Carrier Corporation offers to buy out Indian
subsidiary
New Delhi: Carrier Corporation of the US has offered to purchase the 49 percent
stake in its Indian subsidiary Carrier Aircon India at a price of Rs 100.
The company has submitted an application to the stock exchanges in India, informing them
about the decision to buy back the shares and seeking their approval for the same. Carrier
Corporation has a 51 per cent stake in Carrier India.
Carrier Corporation subsidiaries are unlisted companies all over the world.
The parent organisation, Carrier Corporation is also unlisted however, United
Technologies, which owns Carrier Corporation, is a listed company.
The takeover is probably due to the fact that the US parent sees India as a big potential
market and, therefore wants to offer all kinds of support by way of technology as well as
product range to ramp up its share in the Indian market.
It has been often seen that unless multinationals have decisive control over their
subsidiaries, they shy away from investing in processes, technology and products. Prime
examples in the segment are LG, Samsung and Sony.
The Carrier Aircon scrip price, which was hovering around Rs 68, went up to Rs 73.80 at
the stock exchanges on Monday following the announcement.
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Escorts
announces new initiatives
New Delhi: The Rs 2,500-crore Escorts Group, is completely revamping
itself. While exiting from its low margin manufacturing businesses of yore it is now going
full steam ahead into businesses like cellular, IT and healthcare.
Not only is the company expanding
its cellular operationsit has added four new category B circles to Escotelit
is pumping Rs 195 crore into the expansion of healthcare services and entering into a slew
of international collaborations in IT.
For instance the group is exiting the two-wheeler business where, it says, the investments
required to recover falling marketshare are prohibitive.It is also exiting from its joint
venture with Mahle of Germany in the auto ancillary business, and plans to eventually move
out of its joint venture with JC Bramford Excavators of the UK for the manufacture of
earthmoving equipment.
Escorts already sold off 24 per cent stake to Yamaha last year. While refusing to quote a
price outright for selling the remaining 26 per cent stake, Nanda said he did not expect a
high valuation from the second tranche of disinvestment as the joint venture was not doing
well.
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Zydus Cadila
invests in US start-up
Mumbai: Zydus Cadila Healthcare, the Ahmedabad-based pharmaceuticals company has
picked up a small stake of 16 per cent in US-based biopharmaceutical start-up Onconova
Therapeutics for $3 million (about Rs 14 crore).
The two companies intend to jointly undertake research in the application of genomics to
the study of cancer, Cadila said.
Zydus managing director Pankaj Patel
has joined the board of directors of Onconova Therapeutics.
Onconova, a research start-up, is currently developing a new compound called Novonex in
the area of anti-cancer or oncology, Cadila said. Onconova will soon initiate clinical
trials in the US to determine the safety and efficacy of the compound with a fund infusion
from Cadila.
Onconova is founded by NRI scientist E Premkumar Reddy and his associates. Reddy, who is
from Hyderabad, is a director of the FELS Institute for Cancer Research and Molecular
Biology of the Temple University in Philadelphia and is well-respected in the scientific
circle.
With this tieup, Cadila's research
efforts could get a leg up as Onconova, according to Cadila, is developing several
anti-cancer drugs and novel anti-inflammatory compounds in a class of drugs called Cox 2
inhibitors using genomics.
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Brightstar
increases offer price for VST to Rs 118
New Delhi: The fight for VST Industries is now in right earnest. The
Dalmia company Brightstar Investments has hiked its offer price by Rs 6 to Rs 118 per
share in the open offer for VST Industries even as it continues to bid for 20 per cent
additional stake in VST.
This offer is six rupees higher than the original Rs 112 per share offer, and rupees three
per share more than the ongoing Rs 115 counter offer by ITC subsidiary Russell Credit.
Brightstar's offer was originally slated to open last month, but had been stalled with
Sebi due to the alleged involvement of R S Damani in the recent stockmarket crash.
Also, the ITC subsidiary is in the fray for acquiring 20 per cent stake in VST;
London-based British American Tobbaco is the single largest shareholder in both ITC and
VST.
If Russel Credit succeeds in picking up 20 per cent stake in VST, BAT will automatically
assume control of VST, since the British major already holds 32 per cent stake in the
latter.
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Schein
Pharma may sell holding in Dr Reddys
Hyderabad: Schein Pharmaceuticals, the US-based pharmaceutical company
whith headquarters in Florham Park, New Jersey, may sell its 1.89 per cent holding in Dr
Reddys Labs, following the termination of the strategic alliance agreement with the
group.
Schein entered into a strategic
alliance with a group company of Dr Reddys Cheminor Drugs in February
1998, which eventually got merged with Dr Reddys in May last year.
The agreement between the two companies was aimed at integrating their formulations
operations. Integration was also aimed at product development, synthesis, active
pharmaceutical ingredients manufacturing, marketing, sales and distribution.
Now market sources say that Schein Pharma may offload its holding in Dr Reddys. It
presently holds about 7,20,000 equity shares in Dr Reddys. "Schein would make
an offer to Dr Reddys before offloading the companys shares in the
market," sources said. Scheins holding in Dr Reddys has come down from
2.3 per cent to 1.89 per cent after the companys US $ 1.75 million ADS issue.
Schein would also transfer to Dr Reddys the ANDAs (abbreviated new drug
applications) for two of the products covered by the agreement.
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Indian
film producers to get breather
Mumbai: The Reserve Bank of India says that banks can now finance films with a total
production cost of less than Rs 10 crore. They can extend loans up to a maximum of 50 per
cent of the cost.
This means that effectively, at any point of time, a bank cannot give more than Rs 5 crore
for financing a single film. The central bank, however, has allowed both corporate and
non-corporate entities in the business to avail institutional funding.
The RBI norms stipulate that the producer will be required to bring in 25 per cent of the
project cost as promoters contribution and tie-up another 35-40 per cent in the form
of advances from distributors.
The bank advance, thus, could be
for the balance 35-40 per cent of the project cost. However, at the same time, the
regulator has stipulated that banks may disburse loans only after the promoter chips in
its contribution in the project.
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OM Kotak
insurance comes up with default plan
Mumbai: A unique feature of life insurance policy of OM Kotak Life
Insurance Co is its default protection plan. This plans entails that after the first
three years, the company will draw from the insureds accumulated savings to keep the
life cover alive even if the insured fails to pay his premium on time.
The insurance plans will be rolled out in Mumbai this week, followed by Delhi and
Bangalore in June and Calcutta and Pune in July. The company has currently 150 licensed
agents.
O M Kotak will be starting out with three schemes an endowment insurance plan, a
money back policy and a single premium policy. The money-back policy offers a higher
assured return for death benefits.
Besides, both the plans offer additional term insurance cover and double benefit for
accidental death.
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Now the
Aussies come to insure Indians with AMP
Sydney: Australian insurance giant AMP, has tied up with the
Chennai-based Sanmar Group to offer its services in India.
The Indo-Australian partnership company would be known as AMP Sanmar Assurance Company.
AMP will hold a 26 per cent stake in the joint venture company, which is the maximum
allowed by Indian regulation.
AMP has also declared that it has left options open to increase the stake in ASAL "as
and when local regulations permit."
Both partners expect to invest a total of approximately Australian $60 million over five
years. The majority of this investment would be focused at starting the joint venture and
to meet the Indian regulatory requirements.
The Sanmar Group has a significant presence in southern Indian states. It has business
ties with multinational corporations like Emerson Electric, FMC, Tyco, Cabot, Bayer and
Totalfina Elf Chemicals.
The Australian insurance company has also established a partnership with Japanese company
NEC for spreading its wings in the Japanese retail financial market. NEC, which is
basically an electronic company, plans to take a 10 per cent equity interest in AMPs
Japanese subsidiary, AMP Japan KK.
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Reliance may get stake in IPCLs Gandhar,
Nagothane units
Mumbai: Reliance (RIL) is understood to be in the process of finalising a deal for
the purchase of Indian Petrochemicals (IPCL) Gandhar and Nagothane plants.
This follows the decision of the government to sell 25 per cent of its 59.96 per cent
stake in IPCL.
Merchant bankers say a due diligence
is on from both the sides to arrive at a final valuation.
IPCL and RIL maintained a silence on the issue except to say that the decision has to be
taken by the center.
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Mercedes-Benz India targets sale of 1,500 C-Class
units in 2001
New Delhi: Mercedes -Benz India Ltd (MBIL) has set itself a sales target of 1,500
cars C class units with turnover expected to touch Rs 380 crore in calendar year
2001against Rs 240 crore in the previous year said MBIL managing director and chief
executive officer (CEO) Jurgen Ziegler after the launch of C-Class model here on Monday.
By the fourth quarter of the year MBIL will start introducing new models as part of its
CBU programme.
In order to achieve over 60 per cent growth in sales this year, the German auto giant is
also planning to import M-Class, CLK, SLK and S-Class (with higher engine lineup) in the
near future. MBIL sold 800 units last year. The company is also looking at the range from
the Chrysler side Jeep Cherokee and Voyager which may be launched at the
beginning of next year. The company targets to sell 800 units of the new model, 500 of the
E-Class, 100 units of the S-Class and the balance will be CBUs. "We have invested Rs
600 crore in the country so far. Nevertheless, we will import other variants on a limited
basis for the niche segment only," Mr Ziegler said.
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Baron may hawk TCL phones soon
Mumbai: After TV sets Baron International Ltd might also sell the TCL brand of
telephone sets in India in the next six months through TCL-Baron India Ltd the
51:49 joint venture with the Chinese white and brown goods major, TCL Holdings Co Ltd.
According to TCL-Baron chief executive officer Sanjay Chemnani, "We should be able to
start selling TCL phones in the next six months."
TCL-Baron had committed itself to bringing the entire portfolio of TCLs products
including phones, both mobile and fixed, to India, though mobiles phones seem to be out of
the companys favour at the moment.
TCL-Baron managed to sell only 12,000 of the 1,50,000 units (TCL handsets) envisaged for
the year ended March 2001. Company officials said that once the duty rate is slashed from
the current 27 per cent to 5 per cent, TCL baron will be among the most aggressive players
in the market.
TCL-Baron was formed last year to market TCL branded colour televisions and mobile phones.
Since then the company is engaged in the marketing and distribution of 3,50,000 sets of
TCL CTVs priced at Rs 10,500. TCL mobile phones are available in the range of Rs 4,000 to
Rs 7,000. So far, the company has sold 1,30,000 TCL CTVs targeted at the low-end of the
market. Meanwhile, TCL-Baron India has entered into a second agreement to set up its own
manufacturing base in India and also to foray into the Indian white and brown goods
segment with TCL air conditioners, refrigerators and washing machines. An MoU in this
regard, worth $20 million, was signed today.
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New lifestyle drug from Wockhardt
Mumbai: The Mumbai-based Wockhardt has launched a unique new-generation fitness
formula, Winofit, through its pharma division.
Winofit, which comes in softgel capsules, is said to help reduce the negative impact of
stress created by the pace of modern lifestyle. Stress according to the company manifests
into a number of diseases and disorders such as atherosclerosis, diabetes, arthritis,
cancer including acceleration of ageing.
The product priced at Rs 45 per 10 capsules, is marketed through a field force of over 400
personnel in the Wockhardt pharma unit. Winofit combines the goodness of omega fatty acids
with antioxidant vitamins and micronutrient minerals and is prescribed as a dietary
supplement.
According to the Wockhardt chairman, Mr Habil F Khorakiwala, "The overall market
potential is huge, at Rs. 833 crore, when we consider the relevant market tapping beyond
anti-oxidants.
Besides, the formulation in Winofit provides benefits in maintenance of fitness as well as
in preventing or ameliorating age related diseases. Each ingredient has specific benefits
and these are very well proven and established, sources said. Winofit is being deatiled to
consulting physicians, general practitioners and other specialists in the country.
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IDBI withdraws loans to Essar Power
Mumbai: Essar Power Ltd is in trouble again this
time with the Industrial Development Bank of India, which has recalled its loans to the
former.
Earlier, ICICI had also issued a
letter stating its intention of withdrawing loans to the power company, but withdrew the
letter afterwards.
IDBI however seems to be serious and
is demanding payment of outstanding dues. Essar has paid Rs 32 crore out of IDBIs
demand for Rs 40 crore as interest overdues and the company is negotiating with the bank
to withdraw the recall notice.
Sources in IDBI say that despite
earning net profits during the last four years, Essar had defaulted in its repayments and
its track record had been "unsatisfactory."
IDBI also claims that the company
does not appear to be "sincere" in clearing the overdues and pursuing the
restructuring proposal it had submitted sometime back.
Essar meanwhile is disputing the
dues. It contended that the lenders have charged an excess of Rs 227 crore by denying the
company tax benefit under Section 10(23G) of the Income Tax Act.
The finance bill for 2001-02,
however, denied the tax benefit with retrospective effect from 1962-63.
EPL submitted a fresh recast plan in
April which envisaged restructuring Rs 1,200 crore worth of debt by floating
infrastructure bonds in two tranches of Rs 600 crore each.
The eight-year instrument may carry
a coupon rate of 11 per cent. The company has requested the institutions ICICI, IDBI
and IFCI) to swap the existing debt with the infrastructure bonds.
Essar Power is one of India's first
independent power producers and generates 515 mw power. It posted a net profit of Rs 63
crore in fiscal 2000.
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Sun Pharmaceuticals in talks with banks, FIs to support
Caraco
Kolkata: Sun Pharmaceuticals, the pharma major,
owning the Detroit-based Caraco Pharmaceutical Laboratories, is negotiating with banks and
other financial institutions for fresh borrowings to support the cash-strapped US company.
Sun Pharma, which holds a
large--almost 47 per cent--stake in Caraco, has already helped the company to get a $5
million term loan from ICICI Bank and a $10 million from Bank of Nova Scotia.
The Rs 600 crore pharma firm stood
as the security guarantor for the credit line to support the R&D activities of Caraco,
which has made investments for getting US FDA (Food and Drug Agency) approval for its
seven ANDA (abbreviated new drug application).
Sun has an investment of $7.5
million towards equity and $5.3 million towards debt in Caraco.
The fresh borrowing may, however,
further push Caraco into red as it is already burdened with heavy interest expense.
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