Dr Reddy’s Laboratories applies for $150-200 million ADR issue
Mumbai: Among the first Indian pharmaceutical company to list its shares on the New York Stock Exchange, Dr Reddy’s Laboratories Ltd. has filed its papers with the Securities Exchange Commission of the US for a $150-200 million American Depositary Receipts (ADR) issue..

The pharma major, which had announced its ADR issue in March this year, was initially planning to raise funds by September-end. However, the presidential elections in the US and dismal market conditions, delayed the issue for some time.

DSP Merrill Lynch, ABN Amro Asia Corporate Finance and Credit Lyonnaise are issue managers for the ADR issue. DSP Merrill Lynch is lead manager while the other two are co-managers.

The proceeds from the ADR will be utilised for acquisitions in India and abroad. Part of the issue proceeds will also cover biotechnology research, domestic finished dosages, generic markets and expansion into new markets like China, Brazil and regulated markets.
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ICICI Bank, Bank of Madura merger swap fixed at 2:1
Mumbai: The share swap deal of ICICI Bank and Bank of Madura has been fixed in the ratio of 2:1—two shares of ICICI Bank for one share of Bank of Madura. The merger will take effect from February 1, 2001. Both banks are holding shareholders’ meetings on January 19 for approval of the amalgamation scheme.

Following the acquisition, Mr. KM Thiagarajan, chairman of Bank of Madura and his associates will have a 2.7 per cent stake in ICICI Bank, while Kotak Mahindra will have a 1.2 per cent stake. Parent ICICI’s shareholding in the bank will fall to 55.7 from 62.2 per cent, while the financial institutions’ holding will increase from 4.7 to 5 per cent.

The share exchange ratio is based on the recommendations of Deloitte, Haskins & Sells, which acted as independent valuers to the transaction. DSP Merrill Lynch acted as the advisors to BoM while Kotak Mahindra Capital Company will advise ICICI Bank on the merger process.

The newly merged entity will become the largest private sector bank with an asset base of Rs 16,000 crore. It will now have a customer base of around 2.6 million customer accounts and a network of 350 branches across the country.
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Birla group to hike stake in group firms
Calcutta: As a part of its consolidation strategy, the B K Birla group has decided to hike its holdings in a handful of group firms to "comfortable levels" through the open market operations. The much-awaited Birla move to hike holdings in group firms to at least 40 per cent comes in the wake of several corporate raids in the past three months.

Market sources say the group has already kicked off the process by picking up shares of Kesoram Industries from the open market. The Rs 5,000 crore group holds around 19 per cent in Kesoram. The stake in the company came down from 24 per cent as on March 31, 1999 to 19 per cent as on March 31, 2000, after the conversion of global depository receipts into equity. The Securities and Exchange Board of India however, allows scaling up stake by only five per cent a year by the promoters.

The group however, has no plans to scale up its stake in the companies, in which it already holds around 40 per cent or above. The B K Birla group holds above 40 per cent stake in Century Textiles & Industries, Jay Shree Tea & Industries, Century Enka and Centak Chemicals. Companies in which the group holds below 40 per cent stake include Kesoram Industries (19 per

cent), Bharat Commerce & Industries (29 per cent), Mangalam Cement (30 per cent), Mangalam Timber (23 per cent) and Birla Century Finance (24 per cent).
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ITC to export processed fruit in near future
Madikeri: Agro products major ITC is planning a foray into exports of processed fruits like mango pulp, Mr. Sisir Kumar, CEO of ITC’s international business division has stated. The division currently accounts for around Rs 500 crore of ITC’s annual turnover. The company is now wants to take the exports to Rs 1,500 crore by the year 2004-2005.

The processed fruit products would be exported to supermarkets in the US and Europe. While ITC has not planned any additional investments in setting up processing plants the gameplan is to utilise the existing manufacturing infrastructure, whose capacity is currently under-utilised.

ITC also has a plan to boost exports of the other commodities it is trading in over the years. ITC generates around Rs 50 crore from the 8,000 tonnes of coffee exports every year. The company now plans to increase coffee-export volumes to 20,000 tonnes by the year 2004-2005. A significant boost is also planned for soya, where ITC is currently doing around Rs 150 crore of exports every year, besides a thrust on marine products exports, where ITC exports shrimp to the tune of Rs 100 crore a year.
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NIIT to implement Rs 148-cr education project
Bangalore: NIIT, the software services and education firm has said on Monday it had received an order worth Rs 148 crore ($31.66 million) from Karnataka for implementing computer education in 700 schools.

NIIT would set up the infrastructure for computer classrooms in the schools, which will use the latest software and networking technology and provide Internet connectivity.

The order is for five years and is part of Karnataka government's initiative called 'Mahiti Sindhu' (Information Ocean) to take information technology to a broad base of students, including those in rural areas. NIIT is already working on a similar state-wide computer training programme in Tamil Nadu.
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Punjab Agro to supply agro inputs to HLL and Nestle
New Delhi: The Chandigarh-based Punjab Agro Industries Corporation (PAIC) has struck deals with Hindustan Lever and Nestle, the processed food majors, to supply dehydrated vegetables for soups and meals from its new plant. The project for dehydrated vegetables, mainly for processing carrots and onions, is being undertaken by PAIC in collaboration with a private promoter.

PAIC has also entered into collaboration with the US-based Instapro for producing extruded breakfast cereals to be sold and marketed in the domestic market. While Instapro would be supplying the technology and pick up a small stake, an Indian partner would manufacture and run the company.

The processing plant to be set up at Dera Bassi near Chandigarh will be ready in next eight-nine months. The steel-based plant, assuring highest safety standards, is one of the first such public sector manufacturing facilities to be considered by the MNC companies like HLL and Nestle, for sourcing their requirements of processed vegetables. Some of the defense establishments have also evinced interest in the plant because dehydrated vegetables form a crucial part of soldier’s diet in high altitude regions.
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MTNL calls for bids from consultants for mobile telephony
New Delhi: Mahanagar Telephone Nigam (MTNL) has invited bids from management consultancy firms to advise the corporation for launching cellular mobile services early next year and assist the company in diversifying into other value-added services.

The consultant would assist the MTNL in validating a strategy for the corporations' long-awaited cellular operations, besides chalking-out a business plan for expanding its pilot Wireless in Local Loop project across the national capital of Delhi.

The consultants' terms of reference include helping evolve the broad framework and assist MTNL convert the challenges of the fast-growing telecommunication sector into profitable business opportunities. It also includes advising the corporation in introducing national and international long distance operations and expansion of internet services.
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