Birla-AT&T-Tata combine on the move
Mumbai: The BIRLA-AT&T-Tata combine is on the move. The joint venture, which operates from Goa, Gujarat and Maharashtra (Except Mumbai), is planning to hit the capital market with its initial public offer sometime in 2001. It is early days though and the details are still being worked out. Besides it is set to invest over Rs 300 crore in its high-profile cellular project.

While US-based AT&T is already in the process of investing Rs 100 crore in the project, the other Indian partners - the Aditya Vikram Birla Group and the Tatas - will do so at a later date. Funds being infused will be utilised in buying new switches and building IT infrastructure.

Formed as a joint venture between the A V Birla Group and AT&T to begin with, the company was strengthened by the entry of the Tata Group into the partnership and is expected to includeTata Cellular's area of operation, Andhra Pradesh.
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ICI to further restructure its operations. Also probing new areas
Calcutta: Rejuvenated by its earlier success, ICI India Ltd. is not only looking at restructuring its operations further, but is also probing to add new products.

The company is currently drawing up plans to introduce new products in India under the active guidance of its parent, ICI Plc, UK. ICI India has aligned itself to its UK parent, which has re-engineered its businesses to concentrate on speciality chemicals instead of heavy chemicals.

Mr Aditya Narayan, managing director, ICI India Ltd., while addressing reporters in Calcutta on Friday, said,"ICI India is in the process of restructuring its current business operations, which would also include rationalising its workforce. We are also looking at new opportunties. We have just received permission to start production of water borne adhesives, already having begun production of hot melt adhesives at Thane in January this year".

Spelling out the new agenda Mr Narayan said," ICI is concerned about the Rishra unit, which has become unviable. As growth rates are becoming flatter by the day, our rubber chemicals business will have to be restructured on a war footing. This requires huge cost cutting and some workforce rationalisation as well. The downsizing will have to be by almost 50 per cent", he said. The Rishra unit, which manufactures rubber chemicals and paints, employs about 500 employees.

Company’s strategy of restructuring, which included disposing off immovable assets in the past, has paid off with no adverse impact seen on growth. Any drop in profit has been primarily due to increase in raw material costs and company's inability to pass it on to its consumers.

Mr Narayan added,"We plan to leverage on better distribution channels in the coming months if we have to achieve a 25 per cent return on net worth as against 20 per cent now."
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Ispat talking to Electricitie De France for equity partnership
New Delhi: The Ispat group, which is developing the Bhadrawati power project in Maharashtra, is reportedly talking to French power major, Electricitie De France, to come in as an equity partner for the project. Electricitie was earlier an equity partner in the project but had walked out following delays, which took place due to disagreement over coal prices.

The price demanded by Coal India was found to be on the higher side by power developers, who thought it would make their tariff unacceptable. Fuel costs are usually passed on directly to the consumers.

The matter was finally settled with the intervention of the power secretary, who had held a meeting earlier this week, attended by the power secretary, coal secretary and the chairman of Maharashtra State Electricity Board among others.

The price of coal has been finally settled at Rs 1,600 per tonne, a via media between Rs 1,800 demanded by Coal India and Rs 1,400 agreed to be paid by power developers.

The Bhadrawati power project, a fast track project was also among the first one to have taken off after liberalisation of the power sector, had been issued a counter guarantee and the state government has also agreed to provide it with a escrow cover.
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BSES to speed up its telecom activity
Mumbai: BSES plans to invest Rs 340 crore in its telecom subsidiary, BSES Telecom, over the next three years. The investment will be geared towards developing its internet business, including web casting, web farms and international gateways. Said Mr DK Nimal, chief executive, BSES Ltd.,"About Rs 240 crore will be invested in the first year and another Rs 100 crore in the second. We plan to bring in about Rs 100 crore in the form of equity and the balance in debt."

The company has set itself a target of 300,000 subscribers in three years from now.

To achieve this BSES Telecom will also lay down 200 km of optic fibre cable in Mumbai by December 2000.The company is also talking to BEST to provide optical fibre network support to its areas in South Mumbai.
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Mahindra to relaunch 'Voyager', also roll out Scorpio
New Delhi: Mahindra & Mahindra is set to relaunch 'Voyager' in October, the third time in the last two years and also roll out the first Scorpio sports utility vehicle by the middle of calendar 2001.

Alan Durante, president (automotive division), said,"We will be repositioning Voyager in October with better features. However i can't say if it will be priced lower."

Voyager is being produced by the Mahindras under licence from Mitsubishi Motors.

Regarding Scorpio Durante was more certain and said,"The development exercise is on schedule and the first vehicle will be rolled out by the middle of 2001. We are planning to launch three models targeted at the lower, medium and upper end of the sports utility vehicle segment. However we are yet to decide on which model will be rolled out first."
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Blow Plast bows to customer preference --- changes track
Mumbai: Luggage major Blow Plast Ltd. has decided to focus on soft luggage instead of the hard variety, in line with the change in consumer preference and plans to almost triple turnover in this segment in the next two years. From Rs 37 crore in fiscal 1999, Blow Plast expects sales to jump to Rs 100 crore from the soft luggage segment in next two years.

Arun G Warey, managing director Blow Plast Ltd, said, "We would be focusing on the soft luggage market as there is a distinct shift in consumer preference. Additionally it is also being treated as a fashion and design segment."

Yogendra Vashishta, executive vice president (Sales & Marketing) Blow Plast Ltd.said," the profit margins on soft luggage is much higher because of its low manufacturing cost."

Blow Plast has seen its market share falling to 64 per cent this year from 70 per cent in 1998 due to competiton from Samsonite.

To counter this decline Blow Plast has also decided to push retail sales by expanding its outlets from 25 to 100 by the end of current fiscal. The company itself owns 15 exclusive showrooms called VIP Lounges.

Presently Blow Plast outsources 15 per cent of its soft luggage requirement from China.
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VIP Plans tie-up with Titan
Mumbai: VIP Industries, makers of VIP brand of luggage, has tied up with Titan, a leading German retail distribution company, for developing designs for the hard luggage segment.

Confirming the development, Arun G Warey, managing director Blow Plast Ltd. said, "VIP along with Titan's design house KDT will develop new designs catering to the German market which will be manufactured in VIP's facility here."

The newly developed products will be sold under the Titan brand in the German market and under VIP brand in India. The Indian markets will see these products being launched in the next 12 to 18 months.

VIP is also exploring possibilities of exporting its products to SAARC countries, besides Europe and the Gulf region. The company currently exports 17 per cent of its production. Its exports stood at Rs 17 crore for the financial year 1999-2000 and is expected to grow at the rate of 20 per cent in 2000-01.
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