Spanish venture capital firm takes 20% in TV software firm PEN
Mumbai: TransAtlantic, a $400m Spanish venture capital fund, which has already acquired sizeable stakes in media and internet firms such as TV 18, Caltiger.com and Nimbus Communications, has picked up a 20 per cent equity stake in Mumbai-based media television software company, Popular Entertainment Network (widely known as PEN).

The Spanish VC has acquired the stake through a preferential allotment of new equity shares and is worth about $5m (Rs 22 crore). Its promoter, Jayantilal Gada and family hold the balance 80 per cent.

The company proposes to utilise these funds for the acquisition of more rights for movies and songs, pre-payment of high cost debts, strengthening brand in the domestic market and meeting working capital requirements. Recently PEN acquired video and TV rights for the Bollywood super-hit film, Kaho Na Pyaar Hai, starring Hrithik Roshan, for about Rs 1.25 crore.

In other developments, the company also plans to launch its own music channel — PEN Music Channel — within the next six months with an estimated cost of $1m (Rs 4.5 crore).
Currently, PEN is focusing on providing Hindi feature film content to various channels such as Doordarshan, Zee, Sony, Sahara and cable channels like Siti Cable. It wants to position itself as the leading Hindi feature film rights holder and will allocate a major portion of its funds for acquiring programming rights from producers. At present, it owns a total of over 2,000 rights for audio, video and cable, making it the biggest library of Hindi feature films.
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Scooters India stake sale sees another suitor
New Delhi: In a move that is bound to give a much-needed expansion to the list of interested buyers, Japanese two-wheeler giant, Suzuki Motors, has expressed interest in picking up a stake in Scooters India (SIL). So far, only Piaggio had expressed an interest in the company. According to sources, Suzuki had indicated formally to the government its interest in taking exposure in SIL a month ago and will undertake a due diligence for shortly.

The government had earlier expressed interest to divest majority stake in favour of a joint venture partner. Subsequently, an advertisement was placed, calling for a joint venture partner to take 74 per cent along with management control. However, only Piaggio emerged as a serious buyer. The other potential bidders backed out.

The process by which Suzuki will be allowed to enter the bidding process has not yet been decided. However, one of the options that could be tried out will involve asking Piaggio to make an offer for the buy-out. An advertisement will then be placed, asking any company in the sector to match this offer. The best offer will bag the deal. This method could emerge as the most transparent option for sale. A final decision on the bidding process will be taken soon.

Currently, Piaggio is in the process of doing its due diligence. This had hit a speed breaker due to the Italian major’s battle with LML. However, this matter has been resolved and LML is likely to agree to give Piaggio an NOC for the SIL buy-out.
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The smart card way to access patients - Wockhardt Hospital
Calcutta: Wockhardt Hospital and Kidney Institute has just launched the all new ‘smart card' facility for its patients, that will give Calcutta’s medical services a face-lift.

According to Ms. Sumedha Sen, general manager, Wockhardt Hospitals, with the world is moving towards a paperless and hi-tech society, the company wants to incorporate these ideas within the services offered by it. Under the smart card concept, every individual is allotted a unique ID number along with their basic health check-up results.

While in the first phase, Wockhardt will offer patients cards with an ID number to be used by the doctor for referring online to the patient's reports stored in the hospital's database, the second phase will involve introduction of cards with a microchip embedded within. The chip will have the patient's initial normal readings along with the results of various medical tests. The chip can be decoded through readers for immediate access to the results.

Distribution of the first set of cards is expected to take place sometime in June.
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Escotel eyes tie-ups
Kochi: Escotel – the leading cellular services provider in Kerala -- is likely to go in for a strategic buy-out. This was stated by Mr Manoj Kohli, executive director and chief executive officer of the company, who said that the company has more or less zeroed in on the unit which it might acquire finally.

While the company is planning to enter three new regions through this acquisition, it will launch a regional portal that is accessible through mobile phones. The idea is to offer regionally specific information to the customers, company officials said. Escotel is likely to float a separate company for this purpose.

Besides announcing several major rate cuts in the Kerala circle, the company will also give several new incentives to the existing customers also. According to him, the company is planning to connect 70 towns in Kerala.
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Reliance and other private sector companies to benefit from Kribhco decision
New Delhi: In a move that will give a fillip to industrial activity and improve improve connectivity to Hazira port for scores of firms including private sector major Reliance in the western region, the ministry of chemicals and fertilisers is all set to issue a presidential directive overturning the decision of the Kribhco board to not allow private and public sector companies to use its siding at Kawas in Gujarat.

The decision to issue a directive was taken at a meeting between railway ministry officials and ministry of chemicals and fertilisers at a meeting recently. The proposal has now been put up to the minister of chemicals and fertilisers, Suresh Prabhu and a presidential directive is expected to be issued soon.

The move follows demands from industrial units located in the region who consider the rail link provided by the siding at Kawas – which besides being linked to the Delhi-Surat rail link, also provides connectivity to the northern region -- a crucial connection to and fro Hazira port for transportation of both domestic and out-bound traffic. Pressure has also been mounting from industrial units who have been forced to re-locate outside the confines of Surat to reduce pollution levels at Surat. They have been asking for permission to allow them to use the rail link at Kawas, for their transportation needs.

Kribhco would charge lease charges from the users of the siding, once the move to sub-lease the siding is implemented.
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Tata Tea board to treat Tata Tea and Tetley as one for operational reasons
Calcutta: The top bosses at Bombay House have decided that, for operational purposes, as far as circumstances permit, Tata Tea and Tetley will be reckoned as one entity even as, or rather so long as, they remain separate corporate entities. In a related move, the Tatas are seriously considering the induction of Mr. Ken Pringle, CEO of Tetley, on the board of Tata Tea.

Since the announcement of the take-over the UK-tea company, this is by far the most significant move by Bombay House. According to Mr. R.K. Krishna Kumar, vice-chairman of Tata Tea and who also heads Tetley as chairman, the appointment of Mr. Pringle as Tata Tea board member will vest the `virtual company' concept with added importance.

Tata Tea is convinced that its activity can benefit from the standarised management practices including quality performance norms and consumer focus of Tetley, the world leader in tea bags. The combined strengths will help create opportunities to expand sales in both existing and new markets and realise synergies. This will be more so when new products are envisaged for the Indian market. It is also convinced that its strong R & D base and expertise in tea cultivation/manufacture will be immensely useful to Tetley.

According to the mandarins at Bombay House, the breadth of experience and vertical integration, will equip the companies to compete anywhere in the world and this assumes importance in the context of WTO, which will terminate tea import curbs under its pre-determined timeframe. With the globally recognised Tetley, Tata and other regional brands as also a product range that covers over 100 varieties of black, flavoured, herbal, decaffeinated and green teas, it would be possible to tap markets effectively and increase the market share.

Their joint tea buying power and commercially relevant use of tea produced by Tata Tea will, over a period, facilitate cost control.

Finally, and more important, the fact of Tetley having a single brand worldwide, as against the multiple brands of Levers, is considered by the Tatas as a strong plus point "in these days of brand consolidation".
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Tatas Finance launches home finance subsidiary
Mumbai: Tata group company, Tata Finance, has made a foray into the housing finance business through its newly-formed subsidiary -- Tata Homefinance Ltd, in which Tata Finance will hold 51 per cent of the equity capital in Tata Homefinance with 9 per cent being held by the other Tata companies. The balance 40 per cent will be offered to multilateral funding agencies and an overseas joint venture partner who is in the process of being identified.

Tata Homefinance is planning to introduce the standard individual home loan product at 13 per cent interest per annum. The company plans to offer products such as home loan, home extension loan, home improvement loan, loan against home and line of credit. It will also be shortly introducing new products such as corporate loans, builder loans, loans to professionals and loans to NRIs.

The company has commenced operations in Pune but proposes to start operations in over 20 centres across the country over the next six to eight months, the release said.
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BSES bags UN award for environment management
Mumbai: Mumbai’s major power distribution company, BSES Ltd, has been awarded the Business Millennium Award for environment management.

The award, sponsored by the Indian Chamber of Commerce (ICC) and the United Nations Environment Program (UNEP), was presented to Mr. R.V. Shahi, chairman and managing director, BSES, at the World Congress from May 3-5, organised at Budapest.

In the power group, only two companies from across the world were selected - Tokyo Electrical Power Company of Japan and BSES.

While accepting the award, Mr. Shahi highlighted the various options for industrial and economic development in the country and stressed the need for enhancing the energy utilisation to catch up with the rest of the world.

BSES had also recently won a national award from the Council of Power Utilities for environmental management at its Dahanu power station in the 700 MW and below category.
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Hyundai to launch diesel variant of Accent in three months
Thiruvananthpuram: Speaking at an opening ceremony of a new dealership in the state, Mr. Young Jin Ahn, general manger, (marketing and sales), southern region, Hyundai Motors India, said that test runs of the diesel variant of the Accent, the latest addition to the mid-car segment from the Hyundai Motors India Ltd (HMIL) stable, have been completed and the formal launch is expected in the next three months.

He said the Accent diesel will sport a TUD-5 engine of 1.5 litre capacity developed by Peugeot of France. The price tag of the new car has not been fixed yet but, indications are that, it will be "slightly higher" than the petrol version. The new Accent will be introduced in the southern market initially.

The LPG version of small car Santro will be introduced in September/October this year. The LPG kits are being imported from South Korea.

The company is also bracing up for the launch of luxury car Sonata which is expected to sport a tag of Rs. 11 - 12 lakhs.
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Tata Steel may exit bearings
Mumbai: After its recent sale of the cement division, in an attempt to focus on the core business of steel, Tata group major, Tata Steel, is actively considering putting yet another non-core business, the bearings division, on the block.

Despite the division having turned around recently after couple of years of losses, senior company officials felt that it was best for the company to exit the bearings business and the board is expected to take a formal decision soon.

The company, however, confirmed that this will not be a distress sale. The division would be sold only if, it adds to shareholder value, and secondly, if the interest of all the workers in the division is protected. Analysts, however, feel that the current downtrend in the industry may pull down its valuation.

Tata Steel, however, is unlikely to put the other non-core business - the tubes division, which has huge real estate assets - up for sale. It is believed that the real estate assets could be used in the future for any further expansion of the integrated steel complex in Jamshedpur.

The other non-core division of ferro-chrome will remain, despite the losses it makes, as production is captively used. Tata Steel had begun the process of exiting from non-steel operations three years back when its captive power plant at Jojobera was sold to group company Tata Electric Companies.
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Two more hotels will get the honour of ITC prefix
Calcutta: Two more hotels -- the Grand Kakatiya Sheraton in Hyderabad and the Park Sheraton at Chennai – will get the ITC prefix added to their names, in an attempt by the cigarettes-to-hotel company, ITC Limited, to expand its reach in the country. Till now, only the ITC Hotels flagship Maurya Sheraton at New Delhi and the ITC Sonar Bangla under construction at Calcutta bore the ITC prefix.

The company has also initiated new steps on the new branding philosophy. With ITC becoming a prefix for Maurya Sheraton, the hotels' colour code which was burgundy and gold has now changed to blue and gold. The words ITC Maurya Sheraton will be in the blue shade, while the Sheraton logo and the Welcomgroup namaste will be in gold. For the two new hotels, the new colour code will also shortly come into effect.

In a effort to underscore its policy of seeing the hotels' business as core, the company has hiked the quantum of funds earmarked for investment in its hotels' business by Rs 500 crore to Rs 2,000 crore.

According to ITC hotels spokesperson, ITC chairman Y C Deveshwar has made it clear that existing hotels within the group could avail of the option of upgrading their properties in order to make them worthy of the ITC prefix, by offering international standards of service.

ITC Hotels flagship brand Maurya had been prefixed with the name ITC, during the US president Bill Clinton's visit. This prefix will only be added to hotels that offer international standards of service.

The company's Mumbai project at Andheri east, is moving towards completion and is slated to be formally opened in October this year. Construction work at the second hotel at Parel, Mumbai has just begun.

The Calcutta hotel christened "ITC Sonar Bangla" being located at a lower level needed to be filled up before work on the foundations could begin. Work is expected to pick up in full swing during the monsoons.
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Microsoft prepares counter-proposal to break-up move
Washington: In a bid to save the company from breaking up, US software giant, Microsoft Corporation, is developing a response to the US government's proposal, that would put curbs on its business practices, including offering a version of the Windows operating system that "hides" access to the software giant's internet browser, according to newspaper reports appearing on Sunday.

Under the Microsoft counter proposal, computer makers also would be given flexibility to alter Windows software and Microsoft would refrain from entering into certain deals with computer makers that promote Microsoft products over rival products. Microsoft's plan is an attempt by the company to show US district court judge, Thomas Penfield Jackson, that there is a remedy directly addressing the court's verdict—that Microsoft broke federal antitrust law —without splitting the company in two as the federal government has proposed. It also plans to provide open, timely and complete access to the parts of the Windows operating system code that independent software makers use to write programmes for Windows.

The company has also has proposed offering a version of Windows that hides access to the browser. Microsoft has argued that it cannot separate the browser from the software because the two products are fully integrated.

Microsoft was found guilty last month of abusing its power in the software industry—Windows runs about 80 per cent of all personal computers—to harm rivals and strong-arm partners. Microsoft has insisted it broke no laws and vows to appeal.
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