US company takes over India Domain, Pugmarks
New Delhi: Asia Online, a US-registered finance and holding company, which was established in early 1999 by such majors as Softbank, JP Morgan and GE Capital to build a pan-Asia Pacific network of internet companies, announced that it was taking over two India-based internet companies.

Asia Online India, the Indian subsidiary, will pick up majority stakes in India Domain Web Services and Pugmarks Interweb in a cash-cum-stock deal, estimated at $7.5 million. The acquisitions of the two companies are the first of a string of buyouts planned by Asia Online in the country, after having acquired several internet companies in Hong Kong, Malaysia, Australia and New Zealand.

India Domain Web Services is an unlisted Hyderabad-based company engaged in software development, and Web designing and hosting. Asia Online proposes to acquire 67 per cent stake in this company, with a cash investment of $610,000.

In the case of Pugmarks Interweb, Asia Online will pick up 51 per cent stake for $6.9 million. Pugmarks provides networking facilities, designs and hosts Websites, and is engaged in software development. It is a privately-held unlisted company with 80 per cent stake controlled by four promoters. The remaining 20 per cent is held by group of individual strategic investors.
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Auto industry presents government with view on auto policy
New Delhi: As part of the run-up to the formulation of the new auto policy, the auto industry has prepared a comprehensive document to be presented to the government. Among the various initiatives proposed by the document, include allowing overseas acquisitions at par with the software industry, a ban on used vehicle imports for a specific period, termination of stringent conditions under the MoU policy, tax breaks for R&D and raising the tariffs as high as possible for all vehicles under WTO negotiations.

The industry is said to have taken a strong position on the issue of second hand imports and sought prevention or ban of such vehicles for a specific period. Further, in order to give a level playing field to existing players, it has sought termination of some conditions in the MoUs signed by automobile companies. This, it believes, will ensure that auto companies that enter the market next year do not have an unfair advantage compared to the existing ones.

The auto industry has also defined the key areas of growth in India as the following: a global player in the design and manufacture of two wheelers and small cars, large scale manufacturers of tractors and commercial vehicles and globally competitive source of auto components.

The report has also sought a review for tariff ceilings committed for commercial vehicles and auto components by India at the WTO. According to the industry, these commitments were made without any discussion with the industry. It has urged the government to negotiate a higher level of tariffs for all categories.

On the excise duty front, it has sought lowering of duties on cars from 40 per cent to 24 and of multi-utility vehicles from 32 per cent to 24.
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Rifampicin majors see prices crash by Rs 1,000 a kg
Mumbai: In a category that is already affected by over-supply, cut-throat competition and low quality imports from China have forced the crash in the prices of vital anti-tuberculosis bulk drug, rifampicin, by over Rs 1,000 per kg in India, which is the largest rifampicin market.

Rifampicin is currently manufactured by three key players - multinational Ciba CKD Biochem, Gujarat Themis Biosyn and Lupin Chemicals. Together the companies have a capacity of 425 MT, while the total demand for rifampicin, according to experts, is roughly 300 MT/annum, leaving a huge surplus of 125 MT.

While the three companies were exporting surplus production in the past, stiff price competition from a large Chinese manufacturer has now dented opportunities on this front too. Prices of rifampicin in China have now more-or-less firmed up in the region of $57-$58 per kg. Besides, current Indian laws permit duty-free import of exported rifampicin, under the advance license scheme adding to the price woes of industry.
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