Dr. Reddy's, American Remedies merger swap ratio
Hyderabad: The boards of directors of Dr. Reddy's Laboratories Ltd and American Remedies Ltd have approved the scheme of amalgamation of the two companies. They have fixed the swap ratio at 1:12, which means that one Dr Reddy’s equity share will exchange for 12 American Remedies shares.

Dr. Reddy's Laboratories currently owns 84 per cent of American Remedies’ equity. The companies will now approach the Hyderabad and Chennai high courts to complete the legal formalities for amalgamation, effective 1 April 1999.
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Fiat raises Ind Auto stake to 95% as Doshis back out
Mumbai: Fiat India Automobiles, wholly-owned subsidiary of Italian group Fiat, has raised its holding in Ind Auto from 76 per cent to 95 per cent as the Doshis' expressed their inability to bring in their share of the funds needed to expand Ind Auto’s operations.

The Doshis’ stake in Ind Auto, which makes the Uno and Siena in India, will be reduced to 5 per cent. The Doshis had, a couple of years ago, refused to allow Peugeot of France to increase its stake in their joint venture, PAL Peugeot, because the Doshis couldn’t bring in additional funds. The joint venture went into a tailspin from which it has not yet recovered.
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Phillips Carbon pushes Sri Lanka plan, drops China
Calcutta: The RPG group’s Phillips Carbon Black Ltd will build a carbon black plant in Sri Lanka, it is reported. The company has, however, given up its plans to create a joint venture carbon black plant in China.

The Rs 75-crore carbon black project in Sri Lanka will build a capacity of 20,000 tonnes per annum.
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Gujarat Gas may branch out into telecom sector
Ahmedabad: In yet another diversification move, Gujarat Gas, subsidiary of the UK major British Gas, is planning to enter the telecom sector. The company had earlier entered the air-conditioning business last year in collaboration with Thermax.

The company is planning to approach existing telecom companies to offer preferential telephony services to their customers. In addition, the company is exploring the possibilities of laying multi-utility cables that could carry gas and offer telephony and cable TV services. The company is actively promoting natural gas for domestic and commercial use. It is also testing CNG on three-wheelers in Surat as a means of fighting pollution.
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Hero group, yet another entrant into IT
Calcutta: After having stamped its imprint on the cycle and motor-cycle industry, the Hero group is all set to enter the IT industry. It is said to be in the final stages of negotiations with an American company whose entry will be on a financial participation.

While the software unit being planned to cater to the group needs, the company will also cater to outside companies.

The group has succeeded in making the ordinary cycle a product of fancy . The fancy cycle segment currently constitutes nearly 27 per cent of the total portfolio of cycles manufactured by the group.
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As Doshis' back out, Fiat raises its stake in Ind Auto to 95%
Mumbai: Following the inability of the Doshi family to infuse fresh funds into the company, Fiat India Automobiles (FIAL) the wholly owned subsidiary of the Italian auto giant, has raised its stake in Ind Auto Limited, another group company, which manufactures the Uno and Siena models. With the fresh infusion of funds by FIAL, its holding in Ind Auto has gone from 76 to 95 per cent. As a result, the stake of the Doshi family in the joint venture has dropped from 24 per cent to 5 per cent.

The fresh infusion was called for in light of the investments of Rs. 160 crore planned by the company. Ind Auto was the joint venture created by the Doshis' by spinning off the Kurla plant of Premier Automobiles.
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Usha group to float umbrella company for IT
Calcutta: The Usha group which recently moved a demerger of group flagship, Usha Beltron, into traditional manufacturing and knowledge-based businesses, is floating an umbrella company to control the latter business.

The company, likely to be called Usha Martin Infotech, will see the promoter family having atleast 30 per cent of the equity. It is likely to be split into three profit centres that will concentrate on broadband technologies for voice and data, telecom software applications and call centre business.
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Metal Box hearing once again
Calcutta: After a lapse of more than three and a half years, the BIFR has decided to hear the Metal Box case once again.

Once a blue chip company, Metal Box was declared sick on May 27, 1988. Many years and hearings have passed since, but no rehabilitation seems to be in sight for its employees, bankers and other constituents.

The key problem to the whole package, lies in the valuation of the Worli, mumbai property. While the BIFR authorities had valued the property at Rs. 96 crore, subsequent valuations done by HDFC place the value of the property at Rs. 64 crore. The rehabilitation package on the basis of the revised valuations has not been approved by the concerned agencies.

The rehabilitation package issue is to come up for hearing before Delhi High Court on March 28.
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Toyota picks 5% in Yamaha Motor
Tokya: Japanese auto giant, Toyota Motor Corporation, stated that it would take a five per cent stake in the world's second largest motorcycle maker, Yamaha Motor Company. This move is likely to help Toyota beef up its engine development program for Formula One racing, in light of the fact that Toyota intends entering the premier racing circuit.

Yamaha supplies engines to Toyota for vehicles such as its Altezza Sports car, with 55,000 sold to the auto giant last year, and supplied engines to various Formula One teams from 1989 to 1997.
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