Banned players may go westward
New Delhi: The Sebi order banning BPL, Videocon and Sterlite from accessing the domestic capital markets for the next two to four years does not prevent them from applying for overseas issues.
Thus these companies have lined up huge plans for floating ADR issues abroad.

BPL has big plans for a $200-million ADR issue of BPL Communications and Sterlite Optical for a $100-million issue.
With the Cabinet Committee on Economic Affairs giving its approval for a $200-million ADR issue, this has reached an advanced stage.

As per the approval, the ADRs will be placed with the FIIs subject to the condition that the company shall make the investment in a licensee company for telecom services in accordance with terms and conditions applicable to that particular service.
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Daimler stake in Bajaj Tempo to be acquired by the Firodias
Mumbai: The Pune-based Firodias have decided to acquire the 16.8 percent stake of the foreign joint venture partner, DaimlerChrysler AG, Germany, in Bajaj Tempo for a total consideration of about Rs 24.8 crore.

Bajaj Tempo-manufacturer of multi-utility vehicles-has an annual turnover of over Rs 650 crore. On the completion of the acquisition, the stake of the Firodias and their associates is expected to go up from around 40 per cent to about 56 per cent in BTL’s Rs 13.2-crore equity capital.

Among the reasons cited for ending the tie-up are: reduced commonalties in products and lack of market synergies between the two companies. While DaimlerChrysler is looking at concentrating on its own premium products in the Indian market, Bajaj Tempo’s focus is on producing functional utilitarian products for the Indian rural population.

The Rahul Bajaj-controlled Bajaj Auto has a 22 per cent stake in Bajaj Tempo while the public holds the balance. On the other hand, the Firodias hold about eight per cent stake in Bajaj Auto.
In the first nine months of 2000-01, Bajaj Tempo suffered a huge net loss of Rs 15.4 crore, substantially higher than a loss of Rs 9 lakh in the corresponding period of previous year.
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Wipro could benefit from US slowdown says Premji
Bangalore: The economic slowdown in the US may actually benefit his company feels Wipro chief Azim Premji.

Companies, many of which come in the Fortune 1000 category, which are Wipro's target customers are under profit pressure at the moment, which provides the company an excellent platform to demonstrate its value add to them in enhancing their profitability according to Aziz Premji, chairman, Wipro.

Thus the company plans to increase its sales team from the current size of 70 to over 100 within the next six months, Premji told a press conference following announcement of the companies result on Friday.

Paul said pressure on billing rates had not yet been felt by the company, adding the company would see a 8.5 per cent rise in revenue productivity on a blended basis for the current fiscal.
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Cisco Systems, IIT Delhi to set up research lab
New Delhi: Cisco Systems, the US-based networking major and IIT Delhi on Friday announced the launch of an advanced networking and research lab in the capital.

Cisco would invest $200,000 in the lab which would be a resource centre for faculty and students to conduct research, for students to obtain hands-on training and for evaluating and demonstrating the company's solutions, Prem Jain, vice-president (new business venture), Cisco Systems said in a statement here.
Cisco’s investment of $200,000 would go towards covering the cost of equipment -- routers, high-end gigabite switches, firewalls and voice on Internet protocol solutions -- maintenance and fellowships for students every year.

Cisco would provide training and on-going support for its latest venture. In addition it would provide internships for qualified students at its global development centre in Bangalore.
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Gujarat Tractors-a poor turnaround effort
Ahmedabad: As the public sector Gujarat Tractors’ losses continue to soar, Mahindra &Mahindra, which took over the ailing company last year, blames various government agencies for stalling the turnaround effort.

Mahindra & Mahindra bought a 60 percent stake in Mahindra Gujarat Tractors for Rs 20 crore, has now accumulated losses of Rs 19 crore, of which Rs 10 crore is from the accounts of the 18 months ending March 31.

The Mahindras had set forth a revitalisation plan for the ailing company that envisaged the sale of 12 acres of surplus land available at the company’s manufacturing premises in Baroda, in order to raise around Rs 10 crore.

The company then proposed to take on additional debt of around Rs 5 crore, and invest Rs 15 crore in upgradation and expansion of the operations. The current capacity of the plant at 2,000 tractors, was to be increased to 10,000 tractors.

The company blames the state government, which holds a 40 per cent stake in the company, for going slow on giving approval for the sale of land. As a result, the company continues to face problems of low quality, high overheads and poor productivity.
In addition to this, the staff reduction plan initially a part of the Mahindras’ agreement with Gujarat remains only partially implemented. MGTL’s employee strength was to be cut by 40 per cent, from 650 to 390 and the voluntary retirement scheme was to be funded wholly from the government’s coffers.
About 210 workers have accepted the VRS scheme, and involving an outgo of Rs five crore, but according to the MGTL management, the government has yet to release the Rs 1.7 crore required to complete the process.

During the June-August period, tractor sales tend to drop by 50 per cent, rendering both workers and machinery idle.
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Ranbaxy looks for R&D ally in US
New Delhi: Ranbaxy Laboratories has started talks with leading US-based pharma companies for exploring the possibilities for setting up a R&D alliance venture in the US.

Brian Tempest, president (pharmaceuticals-worldwide) Ranbaxy, the company may also acquire an existing research facility in the US as an alternative option to its proposed R&D centre in the country.

An R&D centre in the US will have multiple advantages for Ranbaxy as this will enable the company to win faster regulatory approvals both for product patents and FDA approvals for marketing rights in the US and other international markets.
Recently, Ranbaxy has drawn up plans for getting into the OTC (over the counter) products segment in a big way. It has created a new division-- global OTC.

The company is planning to expand its OTC range by converting some of its prescription drugs into OTC products, besides adding more to its current range of neutraceuticals and vitamins.
The added thrust on the R&D and OTC business is part of the company’s growth strategy to become a $1-billion company by 2004. Ranbaxy had crossed $500 million in sales last year and is expected to achieve a 20 per cent growth in the current year.
Meanwhile, Ranbaxy on Friday got the US FDA approval for a six-month exclusive marketing rights for the generic version of Advil cold & synus tablet (200 and 300 mg). The patent rights of Advil (ibubrufen) was held by White&Hall.

According to company sources, Advil currently notches up about $35 million in sales and Ranbaxy expects to get about 20 per cent market share in this product. 
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Thermax winds up its electronics subsidiary
Pune: Thermax announced the closure of operations of its 100 per cent subsidiary, Thermax Electronics on Friday. This subsidiary was involved in the manufacture of passive electronic components like resistors in Bhosari industrial area of Pune.
This comes after the management made prolonged efforts to sell the subsidiary or find a partner and failed, a company release said here.

Thermax as part of a restructuring exercise announced recently is exiting businesses where it does not see potential for significant profits or growth, it said.
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FII hikes stake in United Breweries
New Delhi: Arisaig Partners Asia, a Singapore-based investment company has increased its holding in United Breweries (UB) to 5.69 per cent from its holding of less than 5 per cent previously.

Arisaig Partners increased its holding in UB through two of its investment companies -- Arisaig India Fund and Arisaig Asian Small Companies Fund (Mauritius).

A few weeks ago UB had announced that it was inviting a "strategic partner" as a minority investor in its brewing business.
It had also decided to embark on a corporate restructuring drive, for which it appointed IL&FS and Deloitt Haskins and sells as advisors.

"The restructuring, which is expected to be completed in the current fiscal year, will see the creation of a 'beer-only' company with all other assets being separately held," a company statement said.
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Aurobindo Pharmaceutical lowers anti-AIDS drugs prices
New Delhi: The Indian anti-AIDS drug segment has become sensitive territory. Hyderbad-based Aurobindo Pharmaceuticals on Friday said it would offer anti-AIDS drugs 15-20 per cent below market price.

P V Ramaprasad Reddy, managing director of Aurobindo Pharmaceuticals, said, the company would offer anti-AIDS drugs 15-20 per cent below the market price, adding that these would be marketed through a separate entity, immunus.
The Rs 550 crore bulk drug major on Friday kick-started the operations of its anti-viral division.

Cipla, which recently offered a few of its anti-AIDS drugs to government and non-governmental organisations free of cost has also brought down the price level.

The anti-AIDS drugs segment in the country dominated by Cipla, also includes Glaxo, Zydus Cadila and Ambalal Sarabhai.
Aurobindo Pharma said it would commercially launch its products under brand names 'Zidovex, 'Lamivoc', 'Nevirex' and 'Acivex' by the first week of May.
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IFC acquires 10 percent stake in Vysya Bank
New Delhi: The International Finance Corporation, the private sector lending arm of the World Bank, has acquired 10 per cent stake in Bangalore-based Vysya Bank for $7.3 million
The IFC aims to make Vysya Bank technologically superior so that it can offer technology-based products to retail and corporate clients and expand its client base through the use of Internet banking.

Vysya Bank shares -- listed in the Bombay Stock Exchange -- were quoted at Rs 108 on Friday.

Other shareholders were Belgium-based bank Brussels Lambert and Bangalore-based Vysya Group.
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Tata Metaliks may expand capacity at Kharagpur
Kolkata: Tata Metaliks Ltd is thinking of expanding its pig iron capacity at its plant in Kharagpur, West Bengal said Dr Tridibesh Mukherjee, chairman, Tata Metaliks on Friday.

He said various options for capacity expansion were being examined which included introducing an oxygen enrichment plant, or installing a second-hand blast furnace.

No decision has been taken so far.

He said that the expansion route would be determined on how much capacity is to be added, which would depend on market demand, Dr Mukherjee said.

He added the decision would be taken during the course of the year.

Sources said the company might opt for installing a second-hand blast furnace as Tata Steel had done earlier. Tata Steel bought a second-hand, but brand new blast furnace from Portugal.

During 2000-01 fiscal, the company’s production slipped to 111,267 tonne from the previous year’s of 116,247 tonne. Sales also dipped from 116,922 tonne to 115,078 tonne.

The fall was due to the blast furnace shutting down for religning for a period of 33 days.
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ICICI Knowledge Park in tie-up with top academic institutes for research
Hyderabad: The ICICI Knowledge Park, to be a one-stop-shop for research in future technologies, including biotechnology, information technology, has signed an agreement with the Institute of Chemical Technology, Center for Cellular and Molecular Biology and Central University of Hyderabad to share and exchange of online library facility and research information.

Before signing the MoU with the institutes, N Vaghul, chairman of the Knowledge Park speaking to the press said, "the number of ‘Knowledge Network Partners’ will be gradually increased to create a single platform of knowledge network through out the country".

Backed by financial assistance of about Rs 15 crore the proposed Virtual Information Project (VIP) has been approved by the department of scientific and industrial research. The project is of three years duration and upon completion of the facility, it will become a national facility for the use of industry, research and academia, Mr Vaghul said.

The Knowledge Park was set up by ICICI, in association with the AP Government to promote research in biotechnology during 1999. It has obtained the approvals from DSIR, as a scientific organisation eligible for benefits like customs and excise duty exemptions, etc. 
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Max India out of pharma
Mumbai: Max India is getting out of the pharmaceutical business and in line with this is selling its remaining five per cent stake in its joint venture, Max GB, to the foreign partner Gist Brocades (GB) of the Netherlands.

Analjit Singh, chairman, Max India, said, "We have decided to restructure our traditional businesses, and enter the service sector which has a more challenging opportunity for growth."

He said that in future almost all the company’s revenues, more than 95 per cent in fact would be from healthcare, insurance and information technology. The company’s other businesses would be sold off.

Max India has already sold its 21 per cent stake in Max GB, a 26:74 joint venture between Max and GB, for the manufacturing of penicillin G.

The pharma unit of the Max group has a presence in areas such as high volume bulk drugs, intermediates and fine chemicals, which account for close to 20 per cent of its turnover.

Max India had earlier chalked out a Rs 125 crore investment plan to enter the $350 billion American healthcare, IT sector and the $145 billion B2B e-commerce market. The investment was to be made over a period of next two years.
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Tata Power mulls hiving off telecom business
Mumbai: Tata Power, increasingly becoming a key company in the Tata group, may hive off its telecommunications business into a separate company.

The company is getting into the telecom broadband infrastructure business nationally and, hence, is planning huge investments.

Said Adi Engineer managing director, Tata Power; "We are considering this possibility because of the large investments we have planned in the communications business. No definite decision has been taken on this and it may not happen immediately.

Tata Power, which distributes power in Mumbai, is currently setting up the broadband network in the financial capital. It will soon begin to implement its national plan, following the group's decision to link up 15 basic circles.

The hiving off of the telecom business could also be critical as the company was planning to bid in the disinvestment process of state electricity boards, which would require large funds.
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Thermax; restructures
Pune: Thermax, the Pune -based engineering company, is hiving off three of its subsidiaries and winding up Thermax Capital.

Thermax will focus on the core business of energy and environment and has set a six-month deadline for the moves.

The subsidiaries to be sold outright are Thermax Surface Coating and Thermax Electronics.

The company has also signed a memorandum of understanding with Coca Cola India to sell its Taloja plant (near Mumbai) where Thermax Culligan, the joint venture with the US-based Culligan International, produces water purification systems and large purified water bottles.

The joint venture has been suffering heavy losses since its inception and wiped off its equity last year with a loss of Rs 5 crore.

Company sources say that the company has decide top sell the Taloja facility since Culligan International is not interested in continuing with the loss-making joint venture.

Thermax Surface Coating, a 100 per cent subsidiary of Thermax, has been suffering losses ever since the white goods industry in the country has been on the downslide.

Thermax Electronics, a profit-making 100 per cent subsidiary of Thermax, is into manufacture of resistors.

The resistors manufacturing facility is also being sold outright as Thermax does not intend to continue in this non-core area of business.

The process of winding up Thermax Capital has already started. The lease finance subsidiary has an equity capital of Rs 15 crore and Rs 5 crore is currently outstanding.
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Tata Engg; shot in the arm
Mumbai: Tata Engineering has received a major shot in the arm as it has bagged a large order for 4,590 bus chassis from private operators and the Delhi Transport Corporation in Delhi.

The Rs 482 crore order comes as a godsend for the automobile company, badly affected by falling sales during the previous year.

Of the order for 4,590 bus chassis, a bulk order for 3,700 compressed natural gas (CNG) run vehicles is understood to have come from private operators, while the Delhi Transport Corporation has placed an order for 890-CNG run vehicles. It is understood that the company has to service all the orders by September this year.

The flood in orders from Delhi is a direct fallout of the Supreme Court's directive to bus operators in the city to switch to CNG run vehicles, in replacement for the diesel run vehicles which have been largely responsible for polluting the national capital.

Tata Engg posted losses of Rs 353 crore during the first nine months of the previous fiscal.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), the company's sales of medium and heavy commercial vehicles, had fallen by over 32 per cent during the first ten months of the previous year, to 41,646 units from 57,706 units in the corresponding period of the previous fiscal.
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M&M launches new and improved Voyager
Mumbai: Mahindra & Mahindra has launched a new incarnation of Mahindra Voyager and slashed its price by almost 25 per cent.

The company has priced the new version of the van at Rs 4.75 lakh (ex-Mumbai) for the air-conditioned version, and about Rs 4.4 lakh for the standard non-a-c version. The new variant is understood to be having almost 90 per cent indigenised content.

Alan Durante, executive director and president of the company's automotive division, said:

The original version was not too successful. Customers perceived it to be too expensive at Rs 5.8 lakh (ex-Mumbai) for the standard version.

This was specially so as competitors such the Tempo Traveller from the Bajaj Tempo stable and the Omni van from Maruti were priced respectively at Rs 5 lakh and Rs 2 lakh.

The new version of the Voyager will have the same 2.5 litre engine from Peugeot with an output of 72 bhp, and will come in new metallic colours and re-done interiors.
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VSNL divestment; trying times ahead
Mumbai: The issue of ‘inadequate compensation package' for Videsh Sanchar Nigam (VSNL) for ending its monopoly in the international voice telephony next year is expected to feature at an extraordinary general meeting fixed by the government on May 2 to seek the approval from the shareholders to finalise the compensation package.

Here domestic and foreign institutional stakeholders in VSNL are expected to grill the government over what has now become a contentious issue.

Investors feel that the designed compensation package is inadequate to meet the expected decline in profitability that VSNL will suffer in the future.

The VSNL management had earlier asked the centre for a compensation of Rs 4,000 crore to give up its monopoly.

"The shareholders are planning to ask the centre to review the package in view of immense competition being faced by VSNL," top foreign institutional (FI) sources said.

Even foreign banks, which hold stakes in VSNL's American depository receipt (ADR), have expressed their displeasure.

FIs and general public have over 15 per cent stake in VSNL, while ADR holders have over 30 per cent stake.
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Government to retain 26 percent in MTNL divestment
New Delhi: The department of disinvestment is planning to finalise the sale of the government’s stake in Mahanagar Telephone Nigam Ltd (MTNL) within this fiscal year. Unlike Videsh Sanchar Nigam Ltd, where the 49 per cent FDI cap deterred foreign telecom players from bidding, MTNL’s sale will not be problematic since the GDR portion of MTNL is 11 per cent compared to VSNL’s 30.4 per cent which will allow a foreign player to pick up almost 38 per cent in MTNL.

In case of VSNL, GDRs account for 30.4 per cent of the total equity, meaning that a foreign player could hold only 18.6 per cent considering the 49 per cent FDI cap.

The government will first induct a strategic partner in the company and then bring down it’s own stake in the company to 26 per cent.

The entire process will be completed before the end of the year said sources. Currently, the government owns 56.25 per cent stake in the company with 18 per cent being held by the public.

The government had earlier taken a decision to disinvest its stake in the domestic telephony company only after completing the sale process in VSNL expected by July end.
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