United Breweries to import lifestyle products
New Delhi: United Breweries is foraying into marketing a range of imported lifestyle products through luxury retail outlets. The company will invest around Rs 200 crore for setting up these retail outlets across major cities, under the McDowell brand name.

The company will be importing international brands of tobacco, perfumes, personal products, wine, liqueurs, spirits and champagne among other things. The retail outlets, which will be set up under McDowell International, will also market the UB range of wine and spirits. It will also sell an entire range of food including cheese, caviar and dry fruits. International brands of cigars and cigarettes will be also be available at these outlets. Each outlet will also have a restaurant. The company is also planning to introduce a range of casual wear and formal wear in the country shortly.

The company plans to set up a dozen such life-style outlets within the next six months. These outlets will be based in major cities like Bangalore, Mumbai, Pune, Calcutta, Chennai, Hyderabad and Chandigarh.
Back to News Review index page 

Diamed AG to launch its diagnostic products in India
New Delhi: Diamed AG, a $200-million Swiss pharma major, is planning to launch its blood coagulation and food testing products in India. As a part of its entry plans , Diamed has recently formed a marketing-cum-technology joint venture (JV) with Morepen Laboratories to launch its internationally acclaimed Diamed OptiMAL rapid malaria test kits and ID micro typing systems for blood group serology.

Diamed AG believes India offers scope for setting up a production base and also has huge market demand for its diagnostic products. Diamed is the world leader specialising in diagnostic products relating to blood group serology, immunohaematology, haematology, coagulation, veterinary diagnostic and infectious diseases. It has four manufacturing facilities outside Switzerland in the US, Brazil, France and Australia.
Back to News Review index page 

Denso Corp. to invest Rs 200 crore in its Indian arm
New Delhi: Denso Corporation, Japanese auto component major will invest Rs 200 crore in its subsidiary Denso Haryana Private Ltd. (DHPL), in a bid to consolidate its presence in the country. The company has already invested over Rs 204 crore in setting up production facility for manufacturing engine management system components. Denso Corporation has 47.9 per cent stake in Denso India, while the rest of the equity is held by MUL.

Denso Haryana, which manufactures gasoline engine management systems, is a key supplier to Maruti Udyog Ltd. (MUL). The company, however, is looking at other Japanese automobile manufacturers to increase its customer base. Denso's plant at Gurgaon is the first in India to manufacture gasoline engine management systems, which meets statutory emission norms.

The plant also makes engine components like ECU (electric control unit), fuel pump, injector and ISCV.

Denso also has a joint venture with Kirloskar Industries for manufacturing radiators and air conditioners, with a equity stake of 89 per cent. It also has 13 per cent stake in Subros Ltd. for manufacture of airconditioners and 12.5 per cent in Premier Instruments and Controls Ltd. (Pricol) for manufacture of instrument cluster.
Back to News Review index page 

EID Parry to merge GFL with Coromandel
Chennai: EID Parry Ltd. has proposed to merge Andhra Pradesh government owned Godavari Fertilisers Ltd. (GFL) currently making losses with its subsidiary - Coromandel Fertilisers Ltd. (CFL). Mr. A Vellayan CFL vice-chairman has said that it would be in the interest of the AP government to consider the EID Parry proposal, as the state-owned GFL was making a loss of Rs 7 crore, while the CFL has made a profit of Rs 45 crore in fertilisers.

A final decision on EID Parry proposal is to be made by the AP government within one month. However, the Standing Conference of Public Enterprises (SCOPE) had earlier put forth a view that total sell out of public sector undertakings (PSUs) to the private sector was not the only answer to making them viable. It had instead suggested that a new enterprise model, providing operational freedom and autonomy, be adopted to revive sick public sector units.
Back to News Review index page 

Jindals in race to acquire 26% stake in HZL
New Delhi: Jindal group has entered the race for acquiring 26 per cent stake in Hindustan Zinc Ltd. (HZL) slated for divestment in the next fiscal. The group is believed to have filed an Expression of Interest (EoI) for acquiring stake in HZL. The last date for filing EoI was January 15. The government had earlier announced its decision to dilute its stake in HZL from the present 76 per cent to 49 per cent through a strategic sale and invited bids. Banque Nationale De Paris-Paribas, a international banking major is acting as global advisors for the divestment process.
Back to News Review index page 

Crompton Greaves sells 50% stake to Vatech Hydro
Mumbai: Crompton Greaves has sold 50 per cent stake in hydro-power equipment manufacturing joint venture, C G Elin, to Austria-based partner Vatech Hydro.
The move closely follows sale of 49 per cent stake in C G Powerware to US-based partner Powerware International. Vatech Group's original 50 per cent stake in the joint venture was held through its group company Elin. With Vatech buying out its 50-per cent stake, the company will be known as Vatech Hydro (Bhopal). The manufacturing facility of the company is located at Bhopal. The company supplies medium- and -large hydro as well as turbo generators to hydro power plant projects.
Crompton Greaves, following a sharp decline in profit, has decided to restructure the operations by exiting from some of its joint ventures. It currently had 17 joint ventures.
Back to News Review index page 

Ceat profits slip as tyre market slows down
Kolkata: Ceat has announced a net loss of Rs 5.21 crore in the quarter ended December 31, 2000, against a net profit of Rs 3.77 crore a year earlier. A company statement said the quarter continued to witness lower demand for tyres in the industry due to economic sluggishness.

The net loss during the nine month period stood at Rs 12.11 crore against a net profit of Rs 10.93 crore in the corresponding period last year.
Sales, at Rs 292.50 crore, registered a 11.72 per cent decline during the quarter under review over Rs 331.36 crore a year earlier, while some recovery was made through other income which increased to Rs 5.79 crore compared to Rs 1.95 crore.
Total expenditure stood at Rs 285.23 crore (Rs 311.05 crore) whereas interest charges was Rs 13.92 crore during the quarter under review compared to Rs 14.31 crore in the corresponding quarter last year.
Back to News Review index page 

ONGC Videsh to takes 20% stake in a Russian oilfield project
Mumbai: ONGC Videsh is taking a 20 per cent stake in the Russian oil and gas fields at Sakhalin-I, likely to be developed by 2005. The project is being developed along with Exxon-Mobil (30 per cent stake) and Japanese oil consortium Soreko, which has another 30 per cent, apart from the Russian governments 40 per cent, 20% of which will be with ONGC Videsh.

ONGC Videsh will sign the equity agreement shortly, wherein it will invest Rs 8,000 crore. The total oil and gas from this project is likely to be more than that from Andhra Pradesh, Assam and Tamil Nadu. ONGC Videsh is also into yet another contract for undertaking exploration works in Iraq for block No 8. ONGC Videsh had signed an agreement with the Algerian National Oil Company, Sonatrach, for developing an oilfield in Iraq.
Back to News Review index page 

Sheraton and Vama tie up for 4-star hotel in Mumbai
Mumbai: The Sheraton group has entered into an alliance with the Mumbai-based departmental store Vama to set up a 184-room four-star hotel at Juhu in Mumbai. The hotel, which is expected to be operational from the first quarter of 2003 is being put up with an investment of around Rs 200 crore. The hotel will have 16,000 square feet of shopping space under the Vama brand.

Sheraton Hotels & Resorts is the largest of the Starwood Hotels & Resorts Worldwide, Inc. brands. Apart from Sheraton, Starwood's other brands are Westin, The Luxury Collection, St. Regis, W, Ciga, and Four Points.
Back to News Review index page 

Veuve Cliquot to enter Indian wine market
Mumbai: Veuve Cliquot, the second-largest champagne house in the world after Moet Hennesse, is foraying into India to sell its international brands like le Grand Dame, Rose Reserve and Vintage Reserve. The company, which sells over 16-million cases a year has however, decided not to confine itself in the premium segments and will supply wine in all price segments.
As a part of its plans Veuve Cliquot is setting up its office in Mumbai. The immediate reason for starting a representative office in India is believed to be the likely removal of quantitative restrictions in the export Import policy. With the removal of QRs, Cliquot would be able to sell its premium brands at less than half the price at which they are sold at five star restaurants at present.

Cliquot brand wines had been in India for over 100 years is looking forward to be a major player in the Indian market. The company hopes to develop a sizeable market in another three years.
Back to News Review index page 

Global cement majors bid for L&T stake
Mumbai: Six overseas cement giants -- including France's Lafarge, the world's largest cement company, are reported to have shown interest in acquiring India's largest cement business owned by Larsen & Toubro. Among these, Holderbank, a Swiss cement giant and Cemex from Mexico besides Lafarge from France are among the six companies that have submitted their bids for acquiring the stake. Others included Italcementi, Italy's biggest cement group, German giant Heidelberger Zement and a Japanese firm.
The deal one of the largest in the Indian cement business will give the winner a strong foothold in L&T's 15-million tonnes of capacity spread across the country. Last year, L&T invited expressions of interest to bid for a 25 per cent stake in its cement business, which it plans to float separately.
Back to News Review index page