Mercedez believes Indian luxury segment will grow
Coimbatore: The Indian arm of the luxury carmaker, Mercedez Benz India Limited, is confident that the luxury segment in the country will grow significantly on the back of the factors of safety, comfort and environmental compatibility.

According the managing director of the company, the automotive sector in the country is likely to grow by 12-15 per cent every year and by the year 2010 the production would reach 2.4 billion units. He is confident that this growth rate should also apply to the luxury segment. MBIL sold around 1,000 cars in 1999 and has set itself a target of 20 per cent more cars in the year 2000.

The company, having established the infrastructure for its manufacturing, is in the process of strengthening its dealer network across the country for delivering 24-hour service.
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BIFR directs take over of Carona
New Delhi: The Board of Industrial and Financial Reconstruction (BIFR), which has been hearing a case on the sick shoe maker, Carona Limited, has directed the Bank of India to proceed with inviting offers for takeover, leasing, amalgamation or merger of the company.

The order also states that the existing promoters may also apply for the said offer provided that they have paid off the workers dues and have secured the creditors approval in the event their settlement is a one-time settlement.

The bank is to examine the relative merits of the various offers that may be received and submit a report to the BIFR, which will then select the company that will take over Carona. The order was passed by the board after having given the company several opportunities, since 1998, to submit a comprehensive rehabilitation proposal with the means of finance fully tied up.
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VSNL gets competition
Hyderabad: By operationalising its international gateway, Hyderabad based InTechNet Limited, a private internet services provider today began serious competition to national gateway monopoly holder, VSNL. The company has tied up with Singapore Telecom for its gateway services in the Asian region.

It is hoped that, with the introduction of many more such private gateways, the availability of bandwidth will be greater, thus enabling companies to offer a host of value added services and options for its customers.

The company is said to be in the process of establishing eight international gateways at a total investment of Rs. 32 crore by April 2000. The company which is a category A ISP will soon begin its internet services.
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Ecosoft and IIS to join hands
Mumbai: Ecosoft Technologies, the software subsidiary of Escorts Limited, has entered into an alliance with IIS Infotech, the Indian representative of IFS – a global business applications company – for the creation of a competency centre.

The alliance hopes to deliver solutions to the telecom and healthcare industries. It will include web-based ERP components, customer relationship management components, connectivity to other ERP solutions and collaborations with other e-commerce engines. ETL hopes to build around its strengths in engineering, manufacturing, telecom and healthcare.

IFS develops and supplies business applications across the demand and supply chain.
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Hyderabad based software solutions company to join hands with EnSoftek
Hyderabad: US based EnSoftek, the Oregon based ERP support solutions company, recently tied up with Hyderabad based GT Business Solutions for offshore development and support activity for small and medium businesses. EnSoftek focuses on JD Edwards ERP systems and is looking at expanding its application service provisions through the tie-up.

GTBS has already established an alliance with Anhiti Commerce Inc of the US to provide various companies with B2B links across countries and continents. The company has already secured a substantial order from Anhiti for software development in this regard. According to the managing director of the company, GTBS will focus on development of software using real time features aimed at providing services to technology niche areas like telecom, defence and other government sectors.

EnSoft is looking at the tie-up to provide it with the requisite skilled consultants for the JD Edwards world clients. India is one of the few markets where AS400 skills, required for the JDE software, are available.
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IOC may take stake in Essar Oil
New Delhi: Another private mega refinery project promoted by Essar Oil, may see the involvement of the public sector giant, Indian Oil. According to reports, it appears that IOC is all set to take up a 26 per cent stake in the Essar venture.

This renewed interest may result in the restructuring of Essar Oil to remove the upstream activities, in which IOC may not be interested, from the company and hiving them off to new companies. From Essar’s point of view the investment would be most welcome since it would give the oil company a wide marketing network for its products, once the petroleum sector is fully decontrolled. The refinery of the company is scheduled to be ready for commercial production by middle of 2002.
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Iisco revival on Russian plan runs into problem
Calcutta: The revival proposal of Indian Iron and Steel Co. (Iisco) coming up for hearing before the BIFR by end-March or early April, may run into rough weather. The Russian proposal is said to suffer from a technology constraint as well as a rupee-rouble escrow account problem.

The revival plan proposed by the Russian company envisages an improvement in the steel making process over the current process, but is still way costlier than the existing per tonne rate prevailing in the world markets. At these rates, it is understood, the government has clearly said the proposal to be unviable.
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Deadline set for restructuring Daewoo Motors
Seoul: South Korea’s second largest conglomerate, Daewoo Motor Corporation ,which has been in the midst of a serious financial restructuring, is in the final lap for the same. The committee appointed for the restructuring has set the date of May 19 as the deadline for submission of the proposals from the bidders.

In the race to acquire the troubled Korean company are General Motors and Ford Motor Co. of the US, Fiat Motor of Italy and DaimlerChrysler of Germany. It is said that another Korean company, Hyundai Motor Co, may also be interested in the take over.

The acquisition of the company would give the acquiring company additional production base in Asia and eastern Europe, where Daewoo has manufacturing facilities.The total capacity of the Daewoo plants is two million cars per annum. Another advantage for the companies is the Matiz – the most popular small car in Asia which is owned by Daewoo.

Preliminary reports suggest that General Motors is in the lead in the race. Incidentally, General Motors had a 50 per cent stake in Daewoo more than eight years ago. This stake was sold off in 1992 when the two companies had serious differences of opinion in the sales strategy and investment decisions.
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