TCS registers net growth of 8 percent Mumbai—Tata group company and frontline Indian IT company, Tata Consultancy Services, TCS, has reported the slowest bottomline growth at less than 8 percent among leading IT companies in India. Although in terms of revenue TCS registered a growth of 36-40 percent in fiscal 2001, in terms of profitability it has definitely taken a hit.

Tata Sons has also reported a low bottomline growth of 7.7 percent to Rs 714 crore in 2000-2001 from Rs 663 crore in 1999-00. Despite the poor growth in profits Tata Sons has upped its dividend to 200 percent from 165 percent last year.

Tata Consultancy Services accounts for 90 percent of revenues and profits of Tata Sons.

Its revenue is estimated to have gone up to around Rs 3,100 crore from Rs 2,200 crore last year.

TCS employs 16,000 IT professionals across 50 countries.
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RBI may allow foreign banks to buy PSU bank branches
Mumbai—The Reserve Bank of India is considering a proposal to allow foreign banks to buy the branches of public sector banks. The decision is likely to be taken by the end of year 2002.

The need for such an action has arisen, as the PSU banks are unable to maintain standards of service at their branches with several employees having taken the voluntary retirement schemes offered by the banks. Over one lakh out of 8.6 lakh state owned bank employees have opted for VRS.

Also foreign banks like Standard Chartered, HSBC and Citibank have evinced interest in buying the branches as it would give them the advantage of capturing the customer base of PSU banks and they will also get the opportunity of being present in different centers. The proposal, if it goes through, will be advantageous to both the state-owned banks and the foreign banks.

Taken together 27 PSU banks have 46,000 branches across the country with the state Bank of India accounting for 9,000 branches, SBI associates has another 4,500 branches Punjab National Bank, 3,600 branches, Central Bank 3,000 branches, Bank of India, Canara Bank and Bank of Baroda all have over 2,500 branches together.
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Tata Group may merge Rallis with Tata Chemicals
Mumbai—The Tata group is examining the possibility of merging group firm Rallis with Tata Chemicals in order to strengthen synergies in the fertilizer business.

If the merger goes through, it will create a giant chemicals company with turnover of over Rs 2, 500 crore.

Rallis has been the sole marketing agency for Tata Chemicals since a long time selling urea in UP, Punjab and Haryana to the tune of Rs 350 for Tata Chemicals alone.

Tata Chemicals, which has reportedly been going through a restructuring phase, has decided to focus on the soda ash, salt and fertilizer business and exit other areas.
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Nokia acquires Amber Networks
Mumbai-Nokia, the mobile telephone major has acquired Amber Networks in an all-stock deal valued at $ 421 m. Amber Networks in involved in developing router platforms and was set up in 1998. The company has its headquarters in California and a developmental centre in Bangalore.

Company officials say that the objective behind the acquisition is to combine Nokia’s mobile routing capabilities with those of Amber Networks, establish a leading team of engineers and the first tolerant routing platform.

Nokis has applied to the foreign investment promotion board top set up a software developmental centre in India.
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Reliance ready to move into biotech
Mumbai—Reliance Group is ready to move into biotech having finalized the blue print for the foray. Reliance has selected the cities of Lucknow and Thiruvananthapuram as the locations where it will set up the research and developmental systems.

Sources said that though the exact investment would not be too big the group is trying to create greater synergy between its healthcare and insurance business with the biotech business. This could presage the company foraying into the healthcare insurance business. Reliance already owns a hospital in Mumbai and is planning to set up another one in Delhi.

Reportedly the group has put in place a professional management team headed by KV Subramaniam for its biotech business.
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NIIT slashes workforce by 6 percent
Mumbai—For the first time since its inception NIIT the IT training and software operations company has slashed its workforce by more than 6 percent between March June this year.

Its software business reduced staff by almost 6.5 percent during this period to 2,415 people in March 01 from 2582 people in June this year.

Officials say the measure was necessary to cut costs and ensure future profitability.

Unlike other software companies like Wipro and Infosys, which can afford to weather the slowdown because of their large reserves of cash, NIIT does not have this advantage and thus cannot afford to ride out the recession. The company has been facing a severe cash crunch in recent and gave a profit warning on March 19 this year saying that its profits would be 30 percent lower for the third quarter ending June. However, it announced a drop in net profits of about 93 percent for the quarter.
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1,400 workers accept M&M VRS offer
Mumbai—The voluntary retirement scheme offered by Mahindra and Mahindra, M&M at three plant locations has proved to be a hit with 1,400 workers, accounting for almost 8 percent of the total employees strength of the company, having opted for it say company officials. The scheme was offered at the locations of Kandivili, the company tractor and automobile manufacturing unit, at its headquarters at Worli and at another office at Ghatkopar.

The total expenditure incurred on the scheme could be in the region of Rs 85 crore. In fiscal 2001 M&M earned a net profit of Rs 120 crore on income of Rs 4353 crore.
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Jindal Group may takeover Vishnupriya Steel Mumbai—Financial institutions led by IDBI are giving final touches to a possible takeover of Vishnupriya Steels by the OP Jindal group.

While the FIs are said to have initiated the offer, the Jindals are said to be equally keen as the Shree Vishhnupriya steel operations has synergies with its hot rolled coil steels operations at Jindal Vijayanagar Steel, JVSL, in Karnataka.

It is estimated that the 1.6 million-tonne JVSL could supply HRC to Shree Vishnupriya Steel for cold rolling and further value addition.

The domestic HRC market at the moment is in a state of oversupply and steel companies are finding it difficult to sell steel, this deal could help JVSL.
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SET bouquet to expand
Mumbai—With pay TV an inevitability and Star TV increasing ad rates, the complexion of Indian television is witnessing a change. Aaj Tak has signed a deal with Sony Entertainment Television, SET, for the distribution of the Hindi news channel in UK and the Middle East. Aaj Tak will provide SET the live 10-11 PM feed to be broadcast during prime time to SET’s subscribers in the UK.

There is also the possibility of the Discovery channel becoming a part of the Sony bouquet of channels. This is due to the fact that with Star TV hogging TRP ratings and having upped its ad rates niche channels like Discovery channels are feeling the heat of reducing ad revenues.

For SET it is crucial to expand its bouquet of channels as it just has three channels of its own. In order to become a pay channel, which it intends to by August, it wants to expand its offerings and prepare for the upcoming battle for the DTH, direct to home, market.
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SBI in tie up with NCR India
Mumbai—State Bank of India has stuck an alliance with the NCR India, the Indian subsidiary of the US automated teller machine maker, to transfer its entire ATM network to SBI.

The two are also said to be in talks to form a joint venture that will handle back-office network management.

For the present NCR will look after SBI’s network of ATMs. Sources in NCR said that in the first phase the company would be managing about 500 teller machines including those that have sold to SBI by other manufacturers.

NCR has a facility in Andheri, which has the capability of handling 2000 ATMs in 60 cities. This capacity will expanded to 5000 ATMs.
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Godrej surges ahead
Mumbai—Godrej Consumer Products, the former Godrej Soaps does not seem to have been affected by the slowdown in the consumer goods market in the April-June quarter of 01. The company’s sales are up 35 percent to Rs 140.4 xrore against Rs 103.9 crore in the corresponding period last year. It was revealed at an analysts meet recently that three out of four lines of businesses of the company have in fact revealed strong growth. Volumes in toilet soaps grew by 10 percent while the overall market declined. Godrej’s market share in soaps thus grew from 5.3 percent to 5.9 percent in the April June quarter. Sales of soap brands like Cinthol, Godrej No 1 and Fairglow grew by 23 percent to touch Rs 104.9 crore in this quarter. The hair colour business grew by 27.9 percent to Rs 27.9 crore. It market share in hair colour grew to 44 percent from 41.8 percent last year. The hair colour industry grew by 20 percent Godrej officials said quoting ORG figures.
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