Silverline acquires SeraNova for $99 million
Mumbai: In a deal that is likely to enhance its business presence in North America, Silverline Technologies, a leading software company in India, has entered into an agreement with SeraNova Inc, to take over the latter in an all-stock deal valued at about $99 million.

Under the agreement, Silverline will acquire all of SeraNova’s outstanding shares.

The acquisition, however, is subject to the approval by both the companies’ shareholders and regulatory approvals.

The acquisition will create a company with combined revenues of $175 million and with more than 2,600 e-business and enterprise systems professionals.
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Tata Engineering starts major cost cutting to stem losses
Mumbai: Faced with mounting losses, Tata Engineering has embarked on a major cost reduction plan.

According to Mr. Ravi Kant, executive director, the company has already begun the process of attacking direct, variable as well as fixed costs in a phased manner. The company plans to reduce the costs for the buses and MCVs by an average of Rs. 25,000 per unit and for its successful Sumo utility vehicle, by Rs. 20,000 per unit.

Further, as part of an effort to revitalise its ailing trucks business, which was significantly hit in the first half, the company is planning to launch 16 new commercial vehicles models between November and April.

The company has already appointed leading manufacturing consultants, Warwick Manufacturing Group, to work on the new models and their launch timing.
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Bajaj Auto decides against going alone, ties up with Allianz
New Delhi: Bajaj Auto, which originally filed an application with the insurance regulatory authority for a license in general insurance, has finally decided to go in with a foreign partner.

The company recently signed an agreement with global insurance major, Allianz, which will now hold a 26 per cent stake in its general insurance venture. This will be the first that an insurance company has sought IRDA’s permission to rope in a foreign partner after filing its application. This is, however, the second instance of a company, which has already filed an application with the IRDA, seeking a permission to change the equity structure.

Earlier, Indian Fertilizer Farmers Co-operative (Iffco) had, after filing its application for setting up a general insurance venture with Japanese non-life insurer Tokio Marine, had decided to rope in Krishak Bharti Cooperative and Godavari Fertilizer as partners.
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Hackers humble Microsoft; break into their network
Seattle: In what is likely to give the global software giant, Microsoft Corporation, a negative impact, computer hackers, believed to be from Russia, broke into the software giant’s computer network. The company termed this act as "a deplorable act of industrial espionage."

The company reported the break-in to the US Federal Bureau of Investigation, the spokesman said. Company officials stated that it has moved aggressively to isolate the problem and secure its corporate network. It has stated that it is confident about protecting the integrity of its source codes.
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Tata Electric goes aggressive in acquisitions
Mumbai: After decades of lying low, the Tata Group-controlled, Tata Electric, is on the front foot. It has lined up investments worth Rs 4,800 crore for its merger and acquisition plans in India and abroad, which includes the takeover of Gujarat PowerGen Energy Corporation and another power utility in Rajasthan.

Almost all these projects are either fully developed or are in advanced stages of completion. Four projects of 500 MW capacity are under active consideration.

According to TEC managing director, Mr. Adi Engineer, the company also plans to diversify into energy and communication infrastructure. The company has already made an investment of Rs. 600 crore in this connection. Of this, Rs 300 crore has been invested for laying a 400-km fibre optic cable network connecting Mumbai and Pune. Another Rs 300 crore would be invested for setting up a jetty at Mumbai Port to facilitate the Rs 1,600-crore liquefied natural gas terminal to be set up at Trombay.

TEC has formed a joint venture with the French major Total -- Indigas for this LNG project. With an initial capacity of 3 million tons per annum, this project will import, store, regassify and market reliable and competitive LNG supplies to industries in and around Mumbai.
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Datamatics Technologies makes first overseas acquisition
Mumbai: Datamatics Technologies, a subsidiary of the Rs. 300-crore Datamatics group, has made its first overseas acquisition. The company has acquired a 58 per cent stake in the $10 million US-based Saztec International for an undisclosed amount.

Saztec International is a Boston-based company promoted by the Wallenberg family of Sweden and has expertise in the knowledge management domain, with subsidiaries in the US, UK and Germany.

According to Mr. Lalit Kanodia, this acquisition will give the group a local face in its overseas expansion plans.

Meanwhile, Datamatics, the flagship company of the Datamatics group, is in advanced level of talks to acquire two overseas software companies - a $150 million UK based software developing company, and a $25 million Japanese firm.
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Elgi Equipments sells brake business
Coimbatore: As part of its rationalisation plans and its decision to concentrate on its core business, Elgi Equipments has decided to sell its brakes business to the Pune-based Kalyani group for an undisclosed amount.

Elgi has also closed its pasteuriser and bottlewasher businesses, besides winding up operations at its motor manufacturing plant. Further, it has scaled down operations in the multi-utility vehicle (MUV) business, which catered to the defence and mining industries.

The company has made these moves with a view to focusing on its core business of manufacturing compressors.
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