Reliance to bid for 25 per cent stake in VSNL
Mumbai: Reliance Group has decided to bid for a 25-per cent stake in Videsh Sanchar Nigam (VSNL), while keeping its options open on forming a consortium, consisting of group companies like Reliance Infocom and Reliance Industries Ltd. The decision follows the government's recent decision to allow only entities with a combined net worth of Rs 2,500 crore to bid for a stake in VSNL.

The Reliance Group is also reportedly exploring the possibility of forming a joint venture with an external partner to participate in the bidding process. The FDI norms in India allow foreign equity participation of up to 49 per cent in telecom operating companies. VSNL already has a foreign equity participation of 31 per cent through its GDR issue.

The government has set April 1, as the last date for submitting the expression of interest.
At present, the government's holding in VSNL is 52.97 per cent, which will come down to 26 per cent after the 25 per cent divestment to a strategic partner and 1.97 per cent to employees.
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Tata, SIA to jointly bid for 40 per cent of Air-India
New Delhi: Tata Group and Singapore Airlines (SA) will make a joint bid for 40 per cent stake in Air-India. Tata-SIA combine, a serious contender for Air-India will submit a technical bid on February 23, also the deadline for the submission of technical bids and details of consortiums seeking to buy a 40 per cent stake in Air-India to be sold by the government.

As per the norms, foreign airlines can pick-up 26 per cent of the stake individually or the entire 40 per cent in tandem with an Indian partner. The Tatas and Singapore Airlines are the only bidding group whose composition is fixed so far. Other bidders, who submitted expressions of interest in November, include Delta Airlines and partner Air France Dubai's Emirates airline, London-based steel magnate L N Mittal and the UK-based billionaire Hinduja brothers.
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TCI spreads out wings to Bangladesh
New Delhi: Transport Corporation of India (TCI) has tied-up with Bangladesh's Enem-Omni group for distribution of time bound express cargo to and from Bangladesh. Under the arrangement, XPS, the express cargo division of would transport cargo from anywhere in India to the Bangladesh border, from where Enem-Omni would take over for doorstep delivery and vice versa.

TCI has also been planning to set up offices in other Saarc nations, the Middle-east and Singapore, to exploit the increasing trade between India and its neighbours. The Rs 450 crore company is already in talks for striking partnership with local logistics companies in Sri Lanka and Middle East.

The company is expecting additional revenue of around Rs 50 crore in the next three years from its international forays.
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Hughes and Sun Microsystems team up on mobile data
New Delhi: Hughes Software Systems (HSS) has announced a tie-up with Sun Microsystems Inc to integrate HSS' mobile data protocol software solutions and communication protocol stacks with Sun's ChorusOS operating system. HSS intends to port SS7, GPRS and UMTS communication protocols to create a value added, application ready platform for customers. HSS Communications protocols would complement the Sun ChorusOS in building ready-to-use telco/networking applications.

HSS also announced a partnership with ADAX. The companies have jointly developed a solution to provide OEMs implementing third generation mobile networks an one-stop shop for network infrastructure. The relationship will cut the time-to-market for 3G mobile data networks.
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Citrix to launch IT applications platform in India
New Delhi: Citrix Software has introduced its latest application delivery and management platform Citrix Metaframe XP for Windows in India to offer large-scale services in server-based computing. Citrix Metaframe XP for Windows offers rapid application serving system designed for departmental workgroups to extend reach of Windows 2000 server to any device, any connection-wired, wireless or Web.

The Metaframe XP platform can support 100,000 users on more than 1,000 servers and is priced in the range of Rs 12,000-18,000. The platform would be marketed through Citrix's two key distributors, Datapro and Tech Pacific, who in turn would coordinate sales with the company's 55 resellers. The company is mainly targeting corporates, banks and financial services.
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Tisco wants to retire debts and look for acquisitions
New Delhi: Tata Iron and Steel Company (Tisco) has said that improved cash flows would allow the company to retire its high cost debt and the steel major could be now looking for acquisitions in related industries. The company is also likely to post a record profit for the current year to March due to stringent cost control and a shift to higher value-added products.

Mr. JJ Irani, managing director, Tisco has been quoted to have said that the company would probably retire Rs 500 crore ($107 million) of bonds, paying a coupon of 17 per cent. The 10-year bonds were issued five years ago, but the company has the option to retire them in October 2001.

Besides, the completion of modernisation programme and installation of a cold rolling mill by mid-2001 is expected to free nearly Rs 800 crore a year in cash flow, which could be used to fund an acquisition.
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Apollo & Parkway to set up hospital management firm
Bangalore: Apollo Hospitals and Singapore-based Parkway Hospital have teamed up for setting up a joint venture hospital management company. The new company is expected to be operational before the end of the first quarter of 2001-02. The details relating to capital structure and composition of board are being currently worked out and will be finalised soon.

The hospital management model to be adopted for the JV is on the lines of the management of hotels by international and national chains. Under this model, while the hospital property is owned by a third party, the operations will be handled by the hospital management company.

Singapore-based Schroders Capital, which is brokering the JV deal, has over 15 per cent stake in both Apollo and Parkway hospitals.
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Ipca Lab plans new neuro and skincare products
Mumbai: Ipca Laboratories Ltd. is planning to float a division called Innova for neuropsychiatry and dermatology. The new division will be floated by the mid-March with 10 to 12 products. Ipca has developed these products through process research and each product was unique in its nature.

Both these segments are highly focused areas with annual growth rates of about 5 to 10 per cent. The company is also planning to enhance its marketing network by adding 80 to 100 personnel, only for this division.

Currently, Sun Pharmaceuticals, Torrent Pharmaceuticals and Glenmark are the major players in these segments. The company has been trying to develop new formulations and to introduce line extensions. It also has plans to develop new drug delivery systems.
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Samsonite India to become base for global supplies
Mumbai: Samsonite Corporation has chosen its joint venture partner in India, Samsonite India, to develop, design and manufacture an exclusive line of hard luggage called Cruiseair for the world market. Priced between Rs 3500 and Rs 5600, the new line will be exported to American, European and Asian markets.

Samsonite has made a fresh investment of Rs 12 crore for putting up a new production line along with preparing the mould and design at its Nashik factory. By year-end, the company plans to come out with another line called Flight, which will again be sourced from India, besides Europe. The company is investing another Rs 9 crore for this product line.

Globally, Samsonite has been undergoing a transition from being a luggage manufacturer to a travel company. The company is also working on providing a complete solution to the mobile customer and has already launched travel wear and footwear in the Europe and US markets.
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Praxair & BOC drop JV bid for Bhilai Oxygen
Mumbai: Praxair and BOC India have decided to drop out of their proposed joint bid for acquiring stake in Steel Authority of India's, Bhilai oxygen plant. The decision follows the failure to arrive at an agreement with SAIL on the floor price of Rs 403 crore for the plant, which they feel is too high. The two companies had valued the oxygen plant at about Rs 200 crore to Rs 210 crore.

SAIL has decided to hive off its oxygen plant at Bhilai, through a joint venture as a part of its restructuring exercise. The public sector steel giant has already formed fully owned subsidiary, Bhilai Oxygen and has initiated the process of selecting a strategic partner for it. The oxygen plant has three air separating units each with 550 tonnes per day capacity.
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UB wants to take equity in bottling units
New Delhi: The UB group, which has contractual agreement with 15 bottling/distillery units across the country. is presently negotiating for picking up equity stake in the latter. According to Mr. Vijay Rekhi, UB group president, UB was interested in picking up no less than 26 per cent" stake in each of the 15 bottling units, with a view to convert the existing contract arrangement into separate JVs.

This would enable UB to look into the cost structure of each unit, a step required to become a least-cost producer and upgrade them as required, Mr. Rekhi has said. The 15 bottling units have been valued around Rs 150 crore and UB proposes to invest around Rs 39 crore for taking 26 per cent stake in each of them.
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