Sony leads the flat CTV market
Chennai—The leader in the flat TV market is Sony India. The brand positioned on the premium brand and high technology platform has emerged as the surprise leader with a 59 percent market share. The Flat CTV segment has been growing at the fastest pace amidst a dull CTV market.
While the market size for CTVs was about five million units for the financial year ending March 31, 2001, the share of Flat CTV was of about 85,000 units.
In a flat TV market of about 85,000 units Sony has reportedly captured a share of 58.9 per cent with its WEGA range, as per ORG-GfK report for the period April 2000 — March 2001.

The new range of DRC WEGA Flat CTVs come in 29 inch and 34 inch models and are priced at Rs 79,990 and Rs 1.19 lakh respectively.
These, along with the recently introduced Projection DRC WEGA range in 53 inch (Rs 2.99 lakh) and the 61 inch (Rs 4.29 lakh) models makes Sony India’s Flat CTV range largest in the country.
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BPL plans leadership position in domestic CTV market
Bangalore--Consumer electronics major BPL has laid out a strategic plan to capture a 20 per cent share of the local CTV market this year. The company also targets a revenue of up to Rs 150crore from its audio business.
Company sources say that in the year 2000-2001 BPL’s share in the CTV market slipped to 18.6 per cent from 19.9 per cent the previous year. However, with the consumer durables market showing some recovery trends are positive now
Apart from this the company is also reviving its audio business and will roll out audio product advertisements from the third quarter of year 2001.
BPL is now drawing up a plan to reposition its 16 CTV models under various sub-brands, which will target various segments such as the mass market, the mid-segment and the high-end category.
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TV-18; no dilution of stake planned in CNBC India
New Delhi--Television Eighteen Ltd, promoted by Raghav Bahl, does not plan to dilute its 20 per cent equity stake in CNBC India in favour of Sony Entertainment TV (SET).

According industry sources, both TV-18 and SET India are negotiating a new deal under which TV-18 Ltd will not dilute its stake in CNBC India from 49 per cent as the brand equity of the channel has increased phenomenally. TV-18, in return, will give a commitment to keep the channel within the Sony bouquet for a longer period of six-seven years.

Sony Entertainment Television India plans to keep CNBC India within its stable as it has plans to cobble together a digital bouquet of eight to ten TV channels by the end of the year, giving it greater leverage with cable operators and advertisers.

In this regard, SET India is keen for distribution responsibilities of Aaj Tak, a Hindi news channel. CNBC India is a 49:51 joint venture between Television Eighteen Mauritius and CNBC Asia. In India, SET India is responsible for the ad sales and distribution of CNBC India under a complex revenue sharing agreement.
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Wockhardt, Bayer Pharma augment marketing alliance
Mumbai--Wockhardt and Bayer Pharmaceuticals have decided to market the anti-bacterial drug cefuroxime axetil together. Wockhardt and Bayer already co-market Bayer’s anti-diabetic drug acarbose in the Indian market.
Under the new arrangement, Bayer will buy finished dosage forms of cefuroxime axetil (tablets) in 125 mg, 250 mg and 500 mg from Wockhardt.
Bayer will market these under the brand name ForU. Wockhardt has already launched its brand of cefuroxime axetil called Kefstar in the local market in tablet and suspension forms about two years ago. ForU will be priced the same as Kefstar.
This will be advantageous to both as while Wockhardt would be able to sell more volumes of its anti-bacterial, Bayer would add another drug to its stable. In India, cefuroxime axetil has sales of Rs 80 crore growing at 31 per cent.
Cefuroxime axetil is patented globally to GlaxoSmithKline Plc, the British drug giant. While the patent on one form has expired, that on another still continues.
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New version of Uno on roads soon
Mumbai—With the compact car segment becoming increasingly competitive Fiat India has decided to its compact model – Uno. Even as the company readies for the launch of the Palio later this year, it will launch a modified version of the Uno at an attractive price.
The new Uno will be available in both diesel, petrol and CNG versions. Uno volumes have declined sharply in recent months with sales last month pegged at 412 units, as against 1,007 units in the same month last year.
Fiat’s mid-sized Siena, has also witnessed a drop in sales selling just 71 units last month, compared to 183 units a year ago.
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IOC-BP may extend alliance
New Delhi—Indian Oil Corporation, (IOC) and BP Amoco may extend their alliance, so far restricted to crude oil futures trading, to refining consultancy including fixing of refining margins and product yields.
This would be in a deregulated petroleum scenario effective April 2002.
Earlier this year IOC chose BP Amoco as its alliance partner to help it in oil trading and risk management.
BP Amoco has signed a general memorandum of understanding with IOC to risk manage its oil trading business mainly hedging of crude oil purchases. The European oil giant may give IOC traders some introductory training to the oil derivatives market, sources aid.
Under the discussed tie-up, IOC and BP would jointly determine operating rates, product yields, product mix and monthly exports of oil products, sources said.
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Sterlite plea rejected
Mumbai—The Securities Appellate Tribunal (SAT) on Wednesday rejected Sterlite Industries’ appeal for an interim order.

Sebi had earlier issued orders against Sterlite for its alleged involvement in rigging its share prices in 1998.
The appellate tribunal has fixed July 2 as the date for final disposal of the appeal filed by Sterlite Industries.
SAT presiding officer C Achuthan said in his order issued on Wednesday,
"In my view, the appellant (Sterlite Industries) has not made out a prima facie case in its favour. In the light of the facts and circumstances of the case, I am also of the view that the balance of convenience is also not in its favour. I do not foresee any irreparable injury to the appellant by not temporarily staying the order as sought for.
The order has also said the other action which the market regulator proposes to take against the company -— prosecution -— is in any case independent of the current adjudication before SAT.
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As QRs go, GM takes wants to import CBUs on its own
New Delhi—General Motors (GM) has decided to import new cars for the Indian market on its own as the QR regime here comes to an end.
General Motors has submitted in a proposal to the government that there isn’t enough demand for cars in India to justify indigenous production and that, apart from its manufacturing activity here, it also wants to import new cars (completely built unit) into the country.
The main concern of the company is that that individual importers and grey market dealers can cut into its business in the new cars category.
GM feels that even though it has been regularly manufacturing new models involving new technology in the country at regular intervals, with the lifting of QRs, it sees an opportunity for importing new cars from its overseas units.
To plead it case, the company had sought the attention of the government on the investments it has already made in the country. It has requested the government to include import/trade of CBUs as an authorised activity of GM India Pvt Ltd, complementary to its manufacturing activity.
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Zee to induct overseas strategic partner
Mumbai--Zee Telefilms’ (ZTL) chairman Subhash Chandra today announced that the executive committee of the company has decided to induct a strategic partner, though the stake to be offered to the new partner is yet to be decided.

He indicated that the stake could be offered through a dilution of promoter holding, preferential allotment of shares and open market purchases or a combination of all the three.

He said that the company was mostly looking at international majors for partnership and expected the induction process to be completed in next three months.

While the strategic partner will be given berths on the company’s board, but with Chandra holding over 30 per cent of ZTL stake through his offshore holding companies, the strategic partner may not be given any significant stake because of the FDI cap of 49 per cent in the broadcasting sector.

As to whether Zee was open to partnerships with any of its key rivals in India such as Star TV or Sony, Chandra said there are no friends and foes in this business and Zee was open to alliances with anyone.

Incidentally over the last 18 months Subhash Chandra has lowered his stake in Zee Telefilms by almost 6 per cent which now stands reduced to around 60 per cent from 66 per cent earlier.

In March 1999, Chandra held a 50.5 per cent in ZTL.

Subsequent to ZTL’s merger with Zee Multimedia, Chandra’s stake jumped to 66.6 per cent.

Apparently Chandra has apparently offloaded 27 million Re 1 face value ZTL shares in the last one and half years.

Apart from the promoters, FIIs hold 19 per cent, domestic financial institutions 7 per cent, Star TV 4 per cent, while the rest is with the public.
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UB to terminate venture with Carlsberg
Bangalore—The Bangalore-based United Breweries (UB) group has decided to terminate its proposed joint venture with international beer major Carlsberg and has decided to wind up UB Carlsberg Ltd, a company floated for this purpose.

UB is restructuring itself with the aim to project itself as an ‘only-beer’ company and make it attractive for a foreign player to pick up stake in it.

Apparently the company wants to examine proposals from other international players as well.

UB Group last year announced plans to demerge UB Ltd and focus on its core business of beer, which would enable the company to list its shares abroad and make it attractive for foreign investors to pick up equity.

The UB group has appointed Deloitte Haskins & Sells and IL&FS for restructuring the group, while Kotak Mahindra has been appointed to search for a strategic investor in UB Ltd even as it has decided to wind up UB Carlsberg Ltd.

UB Group has already announced that it is willing to allow upto 26 per cent stake in the restructured UB Ltd for a foreign beer major.
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Trai to introduce CPP regime
New Delhi--The Telecom Regulatory Authority of India (TRAI) has set in motion the process to introduce the Calling Party Pays (CPP) regime for cellular services. For this it has released a consultation paper and invited comments from interested parties.

Under CPP, the cellular mobile subscriber does not pay for an incoming call. Instead, a supplementary charge is levied on the calling party and the same is collected by the operator who generates the call and passes it on to the mobile operator.

According to CPP rules a cellular subscriber will get lower bills, but it also means that a basic services customer will pay a higher tariff for calling into the cellular network.

TRAI felt that introduction of CPP would entail complex inter-connect tariffs which may create confusion among operators.

Trai has asked interested parties to submit their comments on all these issues by June 12.
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CBDT dangles higher collections carrot before government
New Delhi--The Central Board of Direct Taxes (CBDT) says it can boost tax collections by almost 20 per cent or Rs 10,000 crore over the next three years if it gets the green signal for a dramatic departmental restructuring programme.

CBDT envisages that the restructuring programme will result in large numbers of middle-level officers being promoted to higher grades and more than 2,500 posts in the department being abolished.

The deal if it goes through will be part of a memorandum of understanding between the CBDT and the Union government.

CBDT said that income tax collections are likely to touch around Rs 35,000 crore in fiscal 2000-2001 and are growing by over 15 per cent each year. CBDT said that it intends to hike collections by Rs 10,000 crore above the natural increments over the next three years.

CBDT said post restructuring large-scale promotions will start at the income tax officer level so that each officer will be processing fewer cases.

Senior-level commissioners will be in charge of about 20 direct subordinates compared to about 70 people at present. Inevitably, this will mean a huge increase in the number of officers at all levels and a city like Delhi could have several chief commissioners instead of one at present.

The CBDT's proposals come at a time when other government departments are being ordered to downsize.

Under its proposals the number of files handled by an officer will be bought down to around 5,000 from 25,000 files at present.

The department is also seeking greater control over its own computerisation programme, which will play a key role in increasing tax collections .

A large number of clerical staff will be promoted to officer-level once the computerisation programme becomes effective.
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ICICI may reduce stake in bank
New Delhi-- ICICI Ltd is likely to reduce its stake in ICICI Bank by about seven per cent in accordance with the Reserve Bank of India guidelines which cap promoter's holding in a bank at 40 per cent.

With the bank's board having approved a hike in FII holding to 49 per cent from the earlier 40 per cent, this ICICI could offload around seven per cent of its stake in the bank to a foreign institutional investor

At the end of March this year, ICICI held 10.35 lakh shares in ICICI Bank which amounted to 46.99 per cent stake.
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Pharmacia, USV in race for ICI India’s pharma division
Mumbai—US-based multinational Pharmacia and the Mumbai-based USV Ltd are understood to be among those in the fray for acquiring ICI India’s pharmaceutical business.
USV is understood to have mandated Rabobank to assist it with the valuation exercise. Pharmacia India Pvt Ltd, the Indian subsidiary of Pharmacia is believed to have roped in a Mumbai-based investment banker as its advisors. Both companies declined to comment on the issue.
According to sources, ICI’s pharmaceutical business is valued at nearly Rs 40 crore.
ICI essentially operates in the cardiovascular, anaesthetics and antiseptics segment and most of the products are original ICI research products. Key brands include Tenormin (atenolol) used in the treatment of high blood pressure, Tenoclor (atenolol plus chlorthalidene) a combination drug of Tenormin and a diuretic, Tetmosol (monosulfiram) for skin diseases, Nolvadex (tamoxifen) for breast cancer and Aerrane (isoflurine) launched under licence from Baxter Healthcare in the anaesthetic segment.
The pharmaceutical business, analysts say, accounts for roughly six to seven per cent of ICI India’s total sales.
The company’s facility at Ennore near Chennai is designed as per ICI Plc UK’s standards.
Industry sources also say that another potential suitor could be — Astra Zeneca. The Anglo-Swiss multinational has a licensing arrangement with ICI India for Diprivan (propofol) an intravenous anaesthetic. However, the two companies were reportedly at loggerheads till recently over AstraZeneca’s buyout of IDL Industries’ stake in Astra IDL.
ICI India has been revamping its operations in the recent past. It has already divested its explosive and polyurethane (PU) businesses and converted its motor and industrial paints division into a joint venture with Berger Paints.
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Hotel Corporation; much coveted
Mumbai—A number of hotel chains such Indian Hotels, East Indian Hotels (EIH) Kamat Hotels as well as a number of foreign hotel chains are in the fray to participate in Hotel Corporation of India’s (HCI) divestment programme . The deal is currently in the due diligence stage and Jardine Fleming India Securities Ltd is the global advisor for HCI’s divestment.
Though hotel industry sources estimate the number of players in the race at seven, (including four foreign hotel chains), sources in the know said there were many more contenders.
HCI’s expression of interest had earlier evoked an excellent response with around 28 companies having shown interest in its five hotels and two flight kitchens.
Foreign hotel chains like the French Accor Group, Hilton and Raffles, among others, had reportedly responded to HCI’s expression of interest in November.
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UTI out of favour; private MFs gain
New Delhi--The Unit Trust of India (UTI) suffered a net outflow of Rs 297 crore even as the rest of the mutual fund industry, excluding UTI, received a net inflow of Rs 2,300 crore in April 200.

Another cause of concern for the company is the fact that its gross redemption has zoomed by almost 75 per cent to Rs 747 crore in April from Rs 428 crore in the previous month.

Most private MFs post negative reserves

Mutual funds, mainly from the private sector, have seen their reserves and surplus turning negative aggregating Rs 1,435 crore, which works out to a hefty 33 per cent of their combined unit capital for the half year ended March 31, 2001.

UTI recently disappointed investors by announcing 5 per cent annual dividend for two of its monthly income schemes, MIP ’95 and MIP ’96 (IV), which was way below the previous years’ payout. This is also an indication that UTI is probably heading towards tough times.
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