CSFB preferred to continue as advisor for VSNL
New Delhi: Despite being censured by the capital markets regulator, Sebi, for its role in the recent share scam, the department of disinvestment has indicated that it is in favour of continuing with Credit Suisse First Boston (CSFB) as the global advisor for the privatisation of Videsh Sanchar Nigam.

The department’s belief is that the Sebi order should not have any impact on the merchant banker's role as advisor for VSNL. However, sources in the department state that a final decision on continuance of CSFB would be taken only after Sebi gives its final order. CSFB has been appointed as VSNL advisor in consortium with SBI Caps.

The Government has decided to dilute 26.97 per cent stake in the telecom monolith, thereby bringing down its stake to 26 per cent by roping in a strategic partner. (PTI).
Back to News Review index page  

One-touch internet access appliance from HCL
Kolkota: Targeting potential customers who are generally reluctant to take the more expensive PC-driven surfing route, HCL Infosystems today launched a product that is billed as the lowest cost internet access device. Branded HCL Ezeebee, the one-touch device is expected to retail at Rs. 20,000.

This price is much lower than the cost of a low-end PC which typically costs around Rs. 30,000. Further, the company is also providing finance for the purchase of this device that can be paid in thirty six instalments.

The only catch to this whole idea is that the consumer must necessarily take an internet connection from HCL Infinet, a wholly owned subsidiary of HCL Infosystems.

While company officials state that for the time being the product is configured to ride on the internet backbone of HCL Infinet, it plans to offer the product to other ISPs also which will mean that the product can be configured to run on any internet backbone.
Back to News Review index page  

Offloaded passenger sues Thomas Cook
New Delhi: India’s leading travel company, Thomas Cook, is facing litigation for a claim of over Rs. 30 lakh from an Indian businessman who was offloaded alongwith his family from a cruise taken from the travel company. The Delhi-based businessman along with some other Indians was offloaded from the ship midway at Bahamas last year.

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has sought a reply from Thomas Cook.

The counsel for the businessman has claimed Rs 30.92 lakh as damages, compensation and litigation cost from the company for suddenly off loading him and his family members on June 16, 2000.
Back to News Review index page  

Maruti to launch power steering version of Zen diesel
New Delhi: Leading automobile manufacturer, Maruti Udyog, has stated that it will shortly release an electronic power steering variant of its premium Zen diesel car.

The company plans to aggressively market the new vehicle in Tamil Nadu, Andhra Pradesh, Kerala and Punjab which are the key states for diesel cars in the country.

The diesel version of the Zen was launched in August 1998 and has been fitted with the 1527cc TUD5 engine, supplied by Peugeot Citreon Moteurs of France, which delivers 57 brake horse power.

The new variant is being seen by the company as part of its strategy to boost sales of the 'Zen diesel' by leveraging on the popular 'Zen' brand.
Back to News Review index page  

Hindalco seeks fresh valuation of Pennar Aluminium
Mumbai: The AV Birla group company, Hindalco, which was one of the two serious contenders for the acquisition of the Hyderabad-based Pennar Aluminium, has sought a fresh valuation of Pennar.

This is in keeping with the bid by the operating agency for the deal, Industrial Development Bank of India, to seek a better deal for the Hyderabad company.

While Sterlite Industries, the other serious contender, has stated that it will not revise its bid upwards, Hindalco has stated that if the bids were to be revised the valuations would have to be done afresh, as Pennar had incurred further losses over the year.

Pennar has a unit at Nagpur, with an annual capacity of 30,000 tonne rolled products and 15,000 tonne of conductors, and is the third largest manufacturer of aluminum sheets in the organised sector after Hindalco and Indal.

On handing over of management of the company, IDBI will have to achieve a general consensus and iron out the differences among creditors whose consent will be sought for any recommendation by the OA to the Board for Industrial and Financial Reconstruction (BIFR).
Back to News Review index page  

Yamaha to pick Escorts stake in motorcycle JV
New Delhi: The Escorts group, which recently announced its exit from the motorcycle joint venture with Yamaha of Japan, is understood to have struck a deal with the Japanese giant under which the latter will purchase the Escorts 26 per cent shareholding in Escorts Yamaha Motor Ltd. This deal is valued at an estimated Rs. 70 crore.

With this Yamaha Japan will now hold 100 per cent stake in the company.

Yamaha also plans to invest about Rs 200 crore towards the acquisition of 7.75 per cent redeemable preference shares of Escorts Yahama Motor to be remitted over a period of two years. It is understood that the ministry of heavy industries and department of economic affairs have approved this proposal. The ministry has, however, put a condition that the issue of redemption of preferential shares will be at par and redemption will not take place before the period of five years.

In order to boost sales, the company is talking to a finance company to offer retail finance schemes to its customers.

The company plans to launch new models in the two-wheeler market. It is planning to launch a reworked version of a two-stroke model it had scrapped about one-and-a-half years back.
Back to News Review index page  

The Tata Group and ACC exit from Float Glass India
New Delhi: The Tata Group, represented by auto major Tata Engineering and Tata Industries, alongwith cement major ACC have decided to exit from Float Glass India. The three together held 26 per cent stake in the company and this stake will now be sold to their foreign partner Asahi Glass Company.

While 49 per cent is held by Asahi, the balance in Float Glass is held by the public.
Back to News Review index page  

Subex Systems to acquire assets of Canadian company
Mumbai: Subex Systems is all set to acquire the assets of Magardi Inc of Canada, which will give it control of key software products like "Out Smart" and "Incharge".

"Out Smart" is a fraud management system (FMS) for wireline operations and will complement "Ranger", the FMS product of Subex in the wireless operations.

"Incharge" is a billing verification product for use by Telecom Carriers.

The acquisition is valued at an estimated C$3 million and 3 per cent of the outstanding shares of Subex on a fully diluted basis.

The consideration is payable in installments over the next nine months. The total shares to be issued is 2,20,382 equity share of Rs 10 each fully paid, at a price to be determined as per Sebi guidelines.
Back to News Review index page  

New speech recognition products from Philips India
Mumbai: As part of its focus on new technology businesses, Philips India has launched its speech recognition products in the country.

According to Sameer Dania, business manager for speech processing products, the company’s product has been developed specifically for the Indian market after collecting over 5,000 voice samples and analysing them. Philips plans to enter into partnerships with telecom players and companies with call centre applications.

The company has provided the technology for the recently launched ‘Juzz Phone’ developed by DSQ World at an order value of 1.55 million Euro. The service launched last month has taken 30,000 calls till date.

While the company would look at all three business opportunities - PC centric, wireless and embedded software – it believes that its product has a wide range of applications in various fields such as banking & finance, travel and transport and customer care.

Philips’ portfolio of speech recognition products include SpeechPearl, SpeechMania and SpeechWave.
Back to News Review index page  

ICICI to pick up stake in Jaiprakash hydel project
Baspa: According to Jaiprakash Industries, leading financial institution ICICI will pick up a 28 per cent stake in the group’s Rs 1,620-crore Baspa hydro power project.

It is understood that of the committed Rs 135-crore equity investment, ICICI has already brought in Rs 75 crore while the remaining money will be infused "in due course".

The Baspa project phase-II is being constructed by its wholly owned subsidiary, Jaiprakash Hydro-Power Ltd (JHPL), on a build-own-operate (BOO) basis.

Delays in construction work caused by flash floods in the Satluj river in July last year would affect the timely commissioning of the 300 mw project, now expected to go on stream by July 2003 against the earlier target of July 2002.

Company sources said that of the Rs 1,135 crore debt component, rupee term loans to the tune of Rs 425 crore and non-convertible debentures worth Rs 300 crore have been sanctioned.
Back to News Review index page  

Dabhol lenders oppose MSEB move
Mumbai: Legal representatives of the lenders to the Dabhol power project are planning to take a hard stand against the Maharashtra State Electricity Board’s (MSEB) decision to scrap the power purchase agreement.

According to them the PPA—entered into by MSEB with Dabhol on May 23, 1993—is not exactly an exclusive bilateral contract and cannot be scrapped without the consent of the lenders, who are also stakeholders in the project by virtue of their debt exposure.

It is understood that the lenders to the project are to meet in Singapore in the first week of June to chalk out the next course of action.

According to the lenders the failure of the 657 mw phase I project in generating power in time (cold start in 3 hours) is a breach of warranty which can be settled through arbitration. This does not provide a valid ground for the termination of the PPA.

The MSEB had issued the notice to scrap the PPA on May 23, a week after DPC served the preliminary termination notice to the board.

The MSEB move on scrapping the PPA has unified the entire lending community which was vertically divided on DPC’s action on serving the PTN.
Back to News Review index page  

Alfa AB buyer to make open offer for 20% in Indian arm
Pune: A Swiss fund, which recently bought close to the entire stake in Alfa Laval AB of Sweden, is on the verge of making an open offer to buy a minimum of 20 per cent in the Indian company, Alfa Laval India.

The fund is likely to appoint SBI Capital to manage the open offer which is likely to open in the next one month.

The move follows the rejection of a resolution by the shareholders at its recent extraordinary general meeting for the proposed change in control of Alfa Laval’s local arm.

With this rejection, the fund, Industri Kapital, has now decided to make the open offer as required by Sebi. Local Alfa Laval officials, however, have interpreted the change in control as indirect in nature as it was a global buyout of Alfa Laval from Tetra Laval and therefore did not merit any open offer.
Back to News Review index page  

Hind Lever enter lower segment with atta
Mumbai: FMCG major, Hindustan Lever, has recently launched branded atta targeted at the lower end of the market in its bid to boost its foods business.

The low-end atta, under the brand name Kissan Annapurna, is currently being test-marketed in Kerala. The company already has a premium category atta pack of the same brand name. With this move the company is trying to attract customers, who buy loose atta, to the branded segment.

Earlier, HLL had said it is foraying into the fruits and vegetables categories which will be sold under one of its existing food brands like Kissan Annapurna, Lipton or Modern.

The company has also re-entered the spices market as part of its expansion plans under the Kissan brand name. Earlier, it had a presence in spices with its Sona brand.

Analysts tracking the atta sector estimate that Kissan Annapurna atta has sales of around Rs 70 to Rs 80 crore and is the leader in its category. The other players are Godrej Pillsbury and ITC Agrotech.
Back to News Review index page  

Court order to delay Parke-Davis, Pfizer local merger
Hyderabad: Following an attachment order issued by a district court in Hyderabad in response to a petition made by former employees of Parke-Davis over the implementation of the VRS in the company, the process of merger of the company with Pfizer India is likely to be delayed.

This merger is in keeping with the global merger of the two companies’ parents, Warner Lambert and Pfizer.

Eight former employees of Parke-Davis, in their suit filed before the court, submitted that "the VRS is a sham and not at par with the scheme followed by the company in 1997 in Mumbai region."

The petitioners have stated that acceptance of the VRS was obtained through coercion and undue influence.

The company’s petition in the same court to grant a stay on the attachment order has been posted for hearing on May 29.
Back to News Review index page  

Six new hospitals in the north from Escorts
New Delhi: The Escorts group has announced plans to have six new cardiac hospitals in different cities in the north by the year 2004. The group plans to invest around Rs. 300 crore in the healthcare business. The group already runs a cardiac care hospital each in Delhi and Faridabad.

All the six new hospitals planned by the group will be based on the hub-and-spokes model. This is the model being followed by all other players in this field, which includes Max India, Fortis and the Apollo Hospitals Group.

The first of such new hospitals will be a greenfield facility at the cost of Rs 60 crore in Jaipur. The group is also close to acquiring a hospital in Amritsar.

While the hospital in Amritsar would have a 150-bed facility, the one in Jaipur would have 200 beds.
Back to News Review index page