No open offer for Williamson Magor
Kolkata: The B M Khaitan group will buy out Magors' 27 per cent stake in Williamson Magor & Co at market price, and not through an open market offer, according to the company. The reason being, the Magors had been listed as co-promoters of the company until March 31, 2001, and there would not be any hike in the total number of shares owned by promoters following the buy-out. Williamson Magor & Co had the Khaitans holding 48 per cent, Magors 27 per cent, financial institutions 9 per cent, and the balance, with the public.

The Khaitans would have to inform Sebi of the change in the holding, but will have to obtain RBI approval to buy out the foreign holding.
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Maruti to launch new multi utility vehicle
New Delhi: The next vehicle from Maruti Udyog Ltd is said to be a luxury multi utility vehicle, a variant of the Suzuki Every, code named Model D. The vehicles is expected to hit the roads around Diwali, and is likely to be priced around Rs 4.5 lakhs.

The decision of the company to go in for an MUV is to have a share in this fastest growing segment of the passenger market, which accounts for 15 per cent of the passenger market. The new offering will be pitted against the likes of Toyota Qualis, Tata Sumo and Safari, and the Mahindra Bolero. The new MUV will have the 1300 cc multi-point fuel injection system used in the Esteem, sliding doors and a front like the Wagon R. It would probably be the only petrol driven MUV in the market.
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Kaun Banega..to enter Guinness Book
Mumbai: Kaun Banega Crorepati (KBC), the popular Amitabh Bachchan-hosted gameshow on Star Plus, may soon enter the Guinness Book of World Records for being the most widely-watched TV show in the world.

By achieving this feat, the programme would have to beat Baywatch, aired in 142 countries, and the current titleholder with a reported viewership of 1.1 billion.

KBC has also been credited with turning the fortunes of Star India, which was trailing behind Zee and Sony prior to the launch of KBC.
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AV Birla Group to up stake in group companies
Mumbai: The Aditya Vikram Birla Group is planning to raise its stake in four of its companies, Hindalco, Indian Rayon, Grasim Industries and Indo Gulf Corporation, to 40 per cent levels. The group proposes to do this through creeping acquisitions, over the next three years.

It has already increased its equity levels in Indian Rayon and Grasim Industries by 3 per cent and 1.3 per cent, respectively, in the last fiscal year. Group chairman Kumar Mangalam Birla says the companies are undervalued, and hence necessitated increasing promoter holdings to reach comfortable levels.
It is estimated that the promoters would need to spend over Rs 1,700 crore to increase their stake, at current market prices.
The AV Birla has an equity stake of 30 per cent in Indo Gulf Corporation, and 21 per cent in Grasim Industries, 27 per cent in Indian Rayon, and 23 per cent in flagship Hindalco.
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Decks cleared for Bharti's basic telecom services
New Delhi: The decks have been cleared for Bharti to acquire licenses to offer basic telecom services, with the Department of Telecommunications issuing it letters of intent for basic services in eight circles, and the Attorney General opining in Bharti's favour regarding the Punjab circle outstanding dues.

The new conditions under with the letters of intent were issued said that all outstandings of DoT against the prospective operator had to be cleared before the licenses were issued. DoT said Bharti owed it Rs 455 crores, as outstanding with regard to the Punjab circle. But Bharti had claimed that since Punjab circle was not part of JT Mobile when it acquired JTM, it was not liable to pay the outstanding dues of a licence that did not exist.

It is learnt that the Attorney General, in his opinion submitted to the DoT, has said the DoT was not justified in charging dues on Bharti on this account.

Bharti, which now offers basic services in Madhya Pradesh, has 175,000 subscribers, and a cellular subscriber base of over 600,000.

The other basic operators who have been issued LoIs for basic telecom services are Reliance, for 18 circles, Himachal Futuristic Communications Ltd for seven states, and the Tatas for 15 states.
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MTNL plans major foray overseas
New Delhi: Mahanagar Telephone Nigam plans to invest close to 300 million dollars this year for expansion in the overseas markets.

It has three such projects on hand. The first is in Nepal, where, together with Telecom Consultants of India and Videsh Sanchar Nigam, MTNL would be providing telecom facilities in Nepal using Wireless in Local Loop (WiLL).

IN Baangladesh, MTNL has tied up with WorldTel to offer basic telecom services. While WorldTel has acquired the licence for offering the services, MTNL will install, maintain and manage the entire system, comprising of three lakh basic lines.
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Times Music in licensing deal with Tommy Boy Music
Mumbai: Times Music of The Times of India Group, has entered into a licensing deal with Tommy Boy Music of New York.

Tommy Boy Music, started in 1981, was one of the first labels to recognise rap and dance music and provide it a platform. Today it is one of the world's biggest independent music labels and has in its catalogue, artists and bands such as Everlast, Coolio, Digital Underground, House of Pain, Queen Latifah, Naughty By Nature, Club Nouveau and De La Soul.

Times Music, launched in February 1998, is recognised for its promotion of good quality music, and known for the launch of albums such as Gayatri, The Golden Raaga Collection, Alaap, Jasbir Jassi, Jalwa and Mandukya Upanishad , among others.
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Dabur freezes Dabon funding
New Delhi: Dabur is reported to have put a freeze on further funding of Dabon International, a 50:50 joint venture with Bongrain of France, and will be content to be a sleeping partner. Any further funding will have to come from Bongrain, it has decided.

This is seen as a move by Dabur to stick to its core business of natural, herbal health care and personal care products , and get out of non-core one such as cheese and flavoured milk, of Dabon International. It is believed that Dabur will want to get out of the venture when it can realise adequate returns on its investment.

Dabon had recently been directed by the Foreign Investment Promotion Board to stop import of Australian cheese Chinese flavoured milk, since the original approval issued five years ago was for speciality cheese and other milk products not reserved for the small scale sector in India. Dabon had been carrying out trading activity beyond the two year test marketing allowed, and had not set up manufacturing facilities yet, for the purpose. Dabur was not interested extending the funds, since it deemed it to be a non-core activity.

Earlier too, Dabur had pulled out of non-core businesses. It divested its 49 per cent stake in General de Confiteria India, the joint venture for confectionery with Agrolimen of Spain, and from Excelsia Foods which was 60:40 joint venture between Nestle and Dabur.
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ICICI to fund acquisition of intangibles
Bangalore: ICICI is said to be open to financing deals for acquiring intangibles like trademarks and brands, thanks largely due to the rising trend of knowledge companies in the country.

Such funding could even be to the tune of 20 to 25 per cent of its financing, over the next five years. Indian IT, pharma, and other knowledge companies would require such funds that would look to acquire these assets.

Although ICICI has earlier funded deals which also included some element of intangibles, this time it would for independent intangible asset acquisitions.
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SBI blueprint for bigger slice of retail market
Mumbai: Sensing the downturn of opportunity in the industrial sector, and the promise in the retail sector, the State Bank of India has chalked up a five year plan to strengthen its presence in the retail segment. These would be in the areas of housing finance, consumer finance, and the middle segment of the industry. This also marks a shift of the bank from the top rungs of the corporate sector to the middle segment.

The bank has earmarked almost 40 per cent of its credit target of Rs 16,000 crores during 2001-02 for retail financing, of which Rs 3,000 crore has been earmarked for housing loans, and over Rs 2,000 for pure consumer financing.

Apart form the growth potential in the retail segment, the higher returns and lower NPAs in consumer finance are other factors that the bank would like to cash on, leveraging its enviable branch network.

It proposes to extend a number of financial instruments, until now availed of by the big corporates, to mid size corporates as well, according to SBI chairman Janki Ballabh.

Over the past three years, the bank has had a total exposure of around Rs 2,600 crore for consumer financing, out of which the majority was in the housing sector.
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PowerGen to stay in Bina, Rosa joint ventures
Mumbai: The UK-based power utility major, PowerGen, has re-affirmed that it will continue to be a part of the Bina and Rosa joint venture with the Aditya Birla group.

Earlier, there had been some confusion, when PowerGen had announced asset sales in India, Australia, New Zealand and Indonesia to mop up funds to buy out LG&E Energy Corp.

PowerGen operates in India through four JV companies: Gujarat PowerGen Energy Corp (GPEC) with Gujarat State Electricity Board, Bina Power and Rosa Power with the Aditya Birla Group and Spic PowerGen with Southern Petrochemicals Industries Corp. Most of them, however, are under litigation, or have not achieved financial closure.

The Bina project is close to financial closure, while the 567 mw Rosa power project, costing Rs 2,630 crores with a debt of Rs 1,841 crore and equity of 789 crore, is yet to tie up a Rs 180 crore rupee term loan. . PowerGen and Aditya Birla group will hold 49:51 share of the equity.
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