Godrej set to enter medical transcription and retail photo business
Mumbai: The Godrej group has entered into an alliance with the US-based CBay for medical transcription business. One of the group subsidiaries has already entered into a franchisee agreement with CBay, Mr. Nadir B Godrej, chairman of Godrej Agrovet has said. The group is currently chalking out plans for fund-raising and recruitment of senior management team.

The new business will not be a capital-intensive area for the group and would instead help generate high returns on investments.

Godrej & Boyce, which has a technical-commercial alliance with NRG International, a subsidiary of Ricoh Japan, will set up photoshops-cum-cyber cafes across the country.

These centres, the first of which will come up in Bangalore, will be operated through franchises. The company has set aside Rs 10 crore for this, most of which would be utilised for brand building.
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UB ties up funds for Associated Breweries acquisition
Mumbai: The UB group has tied up with Infrastructure Leasing & Finance Services (IL&FS) and Housing Development Finance Corporation (HDFC) to raise Rs. 60 crore to part-fund the acquisition of Associated Breweries & Distillers (ABD). Both the institutions have offered Rs 30 crore each to pick up a controlling 65 per cent stake in ABD. The releasing of funds to the ABD promoters completes the acquisition of the privately held company.

The investment for picking up 65 per cent stake was routed through United Breweries (Holdings), a wholly owned subsidiary of flagship United Breweries. Both the financial institutions have set a coupon rate of about 14-15 per cent for the medium-term loan. The acquisition will help the UB group consolidate its position in the market in anticipation of competition -- from both within and outside the country.
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Mahindra to make bulletproof vehicles
New Delhi: The Mahindras are pitching to sell the bulletproof vehicles developed by the company to the central paramilitary and state police forces. The Mahindra 'Rakshak' has been developed with technology from Israel's Plasan Sasa, a leading designer and manufacturer of lightweight ballistic kits.

The vehicle has already been approved by the Bureau of Police Research and Development (BPR&D) and is awaiting union home ministry clearance. Paramilitary forces and state police departments from several states have evinced interest in the vehicle, in view of the increased threat of terrorist attacks across the country.

The vehicle uses composites for bulletproofing as against steel sheets used by the Ordnance Factory Board's Medak unit, which is the only supplier of such vehicles in the country.

The Mahindra Rakshak is around 30 per cent more expensive than the Medak vehicle, but is lighter, more maneuverable and has much greater engine and tyre life.
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Iffco-Tokio launches operations in non-life sector
Mumbai: The New Delhi-based Iffco-Tokio Marine General Insurance Company has launched its operations in non-life insurance sector, the first company in domestic private sector non-life industry to issue a insurance policy recently. The policy is also the first of its kind, to have underwritten the risk for one of the four plants belonging to Iffco, a majority partner in the joint venture.

The joint venture, which is yet to have formal launch has taken a special permission from the Insurance Regulatory & Development Authority (IRDA) for the underwriting the captive deal.

The Rs 100-crore Iffco-Tokio General Insurance company is a joint venture between the Japan's largest non-life company, Tokio-Marine and India's largest co-operative Iffco. Though the joint venture has insured the plant, the four non-life companies have shared the major part of the premium money. Earlier, the Iffco used to be the exclusive client of the largest domestic non-life company New India Assurance.
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Toyota to increase Qualis production
Mumbai: Toyata Kirloskar Motor Ltd. (TKML) is planning to step up production of its multi-purpose vehicle, Qualis, this year following increased sales in 2000. The company sold 21,785 units in 2000 against a target of 20,000 units, capturing a marketshare of 35 per cent in the segment. Production at the company's Bangalore plant is likely to be raised to 35,000 units in 2001, with the plant having an installed capacity for manufacturing 50,000 units.

Plans were on the anvil also to increase the present dealer network from 27 to 45 by 2001 end. TKML sold 2,452 vehicles in December 2000 itself compared to 1,820 vehicles in the previous month. To commemorate its first anniversary on the Indian roads, TKML has launched a limited edition of the Qualis in solid black with an exclusive gold stripe. Only 1,000 of the first anniversary edition would be priced at Rs 8 lakh (ex-showroom, Delhi).
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GM’s global arms to source parts from India
Kolkata: Global auto major General Motors has advised its subsidiaries worldwide to step up sourcing components from in India. The GM's Indian arm is already in the process of firming up a number of component orders for GM’s global operations. GM India has exported various auto components to GM wings in other countries valued at about $30 million and is targeting at doubling the export turnover in next two years.

The strategic move aims at helping the Indian operation meet its export obligations besides, helping to promote manufacturers of quality automobile components in India to tap international market potential. The components that GM operations in different countries import from India include air-conditioning condenser units, radiator caps, wiring harness, leaf springs and machine parts. GM India can either execute these export assignments by itself or keep third party exports’ sourcing from other auto component manufacturers.

GM India recently helped Asahi India export over 50,000 pieces of mirror buttons to South Africa for GM vehicles. GMI helped Asahi India to get into GM Global Network through its worldwide purchasing support systems. The Indian arm of GM is connected to the GM's purchasing community worldwide through the Global Purchasing online System. GPS helps buyers at GMI to track ongoing programmes and nominate Indian suppliers for international bidding.
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TVS Tyres in a cost-cutting binge
Madurai: TVS Srichakra, part of the TVS group companies, has launched a major cost cutting and productivity enhancement exercise to improve its margins in the highly-competitive Indian tyre market. The initiatives come in the wake of stiff price competition in the tyre market where the company unable to pass on the extra cost burden to the customers. Over 60 per cent of the demand originate from the price-sensitive original equipment manufacturers segment.

The company is reportedly looking at quality initiatives like lean manufacturing and six sigma to make the system more flexible and thus reduce wastage. At present, the company has an installed capacity of 53 lakh tyres and tubes per annum, up from 4 lakh in ‘84.The company is already implementing total productive maintenance (TPM) in collaboration with Japan Institute of Plant Maintenance. TPM is expected to take another 4-5 years for completion.

TVS Srichakra is also implementing enterprise resource planning (ERP) across the organisation.
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Printografik in strategic deal with CheckPoint
Mumbai: The Mumbai-based Printografik has tied up with the US-based $750-million barcodes and security labels giant CheckPoint Meto-Kimball. Checkpoint, which has operations in 22 countries, is looking at a major business opportunity in India, where few players are currently involved in barcoding and security label printing business. The tie-up also comes in the wake of the commerce ministry’s recent decision to make barcodes compulsory for exports from India.

Under the agreement, Printografik will be the exclusive franchisee for Checkpoint in India and will supply barcodes, particularly to garment exporters, who supply goods to global retail chains.
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Invensys not to merge its two Indian subsidiaries
Mumbai: The $15.3-billion UK-based automation solutions major- Invensys Power Systems, which now owns the Powerware International Ltd.(PIL), after the buyout of 49 per cent stake earlier held by Crompton Greaves, has stated that PIL will not be merged with Invensys India, its other wholly owned subsidiary in India. Consequently, Invensys will now have two 100 per cent owned subsidiaries, PIL and Ivensys India.

With its power systems division slated to be hived off globally into a separate company Invensys felt there was no need to integrate PIL with the Indian subsidiary of Invensys. The group has instead worked out a structure, wherein all divisions will now report directly to their respective headquarters. The Invensys Group has four key divisions - power systems, automation systems, control systems and software systems. The power systems division, which has a turnover of $2.3 billion, specialises in industrial energy storage products.
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