IDBI says no to IFCI merger
Mumbai: The Industrial Development Bank of India does not favour merging with the IFCI on the plea that it would adversely affect IDBI.

There is a proposal to merge the two entities, especially to bail out IFCI which is looking for a Rs 400 crore bail-out plan.

A preliminary meeting of top executives of the IFCI, IDBI and the RBI was held to discuss the issue on Tuesday.

IDBI believes that a merger will weaken the institution and reduce shareholder value, affect its capital adequacy ratio, inflate its non-performing assets and affect its credit rating.

IDBI feels that a merger would create a human resource management problem since a large number of officers would be made redundant. "IDBI will have to accommodate an additional 70 per cent of IFCI's employees in return for 25 per cent of its assets," say IDBI sources.

IDBI already has an NPA of Rs 7,675 crores(13.4 per cent of its total assets) This will further balloon if IFCI's Rs 4,103 crore, or 20.7 per cent of its assets was also added.

Besides, IDBI is apprehensive of reducing its net worth which is at Rs 9,636 crores if IFCI's Rs 1,288 crore was merged with it.

More importantly, IDBI is worried about its credit rating, which would get downgraded as a result of the higher NPA, which would raise its cost of borrowing by 15 to 20 basis points.
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HLL begins brand rationalisation
Mumbai: Hindustan Lever has begun its process of brand rationalisation in order to focus resources on 30 to 35 brands, reducing them from 110 now.

The process has begun with tea, where four brands, namely Red Label, Lipton Taaza, Taj Mahal and 3Roses are to be retained and the rest phased out.

HLL also plans to get out of the small unit tea packs (paisa packets) wherever it is not viable.

These moves are meant to cut down costs in an adverse market, where HLL saw a negative growth of 13.9 per cent in a tea market that declined by 7 per cent.

In oral care, the focus will be on Pepsodent and Close-Up, on the plea of market size, brand strength, uniqueness, competitive positioning and growth potential.

Since the top 30 brands of HLL account for 75 per cent of its business, the FMCG giant will concentrate resources, manpower and brand support to further develop these brands. The company has raised its trade and communication spend by 15 per cent in the first quarter.

Key brands with significant market share include Lux, Lifebuoy, Rin, Wheel, Surf, Kissan Annapurna (atta and salt) , Fair and Lovely, among others.
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BPL Communications to go in for private placement
Bangalore: BPL Communications , the holding company for cellular, internet and broadband businesses of the BPL Innovision group is planning to go in for private placement of up to 49 per cent of its equity. This would help it to raise between 75 to 100 million dollars.

The company had to shelve its plans for an ADR issue due to adverse market conditions.

The funds are required to fuel the company's growth plans in the telecom sector.

The options before it include equity from international private equity funds, as also France Telecom Mobile International which is a 26 per cent partner in BPL Mobile.

BPL Innovision chairman and CEO, Rajeev Chandrasekhar ruled out any move to either merge or buy into equity with Bharti or Hutchison.
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TCS opens regional HQ in Singapore
New Delhi:Tata Consultancy Services has opened a regional headquarters in Singapore.

This office will oversee operations in all the Asia Pacific Hong Kong, Malaysia, Taiwan, Vietnam, Australia and New Zealand. Which together account for nine per cent of its export revenue. Girija Pande, accredited with setting up the ANZ Grindlays Asset Management Company, will head the Asia Pacific operations.
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M&M shelves Zetor takeover
Mumbai:Mahindra & Mahindra has decided to call off plans to take over Zetor, a government owned Czech tractor making company. The reason given is the opposition to privatisation in that country. Officials fear that a move to go ahead with the takeover could land them in the middle of a political crossfire.

M&M had been planning to use this unit, with a capacity to make 40,000 tractors annually, as a springboard to enter the European market in a big way.

Recently, the finance minister of the Czech Republic resigned over opposition toe privatisation and reform. Besides, the demand for tractors within Czechoslovakia and in Europe is said to discouraging.

The European foray was seen to be critical for M&M which is facing sluggish demand in the domestic sector, with falling profits and declining revenues. It saw a 44 per cent drop in net profits for the quarter ended December 2000 from Rs 77.8 crore to Rs 43.8 crore, and 52 per cent drop for the nine months ended December 2000 from Rs 189.4 crores to Rs 91.3 crores, but has already captured a 40 per cent market share in the 30-40 HP tractor market in the US.
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Gujarat Gas eyes KK Chemicals
New Delhi: Gujarat Gas Company, an arm of British Gas, is planning to buy out KK Chemicals and Dyes Pvt. Ltd. and make it a 100 subsidiary.

One of the reasons for the buy-out is to avail of backward area concession on sales tax on natural gas. Since such concessions are given to licensed dealers, the plan is to register it as a licensed dealer and avail of the benefits.
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Shareholders to decide Electrolux merger
Chandigarh: The decision to merge the three Electrolux India controlled companies. now rests with the shareholders, who are to meet in May at an extra-ordinary general meeting.

The board, which met recently, has given the go ahead.

The three companies include Electrolux Kelvinator , where Electrolux India holds 56 per cent, Electrolux India, a 100 per cent subsidiary of Electrolux, and Intron, where it holds 51 per cent.
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Tata Chem, Rallis merger likely
Mumbai: As part of its restructuring exercise, there are reports that the Tata group would merge two Tata companies, Tata Chemicals Ltd and Rallis India Ltd.

There is a lot in common between the two companies. Tata Chem manufactures soda ash, sodium bicarbonate, salt and urea. Rallis plans to concentrate on speciality products in pesticides, fertilisers and explore stronger alliances in the areas of marketing and distribution, manufacturing, research and development.

Both companies are presently on a restructuring mode, Rallis India wanting to focus on biotech and reduce its heavy debt burden. It also has a marketing tie up[ with Tata Chem to distribute fertilisers.

Tata Chem, which has begun rationalising cost-cutting, optimising operations, and exiting non-core businesses. It has put up on sale its cement and detergent business, and merged its wholly owned subsidiary Sabras Investments and Trading with itself. It recently sold off its 65.65 lakh ACC shares to Gujarat Ambuja. As a result, its profit went up to Rs 208 crores.

Hence the rumours of the merger. Official confirmation is yet to come.
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Whirlpool introduces air conditioners
New Delhi: White goods manufacturer Whirlpool has now entered the air conditioner market, with the introduction 1, 1.5 and 2 tonne capacity air-conditioners. Positioned in the price range of Rs 22,000 to 29,500, the air-conditioners, the company claims, have a super cooling system, are fitted with powerful blowers, and offer super quick and even cooling.

The Whirlpool AC range is available in ‘Futura’ and ‘Elite’ models with a choice of rotary or reciprocating compressors, and electronic or electromechanical controls.
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BPL's internet, braodband in crisis
Mumbai: BPL’s Internet and broadband businesses are facing crisis, thanks in part to the resignation of three of its top executives, and the likely closure of their content venture with AFX of France.

These businesses are being restructured, with BPL Net.com and BPL Broadband merging to form a new company, BPL Internet Works. The new company is headed by Deepak Verma, who earlier headed BPL Cellular in Tamil Nadu and Kerala.

The three executives who quit include erstwhile BPL Broadband chief executive officer G Subramanium, BPL president and chief operating officer technology, Internet and media R Laxmi Narayan and BPLNet.com chief executive officer Anoop Verma.

Mr Subramanium is said to be joining Star TV's direct-to-home division, Mr Laxmi Narayan back to Mudra, while Mr Verma would join SAP.

BPL's broadband access initiative is said to have hit a roadblock, cable operators not agreeing to concede the last mile connectivity. The company is now contemplating all modes of access, including wireless, fibre and copper, with cable in some of the places.

There is also news of the 51:49 BPL- AFX joint venture for financial and stock market news content closing down. Poor market conditions and lack of funds are said to be the reasons. BPL Innovision chairman B K Singhal, however, acceded that each of the plans was under review, but did not confirm any closure.
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HSBC launches onliue banking for NRIs
Mumbai: The Hongkong and Shanghai Banking Corporation Limited (HSBC) has launched its Internet banking service, online @HSBC in India for its non-resident Indian (NRI) customers.

The new service will enable viewing balance and transaction histories, transfer of money between accounts, payment of credit card bills and ordering cheque books.

Users can also see the interest accrued to date and projected for the full financial year for savings and loan accounts and view the tax deducted in order to plan tax payments.

Besides, the online service will make possible payments of electricity or mobile bills along with mobile alerts for every new transaction that occurs, as well as application of and redemption of mutual funds.

The service is likely to be rolled out for other customers in India in the second half of this year.
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Amex Bank tool for excess cash
Mumbai: American Express Bank (Amex) has launched 'Money+', a cash management solution with provision to earn returns on excess balances.

Current accounts held by individuals will earn returns on excess balance, based on a pre-defined set of parameters.

The "threshold" or the limit for a minimum balance in the account will be tracked everyday, and excess funds above this limit will be diverted into various investments, as per the instructions of the account holder.

The investments will be made by the bank on behalf of the account holder, in low risk debt and money markets such as mutual funds, call money market, money market instruments, government securities and fixed deposits.

The shortfall in the account will simultaneously trigger redemption of investments, again according to instruction of the account holder.
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