Mumbai rail: Siemens consortium bags Rs.925 crore order
New Delhi: Siemens AG and Siemens Ltd India Transportation Systems consortium has received a contract worth Rs925 crore from the Mumbai Railway Vikas Corporation (MRVC) for providing the propulsion system and electrical equipment for EMU rolling stock, which would be built at the Integral Coach Factory, Chennai.

The EMUs will be in operation on both of Mumbai's suburban arterial networks, the Central and Western Railway. After a competitive bid, the Siemens consortium was notified of the award of contract to be executed over a period of 48 months, informed a company release.

The scope involves design, development, manufacture, supply, testing and commission of the IGBT-based (Insulated Gate Bipolar Transistor) three-phase propulsion system and equipment, with microprocessor-based controls. These systems will be suitable for operation in dual voltages, i.e., both the 1,500 V direct current (DC) system, which is currently in use, and the 25 kV AC system, which replaces it in the future.

The systems will be adapted to suit the local climatic conditions and will have a high level of local value-added content.

According to Siemens Ltd, the World Bank aided investment by the Mumbai Rail Vikas Corporation is a very important step towards upgrading the services, which will directly benefit millions of passengers. The supply of modern equipment will help ease the congestion, increase capacity and enhance comfort for passengers.

Siemens will be augmenting capacities at its Kalwa and Nashik factories where the state-of-the-art equipment for this order will be manufactured. This enhancement will also create additional employment opportunities, having a long-term impact.

The Transportation Systems Division of Siemens Ltd is a complete provider of products, systems and services for the Railways, added the release. The Division's portfolio includes solutions for rail automation, railway electrification, light and heavy rail, locomotives, trains, turnkey projects and integrated services. Siemens Ltd is the flagship of the Siemens Group in India.
Back to News Review index page  

LML set for financial restructuring
New Delhi: LML is adopting a new financial restructuring plan, which will boost its manufacturing capacity. Company sources say LML is raising more money by issuing shares and foreign currency convertible bonds (FCCBs).

LML's borrowing limit will be raised to Rs750 crore from Rs500 crore. Its authorised capital will be hiked four times to Rs250 crore from the current Rs60 crore.

Preference shares issued to two Mauritius-based companies Morrington investments and Waterloo investments and to LML's existing lenders - IFCI, IDBI, SBI, IIBI, ICICI Bank, Exim Bank and Corporation Bank - will yield Rs150 crore of the authorised capital.

LML sources say the company will use a part of the money to increase its motorcycle manufacturing capacity to about 7.5 lakh units per year from the current capacity of 1.8 lakh units.

The company is hoping to achieve its ultimate goal of raising its annual output to 10 lakh bikes by 2007-08. Due to its limited capacity, LML could not cash in on the two-wheeler boom in the past four years.
Back to News Review index page  

L&T plans offshore facility in Gulf
New Delhi: L&T is considering a foray into heavy engineering manufacture in Oman with an initial investment of $10 million.

The company plans to sell its entire 26 per cent stake in its joint venture with Sharp. The L&T led consortium bagged orders worth Rs1,864 crore from ONGC.

L&T plans offshore structure in the Gulf and plans to foray into the oil and gas sector as well in Gulf.

According to L&T officials the order book position of the company is expected to grow at 15-17 per cent over the next one year.
Back to News Review index page  

ONGC launches dedicated link for investor service
New Delhi: The Oil and Natural Gas Corporation Ltd (ONGC) has launched a dedicated link for investor service as part of its corporate Web site at www.ongcindia.com/investorcenter.asp for the benefit of the large community of investors and analysts.

Subir Raha, Chairman and Managing Director, click-rolled the investor service site, as a dynamic link to the corporate Web site — www.ongcindia.com.

The e-investor service will have latest updates on financial results, investor related events and presentations, annual reports, dividend information and shareholding pattern apart from press releases, company overview and report on corporate governance.

After the Government disinvested its 10 per cent stake in ONGC in March 2004, the FIIs/NRIs' shareholding in ONGC stock has increased from 6.19 per cent on March 31, 2004 to 8.13 per cent on March 31, 2005, signalling the international community's faith in the robust growth of the company, a ONGC release said.
Back to News Review index page  

S&P: No changes in Crisil management or name
Mumbai: Standard & Poor's (S&P), which now owns 58.5 per cent stake in Crisil Ltd, will leave the name of the latter unchanged even as integration exercises would make Crisil part of S&P's Asia-Pacific network.

According to Ms Kathleen Corbet, President, S&P, Crisil enjoys strong brand recognition in the country. Crisil, would also handle some of S&P's global analytical outsourcing in addition to the collaboration that would happen on other fronts, she added. S&P has been commissioning Crisil in an increasing number of global analytical projects over the last few years.

S&P spent Rs240 crore last month to acquire 49.07 per cent of Crisil through its open offer, in which valid acceptances were made for 31,20,948 shares at Rs775 each. This was in addition to its existing stake in the company of over nine per cent.

S&P, whose open offer was for a larger stake, said that it would not increase its shareholding currently. The original objective of obtaining majority ownership has been met, Ms Corbet said. S&P and Crisil would now be able to leverage each other's brands both in the domestic and global arena, she added.

S&P's representation on the Crisil board would increase in accordance with its shareholding, but for now there will be no specific changes in the management, according to her.

Crisil's revenues have been growing at a compound aggregate growth rate of 25 per cent for the last five years, which will be maintained this year, said R. Ravimohan, Managing Director, Crisil.

While S&P rates around a dozen Indian global issuers, Crisil has over 1,000 domestic ratings.
Back to News Review index page  

Jindal Vijayanagar to merge three companies
Mumbai: Jindal Vijayanagar Steel Ltd (JVSL) has informed the BSE that its board of directors has approved the acquisition of Euro Ikon Iron & Steel Pvt Ltd, Euro Coke & Energy Pvt Ltd and JSW Power Ltd (JPL) by way of merger with the company.
The appointed date for the merger is April 1.

Shareholders of Euro Ikon will be allotted one equity share of JVSL for every 16 shares of Euro Ikon. Shareholders of Euro Coke will be allotted one JVSL share for 19 shares of Euro Coke and JPL shareholders will get one JVSL share for every 25 shares of JPL.

The scheme is subject to consent and approval of shareholders, lenders, creditors of JVSL, Euro Ikon, Euro Coke and JPL, the Bombay High Court, and other regulatory authorities.

JVSL had entered into strategic tie-ups with these three companies for various projects. Euro Ikon is setting up the nine-lakh tonne blast furnace at a cost of Rs295 crore. Euro Coke is setting up the 6.2-lakh tonne coke oven batteries plant at a cost of Rs195 crore and JSW Power a 290-MW power plant at an estimated cost of Rs530 crore.

JVSL is in the process of expanding its capacity from 2.5 million tonnes to 3.8 million tonnes per annum by March 2006.

While Euro Ikon, Euro Coke, 100 MW power plant of JPL commenced operations, the balance facilities of JPL are expected to start generating power in FY 2005-06.

JVSL had appointed RSM & Co and ICICI Securities Ltd as consultants; Deloitte Haskins & Sells and ICICI Securities Ltd as valuers for this merger scheme.

Post-merger, the equity capital of JVSL will increase by Rs17.99 crore consisting 1.80 crore shares of Rs10 each.
Back to News Review index page  

Essar Oil in oil exploration pact with Myanmar
Mumbai: Essar Oil Ltd (EOL) has signed two Production Sharing Contracts (PSCs) with the Government of Myanmar for oil exploration in an onshore and offshore block.

Essar Oil's bid for the two contiguous exploration blocks in offshore (Block A2) area and adjoining on land area (Block L) was made after detailed examination of geo-scientific data at MOGE office in January 2005 by the Essar Oil team.

According to company press release, the blocks are ideally located between proven gas blocks and aligned along the regional corridor of gas discoveries, south of Bangladesh. The Rakhine coast lies along the eastern side of these blocks, providing favourable logistic support.

Essar Oil plans to conduct a feasibility study, which will cover collection of geological, seismic and well drilling data, reprocessing and reinterpretation. The feasibility report is expected to be ready in 12 months.

Essar Oil is a fully integrated oil company with operations covering the entire value chain of oil exploration to retailing of petroleum products. It is in the process of setting up a 10.5-million-tonne per annum refinery at Vadinar, Gujarat.

It plans to set up 2,500 retail outlets by mid 2006, which will further be increased to 5,000 2008. At present, the company runs over 500 retail outlets across the country.
Back to News Review index page  

Jessop hopes to come out of BIFR purview this year
Kolkata: Jessop & Co hopes to wipe out its accumulated loss of Rs118 crore and come out of BIFR purview during the current fiscal.

The company has also expressed its intention to go back to the dividend list latest by 2007. Listed on the Calcutta Stock Exchange, the company has a negligible one per cent public shareholding, with the Ruia group holding 72 per cent of the equity capital, while the remaining 27 per cent is held by the Union Government.

Company officials said that Jessop was currently awaiting the Centre's nod for its proposal to reduce the face value of the shares from Rs10 to Re1, so as to bring down the paid-up equity capital from Rs95 crore to Rs9.5 crore and adjust the residual sum against the net loss.

The capital restructuring, along with adjustment of Rs10 crore of `advances' against sell-of of land by Jessop to Metro Rail and internal accruals, would make the company's net worth positive, which is a qualifying criterion for the company to come out of the BIFR's purview.

Jessop has also expressed its intention to buy back the Centre's 27 per cent stake in the company. A proposal to this effect is lying with the Government.
Back to News Review index page  

GM India unveils plans for ten per cent market share
New Delhi: In a bid to boost its market share to 10 per cent by 2007, General Motors India has said that it would be launching a minimum of two new cars every year, beginning with the next year.
"We are targeting to sell about 160,000 cars a year by 2007-08.

And to achieve that level we will have to introduce a small car in our product portfolio. We have kept all options open for introduction of a small car, including a greenfield, a brownfield or expanding the current capacity at our Halol plant," said Rajeev Chaba, new President and Managing Director of General Motors India.

General Motors had shown interest in purchasing the assembly plant of the erstwhile Daewoo Motor India to make a small car for the Indian market, however, with the proposed sell-off of the assets stuck in legal wrangles, General Motors has indicated that its interest in the assets is waning and is mulling other options to make small cars.

Though not revealing details about the other car models General Motors intends to introduce, Chaba said it could include a model in the large hatchback segment (such as the Aveo) and a sports utility vehicle with high localisation content.

"We may even look at importing our premium models such as Cadillac and the Hummer in the future. Further, we are looking at giving the Opel Corsa models, including the Corsa Sail, a facelift," he said.

Further, the Indian subsidiary's strategic role and importance is increasing in the global operations of the parent company.

According to Chaba, GMI already has orders worth about $120 million for export of components this year, and the company sees this figure growing to $1 billion in the next 4-5 years.

The company plans to increase workforce at its R&D centre in Bangalore and encourage more Indians to occupy positions in General Motors' global operations.
Back to News Review index page  

Reliance Info unveils Rs99 post-paid plan
Mumbai: Reliance Infocomm has introduced a post-paid plan with a minimum commitment of Rs149 a month, of which the rental component is Rs99.

The company described this introduction as an "aggressive foray into the rapid sub-Rs100 market that accounts for almost 50 per cent of the industry's average monthly post-paid net additions of 4,00,000."

The Joy99 plan also involves caller line identification presentation charges and plan charges of Rs25 each, as applicable to all Reliance IndiaMobile subscribers, said a news release from the company.

The plan comes with an intra-circle tariff of Rs1.50 for calls to all Reliance phones, and Rs2.20 for calls to other networks.
Back to News Review index page  

Satyam joins XBRL consortium
Hyderabad: Satyam Computer Services Ltd has has become India's first Direct Participant member at the XBRL International, a non-profit consortium whose members include approximately 300 leading global organisations.

As a Direct Participant Member of the consortium, the company will work together with other consortium members to promote the adoption of XBRL (eXtensible Business Reporting Language).

XBRL is a standard designed to eliminate the constraints of incompatible formats and vocabularies and to use recent trends in technology to enhance business reporting.

It is based on extensible mark-up language and takes advantage of its ability to create self-describing data. Satyam will provide leadership in the area of financial reporting, which is a part of all major compliance and regulatory requirements.
Back to News Review index page