Ranbaxy to foray into herbal solutions
New Delhi: Ranbaxy is reported to be finalising its entry strategy into herbal solutions to drive its future growth. The company board, which met recently, saw through detailed presentations by some of the eminent institutions on herbal medicine on different business models for its proposed entry into this emerging segment.

The Ranbaxy board is believed to have mandated the top management to take a final decision on the likely business model to be adopted. The pharma major is likely to adopt a two-tier strategy - a long-term and short-term one, for its foray into the herbal segment. The long-term strategy would involve taking the R&D route for developing new products in herbal medicine, which will be future revenue drivers for the company. The short-term plans could involve Ranbaxy using its strong brand power and retail network for marketing of some of the niche herbal products especially in the international markets.
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Radico to enter into food products
New Delhi: Radico Khaitan has announced the launch of '8 pm' apple juice, as part of its plans to foray into processed food products and other non-alcoholic beverages. The company, which is mainly into liquor and has '8 pm' whisky as one of its premier brands, decided to extend the brand name to juices to encash the brand equity already earned from whisky sales.

The company has plans to further add on more food and beverage products to its portfolio and capture a sizeable market share in the segment.
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Telco to export engines to Cummins
Mumbai: Tata Engineering and Locomotive Company (Telco) has announced that Tata Cummins – its JV with Cummins Engine will export engines and components to Cummins worldwide. The latest move amplifies the scope of the 50:50 joint venture, which had originally been set up to produce diesel engines for Telco's vehicles.

Telco has stated that Cummins has also agreed to adapt and utilise Tata's engines for power equipment and industrial applications in India and overseas. Telco plans to offer both the Cummins engines and its own 697 engine used in a range of medium and heavy commercial vehicles, for exports.

The truck major had started installing the more efficient and less polluting Cummins engines last year, but was unable to pass on the higher cost entirely to customers. It now proposes to use its own 697 engine, with some necessary modifications.
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Premier Tyres to boost productivity
Kochi: Premier Tyres, which has just come out of the clutches of the Board for Industrial and Financial Reconstruction (BIFR), has decided on a strategic business plan focused on improving productivity. As a part of the exercise, the company has decided to undertake a 30 per cent reduction in its staff strength. A study conducted by the National Productivity Council (NPC) had recommended the company to reduce the work force by 30 per cent to become competitive.

Besides, Apollo Tyres, which holds 70 per cent of the equity in Premier Tyres, will be investing Rs 20 crore in the current year for modernisation of Premier Tyres. The investment will increase the capacity of the unit from 45 tonnes per day to 75 tonnes per day. The target is to raise it to 100 tonnes per day.
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Enron finally invokes counter-guarantee clause
Mumbai: Dabhol Power Company (DPC), promoted by Enron Power Corporation has invoked the central government’s counter-guarantee, citing the Maharashtra State Electricity Board’s (MSEB) failure to pay its Rs 79 crore November 2000 bill. DPC has also invoked the state government guarantee for payment of the Rs 152 crore December 2000 bill. On January 25, DPC had invoked the state government guarantee for the payment of the Rs 79 crore November bill. DPC has so far received only Rs 10 crore from the MSEB.

Mr. Neil McGregor, DPC president in a statement has said: "We are disappointed that this decision had to be taken. Given our understanding of MSEB’s financial challenges, DPC and its partners have consistently exercised restraint, despite repeated delays in payment for the past several months. Since the outstanding on the November bill is now overdue by 42 days as well as the December bill by 12 days, we have little choice but to invoke the government of India guarantee to cover the November bill and the government of Maharashtra guarantee to cover the December bill."
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Titan to relaunch UK ops with Time Products help
Bangalore: Titan Industries Ltd. is planning to re-launch its UK-based operations in alliance with Time Products Plc. later this year. The company has earmarked Rs 10-crore outlay for its brand-building plan in Europe during the year. Time Products owns the largest volume watch brand in the UK market – Seconda, and is also a major distributor of Swiss brands in that country. The company has a shop on Bond Street, London and also deals in jewellery. Time Products will now distribute Titan’s watches, jewellery and clocks. The UK relaunch is slated sometime after the Basle Watch and Jewellery Fair.
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Balco CRM delay likely due to heavy damages
New Delhi: Bharat Aluminium Company (Balco) plan to consolidate its position in the downstream market have suffered a set-back with its Cold Rolling Mill (CRM) project running 15 months behind schedule.

The project, originally scheduled to take off in March 2001,will now be commissioned in the second quarter of this year. The company had submitted a detailed report to the ministry of mines in September 2000, stating that the project would take off by March 2001.

Following the delay in implementation, the project partner Mecon and other parties have been claiming hefty damages against Balco. Three parties in all have raised a claim of nearly Rs 22 crore against Balco. Italian equipment provider to the project Fata Hunter has also claimed the largest amount of Rs 12 crore for delay in the project.
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Tata Petrodyne strikes oil & gas in three Gujarat fields
Mumbai: Tata Petrodyne, a wholly owned subsidiary of Tata Power, has struck oil and gas at three fields -- Lakshmi (gas), Ambe (gas and oil) and Gauri (gas and oil) -- in the Gulf of Cambay off Gujarat. Among the new finds, Lakshmi field alone has a discovery of 250 to 300 billion cubic feet of gas, which would make it one of the biggest reserves in a field in India.

The oil and gas strikes have come as a major fillip to Tata Power's plans to emerge as a fully integrated energy company.

Tata Petrodyne has also formed another consortium with Enron, ONGC and Hindustan Oil Exploration Company for the exploration of the northern block in the Gulf of Cambay called CB-OS\1. It holds a 10 per cent interest in the block.
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IOC favours HPL revamp
Kolkata: Indian Oil Corporation (IOC) has said that it was not demanding a split of Haldia Petrochemicals Ltd. (HPL) and that the whole process of the IOC’s likely participation in the project was still under study. IOC reportedly has been contemplating a plan for restructuring the loans and equity of HPL instead of splitting the petrochemical project. It is however, not clear how the process of loan and equity restructuring would be carried out.
IOC is currently studying whether the cash flow position would be good and beneficial for both IOC and HPL. The West Bengal government forwarded the proposal before IOC to participate in the petrochemical project almost a year back. Thereafter, IOC and the promoters of HPL, WBIDC and the Chatterjee Group held several meetings to resolve the problem arising out of high debt burden of the petrochemical company. While the project cost of the mega project had been fixed at Rs 5,170 crore, nearly Rs 4,000 crore of total financing of the project is being funded by loans.
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