LG India ready to invest upto $20 million for digital R&D
Seoul: According to Mr. Ajay Kapila, the Indian subsidiary of Korean giant, LG Electronics, is investing about $20 million in a digital research and development centre. Out of this, $5 million will be spent on setting up infrastructure for the centre, with the balance being spent over the next 16 months on research and development activities.

The thrust areas for the centre, which it is hoped will cut the product development time to half the current 12-24 months being taken at its Korean centre, will be multimedia products, moulds, basic design, as well as quality testing and standardisation. The centre will also chart out the software requirements of LGEIL and develop circuits for its products.

The Delhi-based centre, the fourth such centre in the LG group worldwide, currently employs 24 personnel and is likely to reach 60 by the end of the year.

Meanwhile, LGEIL has finalised its strategy for new age technology products. According to Kapila, in three years' time, such products will account for 20 per cent of LGEIL's turnover. In January next year, LGEIL will launch its Internet refrigerator. This will be followed by the plasma display television in March 2001.
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Satyam Computer plans ADS in mid-November
Hyderabad: Satyam Computer Services is said to be planning its much-awaited American Depository Share issue some time in mid-November. The company has apparently appointed Merill Lynch as the lead manager to the issue and is working out the premium at which the shares are to be offered.

While the company has not disclosed the size of the issue, the special resolution had authorised the company to raise up to 5 per cent of the paid-up share capital by American Depository Share issue.

The additional funds are to be used for mergers and acquisitions, joint ventures and strategic alliances, both in India and abroad.
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M&M rides the market share game on Bolero
Mumbai: Leading automobile manufacturer, Mahindra & Mahindra's (M&M), which has seen its market share dip in recent times from 54.7 per cent to 46.9 per cent, seems to have finally found a winner. The company is now riding piggy back on Bolero, the news model which was introduced in early August 2000.

According to Mr. Alan E Durante, executive director and president, M&M, said, "We have already sold 900 Boleros in September and have a three-month waiting list." Buoyed by the encouraging response, the company has increased production of the model to more than 1,000 vehicles this month, which is likely to be stepped up in the coming months.

The introduction of Bolero marks a shift in M&M's strategy, since all its earlier models were primarily directed at the rural segment. In contrast, Bolero is positioned as an urban vehicle.

Durante said that with the advent of heavy demand in the urban market for a multi-utility vehicle, companies are designing their products to cater to the young urban population.

According to industry sources, Bolero is currently commanding "on money" which is basically a premium to get delivery of the car ahead of schedule, which in industry parlance is a clear reflection of the vehicle's growing popularity.
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BPCL, ONGC in talks for mega strategic pact
Mumbai: In an age of strategic alliances to grab a bigger slice of the market pie, public sector oil majors and competitors, Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation Limited (BPCL) have kicked off talks for a strategic alliance in key petro-related areas.

These include refining, sourcing of crude and petrochemicals as priority segments followed by exploration and power. The pact also envisages ONGC is taking a 24 per cent stake in BPCL's six million tonne refinery in Bina, Madhya Pradesh, being co-promoted by Oman Oil Company. The project has been hanging in the balance for nearly six years and ONGC's executive committee has now asked for a global consultant's opinion on equity participation.

With the refinery being situated in a strategic location where demand for the product is constantly high, it is the best bet for ONGC to mark its debut in refining. BPCL has also conveyed to ONGC that it is keen on a direct crude supply arrangement for the future.
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Videocon power promoters seek PMO intervention
New Delhi: As a last ditch effort, the promoters of the Videocon Thermal Power project in Tamil Nadu, alongwith the embassies of Italy, Germany and Switzerland, have written to the prime minister’s office to intervene and resolve the ongoing escrow tangle with the state electricity board that threatens to derail the project.

The three embassies have stepped in because large companies from their respective companies have been associated with the thermal project. These include the export credit agencies from the three countries Hermes from Germany, SACE from Italy and ERG from Switzerland, who together have committed $377 million without any guarantee from the Indian government.

Another foreign multinational involved in the project is National Power of the UK and it is feared that the inordinate delay in getting the project off the ground will result in National Power exiting the country like earlier multinationals Cogentrix and EdF.
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HDFC and TCS may join hands for call centre project
Mumbai: Two giants, the housing finance major, HDFC and the software major, Tata Consultancy Services, are said to be joining hands to enter the burgeoning call centre and back office processing business together.

To be christened, Intelnet Global Services, the joint venture has plans to become a market leader with 7,000 employees and revenues worth Rs. 700 crore in five years. The company is to be capitalised at Rs. 20 crore with both promoters holding 45 per cent each and the balance being distributed among employees.

According to reports, the chairman of the new company will be nominated by HDFC and the operating chief executive will be nominated by TCS. The first of such centres being planned will come out in New Bombay, with others in Chennai, Pune and Bangalore to follow.

Currently, GE Capital operates the biggest call centre and processing outfit in the country, which employs over 2,000 persons and is said to have revenues of Rs. 265 crore. Intelnet will try to tap business from areas like insurance claim processing, revenue accounting and medical transcription.
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Tata Engineering brings in Warwick Manufacturing
Mumbai: In response to the bad slump that has hit the commercial vehicle industry, leading manufacturer has brought in well know consulting firm, Warwick Manufacturing Group, to prepare a strategic map on cost reduction, quality improvements and new product development.

While the company plans a cost reduction of at least 4-5 per cent, the consulting firm will help the company build a comprehensive new product development system that will help roll out "specific products" for different user groups.
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