Bajaj to let 2,000 employees off, thanks to slowdown
Mumbai: Reacting to the slowdown in demand for, and hence sales of, of its two-wheelers, Bajaj Auto is reducing its workforce by 2,000 employees, thus bringing its workforce to around 15,000. Further, it plans to prune the labour by another 3,000 over the next three to four years.

The manpower restructuring is said to be part of a two-pronged strategy put in place by the top management to improve operational efficiency to counter the downturn in the scooter segment.

With margins under squeeze, a sharp rise in wage bill has been eating into the company’s bottom line. Financial analysts have welcomed the management move which, according to them, will result in a protection of the bottomline.
Back to News Review index page 

Tata finally exit from ACC
Mumbai: India’s cement major, Gujarat Ambuja, has acquired the last trance of the 3.05 per cent equity held by the Tata group in ACC Limited. Completed at a cost of Rs. 193 crore, this marks the total exit of the country’s largest private sector group from the cement sector.

The deal was consummated through, Ambuja Cements India, a group company floated for this purpose by Gujarat Ambuja. Ambuja Cement India is 60 per cent owned by Gujarat Ambuja, while the two high-profile foreign investors hold the balance 40 per cent stake.

Following the deal, ACIL has been recapitalised with the partners — Gujarat Ambuja Cements, American International Group and Government of Singapore Investment Corporation — bringing in their share of contribution.
Back to News Review index page 

Telco to keep with the times, to roll out new commercial vehicles
New Delhi: In order to increase its share in the domestic market, auto major, Tata Engineering, is planning to roll out new commercial vehicles, including luxury bus and truck variants in the current fiscal.

The new trucks in the heavy segment would have higher engine capacity of 230 to 280 HP, with other features like power steering and related comfort features. The company would also introduce air-conditioned 40-tonne tractor-trailer this year.
Back to News Review index page 

HFCL phones land in Mohali, Chandigarh today
Chandigarh: Hindustan Futuristic, a private telephone operator with the license to provide basic telephony services in Punjab, is all set to launch its operations from Monday.

The company has virtually completed laying the optical fibre network in Mohali and Chandigarh and has also received connectivity with the DoT network, thus enabling its subscribers to start receiving local, STD and ISD calls as well as dial out.

The company has set up a 80,000 line exchange in Mohali with plans to establish two more switches at Jalandhar and Ludhiana to provide services to Punjab and Chandigarh. The switches will have an interface with DoT for STD and ISD facilities. Connectivty with cellular networks will also be available.

According to the company, it has already injected nearly Rs 600 crore and by December end, hope to rope in 15,000 subscribers in Chandigarh, Mohali, Ludhiana, Patiala, Jalandhar and Amritsar.
Back to News Review index page 

Venture fund, TVG, to offload stake in BPL Communications
Mumbai: The Hong Kong-based Telecom Venture Group (TVG) and its associates are said to be planning to offload their 11 per cent equity stake in BPL Communications, the holding company for the BPL group cellular phone companies, BPL Mobile and BPL Cellular, with operations in Mumbai, Kerala, Tamil Nadu and Maharashtra.

The BPL group has a 60 per cent stake in BPL Communications, while other foreign funds like American Investment Group (AIG), TVG and domestic financial institutions hold the remaining 40 per cent. The fund is expected to use the proceeds of its sale to fund its other telecom ventures in the country.

TVG expects a higher valuation for its stake in the wake of BPL Mobile becoming the premier cellular company in the country in terms of user base, claiming a subscriber base of more than four lakhs in India.

TVG is a private equity fund with investments of $600 million in 14 communication firms in seven countries in the Asia-Pacific region.
Back to News Review index page 

Hitachi not to divorce Baron
Mumbai: Despite market rumours that the two are on the verge of a split, Japanese consumer electronics major, Hitcahi, has reaffirmed its association with India’s most aggressive electronics company, Baron Electronics. This follows a meeting between the senior management of the two companies, earlier last month.

The relationship between the two companies had hit a low with even dealers complaining that supplies had dropped. Hitachi is now understood to have agreed to follow Baron's strategies and will introduce new products in the low to medium-end of the price spectrum.

The Baron management is understood to have convinced the Japanese to hold back its plans for introducing its high-end products like, DVDs, digital video cameras, washing machines and refrigerators in the Indian market.

The Baron group, which operates through a common distribution chain, was on the other hand keen on Hitachi introducing low-end products in the Indian marketplace. At the same time, Baron is planning strategies to revitalise the brand and bring it back into the reckoning.
Back to News Review index page 

BSES bows to pressure and pays TEC Rs 30 crore
Mumbai: Bowing to pressure from the state government, which threatened to revoke its distribution license, the Mumbai-based utility company, BSES Limited, is understood to have paid Rs 30 crore to Tata Electric Companies (TEC) towards standby charges.

TEC, on its part, is understood to have paid a similar amount towards standby charges to the ailing Maharashtra State Electricity Board (MSEB).

The original demand from TEC on BSES was to the tune of Rs 181 crore. The company has made it amply clear to the state government that it will not be able to clear these dues without having to increase tariffs by about 8 to 9 per cent from the existing Rs 3.50 per unit.
Back to News Review index page