Government advised to selloff Maruti New Delhi: It is understood that in a note prepared by the department of divestment for the cabinet committee on disinvestment, the government, which hold less that 50 per cent stake in auto major Maruti Udyog Limited, has been advised to sell its stake to an international auto company.

The company’s existing international partner, Suzuki Motors, has the first right of refusal in the event that the government decides to sell its stake.

Of the three options considered for divesting the government’s stake in the automobile major, the department has recommended that the government sell its stake via international competitive bidding is the best option as it would ensure maximum returns to the government.

The other options considered include selling the stake to Suzuki or to General Motors or selling some shares preferentially to employees and the remaining to small investors and to financial institutions via a book building exercise.

What has definitely been ruled out is the sale of the stake to small investors or Indian auto companies, since they would not be able to bring in much needed technology inputs.
Back to News Review index page 

ITC investment firms continue buying EIH shares Calcutta: Despite having created a furore, investment firms of the ITC fold, have continued their "treasury operations" of buying into shares of rival, East India Hotels.

Earlier, two investment companies of ITC, Newdeal Investments and Peninsular Investments, had acquired 5.03 per cent stake of EIH through open market operations. The latest round of buying is said to be done by its third investment company, Megatop Investments.

Though Megatop’s holding is still very small, the EIH authorities are rather disturbed by the move. Merits mention, ITC infused Rs 3.05 crore into the equity share capital of Megatop in fiscal 1999-2000 to raise it to Rs 3.11 crore.
Back to News Review index page 

RPG plans to retain majority in cellular arm
Chennai: The RPG group, which is seeking to divest some of its equity in RPG Cellular Services, one of the cellular service providers for the Chennai circle, has clearly stated that it intends to keep a 51 per cent stake in the company.

Currently, the group holds about 68 per cent stake in RPG Cellular and is seeking to divest 17 per cent stake, through a deal that is likely to be concluded within two months. Another investor in RPG Cellular, the UK-based Cellphone, holding about 11 per cent, is also planning to sell off its stake in the company.

RPG Cellular has unveiled an investment plan of Rs 40 crore to further bolster its network, which will see its base stations increase from the current 48 to 60 by January next year. The company’s switching capacity is to increase from 75,000 lines to 1.25 lakh lines by next year.
Back to News Review index page 

Nakamichi to source from Videocon
Mumbai: Japanese consumer electronics major, Nakamichi Corporation, is said to be entering into an agreement with Videocon International for outsourcing its high-end range of audios and televisions under the original equipment-manufacturing basis.

According to Mr. Venugopal Dhoot, chairman and managing director of Videocon International, who confirmed the deal, the development is likely to help Videocon by utilising the production capacities already available with Videocon.

At present, Nakamichi offers a range of products including home audio, CD systems, DVD players, speakers for car, which includes 6-disc CD changer, plasma TV and home theatre systems for premium segment. The products are priced in the range of Rs 45,000 to Rs 3 lakh.

In addition, a few of the Videocon Plazas, which are exclusive showrooms for Videocon's products, will be converted into exclusive Nakamichi outlets. Nakamichi will set up 40 exclusive outlets by the end of next year.
Back to News Review index page 

BSES invites Reliance non-executive directors on its board
Mumbai: Pursuant to the increase in its equity stake in power distribution company, BSES, Reliance Industries and Reliance Power Ventures have received a communication from the board of directors of BSES asking them to nominate two non-executive directors on the board of BSES.

BSES’ present board consists of seven directors, with three nominees from financial institutions – LIC, UTI and GIC - and one from the state government. The remaining three are company executives. With the induction of Reliance nominees, the BSES board will comprise nine directors.
Back to News Review index page 

Morepen to tie up with University of New York
New Delhi: Pharma company, Morepen Laboratories, is planning to tie up with the University of New York for a joint collaboration biotechnology project. The tie-up envisages that Morepen will have the rights for further developement, clinical trials and marketing of a new chemical entity developed and patented by the university.

Morepen will make a lumpsum payment to NY University as the development cost for the new chemical entity, besides paying a royalty on sales on an on-going basis.

The company is also understood to be in talks with two multinational pharma companies for exclusive marketing tie-ups, that will enable Morepen market in India a basket of products from the two multinational companies.
Back to News Review index page 

Glaxo protests ensure stoppage of Cipla export to Ghana
Mumbai: Following allegations of violation of patent laws from Glaxo Wellcome, pharmaceutical company, Cipla, has temporarily discontinued exports of its brand Duovir to Ghana.

It is understood that Glaxo-Wellcome had written to Cipla in August this year suggesting that it stop exports of Duovir, a brand containing anti-viral drugs lamivudine and zidovudine, to Ghana as both drugs were under patent to Glaxo Wellcome. The drugs are prescribed to patients suffering from the Acquired Immuno Deficiency Syndrome which has reached epidemic proportions in Africa.

Currently, there is a great debate going on as to whether, governments in various African countries should allow the sale of AIDS-related drugs from manufacturers other than the patent holders. For instance, Cipla is able to manufacture these drugs in India where there are no product patent laws yet and export them at a fraction of the price at which the drugs’ innovators sell them elsewhere in the world.

While Cipla officials have stated that they have contested Glaxo’s claims, as a matter of precaution they have temporarily discontinued exports of the drugs to Ghana.
Back to News Review index page