Tehelka.Com gets many suitors including Zee
Mumbai: Leading television channel, Zee Network, is said to have entered into a strategic equity relationship with four production companies that include Karma Networks, promoted by its former CEO, Vijay Jindal and the latest media sensation, Tehelka.com.

According to Mr. RK Singh, chief executive of Zee Television, a due diligence process is currently on and final decision in this regard is expected to be taken after the due diligence process is completed.

These investments are part of acquisition strategy to ensure quality content on Zee Television network.
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VSNL to launch DTH services by October
Mumbai: According to Mr. Amitabh Kumar, director operations of VSNL, the international telephony monolith is planning the introduction of DTH broadcasting by October this year, thus giving it the first mover advantage. Plans are afoot to offer over 70 channels -- including two internet channels.

As its telecom monopoly comes to an end, VSNL had early this year expressed its intention to be an infrastructure service-provider for DTH services. The telecom major plans to invest around Rs 80 crore for putting in place the platform over the next year at an estimated project cost of Rs 250 crore.

The giant plans to make its platform a neutral platform that all broadcasters can use, following the sectoral cap on broadcasters and cable network companies.

For the end-user, the service is expected to cost Rs 800 per subscriber. This cost will include the hardware cost for a set-top box and a dish antennae to be installed at subscriber's premise. VSNL planned to enter into alliances at the retail end for distributing the service.

VSNL's DTH move assumes significance in light of the fact that several broadcasters -- including STAR, Zee Telefilms, the Sterling Group and Jain TV -- have expressed their intention of launching DTH platforms.
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Sun Pharma plans merger with its R&D arm
Mumbai: Mumbai-based Sun Pharmaceutical, which recently merged two other entities (Gujarat Lyka and Pradeep Drugs) with itself, is now planning to merge its wholly-owned subsidiary, Sun Pharmaceutical Advanced Research Centre, with itself. This move is being considered in line with the company’s decision to consolidate.

The government’s decision to provide R&D incentives in the latest Union Budget is also said to be a key factor.

The R&D unit was incorporated 1997 to develop and transfer technology to Caraco, a US generics company that Sun acquired in the same year.
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Sandvik Asia to merge with Titex India
Pune: Sandvik Asia is likely to seek shareholder approval for its proposed merger with Titex India, in which it holds 24.99 per cent.

The appointed date for the amalgamation is January 1, 2001, and will involve transferring the entire business of Titex to SAL. The merger will provide synergy, since both are in similar businesses and under the management of the same group, Sandvik of Sweden.
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MRTPC pulls up Johnson & Johnson
New Delhi: Leading multinational pharma company, Johnson and Johnson, has been hauled up for violation of the Drug (Price Control) Order for overcharging on its popular drug, Coldarin.

The Monopolies and Restrictive Trade Practices Commission has pulled up the company for this alleged violation in response to a complaint filed by a Delhi-based resident against the company. The Commission is due to hear the petition on Monday.

Coldarin is a scheduled formulation under the Drug Order requiring prior government approval for price revisions. However, exemptions are allowed to small scale units provided it is the holder of the trademark, handles the marketing of the product and, more importantly, it is an independent unit and not a subsidiary operations of any large pharmaceutical company.

The complaint alleges that the multinational, which acquired the brand from Knoll Pharmaceuticals in 1997, had colluded with NR Jet Enterprises, and entered into illegal and sham transactions in an endeavour to avail the exemptions so as to sell Coldarin at exorbitant prices on the basis it was not subject to price control under DPCO. The multinational is understood to have transferred the brand to the latter for a small amount of Rs. 5,000.

While NR Jet can claim exemption under DPCO as it is a small scale unit and as the holder of brandname, the complainant has alleged that NR Jet is not an independent entity.
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HDFC AMC may induct Standard Life as shareholder
New Delhi: HDFC Asset Management Company, currently a wholly-owned subsidiary of housing finance major, HDFC, is likely to induct UK-based insurance major, Standard Life, as a shareholder. The latter has got the FIPB approval to take a 26 per cent stake in the asset management company.

With this stake, Standard Life will have a stake in all the business that the AMC does in the country.

The development is as a result of the joint participation agreement signed between HDFC and Standard Life Investments on October 29, 1999, according to which, Standard Life was to take the stake between the 12th month and 16th month after the date of allotment of shares.

As on February 28, the AMC has assets close to the tune of Rs 15,000 crore under its management.
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TCS-HDFC to rope in third JV partner for call centre
Mumbai: The Tata Consultancy Services-HDFC joint venture for setting up a 200-seat strong call centre in the city is likely to induct a third partner to scale up the operations. The centre has been set up at Navi Mumbai at an investment of Rs. 35 crore.

Intelnet Global Services, the joint venture, plans to scale up the operations into a 5,000-seat centre in three to four years.

According to Mr. S Ramadorai, chief executive of TCS, the decision to bring in a third partner will be driven by the contribution of the partner in either of three areas - volume of business, technological capabilities or marketing and sales capabilities. It is understood that most probably the third partner is likely to be a foreign company.

Intelnet was formed in October last year with TCS and housing mortgage major HDFC holding 45 per cent each, and the balance 10 per cent reserved for employee stock options.
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Star likely to enter FM radio services through the backdoor
New Delhi: Star is planning to stage a backdoor entry into the FM radio services segment through an agreement it is on the verge of signing with L N Mittal-promoted Music Broadcast.

Under the agreement, the former will handle all the advertisement, sales and content provision of the FM radio station for which Music Broadcast has license.

While Star denies allegations of the back door entry, it merely states that it is the content provider for Music Broadcast.

As per the license agreement conditions laid down by the ministry of information and broadcastiong, "the licensee should be a company registered in India under companies act".
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Tatas’ exit Hitech Drilling
Mumbai: In yet another move towards restructuring the Group into focussed areas, Tata Industries is getting out Hitech Drilling Services. Its entire shareholding in the company is being bought out by Aban Loyd Chiles Offshore (Aban), the flagship company of the Rs 500-crore Aban group, at Rs 92 per share.

The deal, valued at Rs. 187.3 crore, will be carried out in two tranches. In the first instalment, the Aban group will buy out the 22.5 per cent held by Tata Industries. In the second leg, Aban will make an open offer for the balance 77.5 per cent at the same price.

The acquisition was advised by DSP Merrill Lynch and is financed by ICICI. I-Sec would be advisor to the offer, as well as advise Aban on subsequent reorganization, if any.
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Balco unions refuse to meet management
Raipur : Continuing their stand on the privatisation of Balco, the striking workers refused to come to the negotiating table to meet their new management, the Sterlite Group.

In a letter to the company’s head of personnel, the unions have insisted that they would talk only to representatives of the central and state governments.The unions also turned the proposal of the management for a discussion in New Delhi, saying the discussion could only be possible at Korba.

The seven unions are on strike demanding return of the Balco to its original public sector undertaking status.
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Bajaj to revamp marketing, sales strategies
New Delhi: In keeping with the recommendations made to it by global consulting major, McKinsey and Company, two-wheeler major, Bajaj Auto has stated that it would restructure its marketing and sales operations and undertake cost-cutting measures.

This was confirmed by the company’s general manager (corporate finance) Mr. Sanjiv Bajaj.

Mckinsey had given four basic suggestions in its report which was recently submitted to the Pune-based firm. These included coming out with new models in the two-wheeler and three-wheeler segment to sustain its market share in the competitive domestic market, tightening up of the supply chain mechanism, gearing up of the distribution system and instituting cost cutting measures.
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Ispat Group works out restructuring for Dolvi
Mumbai: The Ispat Group and financial institutions are said to be in the final stages of a restructuring plan for the much-delayed steel plant at Dolvi, Maharashtra. The plan is said to revolve around reducing the capacity of the proposed captive power project and changing the fuel mix.

Designed to reduce the exposure of the institutions in the company, the exercise is expected to save around Rs 500 crore in capital expenditure and reduce capacity in Ispat Energy is from 367 mw to around 230 mw. According to senior institution officials, the capacity reduction at IEL will help it reduce its project cost by around Rs 400-500 crore from the earlier cost of Rs 1,470 crore.

Ispat Industries is implementing a Rs 6,587-crore, 3-million tonne steel project in two phases. Initially, the project cost was pegged at Rs 4,845 crore.
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Enron rejects IOC's bid for Panna-Mukta
New Delhi: Enron, which had put up for sale its stake in the oil and gas property at the Panna-Mukta and Tapti oil and gas fields, has rejected the bid of Indian Oil for acquiring its 30 per cent stake.

Enron is understood to have turned down the bid on grounds that it did not have enough "exposure" to exploration and production activities. With the rejection of IOC's bid, the Houston-based company's joint venture partners Oil and Natural Gas Corporation and Reliance, who hold 40 and 30 per cent shares respectively, are the main contenders left in the fray for acquiring stake in the fields in Gujarat and Mumbai offshore region.

Enron has exited from the joint venture as part of its asset rebalancing exercise.
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NFL staff threatens agitation against privatisation
New Delhi: Yet another union of a public sector company is set to launch an agitation against the government’s privatisation move.

Employees of National Fertilisers have decided to launch a countrywide agitation to protest against the government's move to disinvest the company ignoring, according to one union leader, its impressive profit-making track-record.

The union expects to hold dharnas at all plans and marketing offices of the company. The agitation would culminate with a strike on March 30 at NFL plants in Bhatinda, Panipat, Nangal and Vijaipur as also in all the offices of the company across the country, Nayan said.
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Reliance Petro files Rs 144 crore insurance claim
New Delhi: Petroleum major, Reliance Petroleum has filed an insurance claim of about Rs 144 crore for damage to installations and equipment as well as production loss at its Jamnagar refinery due to killer earthquake in Gujarat.

The claims were filed with the company’s lead insurer New India Assurance Company and its lead re-insurer Munich RE.

It is understood that the Reliance claim included insurance worth about Rs 122 crore for damage to pipelines, civil works, instruments and loss of production to its 27 million tonnes Jamnagar refinery and about Rs 22 crore for damage to its Hazira Petrochemical Complex.

The company is believed to have suffered a production loss of one lakh tonnes of LPG at its Jamnagar refinery where its secondary cracking unit, Fluidised Catalytic Cracking Unit, which produces mainly LPG and other light distilates, was out of operation for about a month since the quake.
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Godrej Soaps buys out brand rights of Godrej Foods
Mumbai: In an unannounced event, Godrej Soaps has bought out the brand rights of food products marketed and distributed by sister concern, Godrej Foods, from holding company Godrej & Boyce Manufacturing Company.

This purchase was done as part of the overall deal with Godrej Boyce under which Godrej Soaps purchased the trademarks of its own brands from the holding company for a consideration of Rs. 18 crore.

The brands of Godrej Foods that have been purchased include ‘Jumpin’ fruit drink. It is not yet clear as to whether Godrej Foods will have to pay Godrej Soaps any royalty for the use of the trademarks of its foods brands. Godrej Foods was earlier paying a fee to Godrej & Boyce for using the brand trademark.

The important trademarks, which would now be owned by the company, include "Godrej" in stylised form for use in consumer products, chemicals and other businesses, Cinthol, Godrej No 1, Crowning Glory, Marvel, Evita, Godrej Ganga, Godrej FairGlow, Godrej Nikhar and Godrej Allcare, the company had stated.
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Xerox slapped with racial discrimination charge
New York: Leading office automation company, Xerox, was slapped with a racial discrimination in a lawsuit filed by several members of its New York sales staff.

The plaintiffs allege that the Stamford-based company engaged in a pattern of discrimination by denying current and former minority members of its sales staff plumb assignments in profitable territories. As a result of this, these employees stated, white employees got assigned to profitable sales territories quickly and found their promotion through the ranks to also be very quick.

The allegations come about a month after concerns about accounting irregularities at the company's Mexico unit resurfaced, stirring up questions about Xerox's management.
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