America Online to set up a subsidiary in India
New Delhi: AOL-Time Warner, America Online, the American media and Internet giant, is planning to set up a wholly owned subsidiary with an initial investment plan estimated at about Rs 500 crore. The group is setting up a subsidiary to develop, manufacture and provide various software products in the Indian market.

America Online, which merged with Time Warner last year proposes to offer a host of Internet related services through its Indian subsidiary. India will be the 17th country where America Online will be setting up shop. Foreign Investment Promotion Board (FIPB) is slated to take a decision on the company's proposal soon.

America Online plans to set up the wholly owned subsidiary with an initial investment of a little over $100 million and plans to pump in additional investments over a period. Though the company’s businesses include interactive services, publishing, music, networks and film entertainment, the proposed Indian subsidiary would be undertaking mainly the software development activities and internet-related services. America Online also plans to use the proposed Indian subsidiary for supplying some of the software products for AOL Time Warner’s international operations.
Back to News Review index page 

Honda India to launch 102cc four-stroke scooter
New Delhi: Honda Motorcycle & Scooter India has decided to introduce a 102cc automatic four-stroke scooter Activa. The new scooter will be launched in July this year. The company plans to sell 40,000 units of the scooter in the first full year of production. Activa promises to offer utility and value for money. The market for metal-bodied automatic scooters is growing steadily in India.

A joint committee comprising of officials from Honda Motor Co Japan, Honda Motorcycle and Scooter India and Hero Honda will decide the models to be launched by Hero Honda and Honda's subsidiary. The subsidiary has invested around Rs 200 crore in the two wheeler venture in the country and is expected to take atleast three years to break even. The pilot production of the plant, located at Gurgaon in Haryana will start in April.
Back to News Review index page 

BPL plans to reposition its CTV brands
Bangalore: BPL is planning to reposition its 16 colour television (CTV) models, under a series of five sub-brands, as a part of its business restructuring exercise. The initiative has been taken to offset the impact slowdown in overall consumer durable sales.

The new sub-brand series will be targeted at the various segments of the market , including one for the lower and middle end. The company is looking into the profile of the dealers, their investment capacity, their customer profiles and offer them the particular series that suits them. BPL by splitting its 16 models into five series, hopes to spread itself and market its less popular models along with the more competitive ones.

Over the past four years, while the CTV market has doubled at an average compound growth rate of 25 per cent, the year 2000-01 saw the market flattened. With more brands entering the market, shares of individual brands have come down. Also, while the CTV market grew from 2.8 million in 1996-97 to 5 million in 1999-2000, the number of dealers has stagnated at 3,500.
Back to News Review index page 

TI International sells its JV stake to Murugappa group
Chennai: TI International Holdings Ltd., a wholly-owned subsidiary of the TI Group Plc of the UK has sold its balance 4.03 per cent stake in the Tube Investments of India Ltd. to its joint venture (JV) partner, the Murugappa group, at market prices. The deal had been earlier cleared by the Reserve Bank of India. Tube Investments shares had closed at NSE at Rs 64.75 per share on Wednesday. The company has a paid-up equity capital of Rs 24.62 crore.

Tube Investments of India Ltd., manufacturers of the TI brand of cycles, was incorporated in 1949 as a JV between the TI Group Plc of the UK and the Murugappa group. The TI Group Plc was holding close to 60 per cent stake in the venture initially, which was progressively diluted over the years, as per the FERA regulations.
Back to News Review index page 

HLL signs up Hrithik Roshan for "Close-Up" brand
Mumbai: Hindustan Lever Ltd. makers of Close-up, the first gel toothpaste to be launched in India has unveiled a new marketing plan by associating the brand with Mr. Hrithik Roshan for a nationwide `Sky Party' contest, with `Guarantee Hamari, Kismet Tumhari' as the advertising theme for the contest.

The contest to start from February 14 across the country will culminate on April 26, at a star- filled dinner and a flight for 30 lucky winners with Mr. Hrithik Roshan on board. To encourage participation, Close-Up is deploying a multimedia campaign including print, radio, television and Internet to create visibility and excitement.

Consumers will have to fill in their names, address and personal details on the inside of any Close-Up pack and drop them in collection boxes. A draw of lots will determine the lucky winners who will then be flown to Mumbai to participate in the Sky Party. The contest has been conceptualised by Percept D'mark.
Back to News Review index page 

Cadbury India sales rise 12 per cent in 2000
Mumbai: Cadbury Schweppes Plc (CSP), has said that Cadbury India’s sales in India have risen by 12 per cent in 2000. Cadbury India, a 51 per cent subsidiary of Cadbury Schweppes, is slated to announce its annual results for the year 2000 in another two weeks.

The company had reported a 19 per cent growth in 1999 over the previous year. The company's sales value has increased to Rs 511.1 crore in 2000 from Rs 428.33 crore in 1999. On a sales growth of 12 per cent, Cadbury India is expected to announce sales of about Rs 572 crore for the year 2000.The company had posted around 40 per cent increase in net profit at Rs 36.70 crores for the year 1999, against Rs 26.22 crore for 1998.

Cadbury India has been focussing on increasing its penetration acroos three categories - chocolate confectionery, malted food drinks and sugar confectionery as a part of the its marketing strategy.
Back to News Review index page 

Four MNC’s bidding for RPG’s agrochemical business
Mumbai: Four multinational chemical majors - Bayer, Monsanto, Syngenta and Griffin Corporation – have reportedly put in their bids to buy the agrochemical business of RPG Life Sciences the pharma and agrochemical arm of the group.

The RPG group has decided to hive off the division into a separate company and either sell it altogether or only retain a minority stake. The final deal will be clinched within the next two months. Earlier, Rallis and Aventis CropScience too had evinced interest in the RPG division but are believed to have later pulled out. The division contributes around 50 per cent to the Rs 204 crore RPG Life Science's turnover.

The agrochemical sector has been going through tough time for the last two years, with the industry having witnessed a negative growth of 10 per cent during the last year. This has prompted the RPG group to give a fresh look at the future of the business.
Back to News Review index page 

Hyundai launches Sonata
New Delhi: Hyundai Motor India Ltd. (HMIL) has decided to introduce its super premium offering EF Sonata, priced at Rs 14-16 lakh in the Indian market. The car will be launched commercially in July this year. Sonata is powered by a 2-litre 16 valve DOHC engine that delivers 133 horsepower at 6,000 RPM.

Though the car has been positioned in the Rs 14-16 lakh price bracket, company sources say its final price will be announced after the duty structures under the Auto Policy and Union Budget 2001-02 are finalised. HMIL is reportedly considering CKD assembly of the car, starting with about 60 per cent local content level. In the first year of operations, Hyundai expects to sell 1,000 units of EF Sonata, the first model to be introduced in the untapped D-segment.

HMIL has also announced that its South Korean parent Hyundai, will offload upto 24 per cent stake in the company over the next 1-3 years. The final mode for dilution is yet to be finalised. The company had last year announced plans for dilution of stake but had later postponed the programme. The company has also earmarked an investment of upto $350 million over the next one year for expanding capacities from 1.2 lakh to 2 lakh units.
Back to News Review index page 

Volvo plans to launch passenger buses
Pune: Volvo India Ltd. (Volvo) is planning to introduce inter-city buses to its range of offerings this year. The company will initially launch the inter-city long distance bus model, targeted at luxury bus operators and later introduce an intra-city model, for local transport needs. The Volvo buses will be introduced in the market by September 2001.

Mr. Freiesleben, vice president, marketing at Volvo India has said that contrary to the Indian practice of building bus bodies over the truck chassis, Volvo will manufacture a chassis specifically meant for building buses. Volvo will make the chassis and the cabin for the bus and the body-building will be taken up by various contractors, as per Volvo specifications.

The company is also planning to manufacture low-end construction equipment at its plant in Hoskote, near Bangalore. The early products to be made here include small excavators of five ton capacity and a range of re-loaders. Volvo will also launch new tippers for roads and building constructions and three-axle tractors.
Back to News Review index page