Aditya Birla group may sell 50 per cent in power holding company
Mumbai: The Aditya Vikram Birla group, which recently created a holding company for its power projects – which will begin by owning all the captive power belonging to the group -- is said to be keen on divesting 50 per cent stake to a strategic international partner. The Rs 20,000 crore AV Birla group has around 14 captive power plants with an average capacity of around 80 mw, translating into a total capacity of 1,130 mw. Considering the industry’s average cost of power at the rate of Rs 4 crore per mw, the holding company, excluding the proposed Bina, Rosa and Mangalore power projects, will have a total worth of Rs 1,130 crore.

The group has identified the power sector as one of its thrust areas for future growth. It is in the process of appointing a merchant banker for penning the structure of the holding company and to find a strategic international partner in the holding company.
Back to News Review index page 

BSES plans to pump in Rs. 1,100 crore in Orissa
Mumbai: BSES Ltd., which took control of three distribution circles in Orissa after the state electricity board was privatised last year, has decided to pump in an additional Rs 1,100 crore-plus as part of its turnaround exercise.

The company has completed its first phase of identifying the operational issues in the three circles and was now in the process of chalking out a plan to resolve these issues. In the next phase, BSES plans to completely overhaul the distribution system in an effort to improve the quality power supplied. The renovation and modernisation plan will entail an investment of around Rs 300 crore for each of the three circles.

The company hopes to cut down the transmission and distribution loss from the present high of 50 per cent to around 25 per cent within the next four years. It also plans to improve the billing system and collection facilities, for which wholly-owned subsidiary BSES TeleCom has already been given the mandate to put the systems in place.

In its bid to offer services to consumers in Orissa on par with those being offered by it in Mumbai, the company is planning a slew of consumer centres within the state.

BSES is also working on an attractive voluntary retirement scheme for the surplus employees it has identified.
Back to News Review index page 

Pepsi will invest Rs 15 crore in two new bottling units for mineral water
Calcutta: Soft-drinks giant, Pepsico India Holdings, which is making a major foray into the mineral-water segment through its brand Aqua Fina, plans to invest Rs 12 crore to Rs 15 crore in setting up two new lines for the purpose at its plants in Bangalore and northern India.

Currently, the company's plant at Roha, Maharashtra is the only one to roll out the product. Aqua Fina is among the largest-selling bottled-water brands in the US controlling around 15-16 per cent market share. The Rs 10 per 750ml Aqua Fina bottle is already being sold in Bangalore, Chennai, Pune, Ahmedabad and Baroda. The product is currently being test marketed in Mumbai.

Meanwhile, the company has initiated an all-out effort to halt the production of spurious soft drinks. It has appointed agencies that that would provide information on producers of spurious products to the state administration for proper follow-up action. Some manufacturers have already been identified in Delhi and the outskirts of Calcutta.
Back to News Review index page 

UB group research foundation bags two US patents
Bangalore: The UB Group-sponsored, Vittal Mallya Scientific Research Foundation (VMSRF), has secured US patents for two new products. These are Checkmite -- its eco-friendly aerosol spray that controls house dust mites and has fungicidal and disinfectant properties -- and Hydroxycitrisol -- an anti-obesity nutraceutical, that is formulated from the fruits of the Garcinia plant family, popularly known in the western ghats as 'kokum'.

The products will be marketed by UB Biotek, a 100 per cent subsidiary of United Breweries. For marketing the product in the US, UB Biotek is looking at companies which are already into biotech and pharma and have an established marketing network across the country.

The anti-obesity product is under clinical trials by Astra IDL in India. Checkmite is said to have enormous potential considering the huge market in the West for anti-allergy products.

The company is also bullish about "Slim Beer", its product which helps reduce weight. Laboratory trials have shown no significant change in the taste of beer that is mixed with hydroxicitrisol.

The latest item on the VMSRF's agenda is a government and department of biotechnology-sponsored project for developing an immuno-diagnostic kit for species identification of snake bite. Scientists at VMSRF are also developing a new generation of species-specific antivenins to treat affected victims.
Back to News Review index page   

IOC considering Engineers India buyout
Mumbai: Fortune 500 company, Indian Oil Corporation (IOC), is said to be examining the option of buying out the Centre's stake in Engineers India (EIL). The company may begin by acquiring a 26 per cent in EIL to first, which means the Government will continue to be an active co-promoter.

Earlier the finance ministry had rejected IOC’s bid for the Engineers India stake. However, Even before the finance ministry's rejection of the EIL proposal, IOC was apparently of the view that it made more sense to consider a buyout only if the Centre was going to make a complete exit. The reasoning was that this would ensure greater flexibility in working. IOC was also believed to be open to the idea of offering a stake in EIL at a later date to players like Larsen & Toubro.

EIL has been serving the process industry including refineries, petrochemicals, oil & gas processing projects, pipelines, offshore platforms, fertilisers etc for over three decades.

The company, with a manpower strength of around 4,000, caters to a complete range of project services in these fields including process design, engineering, construction management and commissioning & plant start-up. It has played a key role in the setting up of a large number of process plants both here and abroad.

EIL helps the client conceptualise the project, select environment-friendly technologies, carry out feasibility studies and obtain project clearance with high-quality environment impact assessment studies. The company ensures that the design and engineering is safe by carrying out hazard and operability studies. EIL's risk analysis and disaster management plans ensure long term safety and operation of these plants.
Back to News Review index page 

Hyundai gets boost to its global strategy, DaimlerChrysler to take 10 per cent
Seoul: In a move that is likely to provide a boost to the South Korean car giant, Hyundai Motor Company, the US-German auto combine, DaimlerChrysler AG, is set to acquire a 10 per cent stake in South Korean company, for an estimated $428 million. This move is sure to help Hyundai's strategy of becoming a global player by ranking among the top five automakers by 2010.

The agreement for the investment calls for the two companies to set up a separate 50-50 joint venture that will operate Hyundai's commercial vehicle plant with an annual capacity of 100,000 vehicles.

The investment is subject to government approvals, and Korean government officials have said they would only approve a Hyundai bid if the Korean carmaker joined with a foreign company to avoid a potential monopoly.

Hyundai acquired the nation's third-largest car firm, Kia Motor Corp., last year, which allows it to control two-thirds of the nation's 1.2 million vehicle domestic car market.
Back to News Review index page