Despite being low on technology, the company plans to enter into the moped segment, by introducing a product that would reflect the needs of tomorrow and meet future legislations and market requirements.
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A T Kearney to help RPG group draw up Net plan
New Delhi: Paramount Cyberspace Technologies, a company set up by the RPG group and funded by various group companies will spearhead the group’s foray into internet related businesses. The company plans to set up a combination of category and domain-based portals targeting specific consumers, in addition to having strong e-commerce revenue models for all the vertical portals.

The group has hired consultancy firm, A T Kearney to develop the business plans for the Internet businesses, including portals. The group is now in the process of setting up a management team to focus on technology, e-commerce, sales and marketing, content and the other support functions.

As part of its strategy to concentrate on the IT and communication sectors, the group is buying out US communication major Sprint’s 49 per cent stake in their Indian joint venture company RPG Sprint Limited for an undisclosed price.

RPG Cables, another group company, has changed its focus to higher margin XLPE range of cables and also moved its PVC cables production to its new factory at Silvassa, to have cost advantage. The company has also made a foray into the house wiring segment of cables in January this year. In addition to this, RPG has commenced production of flame retardant cables.

RPG Cables has implemented expansion of optic fibre cables capacity from 60,000 FKM to 1,30,000 FKM. In last financial year, sales increased three fold from 24,000 FKM to 70,000 FKM due to large orders received from DoT, GAIL and other private firms.
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Baron International restructures, ties up joint ventures
New Delhi: In keeping with an earlier announced plan, the Mulchandanis-promoted Baron International is undertaking a major organisational restructuring under which it will be made a holding company with four stand-alone business ventures operating under it.

Under the restructuring plans, while Baron International will look after manufacturing and marketing of AIWA products, the newly formed TCL-Baron India Ltd will look after the manufacturing and marketing of the TCL range of products.

TCL Baron India Limited, a tie-up with the $1.8 billion Chinese group, is to launch an entire range of consumer electronics, white goods, telephony equipment, internet access products and convergence products.

In another development, Baron is close to finalising a joint venture with Internet major Satyam Infoway – christened Baron Sifi Ltd. -- for marketing of various Internet-related services and products. The proposed joint venture with Satyam Infoway is to be set up on a 50:50 equity partnership basis.

Baron is also said to be in advanced stages of negotiations with two leading Chinese mobile phone companies for forming a strategic alliance venture for marketing of mobile phones.
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Global TeleSystem appoint well know valuers for merger plan
Mumbai: In order to give shape to its merger plans, engineering services and e-commerce solutions firm, Global TeleSystems, appointed well known accounting firms, Deloitte Haskins & Sells and Pannell Kerr Forster, as valuers to suggest the swap ratio for merger with its unlisted group company, Global Electronic Commerce Services (GECS).

GECS is a virtual private network and managed network services company with a revenue of Rs 45 crore.

It is expected that the valuers will submit their reports within four weeks, after which the GTL board will decide on the amalgamation. The terms and conditions of the amalgamation and the ratio of exchange of shares based on these reports, will be decided by a committee of independent directors appointed for this purpose.

Another well know investment banking firm, Salomon Smith Barney, has been appointed as advisor to assist the board of directors in vetting and reviewing the business synergies for the proposed amalgamation.

The merger will create an end-to-end e-commerce solutions company with an aggregate revenue of Rs 1,000 crore (sales). The merged entity will create the country’s largest end-to-end e-commerce solutions company with a market-capitalisation of around Rs 7,500 to Rs 9,000 crore, shareholders’ funds of Rs 1,100 crore with work force of 1800 professionals.
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Wipro, GE talks for hi-tech pact, off
Bangalore: Talks between Wipro Limited and GE Software Services for a joint foray into the areas of leading edge technologies has been called off, due to differences between the parties on the GE request for stock options in Wipro in return for technology transfer. But Wipro apparently rejected the deal as it did not find it acceptable to give away its stocks.

However, it is understood that the existing contract (Tier- I) offering software solution services between GE and Wipro will continue till the end of the contract period which comes up for renewal in mid-2001.

Wipro was the first software services company in the world to achieve Level 5 under the Software Engineering Institute’s Capability Maturity Model. Internally, to gear upto a fast-changing environment, Wipro has streamlined the organisation.

It has now three groups in the Wipro Infotech division which focuses on the customer. The enterprise products team focuses on hardware, the solutions and services team focuses on providing applications and systems integration services from the enterprise layer into the internet layer.
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Mumbai unit of Castrol India shut down
Mumbai: Citing unviable operations due to lack of space, coastal regulations and rules restricting reconstruction, lubricants major, Castrol India Ltd., has decided to close its manufacturing unit at Wadala, Mumbai. The unit, operational since 1961, will however, continue to house the company's R&D Centre.

The company had phased out operations in this unit and introduced a VRS, which was accepted by all 59 employees. Manufacturing operations will be shut down completely instead of shifting to another location because only three per cent of the company's production came from this unit.
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