Government begins talks on Maruti selloff
New Delhi: Shortly after the approval for divesting its stake in the country’s leading car manufacturer, After months of dilly-dallying, the government has finally begun its talks with officials of the Suzuki Motor Corporation to decide on the most viable mode of divestment of its stake in the joint venture company, Maruti Udyog Limited.

The divestment of equity in Maruti's has been hanging fire for a while and the cabinet committee’s decision two weeks ago, came after a long hiatus. Though on the initial list for divestment, the company stayed out of the final list due to a deadlock between the department of divestment and the administrative ministry. The former felt that since Maruti is losing marketshare every month, the sooner the government ffloads its stake in the company, the better price it will fetch.
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Hutchison at cross roads over Orange brand
Mumbai: After having spent several crores on building up the brand image for their brand, Orange, Hutchinson Max finds itself in a bind. With the ownership of the brand in the hands of France Telecom, which bought the global rights for the brand (except for the city of Mumbai) from Hutchinson Whampoa, the Indian operations of Hutchinson are finding it very difficult to turn the country Orange.

Interestingly, France Telecom holds a significant stake in rival cellular operator, BPL Mobile.

According to officials of Hutchinson Max, the company will shortly take a decision as to whether or not we wish to introduce a brand where the ultimate ownership is with somebody else. The company has the right to use the brand for an indefinite period in the city of Mumbai. For the rest of the country the company has that option only for a certain period of time.

Officials of France Telecom however state that there is no agreement or licensing deal for the use of the brand in the rest of the country.

Going against its original plan of turning the country Orange, Hutchison officials state that the company was now likely to stick with strong local brands like Fascel’s Cell Force in Gujarat and Command in Calcutta.
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Godrej defers sale of stake in Sara Lee JV
Mumbai: Contrary to its original plans, the Godrej group has deferred its plans to divest 25 per cent stake in joint venture, Godrej Sara Lee, due to depressed market conditions.

The company, which was hoping to raise Rs 200 crore through the divestment of its stake through a bookbuilding issue slated for November, has decided to put off the public offer till at least the next quarter. The company is believed to have taken the decision following investment banker Kotak Mahindra Capital’s advice on the issue. Currently, Godrej holds 49 per cent and Sara Lee holds 51 per cent in the company.
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Jet Airways to get guarantee from US Exim Bank
Mumbai: India’s leading private sector airline that is soon tipped to take the number one position in the country, has secured a $340 million guarantee from the US Exim Bank. The guarantee will enable the country’s largest private carrier purchase 10 Boeing 737 aircraft. With the Exim guarantee, Jet plans to raise Rs 1,600 crore at below 12 per cent through the issue of long-term debt to domestic financial institutions.

According to one of the directors of the Exim Bank, this is the single largest rupee loan guarantee provided by the US Exim Bank and its does not anticipate any problems in the clearance of the proposal and the guarantee was expected to be in place.

The guarantee programme provides importers of US goods the choice of either a dollar denominated loan from US Exim Bank or a foreign currency-denominated loan from a commercial bank backed by the guarantee.
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Tata Finance to set up 60-MW wind power project
Mumbai: Close on the heels of having invested Rs. 150 crore, Tata Finance is all set to invest up to Rs. 325 crore in a 60-MW wind power project.

The company, which feels that investment in renewable energy projects are a good proposition because of the tax shelter and good returns, has already set up a wind farm at Vankusavade near Satara in Maharashtra. The power generated will be sold to Tata group companies like Telco and other parties like Mahindra and Mahindra.

The wind power foray builds on the expertise developed by the group in leasing a 7.5 MW facility to the TI Group in Tamil Nadu and a 9.6 MW facility leased to Goetze India Power in Karnataka earlier. Tata Finance had amended its objects clause in December 1999 to enable it to enter the wind power generation business.
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Telco launching retirement schemes for managers
New Delhi: After targeting its workers, the country’s largest commercial vehicle manufacturer, Tata Engineering (Telco), is launching a retirement scheme for its managers. The VRS package will be most attractive for those in the 55-58 age group.

Under the latest scheme, which covers executives from its Jamshedpur and Pimpri plants, the management hopes to reduce its white-collar workforce by at least 15 per cent of its total 5,000 employees.

The executives are being offered 85 per cent of dearness allowance plus basic salary for the remaining period of service. For those in the age group of 58 -60, the scheme will offer 100 per cent of the DA. Employees below 55 years will be entitled for a package of compensation decide by the management based on their competence and calibre.
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