Increased capacity and low domestic demand sees Hindustan Petroleum start naphtha exports
Vishakapatnam: Following the commissioning of its third crude distillation unit (CDU), the Visakhapatnam refinery of Hindustan Petroleum Corporation (HPCL) has started exporting naphtha to Japan. The third CDU has resulted in the increase of the production capacity of the refinery to 7.5 mtpa from the 4.5 mtpa earlier.

The export of naptha is due to the sluggish demand for the product in the domestic market. The naphtha produced by the refinery is used by private sector power plants in Andhra Pradesh, but as the plants also use gas, the demand for naphtha keeps fluctuating, he said. The export is being made despite low margins that arise due to substantial freight costs.

The refinery uses crude brought in from the Ravva oilfields, off the Rajahmundry coast, and imported crude. He said the refinery was expecting to process 2.5 mt of crude from the Ravva fields this year, while the balance 3.5 mt would be imported.
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New security solutions from HCL Comnet Systems
Calcutta: IT heavy-weight HCL Technologies, is ensuring that its wholly owned subsidiary, HCL Comnet Systems and Services, realigns its brand strategy.

The company, which has so far been offering security solutions and services through partnerships with global network security leaders like CheckPoint, Netpartners, SecurityDynamics, WebTrends etc., is now due to launch its own set of security products under the HCL Comnet brand name. This launch is to be taken care of, by its network security division, "E-secure". Developed with the secure electronic transaction technology, these solutions will ensure secure financial transaction on the Net.

The company plans to offer only those products which are developed on some niche technology, and may get into partnerships and procure the basic component on which it would add more components to develop products. The company recently tied up with Globeset to acquire the basic technology for building products.
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SK Birla group restructures
New Delhi: The Rs 3,000-crore SK Birla group, which has among other companies, such jewels like Mysore Cements, Xpro India and the group flagship Birla VXL, is witnessing major restructuring in line with the recommendations made by consulting major, Andersen Consulting. The group's heir apparent, Mr. Sidharth Birla, son of Mr. S.K. Birla, is stepping down as director from six group companies to ensure smooth implementation of its corporate governance code.

Mr Sidharth Birla, 43, will now focus his energies on the three major companies of the group, as part of his effort to adhere to the corporate governance code finalised by the company and the recommendations of Anderson Consulting that these three companies should get more attention from the promoters.

Besides the above three companies, Mr Sidharth Birla has also stepped down from include the Rs 1750-crore wagon manufacturing company Cimco Birla, soya manufacturer Sidharth Soya and engineering company VXL Engineers, a subsdiary of Birla VXL.

According to family sources, this decision would would strengthen the hands of professionals in the group’s different companies, and will ensure professionalism, accountability and speed of decision-making.

The underlying principles of the corporate governance code identified by the group are ethical approach, balanced objectives, accountability and transparency to all stakeholders, treating shareholders with concern and a decision-making process reflecting the approach and objectives.
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Electrolux to replace Voltas name with Maxclean
Calcutta: Electrolux, which has a joint venture with Voltas, called Electrolux Voltas, is developing the brand `Maxclean' to replace the Voltas name following the expiry of agreement between the companies. The `Voltas' brand will return to the Tata fold.

The white goods major will also launch a whole range of products, which will include microwave ovens, three models of semi-automatic washing machines and the renowned White Westinghouse room air conditioners.

The company has just introduced two of its refrigerator models under the `Supercool' range, which include the `Royal' and the `Regal', available in the 175 litre and 220 litre capacities respectively.
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Daewoo acquisition deal may include Indian arm
New Delhi: Debt-laden Daewoo Motor Corporation (DMC) of Korea, which is negotiating with suitors for takeover of its businesses, is likely to include Daewoo Motors India Ltd (DMIL) as part of the on-going deal.

If the deal goes through, DMIL will be taken over by the acquirer of DMC alongwith the latter's nine other automobile subsidiaries situated in Romania, Poland, Czechoslovakia, Uzbekistan, Vietnam, China and Iran. The total manufacturing capacity of the company in these plants was two million cars per annum.

While the Korean major initially maintained its stand of selling only the domestic automobile business of the company, the growing popularity of the company's small car `Matiz' in the world markets has forced the bidders to include DMC's overseas subsidiaries as well in their acquisition proposals.

There are five candidates in the race for acquiring the automobile business of DMC, including the US-based General Motors and Ford Motor Co., Fiat SpA of Italy, DaimlerChrysler AG of Germany and Hyundai Motor Co. of Korea. Of these, the two most likely contenders are General Motors and Ford.
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Essar to offer fresh proposal on FRNs
Mumbai: Essar Steel Ltd, which is in consultation with BancAmerica Securities for a new redemption plan on its currently-defaulted $250 million notes (FRN), has decided to approach the holders of these notes with a fresh proposal. This proposal, to be put forward in June, comes in the wake of the earlier proposal, finalised jointly between the company, the bond trustees and bond holders, becoming legally invalid.

As per the original scheme, the company was expected to pay 61 per cent of the principal amount and eight per cent interest. There were two other options -- a 5-year unsecured rollover or a 12-year secured rollover.

The new proposal is expected to ask creditors to roll over the existing foreign bonds and loans in exchange for new notes and new bank loans on equal repayment and economic terms to any and all of its participating foreign creditors.
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BK Birla may put Century Textile's cement arm up for sale
Mumbai: Merchant banking sources indicate that Mr. Basant Kumar Birla may put the 1.5 million tonne Manikgarh Cement unit, part of his Rs 1,937-crore flagship Century Textiles & Industries, on the block. According to them, he is in advanced stages of negotiations with the UK-based cement transnational Blue Circle to dispose the unit, located in Maharashtra. The Manikgarh unit caters almost entirely to Maharashtra and parts of southern Gujarat.

The move is believed to have been approved by his grandson, Mr. Kumar Mangalam, who runs India’s third largest cement company Grasim Industries and who is slated to inherit the BK Birla fortunes. The younger Birla is not keen on concentrating on the western region, due to depressed price realisations and falling margins, having already burnt his fingers with the Gujarat-based Shree Digvijay Cement, which now has to be referred to the Board for Industrial & Financial Reconstruction (BIFR).

The news could not be confirmed by any officials at Century or at the Aditya Birla group.
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ICICI Infotech floats US arm, mulls acquisitions
Mumbai: In a move that will mark the first phase of its expansion, ICICI Infotech Services Ltd, the wholly-owned IT subsidiary of the term-lending institution, has floated a US subsidiary, ICICI Infotech Inc in New Jersey. The company is also on the look-out for software outfits that it can acquire.

Company managing director, Mr. V Srinivasan confirmed that the company wants to grow through mergers and acquisitions. The company had, earlier, entered into a strategic alliance with Sun Microsystems and System Access -- a Singapore based company offering product solutions for the entire gamut of banking.

The company, which provides software and consultancy services, is yet to start developing its own products. It also plans to enter the European and the UK markets after establishing its presence in the US.

The company, which employs 470 people now, plans to increase the staff strength to 1000 by March 2001.
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Global merger of Group 4, Falck to open up security services market
New Delhi: Group 4, the only professionally managed security services company in the country, which has been operating in India for sometime now, is likely to set the Indian market open wider with the announcement of its global merger with international giant Falck.

According to Ms. Nandini Vaidyanathan, executive director, strategic development, the group which will employ over 115,000, the merger would mean enhanced customer value as it would augment the existing portfolio of services in security and facility management with fire and safety services, ambulance and patient transportation, motorway intervention and crisis therapy.

The new group, called Group 4 Falck, would have the financial muscle and strong presence in Europe, Asia and other markets where there is an expanding demand for security and security related services. India is one such market.
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Philip Morris may bid for Nabisco
London: Philip Morris, the world’s biggest cigarette and foods company, is set to be the favourite acquire biscuit maker Nabisco Group Holdings Corporation. Nabisco has been put on the auction block by its bankers, Morgan Stanley Dean Witter and UBS Warburg, who have set Monday, May 15 as the deadline for receiving bids for the take over.

On Friday take-over mogul Carl Icahn sweetened his offer for Nabisco to $6.5bn, an increase of 37.5 per cent. But analysts predicted the bidding would go higher.
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