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LIC to take 27 percent stake in Corp Bank
Mumbai-- In the first-ever strategic alliance between two public sector financial
service providers, LIC is acquiring a 27 per cent stake in the Mangalore-based Corporation
Bank.
The deal was signed in the form of a memorandum of understanding between the two parties
on Wednesday. Corp Bank and LIC have decided to leverage their infrastructure for mutual
benefit.
Also under the MoU between the two, the Life Insurance Corporation would pick up strategic
stake in Corpbank’s primary dealership subsidiary, Corpbank Securities, by acquiring
five crore shares, with face value of Rs 10. The premium is to be negotiated.
Besides this, Corpbank would participate in an IT arm to be floated by LIC. The two
partners would also get into the investment banking business by either acquiring an
existing merchant bank or promoting a new firm.
LIC already holds 12.32 per cent stake in Corporation Bank through market purchases. The
additional 15 per cent stake would require LIC to purchase shares with a face value of Rs
21 crore.
Following the acquisition by LIC, the government shareholding in the bank will slip
further to 56 per cent.
The biggest business opportunity for Corporation Bank lies in its treasury. LIC expects to
invest Rs 50,000 crore during the current financial year, of which Rs 25,000 crore will be
in government securities.
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StanChart
Grindlays plans to consolidate four businesses under one
Mumbai—Standard Chartered Grindlays (StanChart Grindlays) is planning to
moving its asset management company — Standard Chartered Asset Management, its
primary dealership (PD), fixed-income and treasury businesses into a single integrated
unit christened "Global Markets."
The person reportedly chosen to head the division is ABN Amro Securities’ managing
director, Vishnu Deuskar.
This is envisaged to be one of the biggest bank treasury and securities-related operating
divisions in the country.
StanChart Grindlays Asset Management has a portfolio in excess of Rs 1,000 crore, and was
recently rechristened to its present name.
The division was earlier known under the umbrella brand of ANZ Grindlays. The new name
reflects the identity post-StanChart’s acquisition of ANZ Grindlays Bank’s
Indian and Middle-East operations. StanChart will also combine its PD business, for which
it recently received the nod from the RBI into its "Global Markets" group along
with the treasuries of both the banking entities.
The fixed-income business of both StanChart and ANZ Grindlays Bank, which runs in two
clear streams — marketing by the respective corporate banking divisions with trading
activities residing in the treasuries — will move into the integrated unit.
The creation of this new integrated division will see StanChart Grindlays run its
operations along three well-defined lines: retail, corporate and capital/securities
markets.
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Lucent to
retire over 10,000 personnel in bid to cut costs
Philadelphia—Lucent Technologies, which recently abandoned merger talks with
France's Alcatel, has said it will offer early retirement packages to more than 10,000
employees as part of its effort to cut costs.
Lucent the buyout package would be offered to more than 10,000 US management employees --
ranging from entry-level clerical workers to mid-level executives -- who were eligible for
retirement, or close to it and said that it expects the offer to have a high acceptance
rate. It declined to comment on whether any forced job cuts would be required if not
enough workers accept the offer.
Under the offer, Lucent would add five years of service to an employees' tenure with the
company, and five years to their age. That would allow the employees to retire with a
richer pension package.
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Star not to fund anymore
net ventures
Mumbai—Star is calling off its second round of funding in India for online and
internet-driven ventures putting an investment worth about $100 million on hold following
the worldwide collapse of Internet-based businesses.
Also Star has wound up several of its own independently operated portals like the youth V
India portal, and has made Indya.Com, in which it is a strategic partner, its default
portal and will not participate in a second round of investments in ventures where it is a
strategic partner like Bazee.Com, IndiaProperties.Com and Explocity. For instance Star has
called off its commitments ventures like Fabmart an online shopping mall.
Star has decided to focus all its online activity in Indya.com as for instance, the KBC
site is on Indya.com and Star is using its vast television network to popularise Indya.com
through promotional campaigns.
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Aptech to announce
decision on demerger issue soon
Mumbai—Aptech Ltd, the IT education and software major is expected to announce
on Thursday its decision relating to the demerger of its software business into a separate
company which would get merged with Chennai-based Hexaware Technologies.
Aptech had earlier set up a committee to study the implication of the merger with Hexeware
Technologies. Aptech had said that it would demerge its software and training businesses
as part of restructuring exercise.
The software business would subsequently be merged with Hexaware Technologies, where Atul
Nishar, Aptech chairman has a majority stake. Nishar has around 26 per cent stake in
Aptech.
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Volvo to launch
new tip trailer
New Delhi—Volvo India is planning to expand its product range with a smaller
tip trailer — Volvo’s construction truck.
Ravi Uppal, managing director Volvo India said that Volvo is going to introduce another
version of its construction truck model which will be smaller than the last version
introduced. After it is tested the vehicle will be launched in July end or August. The new
model will be a three-axle construction truck.
The new model will take Volvo India’s range to two types of tip trailers and three
types of tractor trailers. The company is also working on its B7R city coach which should
be launched by end-September, said Uppal.
These Inter City AC coaches will be Euro III compliant and fitted with air suspension,
central air-conditioning and other in-coach amenities.
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BoI net profit at Rs 252cr
Mumbai—Bank of India has reported a net profit of Rs 252 crore for
the fiscal year 2000-01, up by 45.7 per cent over the previous year.
The bank has decided to hike dividend to 15 per cent from 10 per cent last year.
The net profit is arrived at after taking
into account full provisions of Rs 134.46 crore for the pay-order scam.
During the year, the bank also absorbed the VRS expense of Rs 330 crore.
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UTI transfers over
600 staff
Mumbai—The Unit Trust of India — India’s
largest mutual fund — is transferring almost 650 officials, out of its total 2,500
employees from the branches to its central processing centre and UTI Financial Centres and
other departments such as the department of funds management.
The transfers will take place in a phased
manner," say senior officials of the UTI.
Even earlier staff from the branches, and departments such as accounts and audit
transferred to key departments like dealing and investments.
A large proportion of the employees identified for transfer will man the trust’s
central database and processing facility coming up at Belapur-Navi Mumbai.
The move follows implementation of McKinsey recommendations on the business process
reengineering exercise, which envisages all branches functioning as marketing outfits with
some investor servicing functionality, while processing, accounting and back-office
related facilities will be centralised under one roof.
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Coke to introduce
more ethnic flavours
Chennai—Soft drinks major Coca-Cola will launch at least three more Indianised
flavours in the domestic market shortly.
Said Amit Jain Coke’s regional operations director, on the occasion of the launch of
the company's latest Fanta flavour ‘Green Apple,’ Fanta Watermelon would hit the
market next followed by three more Indian flavours.
Jain said Fanta Apple Green and Fanta Watermelon were selected from a variety of typical
Indian flavour options which included grape, brown apple, peach and strawberry.
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Bata plans to
shore up bottomline
Kolkata—Bata India has planned out a strategy to improve its bottomline and
profitability in fiscal 2001. As part of this the company plans to increase penetration by
setting up more retail outlets and taking space in shopping malls across the country.
AL Mudaliar, Bata India chairman said, efforts to streamline the company’s wholesale
business in the current fiscal has already been initiated by the newly appointed managing
director, C Morzaria.
Morzaria has introduced new thinking into the marketing strategies of the company, which
will, once again, put the company back on a healthy growth path, he said. Currently, the
thrust is on becoming a market-driven firm from a manufacturing-oriented company.
Outlining the initiatives being taken by the company, the chairman said old stocks of
footwear have partly been liquidated through "Mega" sales to generate cash, and
thus, reduce the level of borrowings.
Morzaria said the stock of finished goods has been reduced by 15-20 per cent in some
categories of shoes and efforts are being made to keep the factories loaded to reduce
fixed costs. This, coupled with outsourcing of finished products, which the company cannot
afford to manufacture, will help it reduce the net loss in the second quarter.
Bata India posted a Rs 3.02 crore loss in the
quarter ended March 31, 2001.
Aggressive brand-promotion, revamping existing retail outlets apart from setting up new
wholesale retail stores are part of the overall strategy to improve financials.
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Renaissance
plans to be the numero uno hotel in Mumbai
Mumbai-- Renaissance, the US-based Marriott International’s five-star deluxe
hotel brand, is to begin operations in Mumbai this month. Located in North Mumbai at Powai
Renaissance combines the attributes of being a deluxe five-star hotel and has the added
attraction of housing the largest convention centre in Mumbai and Western India, according
to company officials.
With the infrastructure in place, Renaissance aims to attract international conventions
and trade fairs to Mumbai. The hotel is targeting to generate 40 per cent of its revenues
from trade fairs and conventions.
Says a senior company official Marriott specialises in convention and event management
business globally and has an event management team which manages and organises events.
The convention centre spread over a massive 80,000 sq feet has a large indoor and outdoor
meeting space. The enclosed ball room inside is 13,000 sq. feet which can accommodate
3,000 people for a party and can seat around 1,700 people at one go. In addition to the
grand ball room, there are two more ball rooms (4,000 sq.feet) and 15 meeting rooms. It
also has a 10,000 sq.feet terrace for open-air banquets.
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Amtrex Hitachi hits out
at design pirates
Ahmedabad-- Amtrex Hitachi Appliances, AHAL, which took
Godrej-GE appliances to court over alleged imitation of its air-conditioner designs
recently, has trained its guns at the unbranded segment in the air-conditioning industry
for alleged violation of its copyright over air-conditioner grill designs.
AHAL has filed a petition in the Delhi high court seeking an injunction on the alleged
infringement of its grill designs by a New Delhi-based manufacturer.
The high court granted a stay on the manufacturing and sale of these air-conditioners with
duplicate designs and appointed two court commissioners to visit the concerned factory and
seize the dies, blocks and grills used by them. The court has also directed the local
police to assist the court commissioners.
AHAL had registered the grill designs under the Designs Act in May 1998 and the Controller
of Patents had accepted its application and registered the design. The petition said that
the grill was designed at Hitachi design centre, Tokyo, Japan and developed for local
conditions by AHAL.
The novel shape, configuration and design of the air conditioner grill had helped in
generating goodwill among purchasers, traders and consumers.
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RCI launches
travel services
Bangalore--RCI India, a timeshare vacation exchange announced the launch of its new
travel company, RCI Travels, in India.
RCI Travels that is meant to be a single window for travel-related services will be
headquartered in Mumbai.
According to company officials the travel company will offer added value to the range of
services RCI provided to approximately 40,000 member-families in India, Nepal, Sri Lanka
and Maldives. The idea is to create a one-stop travel shop for our members.
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Asian Paints net
up 9.29 percent in 2001
New Delhi—Asian Paints India has posted a net profit of Rs 106.39 crore for
the year 2000-01 against Rs 97.34 crore reported last fiscal year.
The company's total income for the year ended March 31, 2001, stood at Rs 1215.01 crore
compared with Rs 1079.75 crore in the previous year.
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Bharat Petro
net profit up by 16.50 percent
New Delhi—Bharat Petroleum Corporation's, (BPCL), net profit for stood at Rs
820.1 crore for 2001, against Rs 703.9 crore for the previous fiscal year.
The petroleum mojor's total income for fiscal year 2001 was at Rs 46,232.4 crore against
Rs 33,532.9 crore the previous fiscal year.
On a quarterly basis, the company's net profit rose to Rs 160 crore for the quarter ended
March 2001, against Rs 154.5 crore for the same period last fiscal year.
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VST, Brightstar imbroglio may be heading for the courts
Mumbai--The battle for VST Industries is possibly heading
towards the courts following Securities & Exchange Board of India’s Sebi’s
ruling that shareholders who have already tendered their shares with Russell Credit cannot
switch over to Damani’s higher offer of Rs 151 per share.
Over 4 per cent of VST shareholders are understood to have subscribed to the ITC offer
even before Damani’s opened.
The Damani camp is against the ruling on the grounds that Sections 5 & 6 of the Indian
Contracts Act say a shareholder despite tendering shares to one offer could withdraw as
long as the offer remained open.
Sources close to Russell Credit said it will stick to what Sebi says.
Both the offers close on June 13.
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Pajero to be launched in Sept, price set at Rs 22 lakh
Mumbai—Sports utility vehicle Pajero will be
launched in India by September this year and will sport a price tag of around Rs 22 lakh
for the base version.
Hindustan Motors and Mitsubushi Motors have finalised the details of the launch.
The C K Birla group flagship, Hindustan Motors, is planning to import the Pajero in the
completely built unit (CBU) form, notwithstanding the higher levels of import duties
against the completely knocked down (CKD) or semi knocked down (SKD) options.
As CBU imports are currently not allowed in the 1,000-2,500 cc engine capacity range, only
the diesel versions of Pajero will be available during the initial period.
The company is also considering the 2835 cc turbo-diesel variant for imports, as the
petrol version is available only in the sub-2500 cc category.
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Dabhol to challenge MERC
order in high court
Mumbai--The Maharashtra State Electricity Board (MSEB)
decided to challenge, in the Mumbai High Court, the order of the Maharashtra Electricity
Regulatory Commission (MERC) restraining it from seeking recourse to international
arbitration till June 14. The case is slated to come up for hearing on June 11, three days
before the next MERC hearing.
DPC says that it is beyond MERC’s jurisdiction to debar the company from proceeding
with international arbitration. DPC has informed MERC about its decision in a
communication dispatched this evening, MERC officials said.
When contacted, the DPC spokesperson declined to comment on the issue.
MSEB has slapped a claim of Rs 401 crore on DPC for non-supply of power at adequate levels
on January 28.
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UB abandons Inertia-Alcobev merger plans
Mumbai--The UB group has dropped plans to merge Inertia
Industries, in which it recently acquired a 51 per cent stake, with Millennium Alcobev,
the beer company set up by the group and former Shaw Wallace managing director Ravi Jain.
According to the new plan, Millennium Alcobev will transfer its beer brands, human
resources and assets to Inertia Industries, and remain just a shell company. After this is
completed Inertia will be renamed Millennium Alcobev.
With this transfer, the UB group will hold 34 per cent stake in the new company, 17 per
cent stake will be held by Ravi Jain, 13 per cent by the ESOP Trust, while, Sunil Tandon,
the former promoter of Inertia, and his family will hold around 4 per cent and the balance
32 per cent will be with the public.
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TGIF to open shutters in Mumbai soon
New Delhi--Thank God It's Friday (TGIF), has drawn up
plans to foray into the Mumbai market within this fiscal.
TGIF is run by Bistro Hospitality Ltd, a joint venture of Vickers Ballas, Punj Lloyd and
Escorts , a master franchisee for TGIF in India.
TGIF is part of the US-based Carlson group.
The company is eyeing several locations and is likely to finalise it in the near future.
The only problem the company is facing is the availability of land in Mumbai at prime
locations suitable to its specifications.
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BoI to reduce govt stake by 25 percent
Mumbai--Bank of India (BoI) is planning to reduce the
Centre's stake in the bank to 51 per cent from the present 76 per cent during the current
financial year and will pay around Rs 150 crore to the government for its stake.
BoI will also negotiate with the
government on the issue of returning the capital preferably at par.
This move will improve its earnings per share substantially though the capital adequacy
ratio will come down to 11 per cent from 12.23 per cent at present. The bank is also in
the process of closing down wholly owned subsidiary, BoI Finance, while its mutual fund
will not undertake any new business. It will either close down the mutual fund, which runs
3 open-ended schemes and has a corpus of Rs 30 crore, or sell it off.
BoI posted a healthy 45.75 per cent growth in net profit at Rs 252 crore in financial year
ended March 31, 2001 as against Rs 172.81 crore posted last year. This is despite the bank
absorbing extra-ordinary VRS expenses of Rs 330 crore and making full provision of Rs
134.46 crore for probable losses arising out of the pay-order crisis. The bank's Board has
declared a 15 per cent dividend for 2000-01 as against 10 per cent last year.
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