Caltiger hots up the internet race, as Spanish venture capitalist takes stake
Calcutta: In keeping with the developments in the internet services market abroad, Calcutta based, Caltiger.com, an Internet services provider, planning to offer free internet services in a planned manner in over one hundred cities and towns. This is surely set to loosen the stranglehold of VSNL and will mark the beginning of a war between the various service providers, under which the customer can only benefit.

The beginning is all set to be made at Calcutta where the free service is to be launched on March 20. This is to be followed by the launches in Mumbai and Bangalore on March 25. In the beginning, with a view to containing the load on the company’s servers, the service will be offered free for three hours a day.

The software for this can be freely installed by subscribers by logging on to the Caltiger.com site. While initially the subscriber will have to bear the cost of the telephone, the company may, on the payment of a nominal charge, offer totally free service.

While all this action is happening, Spanish venture capitalist Transatlantic Corporation is acquiring a 20 per cent stake in the company for an estimated Rs. 120 crore. Transatlantic, which already has several Indian software companies in its portfolio, is said to have taken the stake on the basis of a valuation done by KPMG. The divestment proceeds will be deployed in the proposed Rs 800-crore infusion in a 100-city optical fibre internet backbone that will be rolled out over a two to three-year span.
Back to News Review index page 

Monsanto consolidates Indian operations
Mumbai: In a move approved by the parent company, Monsanto Co. of the US, its Indian affiliate has consolidated its Indian operations by integrating all the various entities into the listed company, Monsanto Chemicals (India) Limited (MCIL)

The acquisition of businesses from its sister companies will leave MCIL a fully integrated agri-business company. The plan involves buying out the businesses from its sister companies – Monsanto Enterprises Limited, Monsanto India Limited and Monsanto Technologies Limited. The re-organisation will see the holding of the parent company go up from the current level of 40 per cent to 72 per cent.

It is expected that the merged entity will have greater access to the parent company’s cutting technologies in the agricultural sector, thus making the Indian company competent to cater to the export markets. It is likely that, post merger, the company’s name may undergo a change.
Back to News Review index page 

Elbee set to place equity privately
Mumbai: In what is said to be the largest private placement deal in the courier industry, Elbee Services Limited, is said to be privately placing approximately 60.78 lakhs equity shares amounting to Rs. 103-121 crore, depending on the final issue price.

The proceeds of the issue are to be used for retiring expensive long term loans and for capital expenditure in information technology that the company is seeking to make to ready itself for the e-commerce revolution.
Back to News Review index page 

LG inks deal with Citibank for payment gateway
New Delhi: South Korean software major LG India, recently entered into a strategic tie-up with Citibank for setting up a payment gateway for internet transactions in India. The service which will provide on-line credit authentication and credit approvals, will concentrate on the B2C internet traffic.

Under the arrangement, while LG India will provide the software solutions for the transaction, Citibank will help with the authentication and on-line credit approval process. The combine is also said to be negotiating with several non-banking finance companies, like GE Capital subsidiary Countrywide, to offer its B2C customers finance options.

The software company is also said to be in discussions with other finance majors like ICICI and HSBC to set up similar payment gateways for B2C services.
Back to News Review index page 

Apollo Hospitals to re-enter the east
Calcutta: After an earlier abortive bid to enter the eastern region through a tie-up, Apollo Hospitals, has now tied up with Calcutta based, Advanced Medicare and Research Institute. The tie-up which will see the two hospitals operated by AMRI now go under the joint name of AMRI-Apollo and Dr Pratap Reddy, chairman of Apollo Hospitals, becoming a director on the board of AMRI. It is hoped that this tie-up will help reduce the exodus of patients from the east to the south.

A memorandum of understanding has been signed to this effect, and AMRI will pay a royalty, based on its slaes, to Apollo for its services in supervising the operations of AMRI. The latter’s existing 160-bed hospital enjoys a 80 per cent occupancy ratio, with the second hospital being planned for completion shortly.
Back to News Review index page 

Hindustan Motors to begin production of rural vehicle
Chennai: Hindustan Motors (HM), which has designed an indigenous rural transport vehicle, brand named Ranger, is to begin its production in April.

The company expects to produce five different variants of this product. These variants will come from a combination of various powertrains and body and wheelbase configurations. While the number of vehicles to be produced has not been firmed up, the company expects to produce about 600 numbers of its Hill Ranger and Town Ranger variants.
Back to News Review index page 

L&T may pre-pone listing of IT subsidiary
Mumbai: Engineering giant, Larsen & Toubro (L&T) which originally planned to take its information technology subsidiary, L&T Information Technology Limited (LTITL), public only next year, is said to be planning to bring forward this date.

LTITL which has already achieved a SEI Level 4 certification, is said to be aggressively working towards a Level 5 certification, thereby increasing its e-commerce skills.

The IT company has identified the financial and manufacturing services, among others, as its focus areas to compete in the global market place.
Back to News Review index page 

Omega to set up subsidiary in India
Hyderabad: Swiss watchmaking giant, Omega, is said to have obtained clearance for setting up a wholly owned sales subsidiary in India.

The company is said to have assured the government that it would source most of its spares from the country to make good the forex outflow in the import of the watches. While the company has already identified a party in Madhya Pradesh for the supply of watch dials, it is actively scouting around for suppliers for watch bracelets and other parts.

The company plans to introduce a base model costing between Rs. 700 and Rs. 2,000 for the lower end of the market. Currently the company caters to the high end of the market where the watches cost from between Rs. 35,000 to Rs. 200,000.

The company has also suggested setting up a School of Horology to develop the watch industry in the country.
Back to News Review index page 

Consulting firm PwC values Onida brand at Rs. 550-600 crore
Mumbai: Mirc Electronics, colour television major and owners of the Onida brand, has got its brand valued by noted management consulting firm, PriceWaterhouseCoopers. The brand has been valued at around Rs. 550-600 crore.

The company, which plans to get its brand valued every year, is of the opinion that the full value of the recent launch of ‘Candy’ has not been captured by the current valuation. The company is aggressively moving to consolidate its position in the market place, after facing a dip in its position.

The company had earlier appointed Andersen Consulting to produce a comprehensive plan for cost savings including supplier rationalisation, value engineering and supply chain management.
Back to News Review index page 

Tatas may list Tata Sons and TCS
Mumbai: As part of its strategy to restructure itself into a new generation conglomerate, the Tata group is said to be examining the possibility of listing its holding company Tata Sons as well as its software arm, Tata Consultancy Services. The group is said to have set a time frame of a year for the IPOs of the two entities.

Tata Sons, of which TCS is a division, is riding high on performance of the latter. Analysts say that Tata Sons is sure to get an IT level valuation, since TCS is the largest and best performing software entity in India.

Currently, 83 per cent of Tata Sons is held by three trusts belonging to the Tata group and several Tata group companies, while the remaining 17 per cent is held by ACC chairman Shapoorji Pallonji Mistry.
Back to News Review index page 

Novartis Nutrition to source global requirement from India
Mumbai: Novartis Nutrition India, a 100 per cent subsidiary of Novartis AG, has decided to make India its export hub to supply its units across the world. The company is planning to build a ‘knowhow centre’ in the country and is planning to recruit about 300 persons for the purpose.

The company currently exports a food supplement that helps critically ill patients who have gone through medical trauma. The prescription food supplement is reportedly helping in reducing in-hospital infectious complications.
Back to News Review index page 

BMW to decide on Rover sale
Frankfurt: German luxury car maker, BMW, which took over the UK based car manufacturer, Rover, today announced that its board of directors was considering a sale of the British car company. Rover has been making consistent losses that have been a drain on the BMW balance sheet, making the latter a target victim for a takeover.

In light of comments made by BMW officials that this would not mean a sale of shares in BMW, it is understood that the Rover unit would be either closed or sold off for cash. This decision has raised the ire of the British government and the trade unions. The British government is said to have contacted the BMW management to stress the importance of Rover in the economy of the UK. Trade unions in the UK have decried the German carmaker’s moves and have said that the sale would not be in the interests of BMW in the long run.
Back to News Review index page 

Wipro appoints consultant for Europe thrust
Mumbai: Rabo India Finance, which was recently in the news for helping Tata Tea fund its takeover of Tetley, has been appointed by Wipro Technologies as its merchant banker. Rabo India will have the mandate for identifying and developing business for Wipro Tech in Europe, with specific reference to the Benelux region.

The decision to appoint Rabo India is part of Wipro Tech’s strategy to increase its market share from non-US markets. Currently Europe contributes only 20 per cent of the market share.
Back to News Review index page