Kotak Mahindra to merge PTCL with itself
Mumbai: Kotak Mahindra Finance is merging an unlisted investment company, Pannier Trading Company Ltd. (PTCL), with itself to create a Rs 1000-crore company, that will offer a whole range of financial market products under one umbrella. The move forms part of the group’s objective of becoming a universal bank.

On merger, the group will have presence in investment banking, asset financing, insurance, mutual funds and now securities. PTCL currently owns 75 per cent of a stock broking firm, Kotak Securities — a 75:25 joint venture between Uday Kotak and US-based Goldman Sachs Inc.

Kotak Securities is one of the most profitable stockbrokerage firms with its profit in excess of Rs 50 crore a year. After merger, Kotak Securities will become a subsidiary of KMFL, which will be operating under US-GAAP standards effective by March 2001. It has already tied up with Old Mutual, UK for life insurance business and is one of the contenders for banking licence.
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Murugappas offer Coromandel stake
Mumbai: Chennai-based Murugappa group is planning to offer up to 27 per cent of its equity in Coromandel Fertilisers to acquire the government's stakes in public sector fertiliser units - Madras Fertlisers and Godavari Fertilisers. This is for the first time that privatisation by way of a merger through a share swap is being proposed.

Coromandel Fertilisers, has already submitted its expression of interest for acquiring these fertiliser units and is expected to shortly submit the merger proposal to the concerned global advisors for the divestment. The Murugappa group has 78.3 per cent in Coromandel Fertilisers, which is being held through another group company EID Parry.
Coromandel is also planning to acquire one more fertiliser unit for the expansion of its activities.

Coromandel was originally set up as joint venture between the US majors Chevron Chemical and International Mineral Corporation in 1964. Later EID parry brought the stakes of global majors. It has posted a net profit of Rs 48.05 crore for the year ended March 31 2000.
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Morepen wants 25 per cent of Loratadine market in US
Mumbai: Morepen Laboratories is planning to capture around 25 per cent share of the anti-allergic Loratadine market in the US. It has appointed KPMG for scouting for a strategic partner for marketing its generic as well as over-the-counter products in the US.

Morepen is the only company in the world having the patent for the bulk drug, which is set to expire in December 2002. The company has already tied up with the US-based Geneva Pharmaceuticals, which has the exclusive right to market Loratadine for the first six months after the product goes off patent in 2002.

Loratadine considered the third-largest selling bulk drug in the world has a turnover of $3.2 billion and is growing steadily at 30 per cent per annum.
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HFCL to outsource from Cisco and Ericsson
New Delhi: Himachal Futuristic Communications Ltd. (HFCL) has signed an agreement with the US-based Cisco Systems for outsourcing Cisco's data and products and network equipment. In a letter sent to the Bombay Stock Exchange, the company has said that it would also work as a system integrator for Cisco in India.

The new agreement will complement its existing range of equipment with Cisco's packet switching networks. HFCL also said it has signed a memorandum of understanding with Sweden's Ericsson to jointly bid in a tender floated by state-owned Bharat Sanchar Nigam Ltd. to buy global systems for mobile communications, or GSM cellular services equipment. The company will also source its GSM requirements of recent turnkey orders for GSM networks from Ericsson.
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LG to divest 25   per cent equity to fund expansion
Kolkata: LG Electronics India, is planning on divesting 25 per cent of its equity stake to fund the company's future expansion plans. Fresh investments would be mainly directed to set up units, which would manufacture frost-free refrigerators, fully automatic washing machines and a host of other products like mobile phones, note books and LCD TV monitors. The Indian outfit, a wholly owned subsidiary of the Korean parent, has an equity base of $30 million.

The company has established itself as a big player in the CTV and home appliances segments and has already made investments around $100 million in India. The divestment plan is to further raise $100 million to fund its future expansion plans. Mr. K R Kim, managing director LG Electronics India has said that LG has appointed an outside agency to study the market in detail, which will be completed by March this year.
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