Government for strategic partner in Indian Airlines
New Delhi: The cabinet committee on disinvestment of the government has decided to divest 51 per cent equity held by the government in national carrier Indian Airlines, heralding the much-awaited privatisation of public sector companies. The cabinet committee decided that 26 per cent of its holding will be given to a strategic partner and the balance 25 per cent will be distributed among financial institutions, employees and the public. The strategic partner will be given a free hand in running the airline under the guidance of a board of directors. The management policy will be defined in a shareholders' agreement, keeping  national security and emergency requirements in view. The shareholders' agreement will be finalised and approved by the cabinet committee before the financial bids for the divestment are invited. It has also been decided that the strategic partner will not be a foreign entity, nor a foreign airline. Non-resident Indians and overseas corporate bodies can bid for the stake. The foreign equity component in the bidding company cannot be more than 40 per cent. Besides, any joint venture that bids for the holding will not be allowed to pick up more than 40 per cent of the holding.

A government spokesman said the bidding process will be carried out by a global advisor. An inter-ministerial group will be set up to decide how the 25 per cent should be split between financial institutions, Indian Airlines employees and the public.

The Kelkar committee set up by the givernment to recommend measures to privatise Indian Airlines had submitted its report some two years back recommending that the government disinvest 51 per cent of its holding in the airline, giving employees a 10.4 per cent stake and financial institutions and public a 40.6 per cent stake.
Back to News Review index page  

Jet, Sahara not interested
New Delhi: India’s two private airlines, Jet Airways and Sahara Airlines, have said they are not interested in bidding for the 26 per cent holding in Indian Airlines. While Jet Airways contends that the aging fleet of Indian Airlines and does not conform to its younger fleet, Sahara Airlines says it is on an expansion drive on its own.
Back to News Review index page  

Modern Foods goes to Hindustan Lever
New Delhi: The cabinet committee on disinvestment has decided to give 74 per cent equity in public sector Modern Foods Industries to Hindustan Lever. The government will retain the balance 26 per cent. The government will be able to raise Rs 105.45 crore through this disinvestment. Hindustan Lever is to infuse Rs 20 crore into the company.

The cabinet committee also approved a shareholders' agreement by which the company will have seven directors, two from the government, including the chairman. There will be restriction on sale of shares by Hindustan Lever as also retrenchment of employees during the first year.
Back to News Review index page  

Bharti plans long distance telephony service
New Delhi: Private telecom service provider, Bharti Enterprises, will enter the national long distance telecom service sector. It has conceived a Rs 2,000 to Rs 2,500 crore project for the purpose and is in search of a strategic partner. While deciding to open up the long distance telephony sector, the government has, in principle, decided that permission will be awarded at the national level and, as such, it requires setting up of an infrastructure that can cover some 30,000 kms in order to have an all-India reach. The Telecom Regulatory Authority of India envisages that private national long distance operators can set up their own network or lease it from infrastructure providers like Power Grid Corporation of India or the Railways.
Back to News Review index page  

Stay against CavinKare
Mumbai: The Calcutta high court has granted a stay against the manufacture and sale of CavinKare’s fairness product Fairever, following a suit filed by Hindustan Lever against the company. The stay is applicable to the manufacturer, dealers, distributors and retailers of the product. Hindustan Lever contended that the product infringed on its patented technology.
Back to News Review index page  

Subex to acquire US company
Bangalore: Subex Systems, a telecom software company, is planning to acquire IVth Generation Inc of New Jersey, US, for $6.71 million. IVth Generation is engaged in turnkey project development for telecom companies in the US, including AT&T and Lucent. Subhash Menon, managing director of Subex, says the acquisition will give the company access to customers in the US. IVth Generation will become a wholly-owned subsidiary of Subex and will change its name to Subex Technologies.
Back to News Review index page  

H&R Johnson buys Parry’s tile unit
Mumbai: Tile maker H&R Johnson has purchased Parry’s tile unit at Karaikal in Tamil Nadu for Rs 30 crore. The company will make use of the facility to get a foothold in the south Indian markets. It intends to launch a new range of vitrified tiles under the brand name Marbonite.
Back to News Review index page  

Zenith introduces Infotainer PC
Mumbai: Zenith Computers has launched Zenith Infotainer, a multi-purpose personal computer, based on the Intel Pentium III (500 MHz and 600 MHz) platform. The system combines computing with multimedia experience and allows users to watch TV programmes on it. It carries a price tag of Rs 49,900. Zenith Computers’ chairman and managing director Raj Saraf says the product, which is the first of its kind in the world, merges infotech and entertainment. The package includes a Zenith TV Marvel multimedia kit with remote control, four hi-fi speakers, a 14-inch colour monitor, an Internet and multi-media ready keyboard and 25 hours of VSNL Internet account. There are special software packages available with the PC.
Back to News Review index page  

Aptech may get Unilever project contract
Mumbai: Software trainer Aptech is set to bag a contract from the $50 billion Unilever for a knowledge management system project at global level. Ganesh Natarajan, managing direcotr of Aptech, says the company has worked closely with Unilever plc, which already has a knowledge management system of its own. Unilever has now asked Aptech to set up a similar framework for its global operations. Aptech has a knowledge management division and has developed a framework called Ontologic.

Meanwhile, Aptech has entered into a marketing arrangement with Calcutta’s Internet service provider Caltiger.com for a new computer training programme called Vidya. The programme intends to offer computer skills and Internet knowledge to the layman. The course will be launched in Calcutta initially.
Back to News Review index page  

Titoni watches in India
Bangalore: Swiss watch company Titoni is coming back to India after a gap of nearly 25 years. The company is entering into a memorandum of understanding with Bangalore-based importing and distributing company Times of Lord to distribute its products in India. The watches will be priced between Rs 8,000 and Rs 30,000 in the Indian market.

Nearly 50 per cent of Titoni’s production consists of high precision mechanical watches.
Back to News Review index page  

Global Telesystems to market GE’s B2B system
Mumbai: Global Telesystems has acquired exclusive country rights for TPN Post, a secure B2B Internet-based electronic purchasing service developed by GE Information Services. The company has paid $1 million for the rights. Global Tele-systems can sell the product in India for six years. GE Information Services will provide complete technical support for the services.

TPN Post is a B2B proprietary system in the materials, repairs and operations domain that enables organisations to reduce order cycle time, cut holding costs of inventory, offer the best possible market prices and provide access to larger supplier base.

This will be Global Tele-systems’ second e-commerce service, following the setting up of its payments gateway. The company intends to launch a few more such e-commerce services with foreign partners.
Back to News Review index page  

Procter & Gamble withdraws from merger talks
New York: Procter & Gamble says it has ended its talks with Warner-Lambert and American Home Products for a three-way merger following sharp fall in its stock prices. The company says the share price fall indicates that its investors do not support the deal.

Industry watchers are, however, disappointed, as the merger would have created a drug major, with specific advantages for Procter & Gamble. The company itself has admitted to this scenario, but it has surprisingly withdrawn from the talks.
Back to News Review index page  

SingTel, HKT in talks for Asian telecom co
Singapore: Singapore Telecommunications, the state-owned telecom company is in talks with Hong Kong’s HKT, a Cable & Wireless subsidiary, to form the biggest independent telecom company in Asia-pacific. The planned venture will pave way for SingTel to have an Asian reach.
Back to News Review index page  

Ford invites Toyota to join parts site
Tokyo: Ford Motor has invited Toyota Motor Corporation to join it in its global parts supply network, AutoXchange. Toyota confirmed that it has received the offer and that it has not decided on a response. The network systems of various auto companies aim to connect carmakers and suppliers in electronic networks allowing both to slash costs. Ford Motor has teamed up with Oracle to build the AutoXchange site. Ford has already approached Nissan Motor, Japan’ second largest automaker, Renault and other European makers for joining its system. General Motors too has a network system along with Commerce One, a software maker, which is called TradeXchange. GM has invited Honda Motor and Nissan to participate in the site.
Back to News Review index page