Zee sets ADR ball rolling
New Delhi: The countdown for the country’s largest ADR offering, the $1.5 billion issue planned by television major, Zee Telefilms, has begun with the company filing the necessary papers with the government seeking approval for the issue.

In its application, the company has stated that at least 50 per cent of the proceeds raised via this issue is to be used by the company for acquisitions abroad. Its mega plans for the investments intend to cover content production, internet access, e-commerce, education, upgradation of its cable network, events and installing a fibre network.
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Polaris software to acquire US firm
Mumbai: In a move that is likely to strengthen its presence in the US market, Polaris Software Lab, is close to finalising a MoU with an unnamed New Jersey-based software company, for acquiring the latter for an estimated $24m.

The reason the company is going in for the acquisition is to help it operate more easily in the highly competitive US market and also to enable it to get into strategic technological alliances.

Earlier this year, Polaris had signed a strategic alliance with the $24 billion US major, Marshall & Ilsley Corporation, to develop a banking software product at Polaris’ development centre at Chennai.
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Godrej Soaps asked to modify ad
Mumbai: Acting on a complaint filed with it by Hindustan Lever Limtied, the Advertising Standards Council of India has directed Godrej Soaps to withdraw or modify the television commercial and print ads for its new fairness product, FairGlow.

HLL had challenged the Godrej claim of improving fairness within 15 days of using the cream and termed it as misleading. The complaint, which was considered by the Consumer Complaints Council, was held to have contravened the Advertising Code and the claim by Godrej was not substantiated. Hence the company was asked to withdraw or modify the said advertisements.

Godrej officials, however, claim that they have submitted all necessary proof to the Council to prove their claim of improving fairness.

A FMCG analyst states the HLL complaint is a clear strategy to prevent competition from making major inroads into its fairness category.
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Hindustan Petroleum signs deals with leading global players
Mumbai: Leading oil major, Hindustan Petroleum, is seeing its ambitious plans moving ahead on schedule. The company has signed a joint venture agreement with Prize Petroleum for its foray into upstream oil exploration and production. Prize has purchased the seismic data for several acreages in India, Africa and Indonesia.

At the other end of the spectrum, the company has signed a MoU with French oil company, TotalFinaElf, to look at investments in all downstream oil activities. The two companies are looking at the future potential in the marketing of petroleum products and setting up refineries. HPCL already has a joint venture with TotalFinaElf for setting up a unique underground liquefied petroleum gas (LPG) cavern storage at Visakhapatnam on the east coast.

Speaking to press persons, Mr. HL Zutshi, chairman of HPCL, said that , on the joint sector refinery, Mangalore Refinery & Petrochemicals Ltd (MRPL), a venture with the Aditya Birla Group, the company was in talks with Kuwait Petroleum Corporation (KPC) as well as the TotalFinaElf.
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Orix Finance acquires construction equipment business of RPG group
Mumbai: Orix Finance, a equal joint venture between Orix Corporation of Japan and IL&FS, has acquired the construction equipment leasing business of RPG-Itochu Finance, at an estimated value of Rs. 30 crore.

With contractors increasingly moving away from owning equipment to hiring equipment from professional service providers and with the huge infrastructure development potential in the company, Orix Finance believes that this acquisition will prove beneficial to the company.
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L&T Finance to set up separate entity for merchant banking activities
Mumbai: L&T Finance, a leading NBFC, is incorporating a separate entity to handle its capital market operations.

The company, most likely to be set up with a capital of Rs. 5 crore, will be a wholly owned subsidiary of L&T Finance, and will be registered with Sebi. According to a senior vice president of the company, with the surge in the primary equity markets , business in this segment is definitely bound to grow. The new company will target mid-size companies. Though the new company is expected to start with a small initial base, this is expected to be increased once operations start expanding. L&T Finance had also earlier expressed willingness to scout for international partners for its investment banking business as well as project financing operations. The company’s plan for this new subsidiary has also been approved by the Boston Consulting Group ,which is developing a restructuring plan for Larsen & Toubro.
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Gautier India hopes to break eve
New Delhi: Gautier India Limited, part of the KK Birla controlled Zuari Industries and which is into premium high-end furniture, has opened a new outlet in New Delhi. Speaking to press persons at the launch, the company managing director stated that the company hopes to break even in this financial year.

The company manufactures, ready-to-assemble furniture and has modular lines. The range includes entertainment, office, computer and bedroom furniture. These are being offered under various sub-brands such as Boston, Rhapsodie, Dreamworld, Fantasy, Countess and Jazz. The company has 47 outlets in India, of which 26 are company-owned showrooms and 21 exclusive dealer-owned showrooms.

It has set up a Rs. 60-crore fully-automated furniture plant near Chennai. It has the capacity to produce two lakh units of panel-based furniture per year. The raw material used in the furniture is imported.
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Jumbo group lays out ambitious India plan
Calcutta: The Dubai-based, MR Chhabria-controlled Jumbo Electronics group has decided that a substantial portion of its investment will be in its Indian companies with the objective of making them global players in their respective core areas.

The areas to attract fresh investment from the group may cover information technology, entertainment and infrastructure sector. In other words, the Jumbo group, as part its long-term business strategy, may invest in some select non-core spheres which will help expand its core businesses in India.

Informed sources indicate that Mr. Chhabria intends to implement his long-term investment policy only after stabilising existing businesses in the country. SWC is said to have achieved corporate stability, while Dunlop, which is set to restart commercial production after over two years, hopes to achieve the same within a reasonable time.
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Modi Telstra plans for expansion in Calcutta cellular operations
Calcutta: Modi Telstra Limited, the cellular services provider at Calcutta, which saw its subscriber base cross the 50,000 mark, has planned a Rs. 40 crore expansion drive.

The expansion, for which the company would take recourse to borrowings, would include introduction of value-added products and services and enhancing communication facilities by way of convergence of technologies.

Apart from this, a sizeable amount would be spent on acquiring 35 more base stations. The switching capacity, too, was being expanded. With a view to offering a wider range of value-added services, it had been proposed to invest in an intelligent network (IN) platform and wireless application protocol (WAP).

To offer prompt and personalised service to customers, Modi Telstra has planned to install within the next three months a new software called customer telephony integration (CTI). This software would provide full information about any customer who calls the customer care hotline.
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Bharat Forge to complete its restructuring operations by March 2001
Pune: Bharat Forge, which has undertaken a restructuring exercise, which includes the divestment in group companies and cleaning up of its balance sheet from funds deployed in the capital and money markets, will complete the exercise by March 2001. The clean-up exercise which started two years back will now be completed in the next financial year. In the current year, Bharat Forge will mark-to-market securities to the tune of Rs 90 crore. This mark-to-market will result in a net loss of Rs 40 crore on account of depreciation of its investments, while it will receive Rs 50 crore.

The company had, earlier, faced a lot of flak from investors and analysts for having diverted a huge amount of company funds, amounting to approximately Rs. 420 crore, to non-related ares of business.

As part of its disinvestment exercise, Bharat Forge disinvested its equity stake in the loss making Kalyani Lemmerz last year in favour of the US-based Hayes, which had acquired the German wheel rims manufacturer. Bharat Forge made a clean Rs 68 crore from the sale of its equity stake in Kalyani Lemmerz at Rs 70 per share.

According to the chairman, Mr. Baba Kalyani, with the restructuring of the operations, the company’s return on capital, now at a low 8-10 per cent, should be doubling. The company has also decided to become more transparent in its operations.
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