in the city and 70 miles per gallon on the highways.

The Insight features a 1-litre, 3-cylinder gasoline engine with an electric motor powered by a nick-metal hydride battery pack. The battery will be automatically charged, using energy generated during braking. As a result, it will not require an outside source of electric power and never needs to be plugged in.
Back to News Review index page

Sony into online banking
Tokyo: Sony Corporation will set up online banking facilities in two years. The Japanese electronics major said it will create a banking unit that will allow consumers to settle online transactions, pay public utility charges and avail of small loans. The company has set up a task force to work out the details of the project. The unit could be created by taking over an existing bank.
Back to News Review index page