Rising FII stake in Reliance
Mumbai-- FIIs are gradually increasing their equity in Reliance Industries. In 2000-01 the stake has increased from 13 per cent to 18 per cent.

As a result, the FII investment forms the largest chunk of the total stake of 24 per cent held by international investors in Reliance Industries. This is the highest level of investment by foreign institutional investors in RIL since they were allowed to invest in India in 1993.

The jump in the FII holding in the company is due to aggressive purchases by some US-based funds like Janus Corporation which alone picked up about 60 million shares, constituting 6 per cent of RIL's equity capital. Other funds that increased their exposures included Capital International, the Government of Singapore, Oppenheimer, T Row Price and Alliance Capital.
Shares offloaded by domestic funds were also picked by FIIs resulting in an increased stake in RIL. The shareholding of Indian financial institutions, banks and mutuals funds in the company dropped to 15 per cent, from 19 per cent in 1999-2000.
Global depository receipts holders own 5 per cent and non-resident Indians about 1 per cent stake in RIL's equity capital of Rs 1,053 crore.
In 1995, the total equity stake of all international investors was just 7 per cent, of which FIIs held 2 per cent. RIL has recently increased the permitted level of FII holding in the company to 49 per cent.
The promoters of RIL -- the Ambanis -- own 40 per cent compared with a 38 per cent stake in the previous year. They have announced their intention to hike their holding to 51 per cent over a period of time. The Ambanis raised their holding through the creeping acquisition route from open market purchases.
Corporate bodies hold 3 per cent and the balance is held by the public.
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Efforts to resolve DPC-MSEB imbroglio on at Singapore
Mumbai-- Domestic lenders left for Singapore on Sunday with promises that more avenues are pursued to save the controversial project and eschew a disaster. These lenders will press for a united stand among themselves for ensuring a workable solution to the Enron-promoted power project.
While DPC is ready to cut the tariff and the internal rate of return (IRR), the lenders are willing to cut the interest costs, stretch the maturity period of loans and raise the moratorium on repayment.
It is likely that the cash-strapped Maharashtra State Electricity Board will be allowed to issue bonds to DPC, thereby deferring payments.
While talks are far from conclusive, the local lenders have already mooted the option of converting the 16 per cent dollar return on equity given to Enron into a rupee-denominated return.
These lenders, who perforce have taken a proactive role on the Dabhol issue, have also revisited the proposal to partly exclude the $500 million LNG terminal from the $2.9 billion project to bring down thefixed cost and in the process the power tariff.
Understandably, a rupee-denominated return (as opposed to a dollar return allowed in the ‘91 power policy) has not found favour with Enron. But, the lenders in consent with the state and Central governments are expected to raise the issue at the negotiating table.
On Saturday, a domestic lenders combine met with senior officials in the Maharashtra State Electricity Board (MSEB) as also the state government seeking a cessation in further notices and counter-notices being issued so that the DPC imbroglio could be resolved amicably.
Confirming this, a senior MSEB official said that domestic lenders--IDBI, ICICI, IFCI, SBI and Canara Bank--want MSEB to stop litigation and create an environment for a meaningful discussion with DPC so that the second phase can be completed.
Reportedly MSEB has pointed out that with the preliminary termination notice (PTN) already served by DPC and the board’s notice for rescinding the contract already being in force, it would be a difficult task to freeze the entire process.

On another front Stone and Webster, the lenders’ engineers to the Dabhol power project are also likely to make a formal presentation to global lenders of the Dabhol Power Corporation in Singapore on the technical aspects of the plant, with White & Case, the New York-based legal firm dealing with the legal implications of mothballing the project.
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Tisco not to join proposed steel cartel
Mumbai--Tata Iron and Steel was recently approached by other domestic producers to take the lead in forming a cartel and sign a 'strategic cooperation' pact that would enable all steel manufacturers in the country to strengthen their position in the domestic market by preventing prices from falling.
Reportedly, Tisco has refused to be involved in such an alliance. The Tisco spokesperson ruled out any such plan saying that any the company would not like to be part of any such alliance and that practices would be illegal in the US, where anti-trust law is strictly enforced.
The Indian steel industry consists of companies like the Steel Authority of India, Tisco, Essar Steel, Ispat Industries, Jindal Vijaynagar and others.
The industry has currently been impacted by protectionist measures undertaken by four US mills that have hit Indian steel exports. US mills have also alleged that since Indian steel companies enjoy various subsidies, a countervailing duty should be levied.

According to investigations carried out by the US International Trade Commission on the data sent by Indian producers, the net subsidy rates enjoyed by SAIL is 17.95 per cent, Essar Steel 9.08 per cent, Ispat Industries 32.05 per cent, Tisco 8.08 per cent, Jindal Vijaynagar 34.27 per cent and for others it is 15.72 per cent.
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ONGC to increase stake in Cairns Energy JV to 40 percent
New Delhi—The Oil and Natural Gas Corporation, ONGC, plans to increase its stake in its Gulf of Khambat oil and gas block joint venture with Cairns Energy of the United Kingdom. ONGC would increase its stake to 40 percent.

At present Cairns Energy has 80 per cent interest in the consortium, ONGC 10 per cent and Tata Petrodyne 10 per cent. However, ONGC has an option to increase its stake by 30 per cent if a commercial discovery is made after which Cairns Energy's stake would be reduced to 50 per cent.

Cairns energy is the operator of the field.
ONGC was keen on increasing its stake in the block but a final decision would be taken only after due diligence on the prospects of the field and the extent of commercially exploitable reserves, they said.
The consortium plans to invest $200-million in developing the block and is planning to drill around 11 wells in the block during 2001, sources said.
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Eicher Tractors to offer VRS for 200 more
New Delhi—Eicher Tractors is in a turnaround mode after parent company Eicher posted a massive Rs 54 crore loss, on the basis of Eicher Tractors' poor performance.
Now in a cost cutting strategy, the latter is planning to offer VRS to 200 more workers this fiscal, bringing its total staff strength to 1,250.
In the previous year the company retired around 400 workers through a VRS, bringing its total strength from 1,850 to 1,450.
This time however the VRS will be offered to executives also and according to company sources, a few 'non-performing' executives could find themselves being eased out of the company.
MD R C Jain MD Eicher Tractors says that, the company will provide poor performers adequate time to find a role for themselves and the company will continue to be humane in its staff reduction methods.
Other cost cutting measures include, low increments, conducting operations on single rather than double shifts to effect savings on labour and power expenses, cutting on company's phone bills, canteen facilities, power usage and travel by executives.
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Star wants NDTV to strengthen news content
New Delhi—Star India, the Indian arm of the Rupert Murdoch-controlled Star Group Ltd, feels the time has come to revamp the Star News channel. This is in the face of stiff competition from other news channel in recent times.
Star India has asked content provider, the Prannoy Roy-controlled TV software company New Delhi TV, to spruce up the news channel with more focus on the Hindi content. Among other things Star India has decided that the NDTV-produced Good Morning India, a long-running programme on Star Plus, will be phased out by month-end. It is also not keen on distributing the proposed NDTV World as part of the Star bouquet.
In a high-level meeting held in Delhi last week to take stock of the Star News channel, Star India chief executive Peter Mukerjea and NDTV’s Prannoy Roy, Star made a presentation identifying areas which needed attention and subsequently beefing up, keeping in mind new entrants in the news and current affairs genre of programming. The major areas of concern: existing Hindi programming and also business news.
Sources said on the issue of the distribution of its proposed entertainment channel, NDTV sources said that this was discussed with Star India, but "not pushed after that."
NDTV is yet to fix the time for launching its proposed entertainment channel, NDTV World, earlier slated to go on air by mid-2001.
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Swatch to step up operations in India
Mumbai—Gung go about its performance here, Swatch, the premier Swiss watchmaker which is present in India only through distribution partnerships, is now planning to set up a wholly owned subsidiary in the country.
After in-house research conducted by the company showed that it had built up a strong presence in the premium segment in India, the company wants to strengthen its operations here.
Said a top official of Swatch Group, the company has applied to the Foreign Investment Promotion Board (FIPB) to set up a subsidiary under the name Swatch Group India and has completed all the necessary formalities,
But though foreign direct investment (FDI) norms stipulate that the group has to set up a manufacturing facility here, the official said that the Swatch group does not want to set up a manufacturing unit here for watches as it would dilute the image of the Swiss tag but would make India a sourcing base for accessories such as dials, diamonds, furniture and software.
The Swatch group entered the country in 1997 and its current portfolio includes the flagship brand Swatch, Omega, Longines, Rado, Tissot, and Calvin Klein. The company is also planning to launch its international kids brand Flik Flak in the country. Its other global brands are Blancpain, Breguet to name a few.
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Lloyds restructuring plan hits a roadblock
Mumbai—Despite the approval of financial institutions the proposed restructuring of the Lloyds Group steel companies—Lloyds Steel and Lloyds Metals—has hit a roadblock. This is because banks led by the State Bank of India are opposing the restructuring scheme.
Lloyds group, in consultation with Ernst & Young and under the guidance of ICICI and IDBI, had drafted a recast plan wherein the engineering division of Lloyds Steel and the cold-rolling division of Lloyds Metals was to be demerged into Encon Technologies.
At the same time, the steel division of Lloyds Steel and the pipes & sponge iron division of Lloyds Metal was supposed to be amalgamated into Insco Steel.
The reason for SBI’s opposition to the plan is not known.
The company has not yet recovered from the steel sector recession, though most of its rivals barring SAIL appear to be well out of it.
In 1999-00, the company made losses of Rs 264.79 crore and had outstanding loans of Rs 1,736.12 crore as of March 31, 2000.
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Bank of Baroda plans to become a universal bank in 2 years
Mumbai—Within two years Bank of Baroda (BoB) plans to graduate into a full-fledged universal bank, which means that it has to become an institution that can offer all financial services under one umbrella.
To achieve this, the bank has embarked on an exercise involving strengthening the weakest link in its armour - information technology (IT) - in addition to scouting for strategic partners for its subsidiaries and increasing global presence.
Having already kicked-off the move towards universal banking with a grand Rs 500-crore initiative that entails business process re-engineering, organisational re-structuring and deployment of cutting edge technology by engaging global IT consulting firm, Gartner, the entire exercise will be completed over the next two years.

The bank is also looking for strategic partners for its subsidiaries - BoB Housing Finance, BoB Asset Management Company, BoB Capital Markets and BoB Cards--who have the core competence in their respective areas of operations.
BoB will offer either 49 per cent or 51 per cent stake in the subsidiaries depending on what the prospective partner brings to the table in terms of technical and financial strengths, said a top company source.
The bank, which currently has an international presence in 15 countries through its 39 overseas branches, four subsidiaries and one joint venture, will soon start a branch in Malaysia.
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Aptech Worldwide Malaysia downs shutters
Mumbai--Aptech, the infotech training and solution services major, has downed the shutters of its joint venture subsidiary —Aptech Worldwide - in Malaysia.
This is due to the uneconomical size of business and local economic conditions. Company officials said that due to the unfavourable market conditions in Malaysia, the company was not generating adequate revenues as compared to other subsidiaries of Aptech in major countries.
Aptech has also put its wholly-owned subsidiary in Manama, Aptech Information Systems Middle East WLL (ASI) of Bahrain, under voluntary liquidation and the operations are proposed to be shifted to the company’s branch office in Dubai, the company said in its annual report released recently.
The subsidiary will then transfer all its franchisee rights to Aptech Ltd.

The joint-venture company was started in 1993 and offered training, education and consultancy services in the field of information technology. It also marketed software and training-related products.
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FII holding in Infosys goes up
Bangalore--The shareholders of Infosys Technologies Ltd, at the 20th annual general meeting on Saturday, unanimously passed a resolution to increase the FII holding limit in the company to 49 per cent from 31 per cent at present.
They also approved a dividend of 200 per cent (Rs 10 on a par value of Rs 5) for 2000-01 while also announcing that there would be no lay-offs.
Speaking at the AGM, Infosys chairman N Narayana Murthy told shareholders that the downturn in the US economy was a challenge for the software services sector in India. But, despite pessimism from various quarters, technology would continue to be a key driver for business practices across the globe, he said.
He said Infosys planned to cope with the slowdown challenges by building strong relationships with customers, having strong risk management processes, taking advantage of new opportunities that might arise and attracting and retaining the best and the brightest talents.
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Ranbaxy; to expand overseas markets
Kolkata—Ranbaxy Laboratories is expanding its market in China, This is in line with its plans to have a presence in 50 major cities around the world from the current 29, official sources said.
The company plans to focus on achieving entry into 500 to 1000 hospitals by the end of the year. This would be achieved by improving systems, increasing productivity, while realising product registrations that were already in the pipeline, Ranbaxy Laboratories said in its annual report.
The company registered four in 2000, while 10 new products have been filed.

The company's Chinese partner Ranbaxy (Guanzhou China) (RGCL) was likely to receive 8-10 registrations every year from 2001 onwards. The steps have been taken to counter WTO entry in the future by inlicensing of special products to enter the CVs, CNs and biotech segments while steps have also been taken to make an entry into the anti-aids area very soon, it said.

RGCL is one of the few companies in China that possesses GMP certificate for all its manufacturing lines and its products enjoy a very favourable reputation as regards quality, it said.
China, along with the UK, Germany, Poland and Europe forms an important markets for Ranbaxy where it operates through subsidiaries. Ranbaxy (UK) had recorded sales of $20.6 million in 2000 representing a growth of 41 per cent over the previous year, it added. In Germany Ranbaxy orchestrated the strategic acquisition of Bayer's generics business securing a significant position for itself in that country's market, which is identified as one of the world's largest markets, the report said.
In Poland, Ranbaxy did extremely well last year to double its in-market sales, while capturing a five per cent share of the hospital market during the latter part of 2000.
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Telco commercial vehicles sales plummet
New Delhi—Telco’s commercial vehicles sales plummeted mainly due to a drop in sales of market leader, Tata Engineering.

Telco posted a 2.9 per cent dip at 3,636 units over 3,745 vehicles sold in the month-on-month period.

Total commercial vehicles sales fell by 9.24 per cent at 7,925 vehicles over 8,658 units sold in April last year, according to the data compiled by the Society of Indian Automobile Manufacturers showed.
Sales of medium and heavy commercial vehicles, which comprised over 60 per cent of the total industry sales, increased by a modest 4.3 per cent at 5,417 units over 5,193 units sold in the year-ago month.
However, light commercial vehicles performed poorly with sales declining by 27.6 per cent at 2,508 units in the review month as compared to 3,465 units in the same month last year.
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BBC World doubles India revenues
New Delhi--BBC World, the 24-hour international news channel, doubled revenues from its Indian operations last year, according to senior channel executives. Even with this Indian operations have not yet broken even and are expected to do so over the next two years.
Executives said the Indian market was one of the key drivers of the channel, contributing around 50 per cent to BBC World’s revenues from Asia.
Asia accounts for around 35 per cent of the global revenues of BBC Worldwide, the commercial arm of BBC. BBC World is marketed and distributed by BBC Worldwide. BBC Worldwide has reported a 15 per cent growth in its turnover in 2000, compared to previous year.

BBC World’s dedicated strip of locally-produced programmes made for broadcast in South Asia includes Mastermind India, Face to Face, Hospital, IT: India Tomorrow, Question Time India and India Business Report, which is broadcast daily at 10 pm.
BBC World is a available in over 11 million cable and satellite homes in India. Its programming includes news, current affairs and sports.
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Samtel to set up robotics centre in association with IIT
New Delhi—With an investment of Rs six crore, the Satish Kaura-promoted Samtel group is setting up a centre for research and development in visual display technology jointly with the Indian Instiute of Technology, Kanpur and is also in the process of setting up a full-fledged centre for advanced robotics.
The central government will work to develop emerging technologies and improve existing ones so as to help the group in its journey towards six-sigma environment, while the robotics division has already been made into a separate profit-centre.
The venture with IIT-Kanpur in collaboration with Technology Development Board would develop and integrate new technologies like plasma display, ole display for use in computer monitor displays and colour picture tubes said company officials.
Samtel group, which presently has four companies under its fold, namely Teletube, Samtel India, Samtel Color and Samcor Glass is presently implementing a Rs 320-crore project through Samtel Colour to manufacture 21 inch super flat colour picture tube and 15 inch computer monitor display tubes.
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Sun Pharma gets US FDA nod for pentoxifylline bulk
Mumbai--Sun Pharmaceuticals, based in Mumbai, has received the US FDA approval for pentoxifylline bulk at its Ahmednagar facility. This opens up a $60 million global market for the company.

Pentoxifylline is the bulk that goes into drugs for the treatment of peripheral vascular disease.
Said a company spokesperson, the company now holds both a Certificate of Suitability (CoS) and a Drug Master File (DMF) for pentoxifylline and has been selling pentoxifylline intermediates to large-end users in Europe and Latin America for the past few years. The international regulatory approvals will help the company get higher value addition for a product that it has been selling.
A team from the US FDA team visited the Ahmednagar bulk facility in February and a formal approval was received in May, the spokesperson added. Sun Pharma’s Ahmednagar facility already has a US FDA approval for 7ADCA and the company said that intends to file for four-five bulk actives on an average every year.
The international market for pentoxifylline is valued at $60 million, with Europe being the largest market for the drug. The patent for pentoxifylline (Trental), now expired, was held by Hoechst, now part of the Aventis group, while Sun Pharmaceuticals’ domestic pentoxifylline drug branded Flexital notched sales of Rs 1.15 crore as per ORG MAT data for March 2001.
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