MUL disinvestment plan cleared
New Delhi: The government has approved a two-stage disinvestment in Maruti Udyog Ltd. (MUL) including issuance of right shares to Indian financial institutions. The Cabinet committee on disinvestment has given an in-principle clearance for divesting government's stake in MUL. The quantum and valuation of the equity to be divested will be decided later with the consent of the other equal partner, Suzuki Motor Corporation.

As per the cabinet decision, the government would fully renounce its quota of rights shares in favour of FIs, while SMC would retain its rights shares. MUL would get revenue in terms of premium on the rights shares, which would be used for strengthening the company, both in terms of technology and finance. The process would also fetch maximum value of government's shares when offloaded. Both partners have about 66 lakh shares and from government's side 0.2 per cent of the holding are with the employees of MUL.
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Tetra Pak unit to recycle packaging material
Pune: Tetra Pak India Ltd. has joined hands with Mumbai-based Deluxe Recycling India Private Limited, to manufacture `Ecolink,' the country's first recycled chipboard, which will save the environment from biodegradable waste.

The chipboard uses factory waste supplied by Tetra Pak, as well as chips made from the empty cartons used by food companies to pack liquids. Tetra Pak India's parent, Tetra Pak International, part of the Swedish group Tetra Lava has developed and stabilised the technology to make such boards. While the technology would thus, come from the parent group, the factory waste of asceptic packaging material, manufactured by Tetra Pak India at its factory near Pune, will be supplied locally.

Deluxe Recycling India Private Ltd. (DRIPL) has invested Rs 1.4 crore to set up a facility to make these boards at Palghar in Thane district. DRIPL has a capacity to produce 1500 tonnes of chipboard per year. The factory is expected to run at 90 per cent capacity and generate revenue of Rs 1.5 crore in the first full year of operations. The company has already started marketing the product and single largest order nine tonnes of the material is sent to Kerala.
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Jaiprakash Industries not to sell cement unit
New Delhi: Jaiprakash Industries has suspended talks to sell its cement business, under its fully owned subsidiary Jaypee Rewa Cement. The company has a capacity to produce 4.2 million tonne of cement per annum in three plants located in Madhya Pradesh. The company has been valued at Rs 1,200 crore.

The company had been in the past has been reportedly in negotiations with a number of overseas companies, including Cema of Malaysia, Italcementi of Italy, Cemex of Mexico and Lafarge of France for placing 50 per cent of the equity with the overseas partner. The decision to suspend the divestment plan is believed to be consequence of prices firming up in the last three months. The average price realisation for the company is believed to have improved from Rs 2,200 per tonne to Rs 2,700 per tonne since November.

Jaypee Rewa Cement has a debt of almost Rs 325 crore on its books with an annual outgo of around Rs 120 crore, by way of principal and interest on this debt. However, if prices were to stabilise at the current level, the company will get an additional turnover of at least Rs 180 crore which could take care of the debt.
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ABB to set up R&D base in India
Zurich: Asea Brown Boveri (ABB will soon set up a research and development base in India for developing products catering to the domestic and global market. ABB said India with an IT-spurred GDP growth of 6.5 per cent, was one of the most favourable locations for expanding ABB's operations. Neither time frame nor the size of investment in the proposed new R&D base is however, yet finalised. ABB will also set up R&D bases in China and Singapore. Currently, it has R&D bases in Finland, Germany, Italy, Norway, Poland, Sweden, Switzerland and the US.

According to Mr. K K Kaura, managing director, ABB India for the R&D base in India, technical expertise would be drawn primarily from India. The approach however, would be global so that the R&D base in India could cater to the needs of India as well as the global market. ABB's business in India is currently around $250 million with 4,000 employees and an extensive local manufacturing base. The setting up of global R&D centre is expected to further strengthen the Indian resource base vis-a-vis its global operations.
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Pfizer rethinking on plans to set up arm in India
Mumbai: Pfizer Inc., the US-based pharma major is reportedly reviewing its plans to set up a wholly owned subsidiary in India, despite a clearance from Foreign Investment Promotion Board (FIPB). FIPB had granted its approval to Pfizer to set up a subsidiary around one year back.

Senior Pfizer executives in India, however, say transferring brands from Pfizer India to a 100 per cent subsidiary of the parent could lead to erosion in shareholder value. A final decision on the issue is however, only expected after Pfizer’s legal merger with Parke-Davis India. Globally, the two companies have merged but in India the process is still expected to take a few more months.

Pfizer India currently has two manufacturing facilities in India. After the merger with Parke-Davis India, it will have one more unit. Pfizer has also envisaged keen interest in stepping up R&D activities in India. Presently, the company is conducting clinical research activities for its global requirements in India.
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Hitachi to launch high-end refrigerators, washing machines
New Delhi: Hitachi has said it would soon launch high-end frost-free refrigerators in India and was planning a foray into high-end washing machines. The company, present in air conditioners via its joint venture with Ahmedabad-based Amtrex Appliances and in colour picture tubes along with JCT Electronics now plans the new white goods foray to coincide with Diwali this year.

The company proposes to launch high-end, 310-litre fridges, which will be initially imported from its manufacturing plants in Thailand and Shanghai.
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Delphi Automotive plans expansion
New Delhi: Delphi Automotive Systems is looking at tie-ups to expand its presence in the new markets of Nepal, Sri Lanka and Bangladesh. The company is trying to tie up with the right commercial partners with logistics in these countries, Mr. Hari Radheshwar, director (Asia-Pacific, aftermarket operations), Delphi has stated.

There would be no equity participation in these tieups and relationship would be of that of supplier and customer. Delphi started its operation in India in 1995 and has four manufacturing units and a turnover of Rs 314 crore.
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IOC to invest Rs 500cr in retail outlets
New Delhi: Indian Oil Corporation (IOC) will invest Rs 500 crore in upgrading its transport fuel retail outlets during the next two years. Under its vision 2000 strategies, IOC has decided to invest Rs 300 crore to give a facelift to the company owned and operated retail outlets while the remaining would be invested in outlets operated by private parties.

IOC has already invested Rs 300 crore during the last two years providing a facelift to its 7,500 strong outlet networks spread throughout the country. IOC has also decided to add more value-added services like restaurants, automatic teller machines, shopping convenios and cyber cafes to its retail outlets with a view to attract and retain customers.

IOC has tied up with leading merchandiser Akbar Ali, international food chain Domino's and Chennai-based Internet service provider DishnetDSL for providing value-added services at the company's retail-filling stations in major cities. While Domino's will open fast food restaurants at IOC retail outlets, DishnetDSL will set up Internet cafes at the filling station. Akbar Ali would open their famous clothing stores at the retail outlets.
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