Way cleared for Honda's own motorcycle unit
Mumbai: Honda Motor Company of Japan has cleared primary obstacles in its plan to set up a wholly-owned enterprise to manufacture two-wheelers, including motorcycles and scooters, in India. It has concluded an agreement with the Munjals of the Hero group, its partners in the joint venture Hero Honda, under which the proposed wholly-owned subsidiary can be set up and manufacturing activities can be started after a five-year cooling off period.

The agreement provides for Honda to create its own distribution network. In order to avoid a conflict of interests, the two companies will together decide on the models to be launched. The Hero group will provide the necessary no-objection certificate to Honda, which is a requirement for it to approach the Foreign Investment Promotion Board. Honda can also take up manufacture of scooters under the agreement.

Honda had an agreement with the Kinetic group to manufacture scooters. That group has bought out Honda's stake in Kinetic Honda.
Back to News Review index page

Ashok Leyland may sell off engine unit
Mumbai: Ashok Leyland will sell its engine division as part of its restructuring programme.

The Economic Times in a report said the division has been valued at Rs 200 to Rs 225 crore, and has a capacity to make 50,000 units a year for the company's own requirements and 10,000 units for sale.

Auto industry sources revealed that tractor manufacturer New Holland may be a suitor for the unit. The company currently imports engines to meet its Indian requirements.
Back to News Review index page

Britannia bids for Modern Foods
Calcutta: Britannia is in the run to acquire the government-owned Modern Foods, which the government wants to sell off under its disinvestment programme.

The takeover will provide the company an access to bread markets in several cities in the country. The company's plan was disclosed at its annual general meeting. Nusli Wadia, chairman of the company, said, "we are serious about it".

Britannia has also decided to exit the marine products export sector and concentrate on mass marketing biscuits and consolidated milk products. It is also planning a bottled water business.
Back to News Review index page

Bonus issue by Cipla
Mumbai: Cipla has announced a bonus issue in the ratio of 2:1. The board of the company will present the proposal before the shareholders at its extraordinary general meeting on 3 September, which will be followed by the company's annual general meeting.

With the bonus issue, the authorised share capital of the company will expand to Rs 65 crore from the present Rs 25 crore, and the paid up capital to Rs 60 crore from Rs 20 crore. This is the company's third bonus issue

The Rs 10 scrip of the company has been volatile for the last one week over rumours of the bonus issue. It closed at Rs 2,237.50 on 6 August.

Cipla is at present working on a novel drug delivery system and is engaged in research on chiral synthesis and refining the anti-asthma drug salbutamol.
Back to News Review index page

KEC, RPG Transmission merger plan stayed
Mumbai: The Bombay High Court has rejected a petition by KEC International to merge RPG Transmission with itself. Justice S. Radhakrishnan delivered an oral order rejecting the proposal. The written order is awaited.

The merger has been opposed by employees of KEC International, and the Kamani Employees Union had sought the court's intervention.

RPG Transmission and KEC International are RPG group companies and are both in the transmission tower business. The union has alleged that KEC had deliberately not filed the latest audited accounts of KEC International and RPG Transmission, and had obscured the fact that RPG Transmission had become a loss making company.

Company sources claimed that the merger had already been approved by the Delhi High Court and that a two-judge bench of that court had upheld the matter.
Back to News Review index page

Estee Lauder brands now in India
New Delhi: Indian cosmetics consumers will have the unique opportunity to access world class brands of Estee Lauder, Aramis, Clinique, Prescriptives, Origins, M A C, Tommy Hilfiger and Donna Karan, for the cosmetics major Estee Lauder is setting up its own shop in India. It has terminated its joint venture project with the KM Modi group.

The company will set up a wholly-owned subsidiary, which will coordinate the launch of its wide range of products and provide value-added support to individual distributors in India.
Back to News Review index page

Kirloskars plans valve factory near Pune
Pune: Kirloskar Brothers is planning to build a new valve factory near Pune. It will acquire the Benninger factory at Kondhapuri on the Pune-Ahmednagar road and move its existing valve business from Kirloskarvadi near Sangli in southern Maharashtra.

The new plant will be automated and will have a production capacity of 10,000 valves per annum.
Back to News Review index page

Gulf Oil, Ashok Leyland to introduce lube oils
Mumbai: Gulf Oil India and Ashok Leyland have joined hands to introduce Ashok Leyland genuine oils.

The range of oils to be introduced includes engine oil, gear oil and coolants with anti-freeze for functioning in extreme conditions.
Back to News Review index page

Tata unit plans online car sale
Mumbai: Tata Interactive Systems, a division of the Tata group, has launched a website that enables on-line purchase of cars.

The company has an arrangement with ICICI to offer financing, and is in the process of finalising arrangements with dealers and automobile manufacturers. The on-line purchasing will be on the basis of the US Auto-by-Tel. There will be discounts for purchases made over the net.

The company plans to deliver the cars within seven days of an order being placed over the Internet.
Back to News Review index page

Asian car from GM-Suzuki
New York: General Motors of the US and Suzuki Motor Company of Japan are coming together to make a compact Asian car under the GM brand.

General Motors is planning to make use of Suzuki's plant in Japan as its production base. According to Japanese newspaper Nihon Keisai Shimbun, GM will own 10 per cent of Suzuki shares.
Back to News Review index page

Daewoo may hand over auto unit management to GM
Seoul: Daewoo group of Korea is virtually giving up managerial control of its auto unit to General Motors in an effort to hammer out an alliance.

The struggling group, deep in debt and now initiating a restructuring programme under the supervision of creditors, has signed a memorandum of understanding with General Motors Korea to hold serious talks about a strategic alliance.

Kim Tae-gou, president of Daewoo Motor, said possibilities could even include the handing over of Daewoo's management rights to GM. The MoU will limit the alliance to the passenger car business in Korea and abroad.
Back to News Review index page

Volvo acquires majority stake in Scania
Stockholm: AB Volvo of Sweden has acquired a majority stake in Scania through a deal with the truckmaker's main shareholder, Investor AB. Volvo said it is also offering to buy the rest in a deal worth $7.5 billion, which will create Europe's biggest and the world's second biggest commercial vehicle company.

Both Scania and Investor, which resisted Volvo's efforts earlier, said they were pleased with the outcome of the deal, which will enable both Investor and Scania to have stakes in Volvo. Volvo's stake in Scania will go up to 49.3 per cent in the capital and 69.6 per cent in the voting stock.
Back to News Review index page

Deutsche Telekom buys One2One
Frankfurt: Deutsche Telekom said it will buy British mobile phone firm One2One for 7 billion.

Deutsche Telekom said it has agreed to pay 6.9 billion, including 237 million in One2One shareholder loans. Cable & Wireless, which jointly owns One2One with MediaOne Group, said it expected the sale to be completed by end-September 1999.
Back to News Review index page

GM, Warner Brothers in marketing pact
California: General Motors Corporation has entered into a $200 million marketing deal with Warner Brothers for introducing its "ultimate family driving machine" -- a minivan with Bugs Bunny on the outside and outfitted like a home entertainment centre on wheels.

The deal will allow General Motors to create promotions tied to Warner Brothers' movies, music and TB shows.

The first vehicle to be marketed will be a Chevrolet Venture minivan with a video player and a sophisticated sound system, valued at $30,000. The seven-seat vehicle will get free videos, easy access to Six Flags theme parks with which Warner has a licensing deal and discounts up to 25 per cent at Warner Brothers Studio stores.
Back to News Review index page

Microsoft plans to offer free internet access
Seattle: In a direct onslaught on America Online, Microsoft Corporation is considering cheap or free Internet access to boost its MSN online service.

The plan is supposed to counter America Online's successful instant-messaging service that has nearly 20 million subscribers, compared to 1.7 million for MSN.
Back to News Review index page

eMachines introduces low-cost PC
California: eMachines Inc, a maker of low-priced computers, says it is launching a translucent blue personal computer. However, the company said it is not in competition with Apple Computers iMac.

The new eOne will use an Intel Celeron 433 megahertz chip and a15-inch monitor in a cool blue transparent casing with matching keyboard and mouse for $799.

Customers who sign for America Online's CompuServe 2000 Internet service will receive a $400 rebate, bringing the price down to $399.
Back to News Review index page

Lycos purchases internet music company
Waltham: Lycos Inc, the popular Internet service, announced that it has purchased Internet Music Distribution Inc, which makes an audio player for people to listen to downloaded music.

Lycos said Internet Music Distribution makes the Sonique player, which supports the MPO3 audio format capable of playing near CD-quality music as well as other compression technologies that enable music to be distributed online.
Back to News Review index page