TVS Motor plans Rs200-cr capex
Chennai: TVS Motor Co is planning a capital expenditure
of over Rs200 crore this year. Half of the expenditure,
of about Rs100 crore will be spent on the company's new
plant in Himachal Pradesh while the other half would go
into a three-wheeler project. Company officials said the
plant in Himachal Pradesh was expected to begin production
in the second quarter of this year and the company hoped
to make about 100,000 vehicles this year. The plant would
have a capacity of about 25,000 vehicles a month.
The
company's three-wheeler project was also on schedule and
the product would be launched before the end of this financial
year.
K.N.
Radhakrishnan, president, TVS Motor Co, said the company
had almost completed the construction of its Indonesia
plant and product testing was in progress. The company
would launch a step-thru vehicle from this plant by the
end of this year. The plant would have a capacity of 300,000
vehicles a year.
Company
officials said TVS Motor has reported a lower net profit
this quarter because of higher raw material cost and increased
investment in its brands. Material cost increased by Rs30
crore, of which the company absorbed a part through value
engineering, leaving unabsorbed a net cost increase of
1.5 per cent, which was sought to be made up through a
price increase effected in June. The strong sales in the
first quarter were boosted by motorcycle sales, which
accounted for 233,506 units, a 32 per cent growth over
the previous quarter, compared to the industry average
of 24 per cent.
The
company said its share of the motorcycle market increased
by 0.8 per cent to 13.4 per cent at the end of the first
quarter.
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TCS
in software JV with Chinese firms
Mumbai: Tata Consultancy Services (TCS) plans to
invest $14.7 million to float a joint venture company
in China. The company has signed a shareholders' agreement
with three Chinese firms and US company Microsoft Corporation.
TCS has also signed a $33 million customer relationship
management (CRM) deal with Saudi Telecom Company, which
is to be executed over an 18-month period.
The
Chinese firms in the JV are Beijing Zhongguancun Software
Park Development Company, Uniware Company and Tianjin
Huayuan Software Area Construction and Development Company.
The JV will set up China's first industrial scale software
company, which will be located at Beijing's Zhongguancn
Software Park, he said.
TCS,
which is foraying into Chins through a subsidiary, TCS
Asia Pacific that will commence operations by September
this year, already has a presence in that country. It
will merge its existing operations (mainly sales) with
the JV at a later stage.
The
company's initial investment of $12.6 million will be
scaled upto $14.7 million over a period of time. The company
will also increase its headcount to 5,000 in the next
four year period, from the present 500.
TCS
will hold 72.22 per cent stake in the venture, while the
Chinese firms holds a 27.28 per cent stake. Later, Microsoft
will be offered a 10 per cent stake by the partners, after
which TCS' stake will fall to 65 per cent and that of
Chinese partners by 25 per cent.
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Nagarjuna
Const gets Rs720-cr order from Sultanate of Oman
Hyderabad: Construction major Nagarjuna Construction
Company has received an international order of Rs720 crore
from Sultanate of Oman for setting up a road project at
Muscat. A press release from the company quoted managing
director, AR. Raju as saying that the road project involves
dualisation and realignment of AI-Amerat Quriyat Road
at Muscat in Sultanate of Oman. The project would be completed
in three years.
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PSL
bags Rs488-cr worth of contracts
Mumbai: PSL has bagged the `Dabhol-Panvel pipeline'
project from GAIL worth Rs218 crore. Apart from this,
it has received an order for the `Bisalpur-Jaipur Water
Pipeline Project' from L&T/ECC, Chennai, for supply
of coated pipes worth Rs270 crore. PSL will supply GAIL
with a 551-km, 30-inch continuous pipeline system from
Dahej to Dabhol. The Bisalpur-Jaipur Water Pipeline Project'
is funded by ADB and is being implemented by Rajasthan
State Government.
Shares
of PSL rose from Rs194.94 to Rs199.95 on the BSE.
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Spentex
buys Uzbek spinning firm for $81mn
New Delhi: Spentex Industries has acquired Uzbek
spinning firm Tashkent-To'yetpa Tekstil LLC for $81 million
(around Rs350 crore). The latter, that will become Spentex'
wholly-owned subsidiary will be renamed as Spentex Tashkent
Toytepa LLC, and will give Spentex a factory in each of
the Uzbek cities of Tashkent and To'ytepa with a combined
total of 220,000 spindles and 236 looms, bringing the
parent's overall capacity to 570,000 spindles.
Mukund
Choudhary, Spentex's managing director, said the Uzbek
Government had offered tax concessions and a 15 per cent
discount on raw cotton. The acquisition also gives Spentex
the advantage of Uzbekistan's proximity to the Eastern
European markets, he added.
The
company is also moving into the woven cotton fabric business
for the first time with its newly acquired Uzbek looms.
He
said with this acquisition, Spentex had become India's
largest yarn manufacturing company and this had been the
first direct investment by an Indian company in Uzbekistan.
Choudhary
also said the firm was negotiating to buy a 100,000-spindle
state-run yarn factory in Egypt. Spentex had also recently
acquired Indo Rama Textiles and Amit Spinning Industries.
Recently, Citigroup Venture Capital International Growth
Partnership Mauritius increased its stake in the company
to 32 per cent.
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Godrej
Industries Q1 net zooms 75 pc
Mumbai: Godrej Industries has reported an upbeat
74.81 pc jump in net profit at Rs16.52 crore for the quarter
ended June 30, 2006, (Q1FY07) when compared with Rs9.45
crore for Q1FY06.
Net
sales for the quarter stood at Rs160.69 crore, 12 pc lower
as compared to Rs182.76 crore for the corresponding quarter
last year.
Adi
Godrej, chairman, Godrej Industries said: "The results
are not comparable as the foods business was sold with
effect from 31 March 2006. This quarter we have acquired
100 pc stake in Nutrine Confectionery, the market leader
in the confectionery business through Godrej Beverages
and Foods, one of our associate companies. We have also
augmented capacity, made strategic investments in group
companies and chemicals business and increased our focus
on exports which is expected to improve the operating
and financial performance going forward."
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ABB
Q2 net up 65 pc
Mumbai: ABB has reported a massive 65 per cent
rise in net profit at Rs71.90 crore for the second quarter
ended June 30, 2006 as compared with Rs43.61 crore in
Q2FY06.
According
to a release issued by the company to the BSE, the company's
total income increased to Rs989.52 crore from Rs672.99
crore in Q2FY06.
"ABB
is making steady progress on its charted growth course
with the wind in our sails as we create value for our
customers through technology, innovation, domain expertise
and execution capabilities. At the same time, we continue
to increase our productivity, strengthen our resource
base, sharpen delivery systems and continue to remain
focused on operational efficiencies", said Ravi Uppal,
vice chairman & managing director of the company after
announcing the company's second quarter and half yearly
results.
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Simplex
to construct airport terminals in Rajasthan
New Delhi: Simplex Infrastructures, one of India's
leading infrastructure companies, has received two projects
worth Rs 110.37 crore from the Airports Authority of India
for the construction of new airport terminal buildings
at Jaipur International Airport (worth Rs63.73 crore)
and Maharana Pratap Airport, Udaipur (worth Rs46.64 crore).
The
company's order book currently stands at Rs4,700 crore.
The
Udaipur airport has been projected to be completed by
the end of this year, while the Jaipur airport would take
18 months to complete.
The
scope of work for Simplex will include the construction
of the terminal buildings at both the airports, including
a sub-station at the Udaipur airport.
Both
the jobs comprise civil, architectural, plumbing, electrical,
HVAC, fire detection, fire fighting & fire suppression
system, a public address system, CCTV system and all allied
works.
Incorporated
in 1924, Simplex Infrastructures. is one of the largest
infrastructure solutions providers today, with more than
eight decades of successful operations and a current turnover
of Rs1345 cr.
Simplex
has completed more than 2000 successful projects in India,
including the Howrah Bridge, Supreme Court, Reliance Jamnagar,
Jamshedpur and Burnpur Steel Plant.
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