HLL reports meagre growth in net profit
Mumbai: With stagnating sales resulting in a flat growth of the top line for FMCG major, Hindustan Lever Limited, the net profit of the company grew by a meagre 16 per cent for the third quarter. This was brought about by a series of product mix and supply chain improvements the company initiated.

According to analysts, the company has performed below expectations. Against an expectation of at least a 2 per cent sales growth, the actual growth is only 0.4 per cent. Category wise, there has been a negative growth or growth below market expectations in tea, personal wash, skin care and hair care segments. Tea sales declined by 10 per cent for the quarter. The company attributes the reduction in volumes growth due to competition from loose tea.
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Global Telesystems to acquire Thermax Systems
Pune: Unlisted Thermax Systems, an infotech company belonging to the Pune-based Thermax group and specialising in banking software, is to be acquired by Global Telesystems. The latter is also planning to take a 100 per cent stake in another software company, Fine Infotech. With this, Global marks its entry into the acquisitions route.

Both the deals are stock swaps and will not result in any capital expenditure on Global Tele's part.
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Reliance clarifies stand on Bombay Dyeing stake
Mumbai: In response to media statements issued by corporate raider, Mr. Arun Bajoria, that he would sell his stake to Mr. Dhirubhai Ambani, the Reliance group issued a strong and unequivocal statement clarifying the issue.

According to the statement issued by the group, the Reliance group has evinced no interest, nor entertained and will not entertain any such proposal to consider purchase of shares of Bombay Dyeing.

Market circles were earlier speculating that the Reliance group may not be averse to picking up Bombay Dyeing shares, since the group had a long-running feud with the Nusli Wadia-controlled Bombay Dyeing.
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Dabur to close in on insurance partner by year-end
New Delhi: After the initial setback the group received, when its partner for its foray into the insurance sector, pulled out at the last minute, the Dabur group has reiterated its firm commitment of entering the sector. It has begun scouting around for a new partner, and is hopeful of finalising one by the year-end.

Dabur India had applied for a license after it had entered into a memorandum of understanding with Allstate International Insurance Holdings for setting up a life insurance company in India. However, due to change in the international life strategy, Allstate International Insurance had decided to withdraw from the joint venture.

Dabur Group promoters would, however, continue their efforts to enter into the insurance sector by searching another joint venture partner, the spokesman said. The company has also informed the Bombay Stock Exchange about its plans.
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Crompton sells stake in CG Powerware
New Delhi: As part of its ongoing exercise in restructuring, Crompton Greaves has exited from its joint venture with US-based Powerware International. It recently sold off its 49 per cent stake in CG Powerware, which is engaged in the manufacture of UPS systems and rectifiers.

With this, Powerware has increased the equity in the joint venture company from 51 per cent to 100 per cent and it has become a wholly-owned subsidiary of Powerware International.

The company has also entered into an agreement with the French firm, Schneider Electric, for the sale of its low-tension control gear division, located at Nasik, for approximately Rs 76 crore.
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HM and M&M enter into pact for petrol engines
New Delhi: In a rare deal between competitors, C K Birla-group controlled, Hindustan Motors, is likely to finalise a deal soon with Mahindra & Mahindra to supply petrol engines for the latter's requirement of various multi-utility vehicles.

According to the newly appointed chief executive of HM, Mr. BK Chaturvedi, the company is expecting to finalise a deal in four-five weeks. The company is targeting to sell 50 per cent production of its petrol engine and gear-box manufacturing capacity to non-Hindistan Motors (HM) companies in the years to come to exploit the full potential of its Pitanpur plant and increase profitability of the company.

He, however, refused to give more details about the deal with M&M but the company sources said Mahindra had tried HM engines on its various models including MUV Bolero and expressed satisfaction.
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Grasim textile arm to be dropped
Calcutta: The Aditya Birla-group company, Grasim Industries, has decided to drop one of its most recalled textile brands, Gwalior, owing to trademark registration problems and the need to give its brands a new identity.

According to Mr. Vikram Rao, president of the fabrics and apparels business of the company, the brand is going to have a make-over, because it felt that the name Grasim Gwalior was a "staid" brand, with a royal, "for the elderly" image. The company will give its brands a new logo, styling, and a more contemporary look.

Besides, Gwalior being the name of city, could not be registered as a trade mark.

The company currently has two brands: Graviera, which is being targeted at the lower and middle levels of the market, and Grasim, which is beign targeted at upmarket customers.

In the super-premium segment, imported lines being marketed by the company, like Scabal, would soon be joined by new ones.

Besides introducing two new lines produced entirely in Europe, the company is also planning to launch a French collection range. The company is also investing heavily in creating a world class design studio.
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Madura Garments to tie up with global designers
Bangalore: Madura Garments, a division of Aditya Birla group company Indian Rayon, is in the process of tying up with several international design houses as part of its Rs-30 crore brand-building exercise for bringing in latest trends from across the world.

The company already has a full-fledged design studio in Bangalore, headed by the UK-based designer Stephen King. The studio works on innovating brands, product development, and design collections, helping the company to incorporate the latest international trends in fashion and clothing into its brand portfolio.

The company has also appointed leading consultants, PriceWaterhouseCoopers, to advise its on the supply chain management front.

The company exports high quality formal and casual shirts to leading buyers around the world. Future plans of the company include setting up showrooms and megastores in the UAE, Sri Lanka, and Bangladesh. 
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