Star TV seeks MSO to get a base in Kolkata
Kolkota: In an effort to bring in a modicum of competition in the cable TV operations in the city of Kolkota, Star TV is considering approaching another multiple system operator to service cable and satellite subscribers in the city and some of its surrounding areas.

Currently, the cable operators in the city are largely under the control of RPG Netcom, as a result of which Star TV feels it is faced with a monopolistic situation which is at variance with the situation it has in other major cities.

The channel is said to be planning to rope in Mumbai-based Hathway to invest in setting up a base in Kolkata.

This move is said to be in response to the city cable operators’ refusal to transmit Star TV programs, following a hike in the channel’s subscription rates.

Caught in the crossfire is the hapless customer who is missing the show and facing the music too.
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ModiCorp to apply for more fixed-line licences
New Delhi: Private telecom player, ModiCorp, which operates cellular services through subsidiaries Spice Communications and Spice Cell, announced that it had filed applications for fixed line licences in 10 telecom areas around the country.

These applications include circles for Punjab, Haryana, Delhi, Rajasthan, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu and West Bengal.

The applications are in response to the government move to open up the fixed telephony business, permitting unrestricted entry to any number of players in 21 circles or zones. It is understood that over 120 firms have bid for licenses to start fixed line services.
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L&T Infotech partners Sun for e-business solutions
Mumbai: Engineering major, Larsen & Toubro, announced that its information technology subsidiary, L&T Information Technology, has signed an agreement with Sun Microsystems India to jointly offer e-business solutions to their customers.

The company hopes that this partnership would help synergise the capabilities of application integration and B2B solutions from L&T Infotech with the IForce Initiative from Sun Microsystems.
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Allied Domecq picks up majority stake in Indian JV
New Delhi: International liquor major, Allied Domecq, producer of scotch brands like Teacher’s and Ballantines, took management control over its Indian joint venture. The liquor major recently hiked its shareholding in the joint venture with Clan Morgan Distilleries, from 50 per cent to 74 per cent from the existing 50 per cent to attain a majority stake.

The move, according to Mr. Shreekant Illuri, chief executive of Allied Domecq India, would give the company more flexibility to make decisions after quantitative restrictions were lifted.

The additional 24 per cent stake was bought from its partner, Clan Morgan, for a consideration of Rs 21-22 crore.

Allied Domecq had a 50:50 joint venture with Clan Morgan Distilleries and had an operational distillery at Behror in Rajasthan. According to Mr. Illuri, once the quantitative restrictions were removed, the company was planning to bring in more brands such as Beefeater, Ballantines, Souza Tequila etc. He reiterated that the company had no plans to distribute brands of any other liquor company.

He said currently the company was focussing on enhancing the market share of Teacher’s. Other brands like Old Smuggler Rum and Gin were low-profile and were targeted at niche segments.

Clan Morgan, owned by Colner V K Khanna, is located at Behror, district Alwar, Rajasthan. This distillery has an installed capacity of 5,000 kilolitres. The distillery has a Central government licence to manufacture non-molasses-based potable alcohol.
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Schroder Capital plans divestment in Strides Arcolab
Mumbai: Venture capital fund, Schroder Capital Partners, is understood to be looking at a divestment of its 36.9 per cent in the Bangalore-based listed pharma company Strides Arcolab. The fund invested in the company four years ago.

Arcolab of Switzerland has about 5 per cent in the pharma company, with Morgan Stanley Asset Management Company holding about 15 per cent and the promoters holding under 30 per cent.

Strides Arcolab chairman and managing director Arun Kumar stated that he was unaware of any such decision by Schroder.

Strides Arcolab derives over 60 per cent of its revenues from exports of generic finished formulations and nutritional supplements to Africa, Asia Pacific, North America, and Europe. It also does business with multilateral aid agencies.
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Shaw Wallace offers Kolkota employees VRS
Kolkota: Domestic liquor major, Shaw Wallace, announced that it would offer a VRS package to employees located at its registered office. The company plans to offer the VRS package, with a compensation up to a maximum of Rs. 2.7 lakh, to all its 152 employees.

These employees, the company contended, were not gainfully employed and their salary bill, totalling nearly Rs 3 crore per annum, was a dent on the profitability of the company.

Union spokespersons have rejected the offer and have stated that none of the employees would accept the VRS offer designed to "shut down city operations". Earlier, the company, headquartered in Kolkata, re-located all its corporate functions to Mumbai, reducing the importance of the registered office.
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Philip Morris subsidiary enters Indian fruit drinks market
New Delhi: KJS India, the Indian subsidiary of food and beverages giant, Philip Morris, entered the Indian fruit drinks market with the launch of its powdered drink, Tang.

The company plans to set up a 6,000-tonne manufacturing facility at Hyderabad by June this year at an investment of Rs 25 crore. The company plans to import the product till such time as the plant becomes operational.

The company has entered into a distribution tie-up with the Dabur group, Dabur Foods, as a result of which, Tang will be available at over 20,000 retail outlets in Mumbai, Delhi, Chennai, Bangalore and Hyderabad by the end of next month.

According to Mr. Amit Burman, chief executive of Dabur Foods the partnerhisp is based on compatibility and synergy. He stated that Tang complements Dabur's portfolio of products in the food market and the latter’s extensive reach and penetration in the retail universe will enable a quick roll-out for Tang.
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Monarch Hospitality ties up with Howard Johnson
Kolkota : Mithun Chakraborty, the Bollywood star-tuned-hotelier is all set to consolidate his position in the mid-segment of the hospitality industry.

The star’s company, Monarch Hospitality Services, has signed a franchise agreement with Howard Johnson International Inc of US, the mid segment hotel industry leader, that will allow the star to manage as many as 15 mid-segment hotels across the country under the Howard Johnson name.

According to the star, besides the group’s existing hotels in Ooty, Coimbatore and Masinagudi, the other hotels would come up all over the country over a period of five years.

Mithun said that the tie-up with Howard Johnson would help Monarch deliver quality, international value for money standard to millions of tourists and business travellers. He said that the demand and scope for quality mid-segment travel products in India is just enormous.

Howard Johnson of Cendant Corporation, now has 500 franchise hotels the world over.
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HDFC likely to foray into general insurance
Mumbai: HDFC, India’s leading housing finance company, which has already entered into the life insurance sector in partnership with US-based Standard Life Insurance, is said to be planning an entry into the non-life general insurance segment.

The financial institution is said to be on the lookout for a partner for the project, which is likely to be launched by the year-end.

According to chairman Deepak Parekh said both HDFC and HDFC Bank would sell insurance products. The company already has a tie up with Tata-AIG General Insurance Company to distribute the latter's products.

In the meanwhile, HDFC Standrard Life has entered into a tie-up Chennai-based Cholamandalam Distribution Services, a subsidiary of Cholamandalam Finance, for the distribution of the former’s insurance policies.

The insurance policies will be retailed through the 50 retail centres and a strong network of around 2,000 sub-brokers of Cholamandalam Distribution Services spread across 30 cities.
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Daewoo India struggles to explain Andersen report
Mumbai: The Indian subsidiary of the Korean automobile giant, Daewoo Motor India, is averse to consultant Andersen's recommendation to keep the Indian operation out of the sale of Daewoo Motors Korea -- if General Motors (GM) fails to buy out the parent.

According to Mr. Young Chang Kim, managing director of Daewoo India, the Indian operations will achieve a break-even in net profit in the ensuing fiscal. Mr. Kim explained that the company has already invested Rs. 4,000 crore in the Indian operations and the company would emerge stronger after the completion of its three-pronged restructuring strategy – business, financial and cost-cutting.

As part of the restructuring, the company plans to hive off its gear-box and engine manufacturing units into separate companies, before either forming a joint venture with other auto companies, or selling them off. The two units, with an excessive capacity of 3 lakh units each, were responsible for 75-85 per cent of the company's losses so far, he said.
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HDFC likely to allow FIIs’ holding up to 49 per cent
New Delhi: Mr. Deepak Parekh, chairman of India’s leading housing finance institution, HDFC, stated that a proposal for raising the FII stake in the institution to 49 per cent from its current level of 38 per cent would be moved at the meeting of the board of directors of the company to be held next month.

Standard Life, which holds 10 per cent stake in HDFC, however, continue to hold the same stake, since any change in its holding in HDFC would force it to reduce its holding in its insurance venture with HDFC.

Currently, FIIs including Warburg Pincus and Jardine Matherson, hold around 38 to 39 per cent in the housing finance company.

HDFC has already obtained permission from its shareholders to raise the FII holding beyond 40 per cent earlier and an enabling provision was made to increase it further if the government permits higher holding.
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IDFC may invest in infrastructure PSUs’ stakes
New Delhi: Infrastructure finance company, Infrastructure Development Finance Company, which recently refused to pick up the government stake in Maruti Udyog, has conveyed to the government its willingness to pick up stake in infrastructure public sector companies.

IDFC, which was initially called upon by the government to be part of the Maruti disinvestment, had refused to play ball since the auto major was not part of the infrastructure sector.

IDFC was, however, keen to pick up stakes in infrastructure companies like the National Thermal Power Corporation as and when the government decided to disinvest in these companies.
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Bajaj Auto launches new M-80 4-stroker
Mumbai: Domestic two-wheeler major, Bajaj Auto Limited, launched its Bajaj M-80 Major 4S with a four-stroke engine. A more fuel-efficient version of the earlier Bajaj M-80 model, the new model is expected to be manufactured at the company’s Waluj facility and is expected to be priced in the range of Rs 26,994 to Rs 27,602 in various states.

According to BAL vice president (business development and marketing) RL Ravichandran, "Bajaj M-80 already commands a leadership position in the step-through category with a market share of more than 53 per cent. The new fuel efficient M-80 Major 4S will further strengthen our leadership position."
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Syngenta to launch new products
Bangalore: The newly-merged global agribusiness major, Syngenta - formed in November 2000 by the global merger of agribusiness divisions of Novartis AG and AstraZeneca plc - has announced the launch of new products under the consolidated Syngenta brand name in India.

These include new crop protection molecule, Actara, and seed treatment chemical, Cruiser, from the Syngenta Crop Protection division. These chemicals are eco-friendly, IPM-fit and effective against sucking pest. The company has a vast range of products which include hybrid field crops as rice, wheat, maize, coffee, fruit, vegetable and flower seeds.

The group's Indian presence includes Syngenta India, Zeneca Agrochemicals and Zeneca Biosciences, based in Mumbai with a total turnover of Rs 550 crore. The basic major molecules are manufactured at the Goa and Chennai facilities.
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USFDA approves Spic's Pen-G plant
Chennai: The Penicillin-G plant of the pharmaceuticals division of Southern Petrochemical Industries Corporation Ltd (Spic), located at Cuddalore, in Tamil Nadu, has received the approval from Food and Drug Administration of the US.

SPIC, which already has a ‘distribution agreement’ with an ‘international agency’, hopes that this recognition will help it push exports of Pen-G to the US.
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KPMG begins operations from Hyderabad
Hyderabad: Global consulting firm, KPMG, has commenced operations from the city of Hyderabad.

Inaugurating the office, the governor of Andhra Pradesh, Dr. C. Rangarajan, stated that this would lead to the accelerated growth of the state. He also released the KPMG global study, `Leading the transformation to e-government', on the occasion.
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TCS into wealth management
Mumbai: Indian software major, Tata Consultancy Services, announced its participation in a new Singapore-headquartered joint venture, eAsiaFinance.com, a private company which partners SEB (a Swedish bank), Compass (of McKinsey partners and associates) and a New York-based financial company, Ankar Capital.

The new company would be a ‘wealth management and technology company’ helping banks provide wealth management services to customers. The company plans to become a pan-Asia company operating in 13 countries, from Japan to India.

SEB, which has developed a core Internet technology platform for the purpose for its use in Europe, has licensed it out for the Asia region exclusively to eAsiaFinance.com. This platform will be rejigged by TCS for the local markets. McKinsey will be the strategic advisor for the venture, and provide the contacts.

Ankar Capital, floatd by Mr. Karan Trehan, former head of Alliance Capital, has a background in wealth management.

The customers of the new company would typically be traditional banks which are faced with competition from technologically well-armed MNCs and which want to offer better services in terms of wealth management.
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5,000 job losses from computer major -Compaq
Houston: Adding to the growing list of companies downsizing to face the recession computer major, Compaq Computers, announced that it is cutting 5,000 jobs. It also issued a warning that first-quarter earnings will fall far short of analysts' estimates.

The announcement was made by Mr. Michael Capellas, chairman and chief executive officer of the world's largest personal computer company. The Houston-based company also said it would merge some operations, like the commercial and consumer personal computer operations, and take a restructuring charge of $125 million to $150 million in the first quarter.

The job losses are to come largely from the supply chain and marketing organisation arms of the company.
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