HFCL, Reliance’s CDMA plans hang as PM ‘limits’ mobility
New Delhi: Reliance Telecom's plans to enter CDMA-based mobile operations in 18 new circles alongside the Tatas and HFCL have hit a block.
Prime minister AB Vajpayee has reportedly intervened to stall licensing of new fixed service providers. The first of these new licences were due for issue on Monday.
The prime minister, it seems alarmed by the growing political and industry opposition to CDMA-based ‘limited' mobility has referred the issue to the group on telecom headed by finance minister Yashwant Sinha for a final decision.

Telecom industry watchers say that this is an effort by the prime minister's office to get out of the controversy arising out of the government's decision to allow basic phone operators entry into mobile services through the backdoor.
These licences would have allowed FSPs to begin mobile services on CDMA networks on better terms than offered to current GSM-based cellular operators.
Industry and political circles had been repeatedly pointing fingers at the prime minister's office for pushing through the decision in haste, while others have been pointing a finger directly at the department of telecoms for giving in to powerful vested interests.
Sources say Vajpayee called a series of meetings involving PMO officials, communications minister Ram Vilas Paswan, Shyamal Ghosh, and personnel from the finance and home ministries through Friday and Saturday and then decided to refer the ‘limited’ mobility issue to the group on telecom headed by finance minister Yashwant Sinha.
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Bharti promoters raise holding in pharma arm
New Delhi: The promoters of the Bharti group have raised their equity stake in their pharma company Bharti Healthcare to 90.5 per cent from about 73 per cent through a rights issue the allotment of which has recently been concluded, according to Rakesh Bharti Mittal vice-chairman and managing director of Bharti Healthcare.
Mittal said the funds raised from Rs 10.4 crore issue would be used to repay loans and towards working capital.
While Rs 6.8 crore would be channelised towards loan repayment, Rs 3.45 crore would be directed towards refund of share application money pending allotment and Rs 1.3 crore for working capital requirements.
Bharti Healthcare which manufactures "hard gelatine capsules" and is at present supplying to Indian and foreign pharma players including Pfizer, Glaxo, Smithkline Beecham, Cipla and Ranbaxy, is in the process of expanding its manufacturing line by 2003.
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BSNL will slash mobile tariffs by thirty percent
New Delhi: Bharat Sanchar Nigam is planning to reduce airtime charges for its cellular services in Bihar by up to 30 per cent from its existing tariff of Rs 3.50 for incoming and outgoing call of one minute.
According to BR Khurana, director (commercial and new services), BSNL, tariff charges would be reduced between 25 to 30 per cent in Patna and Hajipur, where the corporation is operating post-paid mobile services. He said BSNL also plans to introduce pre-paid services (cash card) soon in both cities for which the corporation was in the process of finalising its tariff plan.
BSNL also plans to introduce pre-paid services (cash card) soon in both cities for which the corporation was in the process of finalising its tariff plan, Khurana said.
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Raymond may buy out Indus League
Mumbai: There are rumours on the street that the highly visible and much written about, Indus League is up for sale. And the buyer is none other than the fabrics major Raymond. The deal value could be anywhere between Rs 35-60 crore.

Raymond wants to expand operations through the takeover route. It is also flush with funds from the sale of its cement and steel divisions to Lafarge and Thyssen last year.

Indus League, despite having built a strong portfolio of brands, has failed to make a deep impact in the retail garments market.
The companies confirm that they have been talking to each other for sometime now. But reports indicate that there is gap between the price Indus League is asking and the price Raymond is willing to pay.

Indus League is understood to be asking upwards of Rs 60 crore while Raymond is only willing to pay Rs 30-35 crore.
However, when contacted, Raymond group president Nabankar Gupta declined to comment.
Acquiring the Indus League brands would compliment Raymond’s already strong portfolio.
In menswear, Raymond has three brands including Park Avenue (formal range), Parx (semi-formal and casuals) and Manzoni (premium range). It is planning to get into women’s wear.

The Indus League brands include Indigo Nation, Scullers and Ironwood.
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Wellcome plans pay cut for staff
Mumbai: Burroughs Wellcome employees face the unwelcome prospect of a wage cut at the company’s unit in Mulund, a Mumbai suburb.
Though Glaxo and Burroughs Wellcome merged globally six years ago they did not do so in India; the primary reason being wage differential.
A notice of change for the downward revision (to bring wages in parity with Glaxo’s employees) was given in February. It is currently with the labour commissioner’s office as the union is opposed to it, said a Glaxo and Wellcome spokesperson.
The Burroughs management is believed to have decided that the future of the unit depends on whether or not the workmen accept the new terms.
It is also linking further investments in the plant to the employees’ acceptance of the downward wage revision. "If they do accept our terms, we will consider refurbishing the plant and giving them new products," said the spokesman.

Now, the Burroughs unit with 500 workers makes brands like Septran and Neosporin and is seen as financially unviable by the management. Indications are the management may think of closing the plant if things continue in this vein.
Glaxo acquired Burroughs’ parent firm Wellcome globally in January 1995. The merged entity was called GlaxoWellcome.
India is the only country where the Glaxo and Wellcome merger did not happen as workmen at Burroughs’ Mulund unit were unwilling to accept Glaxo’s pay scales.
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Nicholas Piramal hires US team for genomics project
Mumbai: Nicholas Piramal India has initiated genomic research activities. And to set the ball rolling it has recruited three genomic scientists from the United States.
Says Dr Swati Piramal, Nicholas Piramal’s chief scientific officer; "we plan to put together a team of about 40 genomic researchers in a year’s time." The company currently has 20 researchers working on its genomics project.
Nicholas Piramal announced its foray into genomics in November last year with the setting up of Genequest, a subsidiary of the company.

GenoMed, the organisation, which the three US scientists are joining, is a collaboration between Genequest and the Delhi-based Centre for Biochemical Technology, a government laboratory.
The three scientists who have been recruited from the US will be working at the company’s laboratory in Mumbai. The GenoMed laboratory will be housed in the Wellspring complex, the Piramal group’s primary healthcare centre.

Part of the company’s research activities will be conducted at Quest Research Centre, which the Nicholas Piramal acquired for Hoechst.
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Andersen set to value Kwality Biscuits
Bangalore: Kwality Biscuits—the Bangalore-based biscuits maker prior to offloading its 49 per cent stake to biscuits major Britannia Industries has appointed Arthur Andersen for a valuation exercise.
Last month, Britannia had agreed in principle to acquire 49 per cent of Kwality Biscuits’ stake and Kwality Biscuits expects to finalise the price and complete the acquisition process within the next two months, a senior official in Kwality Biscuits said.
Britannia acquired Kwality Biscuits’ trademark Kwality, the ‘chef’ symbol and several other trademarks owned by the company for a consideration of Rs 30 crore sometime back. The acquisition of the full stake of Kwality Biscuits will give Britannia access to the former’s plant in Bangalore.

Britannia’s brands include Tiger, Snax, 50-50, Marie, Nice, Milkbikis, Good Day, Pure Magic and Little Hearts. Kwality Biscuits’ prime brands are `Kwality’ and `Chef Device’.
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Domino’s Pizza reaches out for the sky with Jet
Mumbai: Domino’s Pizza, the well-known American pizza chain, has tied up with the domestic airline — Jet Airways to cater to its passengers.
According to Pavan Bhatia, CEO, Domino’s Pizza India, the tieup with Jet Airways is a win-win situation for both. For Domino’s its a part of its expansion strategy to be up in the air which means further penetration and for Jet Airways — it’s a good branded alternative value coupled with the benefit of much less weight.
The main advantage for serving pizzas on board is that they do not need to be served with cutlery which reduces considerable weight burden on the airline which will then be free to let in more cargo and earn more revenues, said Bhatia.
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IDBI Bank goes looking for talent at StanChart
Mumbai: IDBI Bank has poached two senior officials from the StanChart group. It has inducted Subramaniam Kumar as country head (operations) and Supratik Gupta as head — retail risk management. The two officials joined the bank around the last week of March.
Prior to joining IDBI Bank, Kumar was head of operations and distribution with Stanchart for the Gulf region, based in Dubai. Gupta was working with Stanchart Grindlays as head of credit and collections.So far, four senior executives of the Stanchart group have joined IDBI Bank.
Early this year, Ajay Bhimbhet, who was head — branch banking with StanChart Grindlays joined IDBI Bank as country head — retail banking (sales and distribution).
Janak Desai joined the bank as country treasurer.
IDBI Bank has been on a recruitment drive since Gunit Chadha took over as the managing director & CEO.
It has managed to bring in a large number of foreign bankers to join its ranks. Chadha had a 16-year stint with Citicorp in New York, before heading the bank.
According to sources at IDBI, the bank has recruited around 150 new employees this year and the staff strength is now 720.
At the senior level, others who have joined the bank in the recent months include Vinit Kohli from ANZ Grindlays as chief financial officer, S Ramanathan from DSP Merrill Lynch as product head (capital markets) and Neeraj Bhushan Bhai from ICICI Infotech as chief technology officer.
At present, the bank has 52 branches at 38 locations in the country. It has an ATM network of around 80.
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Centurion Bank may call off rights issue plan
Mumbai: Centurion Bank may withdraw its rights issue of 10.7 crore-equity shares, bowing to investor resistance to the equity float.
Sources at the bank say, the response to the rights issue has not been encouraging, ever since the stock price of the bank fell below the issue price of Rs 12.
The private sector bank’s board will meet in the coming week to take a decision on this issue. The bank is likely to approach the Securities & Exchange Board of India after a decision is taken.
The bank had launched the issue in February. The rights issue, in the ratio of 7:10, translates to seven equity shares of the bank for every 10 shares held.
The bank’s board had approved the rights issue in July ’00, but did not launch it, on account of the poor market conditions.
In March, the bank extended the rights issue till April 12, in the hope that the share price would rise, which in turn would attract investors to subscribe to the equity of the bank.
The bank’s equity ended at Rs 10.80 on Friday at the Bombay Stock Exchange.
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Reliance may market Hugo Boss range
Mumbai: Reliance Industries is planning to enter into a strategic alliance with Italian textile group Marzotto for marketing and distributing the latter’s products in the Indian market.

An official at Reliance indicated that a decision will be taken at the earliest on this issue.

Marzotto owns Hugo Boss brand of readymade apparels besides suitings. The group’s turnover stood at $111.7 million at the end of September 2000.

Marzotto would also support Reliance’s moves to expand the global market especially the European union.
Reliance plans to focus on readymade garments through its brand Reance, which has a marginal presence in the branded readymade mens formal wear.

The company spends around 20-25 crore on advertising every year on its products.

Reliance sells blended and worsted men’s wear under the Vimal brand while home textiles are sold under the Harmony brand.

The company recently introduced polyester cotton blended suitings under the brand name Coolcots.

Reliance has a distribution network of 350 exclusive outlets and plans to increase its nation-wide chain by 150 more outlets by end-2001.
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Mahindras plan to enter standalone power generation business via subsidiary
Mumbai: The Mahindra group plans to enter the standalone power generation business through its wholly owned subsidiary — Mahindra Alternatives Technologies Ltd (MAT).
MAT, which is working in the field of emerging technologies, plans to use fuel cell technology for the proposed venture.

The company is talking to a few players abroad who are already in the business. The company says that it would ideally like to enter the business in the coming fiscal.
According to a senior official in the Mahindra group, the business potential of standalone power generation is immense as nearly one-third of power generation in future will be standalone. Moreover, technologies like fuel cell will also ensure an environment friendly technology, he adds.

Fuel cell technology uses charged hydrogen and charged oxygen to produce electricity. The fuel used for the process is hydrogen and the byproduct is water.

MAT was planning to bring in the requisite technology and adapt it to suit the local needs.

It would help in leveraging the time already spent by the companies in the development process. Currently, the cost involved in fuel cell technology would be considerably higher, is expected it to come down in the future.
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