Basell Polyolefins plans to pick up 76 per cent in petrochem division
Mumbai: National Organic Chemicals Ltd.(Nocil), a Arvind Mafatlal group company has
announced that Basell Polyolefins which was formed after the merger of Shell group
company Montell and BASF will pick up 76 per cent in the company by demerging the
petrochemical division from itself.
As per the original agreement, Montell was
supposed to pick up 49 per cent in the demerged entity. According to Mr.V.R.Gupte, Nocil's
executive director (finance) the company has received environmental clearance for the
modernisation of the project.
The board of Nocil has approved a restructuring scheme where by the company would be split
into three. All assets and liabilities of the petrochemical and polymer divisions of the
company would be demerged to form Nocil petrochemicals. Likewise, rubber chemicals would
be demerged to form a new entity. Nocil's facilities located in Thane, has a capacity to
manufacture 60,000 tonnes of polypropylene.
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Ilyushin to tap Indian
New Delhi: Ilyushin, the Russian aerospace company is planning to tap the large
Indian market for civilian aircraft, reckoned to be worth $20 billion in the next 15
years. The Russian company has recently reached an understanding with Hindustan
Aeronautics Ltd. (HAL) for a $300-million project to develop medium-sized aircraft,
hitherto mainly supplied by the US-based Boeing and the Europe-based Airbus
The Indo-Russian joint venture would involve
investment from both sides, while Ilyushin would bring in the technology. The primary aim
of the project is to build medium-sized civilian aircraft like the Ilyushin Il-214, which
was a 100-seater. The project will also cover development of the cargo version of Il-214,
which could be used by the defence forces also.
An agreement to this effect is likely to be signed just before the Bangalore air show,
slated for February 2001.
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brand royalties to parent
Mumbai: Following a slowdown in growth of the FMCG
market, Nirma, the publicly listed soaps and detergents major has decided not to raise
royalty payments to its promoter company.
Nirma has entered into a fresh agreement with its unlisted promoter company - Nirma
Chemical Works to pay one percent of its sales as royalty to the latter for using the
brand names "Nirma" and "Nima."
As per the earlier agreement signed two years ago, the royalty percentage was to have gone
up to two per cent of sales, with an increasing scale of as much as four per cent till
March 04. But with the new agreement, the company will now continue to pay one per
cent, as it has been paying for two years up to March 00 at about Rs 15 crore, as
against Rs 30 crore decided on earlier.
The lower royalty payment is expected to add directly to the bottom-line of the company,
which has been facing pressure on account of rising interest and depreciation charges. At
present, while the names are registered under Nirma Chemical Works, the products are
manufactured by Nirma and marketed by 100 per cent subsidiary Nirma Consumer Care, the
marketing arm of Nirma.
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Copper divestment set for June01
New Delhi: Hindustan Copper Limited (HCL), the public sector undertaking will be
privatised by June, 2001, as per time schedule finalised by the government. The time
schedule also contemplated that the due diligence exercise by the potential bidders would
commence by January 2001 and would be completed by the end of the month.
As per the divestment plan, the government will hive off two of the units of HCL in the
first phase. This includes the Khetri and Taloja plants of the company. The total value of
the two units will be taken as HCL's 49 per cent contribution in the new company. The
strategic partner, who will also retain control over the management of the new company,
will infuse the remaining 51 per cent equity stake.
The government has mandated a consortium
headed by the Industrial Development Bank of India and Sumitomo Bank to act as global
advisors for the proposed disinvestment. Four companies, including domestic producers
Birla Copper and Sterlite Industries, along with the Phelps Dodge-Metdist combine are
understood to be in the race for becoming strategic partner in HCL.
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