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Dabhol lenders and stakeholders to move Debt Recovery Tribunal soon
Mumbai: IDBI-led lenders of the now-defunct Dabhol project and equity holders of Ratnagiri Gas & Power Pvt Ltd, formerly known as Dabhol Power Company, would move the Debt Recovery Tribunal (DRT) in a week's time with a plea to take over the Dabhol project assets.

The move comes after the requisite settlement agreements have been put in place.

Indian lenders have de-dollarised off-shore debt at $230 million as they have settled dues of GE and Bechtel at $305 million and that of the US Government-promoted Overseas Private Investment Corporation (OPIC) at $111 million. That apart, the IDBI-led lenders, with an exposure of over Rs6,200 crore in the project, are expected to recover their entire principal amount though they would sacrifice Rs2,500 crore towards the interest payment.

Since April 2, 2002, the movable and immovable properties of the Dabhol project are in the possession of the Bombay High Court receiver. The IDBI-led lenders have so far spent over Rs150 crore to preserve the plant.

In a related development, the NTPC, GE and the Bharat Heavy Electricals Ltd are currently in talks to work out an agreement for the future contract of the completion of Dabhol phase-I (740 MW) and phase-II (1,444 MW). Also, GAIL India would seek the board's approval at its meeting scheduled for July 22 to pump in Rs500 crore to pick up 28% stakes in Ratnagiri Gas & Power Pvt Ltd.
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Tata Metaliks targets Rs.1,000 crore turnover
Kolkata: Tata Metaliks has set a target of achieving a turnover of Rs1,000 crore by 2006-07, by foraying into new businesses. The target would mark an increase of 212 per cent over the current level.

The company hopes to reach its target by entering the downstream businesses. It is in the process of charting its roadmap and is weighing manufacture of billet and alloy steel varieties, complementary to Tata Steel's product range. Tata Steel in turn is seeking to move up the value chain. Tata Steel happens to be the parent company of Tata Metaliks.

The move to diversify was part of Tata Metaliks' conscious effort to graduate from a one-product company. The company has mentioned in its annual report that castings was another area that was under consideration.

Castings capacities in the developed world were being replaced by new capacities in China and India. International automobile giants were increasingly outsourcing automobile castings from India and Tata Metaliks believed that it possessed a rich insight into the business.

Tata Metaliks has already requested the West Bengal government to allot land near to the location of its plant at Kharagpur. At present, the Tata Metaliks plant was spread over 260 acres and it was understood that the company had indicated an additional requirement of around 500 acres.

Tata Metaliks was looking at backward integration through acquisition of iron ore mines and coal blocks for which it has applied for government permission. This would help the company save costs and also enhance its business flexibility to play either the-end product or the intermediate products markets.

However, pig iron would continue to be the core product. The output was expected to touch 3.20 lakh tonne in 2005-06 from the present level of 1.63 lakh tonne. The newly installed blast furnace would make this possible.

The company installed the new blast furnace in thirteen months against a prevailing industry benchmark of 16-18 months.
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India's billion-dollar market cap companies now total 63
Mumbai: The number of companies in India with a market cap of $1bn and above has gone up to 63, as of July 14, from 41 a year ago. The number was 27 in April '03.

The number of companies with $1bn in sales rose to 32 from 31 a year ago, with the addition of Tata Consultancy Services. The number of companies with an annual net profit of $1bn rose to five from four a year earlier. This exclusive club includes Oil & Natural Gas Corporation (ONGC), Reliance Industries (RIL), Steel Authority (a new entrant), National Thermal Power Corporation and IndianOil (IOC).

The new entrants in the $1bn market cap club include banks like the Bank of Baroda, the Union Bank of India, the Bank of India, the Kotak Mahindra Bank, UTI Bank and IDBI. While all these have more than doubled their market value, Reliance Capital's market cap has gone up more than three times.

Apart from these, the list includes Bharat Forge, ACC, Nicholas Piramal, Hindustan Zinc, Container Corporation, IPCL and Essar Oil among others. While the top ranking firms like ONGC, RIL, IOC and ICICI Bank trade at 2-4 times their annual revenue, the new entrants have a market cap to sales multiple of over 7, or in some cases like Reliance Capital, 17 times.

A significant surge in mid-cap shares over the past six months has resulted in the total market cap rising to just under Rs19,00,000 crore or $437bn, an 80% rise in value in 12 months. The market cap to gross domestic product (GDP) ratio is hovering over 60%, very close to the Asian average of 64%.
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CII-Kearney survey sees MNCs investing more in India
New Delhi: According to a survey by CII-AT Kearney, most multinational companies (MNCs) have shown an interest in making long-term investments in India, but found the country less attractive when compared to China.

Nearly 70% MNCs, which participated in the CII-AT Kearney MNC Survey 2005, are ready to pump in more money into India in medium to long term, and most of them indicated that they are doing so irrespective of their current performance.

India's market potential, labour competitiveness and macro economic stability were unanimously highlighted as the key drivers of FDI attractiveness.

Out of every four MNCs, three stated their performance in India has met or exceeded internal targets and expectations, the survey said. More than three-quarters of the survey respondents ranked India higher than Malaysia, Thailand and the Philippines in terms of MNCs performance.

Though close to 50% of the survey respondents believed that India is on a par with or better than China in terms of MNC performance, 75% of them viewed India unfavourable compared to the communist nation on FDI attractiveness, says the survey.

Investors favour China over India for its market size, access to export markets, government incentives, favourable cost structure, infrastructure and macroeconomic climate.
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Kirloskar Brothers to issue 2:1 bonus shares
Pune: Buoyed by a 43 per cent increase in net sales over last year, exports crossing the Rs100 crore mark for the first time and a string of breakthrough large orders, Kirloskar Brothers have announced an issue of bonus shares in the ratio of 2:1 to shareholders.

The Board of Directors has also decided to increase the authorized share capital of the company from Rs20 crore to Rs50 crore, subject to the approval of shareholders at the extraordinary general meeting scheduled on September 2.

At the annual general meeting on Saturday, Sanjay Kirloskar, CMD, KBL, said the government had identified agriculture, water and power as three important components of development under its infrastructure project. The prospects of KBL, the largest manufacturer and exporter of centrifugal pumps in the country, are bright because it ''enjoys a dominant position in these areas with the products and services it provides.''

''With infrastructure development receiving a major thrust, our objective has been to increase our participation in development programmes initiated by the government in irrigation, water resources management and the power sector,'' he said.

With opportunities growing in the infrastructure segment in the country, KBL has set up a separate Strategic Business Unit for Infrastructure Pumping Projects. The supply of more than 1000 submersible pumps to Reliance Petroleum Limited for their pumping stations countrywide and the supply of 570 mono-block pumps to the Government of Jammu and Kashmir are a few of the significant orders received and executed by this Group last year.

But Kirloskar admitted that the pump industry in India is facing fresh challenges and becoming increasingly technology driven. For example, in the industrial segment, opportunities have increased with growing demand and the customer looks for a cost effective solution in specific areas. ''The competition is intense as multinational companies are also in the fray, offering technologically advanced products at competitive prices with attractive delivery terms.''

The company's strategic initiatives such as focus on segments and markets (Africa for example) appear to have paid off. The domestic order booking grew by 31 per cent crossing the Rs100 crore mark too with varying projects from Larsen and Toubro for split case, sewage and process pumps for varied applications and Delhi Metro Rail Corporation for air-conditioning, cleaning and fire fighting applications. The company also received ''breakthrough orders'' from Tata Iron and Steel and Bharat Heavy Electricals Limited for sump pumps in large quantities.

Among the notable orders executed were process pumps for Grasim Industries and sump pumps with variable frequency drive, for Wipro and Welspun; and the supply and commissioning of both primary and secondary heat transfer pumps, from Bharatiya Nabhikiya Vidyut Nigam to Nuclear Power Corporation of India, Kalpakkam.

The Valves Business Group achieved a sales growth of 25 per cent over the previous year in the power and water supply segments. Important orders included supply of sluice valves to Ahmedabad Urban Development Authority and butterfly valves to Bharat Heavy Electricals. It has also received its first order from America for 1800 mm and 2100 mm butterfly valves.

Exports too were robust last year. ''Our 'Focus Africa' programme worked remarkably with at least 10 major orders from the African continent.''

KBL is landing new contracts in markets like South America, Europe and South East Asia. The potential for agriculture and domestic pumps will be explored in the international market while the newly developed ANSI series pumps for industrial applications will be introduced in Europe and US markets.

The sales for the first quarter are at Rs175 crore against Rs135 crore for the corresponding period last year, registering an increase of 29 per cent. Profit after tax for the first quarter of 2005-06 is Rs8.95 crore (last year it was Rs3.19 crore).
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FICCI study: JVs can double Indo-CEE trade by 2007
New Delhi: India's trade with the Central and East European (CEE) countries can be doubled to $ 1.7 billion, with exports touching a billion dollars in less than three years, as expansion of the European Union presents opportunities for forging joint ventures and increased outsourcing of services, says a study.

According to the study by the Federation of Indian Chambers of Commerce and Industry (FICCI) titled ''India-CEE Trade Linkages: Opportunities and Challenges'', the bilateral trade currently stands at $ 833 million.

With the economies of the Central and East European countries growing at 3.3 per cent and 5.8 per cent annually, respectively, the Indian companies feel there are tremendous opportunities for the domestic industry, especially after the accession of five CEE nations — Czech Republic, Hungary, Poland, Slovakia and Slovenia — to the European Union in May 2004.

Two more countries, Bulgaria and Romania, will join EU in 2007.
India's trade volume with each country can be doubled in less than three years following uniform trade regulations, uniform duty structure and common technical specification in countries that have joined the European Union. To boost trade with CEE nations, The FICCI study said Indian banks should open their operations in this bloc and there should be direct air links with CEE countries, the study said.

Visa issuance should be made simple for business applicants and a special cell created for issue of visa to those going for business promotional activities. Further, it calls for the setting up of a centralised business office where the business community can establish contact to initiate businesses.

The Exim Bank should extend at least $ 10 million credit line between these countries, it said. Respondents also saw a major role that can be played by the respective Joint Business Councils (JBCs) for further expansion of trade and investment linkages.

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TCS considering setting up a training centre in Pakistan
Mumbai: Tata Consultancy Services, which last month inked a pact to set up an information technology services company in China, is now mulling plans to set up a training centre in Pakistan.
"It is at a very early stage still," said. S Padmanabhan, Executive Vice-President in charge of Global Human Resources Development, at TCS.

The training facility is intended to target engineering students who pass out of colleges in Pakistan and provide them the skills and capabilities required to close the gap between their academic training and industry requirements.

There are 15 to 20 mid-sized software companies employing 200 to 300 staff each, who are looking for appropriate skill sets, said Padmanabhan.

TCS has been talking to various government agencies in Pakistan as well as to the Nasscom equivalent in that country that is known by the name of P@SHA. In fact P@SHA had sent a delegation to the Nasscom annual conference in Mumbai that was held in February this year.

The training centre would be a commercial venture, said Padmanabhan.

The objective in China, said Padmanabhan, would be to create an enterprise that will be a role model there, a `pioneering seed' for setting up the software services industry there.

The South Asian region has all the potential to grow into a big market as well as a big services provider, said TCS officials.
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Car exports subdued in Q1, bike demand up 50 per cent
New Delhi: Total car exports fell to single-digit percentage points in the first quarter of this fiscal following a dip in shipments of Maruti Udyog and Ford India, although motorcycles reported an impressive 50% demand in foreign markets, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).

Car exports in the April-June '05 quarter stood at 38,393 units, a growth of 8.7% over 35,315 units shipped abroad in the same period last year.

After a fall of 4.4% last fiscal, which saw its numbers going down below 50,000, Maruti Udyog's foreign shipments decline continued in the new fiscal. Exports for the company fell 44.3% in the quarter ending June 30, 2005, to 6,680 units against the 12,011 units it exported in the same period last year.

Ford India's exports declined 52% to 4,034 units against 8,447 units in the first quarter of last fiscal.

However, Hyundai India and Tata Motors contributed to the growth in car exports from India. While Hyundai India saw the numbers going up a handsome 74% to 24,372 units (13,998), Tata Motors' foreign shipments grew a massive 312% to 3,292 units (799).

Meanwhile, Hero Honda led the pack in the motorcycle segment. Bike exports in the April-June '05 quarter were up 50.4% to 92,342 units against 61,378 units in the same period last fiscal, SIAM said.

Apart from segment heavyweights Hero Honda and Bajaj Auto, most of the other bikemakers like Kinetic, LML, TVS and Yamaha also saw foreign shipments going up.
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Maruti mulling launch of sedan version of Swift
New Delhi: Maruti, which has had an amazing response from the Indian customers for their Suzuki Swift vehicle has reportedly decided to leverage the popularity of this cute looking car with a sedan version planned for next year.

The three-box version should give Maruti a vehicle to replace or compliment their Maruti Esteem model, which has taken a beating in the recent times to competition from Tata Indigo and Hyundai Accent.

The timing of the launch of this new vehicle is expected to coincide with the launch of a brand new 1.3-liter diesel engine the company is developing along with Fiat. This engine would give Maruti a huge advantage in the segment to compete against Tata Indica Diesel and Hyundai Accent CrDI with diesel engines on Swift and Swift Sedan.

Tata alone controls almost 80% of the sales in this diesel market and Maruti at this moment has no diesel car to offer ever since the new pollution norms kicked in. that made Maruti discontinue their Maruti Zen Diesel and Esteem Diesel variants to cut costs. The company is also planning an updated model based on their Wagon R.
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Ampa Center One: Chennai's mega plaza
Chennai: Citing the need for creating an integrated mall which combines high quality retail, dining and entertainment options, Ampa Housing Development Private Limited has announced the launch of Ampa Center One, a fully integrated mall which would be commissioned in the third quarter of 2006.

Spread over three acres with a total built up area of over six lakh square feet, the mall will boast a hypermarket, three floors of retail area, a seven screen multiplex, a food mall, fine dining restaurants and a 20-room boutique hotel.

The mall, which will be located at the junction of Ponnamalee High Road and Nelson Manickam Road, would feature over three lakh square feet of retail space and would be packed with world-class amenities.

The mall would feature a bouquet of leading international and national brands and would also include a food court that will serve 15 different cuisines, three signature restaurants and a coffee shop. The mall's multi-level car park will have space for 1000 cars.
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