Gujarati Newspaper Group Eyes Voltas
Mumbai: The Tata group company, Voltas, is viewing with concern the purchase by a Gujarati newspaper of over 13 per cent of its shares. The Ahmedabad-based Gujarat Samachar group has bought 4.4 million shares of Voltas and has made its intention known to make an open offer to buy more stakes in the airconditioner manufacturing company.

Voltas has an equity base of Rs 33.08 crore of which the Tatas hold just over 20 per cent while as much as 40 per cent stock is floating and financial institutions hold 24.5 per cent stake. With bank deposits amounting to Rs 140 crore, the newspaper group is well placed to play a role in the equity market.
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American Express to increase staff in India
MumbaiThe Indian unit of American Express is planning to increase its workforce in the country to support its overseas businesses.
This is despite the group having announced job cuts worldwide. an official said on Monday.
An official spokesman for the company said, Amex was putting in place a centre to process overseas transactions and for this it is increasing its workforce by several hundreds. However, he official declined to give the number that the bank planned to hire.
In July, American Express, which employs about 89,000 people worldwide said it will cut between 4,000 to 5,000 jobs to deal with falling revenues, a weak stock market and economic conditions after already planning to shed 1,600 positions.
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VSNL launches VRS, scheme open till end-Sept
Mumbai--Videsh Sanchar Nigam (VSNL) has launched its first ever, voluntary retirement scheme (VRS). The scheme will be open till September 30. Employees who have taken training abroad at VSNLs cost in the last five years will not be considered for the VRS, unless they complete five years in service after the training.

The scheme is applicable to permanent/ regular employees who have completed 10 years of continuous service with VSNL and have attained 50 years of age as on the date of application.

The VRS assumes significance as the government, which owns 52.97 per cent stake in VSNL, is in the process of offering 25 per cent stake to a strategic investor.
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HSBC to hire 7,000 people
AhmedabadThe Hongkong and Shanghai Banking Corporation Group (HSBC) has chalked out a massive recruitment drive, with plans to take in more than 7,000 new people in the country by the end of 2004.

A top official at HSBC said, half of the new recruits will be for the global back office processing work and the remaining work force will be appointed for the groups various financial activities.

At present, HSBCs staff strength in India is around 3,500. In the first phase, the group is planning to add 3,000 recruits to its staff by the end of 2003.

HSBC group has decided to expand its ambit for global back office work activities in India by recruiting more people in this segment. It has set up a subsidiary company, HSBC Electronic Data Processing (India) Private, for this in Hyderabad.
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Royal Airways may hit sticky patch before launch
New Delhi-Royal Airways, ModiLuft by another name, is planning to push for an early re-launch by infusing $17.5-million additional investment.
However, S K Modi, who is the first promoter, has kicked up a row by writing a letter to the Bombay Stock Exchange virtually challenging the authority of the airlines new management,
Royal Holding Services of the US. The latter hold around 57 per cent equity in the company, while Modi holds about 16 per cent.However, the airline is headed for some trouble before the re-launch.

Modi has reportedly written a letter to the Bombay Stock Exchange seeking to prevent others from corresponding with BSE authorities, saying that forces 'within and outside' the airline are out to sabotage the re-launch.

Modis letter has stumped the board of Royal, which has been managing the company, after it acquired a majority stake in the airline. It says that Modi resigned as whole-time director of the company in 1996 and has not been authorised by the Royal board to take part in the day-to-day management.
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Tata Tea makes Tetley SPV a subsidiary
Mumbai--Tata Tea (GB) Ltd, the special purpose vehicle (SPV) used to acquire the shares of The Tetley Group Ltd, has now become a subsidiary of Tata Tea.
Tata Tea has acquired 85.70 per cent of the paid-up share capital of Tata Tea (GB) valued at Rs 428.98 crore. Tata Tea Inc held the balance 14.30 per cent.
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ITC e-choupals to be present in 14 states in 3 yrs
New Delhi--ITC Ltd is planning to invest Rs 200 crore in the next three years for developing its 'e-choupal' (electronic commerce initiative) in 14 states in the country.
A top official of the company said, "ITC will widen its operations both in terms of region and products through the e-choupal concept. We will include wheat and basmati rice by establishing their base in western Uttar Pradesh and Haryana and will explore sesame seeds and hand-picked groundnuts in Gujarat, spices from Kerala and fruits and vegetables from Andhra Pradesh and Karnataka," He added that the company would be venturing into branded atta and spices within a year.

He said ITC was targeting a revenue of Rs 100 crore from e-choupal in the current year.

The e-choupal concept was begun by ITC in June 2000 and the company has invested Rs 10 crore so far. Under e-choupal farmers are given updated information on the web on both local and international prices, speeding transactions and ensuring price discovery in the state's local language, he said.
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