Crompton Greaves to split into 3 entities
Mumbai: Crompton Greaves, flagship of the Greaves section of the Thapar group, is being split into three distinct corporate entities. The operations that the three units will run are the power groups and industrial systems, consumer products, and digital (networking and telecommunications) systems. The three will be separately listed on the stock exchanges and will have separate chief executive officers and boards.

The new companies will come into being by 1 April 2000. Shareholders of Crompton Greaves will get shares in the new companies.

K.K. Nohria, Crompton Greaves' chairman and managing director, said the exercise involves a demerger and restructuring process, which will keep the most logical partnership enterprises together while giving others the freedom to grow in their own direction at their own chosen speeds.

Other significant decisions announced by the company at the 62^nd annual general meeting on 23 July are:

• Retire debts of Rs 300 crore of the company before the split.
• Divest its take in joint venture company Skycell Communications.
• Sell loss-making subsidiary CG Fax e-mail.
• Exit from joint venture company CG-Elsag-Bailey.
• Offer a voluntary retirement scheme to 1,000 employees in 1999-2000.
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IOC may have to pay Rs 1,000 per Lubrizol share
New Delhi: The Indian Oil Corporation will be required to pay Rs 1,000 per share of Lubrizol India, which it is planning to acquire from the government. Lubrizol India has a total equity of 19.2 lakh shares and the government's plan to offload 60 per cent. This will mean that Indianoil will have to shell out Rs 110 crore.

The government has appointed the Industrial Development Bank of India and Enam Financial Services as merchant bankers for the divestment. They have pegged the price of Lubrizol shares at around Rs 1,000. Indianoil had estimated a rate of Rs 700 per share.

On acquisition of these shares, Indianoil is expected to sell 10 per cent to Lubrizol Corporation of the US.
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Telco considering contract manufacturing
Mumbai: The Tata Engineering and Locomotive Company is considering contract manufacturing and strategic alliances with global auto component and car manufacturers. Announcing this at a meeting of analysts, Ratan Tata, chairman of the company, said, "worldwide this is an established practice".

The strategic alliance partner will be allowed to make use of the existing manufacturing facilities of Telco to produce and distribute cars.

Mr Tata categorically said there is no plan to spin off the company's car venture. It will continue as a division of Telco.
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Tisco examining future of steel
Mumbai: The Tata Iron and Steel Company has assigned  consulting unit Tata Strategic Management Group to study how the company should look at steel as a business of the future.

The group is also exploring a joint venture possibility with a view to identifying new methods to make the company's steel business more profitable and cost-competitive.
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IOC shuts down Panipat refinery
New Delhi: The Indian Oil Corporation has shut down its main crude-processing unit at Panipat because of high stock of heavy petroleum. The company said some secondary units are running.

The unit will go on stream in a fortnight's time, the company said.
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Electrolux to hike stake in Kelvinator company
New Delhi: AB Electrolux is planning to increase its holding in the Indian joint venture Electrolux Kelvinator to 76 per cent from 55.8 per cent at present. The Indian company will make a rights issue, and its Swedish parent will subscribe to about 90 per cent of the unsubscribed portion of the issue. This assumes that the Indian promoters will not fully subscribe to the rights issue.

After the rights issue, the equity capital of the company will increase from Rs 68.2 crore to Rs 129.17 crore. The company has obtained approval from the Foreign Investment Promotion Board for this purpose.
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3 BPL companies merged with BPL Sanyo Utilities
Bangalore: Three BPL companies, BPL Refrigeration, BPL Sanyo Finance and Alpha Securities, are being merged with BPL Sanyo Utilities and Appliances. The merger will be effective from 1 April.

BPL Refrigeration, which posted a loss of Rs 41.49 crore for the 18-month period ended on 30 September 1998, and BPL Sanyo Utilities and Appliances, a profit-making company, are publicly held companies.

BPL Sanyo Utilities and Appliances make washing machines and microwave ovens. It will now make refrigerators too.
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Bombay Dyeing net up 18%
Mumbai: Bombay Dyeing and Manufacturing Company has reported an 18 per cent increase in net profit to Rs 6.28 crore for the first quarter ended on 30 June 1999 compared against Rs 5.32 crore in the corresponding period of the previous year.

Sales dropped to Rs 208 crore from 219 crore earlier
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Crompton Greaves posts loss
Mumbai: Crompton Greaves has reported a loss of Rs 14 crore in the first quarter period ended 30 June 1999 compared with the corresponding previous year period loss of Rs 0.16 crore. Turnover was Rs 284 crore against Rs 333 crore in the previous period. 
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Rolls Royce calls back cars
London: Rolls Royce and Bentley, the British luxury car manufacturer, has called back 1,725 of its dream machines worldwide because a heat sensor in the leather line seats is said to be faulty. The company has found instances of the sensor wrongly located and not turning the heater off when required.

The models are Rolls Royce Silver Seraph and Bentley Arnage. All the cars have been recalled to dealers for a check. The exercise is expected to cost the company, now owned by Volkswagen of Germany, about 30,000.  
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