Tata Sons hike holdings in 5 key group companies
Mumbai: Tata Sons, the holding company of the Rs 40,000-crore Tata group, raised its holdings in five group companies -- Tata Engineering and Locomotive Company, Tata Iron and Steel Company, Tata Power, Tata Tea and Tata Chemicals in 1998-99. It did this mainly through market purchases worth over Rs 500 crore.
The Economic Times in a report said a substantial portion of the funds has come from the profits of Tata Consultancy Services, a division of the holding company. The present holdings are: Telco 6.92 per cent (from 2.74 per cent), Tisco 13.32 per cent (from 8.74 per cent), Tata Power 12.98 per cent (from 8.02 per cent), Tata Tea 12.32 per cent (from 9.30 per cent) and Tata Chemicals 10.13 per cent (from 8.40 per cent). The company has also acquired a 3.11 per cent stake in ACC.

Meanwhile, Tata Consultancy Services has earned Rs 1,542 crore from exports in 1998-99 against the previous year's figure of Rs 967 crore. This has been disclosed in the Tata Sons directors' report for 1998-99.
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Mahindras exiting Otis Elevators
Mumbai: Otis Elevator Company (India) will become a subsidiary of the parent Otis Elevator of the US. The Mahindras, who hold a 24 per cent stake in the lift manufacturer, is selling its shares to the US parent.

A decision to this effect was taken at the board meeting of the company on 22 July, reports The Economic Times. The company will issue a no-objection certificate for the trasnfer of shares from the Indian promoter to the parent company. This is required for the US company to complete the required formalities with the Foreign Investment Promotion Board and to bring in foreign funds.

Otis Elevator of the US is a subsidiary of the $25.7 billion United Technologies group.

The Mahindra group's decision to offload the Otis shares is in line with  its restructuring plans, especially with relatin to exiting non-core activities. The stake acquisition will help Otis Elevator of the US to integrate the operations of the Indian arm with its global operations.
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ITC planning shopping mall
Mumbai: ITC Ltd is now into shopping malls. The company is looking for a suitable plot of land in Delhi with an area of nearly 6 lakh square feet to build a complex, for which the company has earmarked about Rs 500 crore.

The company has engaged McKinsey & Co to develop a plan for this retail venture. ITC sources say the proposed retail business will not be an extension of the Wills Sports venture, but a serious business in itself.
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Tax waiver for Reliance withdrawn
New Delhi: The government has withdrawn the withholding tax exemption granted to Reliance Industries on a portion of external commercial borrowings raised by the company. The withholding tax is levied on the interest dues paid on external borrowings.

Normally companies, on request, are exempted from the levy of about 29.8 per cent tax. It is understood that in the case of Reliance, the burden will be around Rs 200 crore. The company has represented to the finance ministry against the decision.
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IDBI asks PowerGen to deposit GTEC shares
Mumbai: The Industrial Development Bank of India has asked PowerGen India to pledge the shares it has acquired from Gujarat Torrent Electricity Company in its favour as the IDBI is the biggest lenders to Gujarat Torrent, with a debt exposure of 25 per cent.

PowerGen has recently acquired a 46 per cent stake in the Gujarat Torrent Electricity Company from the Mehtas of the Torrent group.

IDBI has also asked Gujarat Torrent to execute a trust and retention account agreement by which the trustee bank will control the cash flows and receivables of the company.
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US patent for United Phosphorus
Mumbai: United Phosphorus has been given a US patent for a fumigation system, and claims to have become the first Indian agrochemical company to be granted a US product patent for a new invention.

The company says the fumigation system can change the way aluminium phosphide, used in preventing insect damage in stored grain, is applied. United Phosphorus expects that the patent could result in revenues of Rs 250 crore over the next five years.
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ICI India sets priorities
Calcutta: As part of a restructuring exercise, ICI India, a subsidiary of ICI plc of the UK, is planning to reduce its exposure in areas like pharmaceuticals, rubber chemicals, trading and nitrocellulose.

These divisions now account for 26 per cent of ICI India's 1998-99 turnover of Rs 986.5 crore. The company recently decided to hive off its explosives business into a joint venture with Australian company, Orica.
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Icra rates Orchid Chem as fastest drug company
New Delhi: Icra has rated Orchid Chemicals and Pharmaceuticals of Chennai as the fastest-growing drug company in India from the top 31 domestic and multinational firms.

Orchid is emerging as the most sought-after company by foreign institutional investors with the limit on foreign investment in it nearly at the ceiling of 24 per cent.

The Icra report said Orchid, which has grown from a meagre Rs 90 lakh in operating profit in 1994, to Rs 62.9 crore in five years, is also the fastest growing company in terms of operating profit, with a compounded growth rate of 191.7 per cent.
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Microsoft, ICIL in e-com tie-up
Mumbai: Microsoft India and International Computers India have formed a strategic alliance for the electronic commerce market.

ICIL will develop e-com solutions based on Microsoft platforms and technologies. It will also set up two Microsoft centres of excellence at Pune and New Delhi.
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Cincinnati Bell to acquire IXC Communications
New York: Cincinnati Bell said it will buy telecommunications service provider IXC Communications for $2.1 billion in stock.

The deal will enhance Cincinnati Bell's presence in the internet business, data transmission and wireless. IXC has built a high-speed optic fibre network which will help Cincinnati's foray into other areas.
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Apple introduces iBook
New York: Apple Computer has introduced its consumer notebook computer, which includes a built-in wireless capability. The notebook looks like an iMac offspring.

Named iBook, the portable six-pound computer, comes in two translucent colours, blueberry and tangerine, and white and is priced at $1,599. It has a carrying handle, a full-size keyboard, a 12.1-inch active matrix screen, a built-in antenna for wireless, a 300 MHz PowerPC G3 processor, a CD ROM drive, a 3.2-GB hard disk drive, a 56kbps modem and other features.
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TotalFina indicates a peaceful settlement
Paris: On 21 July TotalFina extended the olive branch to its acquisition target Elf Aquitaine, suggesting it is open to friendly talks on the proposed acquisition. At the same time it signalled that it will not raise its offer price.

TotalFina chairman Thierry Desmarest said in a newspaper interview that share prices showed the financial markets were not counting on an increase in its bid and the prospect was not a priority. Desmarest said he wanted a quick and friendly end to the takeover battle.

TotalFina made a hostile 42 billion euro offer for Elf on 5 July, and Elf in return launched a 50 billion euro counter-bid.   
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Bail-out for Daewoo
Seoul: Local creditors have given the ailing South Korean Daewoo group a respite by agreeing to infuse $3.3 billion in fresh loans.

The creditors have agreed to give the loans by 26 July in return for collateral put up by the conglomerate, a spokesman for Korea First Bank said.  
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