Daewoo shuts engine plant
New Delhi: Daewoo India Ltd (DMIL) today formally announced the closure of its engine and transmission plant at Surajpur. The plant has been lying idle since October.

DMIL said it had signed an agreement with the workers union for a severance programme for the 237 workers affected by the closure of the plant. The workers were paid a severance package totaling Rs 6-7 crore.

DMIL had appointed a Europe-based consultant to find a buyer.

The formal closure of the plant would not affect the search for a buyer, said a company spokesman.

Daewoo Motor Corp had invested Rs 2,300 crore in the plant that was to become the outsourcing hub for the Korean company's operations in several international markets.
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HM slashes Lancer spares parts prices by 20-50 percent
Mumbai--Hindustan Motors (HM) has cut the prices of spare parts for Mitsubishi Lancer by 20-50 per cent following negotiations with the Mitsubishi Motor Corporation, the Japanese auto major with which it has a license agreement for selling the Lancer.
HM is also planning to commence exports of 80-100 units of Mitsubishi Lancer to Bangladesh and Sri Lanka, two of the three countries to which it is authorised to export the Lancer.
The rationalisation in spare part prices is expected to correct the high cost of spares, which so far resulted in higher maintenance costs for customers.

Some of the parts whose price has been reduced are element air cleaners (price cut from Rs 2,533 to Rs 660), tie rods (Rs 3,133 to Rs 1,324), clutch discs (Rs 5,254 to Rs 2,575), combination lamps, and mirror and holder sets.
This is also the first time since HM has signed a license agreement with Mitsubishi Motors that it will be exporting the Lancer.
The company is currently waiting for the Automotive Research Association of India clearance for launching the Pajero, Mitsubishi's high-end sports utility vehicle, in India..
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GIC may face $5 million loss
Mumbai: The General Insurance Corporation (GIC) expects to suffer a loss of $5 million on account of its exposure to the US market through treaties signed by GIC with a London broker.

The exposure was largely concentrated in the World Trade Center and properties in the vicinity.

GIC does not accept business directly from the US market mainly because the business in the US involves high risk, while the premium rates are low and liabilities huge.
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HPCL plans Rs 1,000 crore primary issue
Mumbai: The public sector Hindustan Petroleum Corporation Ltd (HPCL) has decided to go in for a Rs 1,000 crore primary issue to fund its Bhatinda refinery in Punjab.

While Rs 100 crore would be a direct equity issue, the balance Rs 900 crore would be in quasi-equity instruments like optional fully convertible debentures.

The corporation has approached the Securities and Exchange Board of India (SEBI) for the issues clearance.

The 9-million-tonne grassroot refinery will be set up and managed by Guru Gobind Singh Refinery Ltd (GGSRL), a subsidiary of HPCL. GGSRL is a 74:26 joint venture between HPCL and Punjab State Industrial Investment Corporation.

The Bhatinda refinery is expected to produce liquified petroleum gas, naphtha, kerosene, gasoline and diesel.

HPCL plans to implement the project as a joint venture with Punjab State Industrial Development Corporation (PSIDC) following withdrawal by global oil majors like Saudi Aramco and Exxon Corporation.
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Nagarjuna Fert asked to stop investing in arms
New Delhi-Financial institutions (IDBI, ICICI and IFCI) have asked Nagarjuna Fertlizers and Chemicals, the Rajus-promoted Nagarjuna groups flagship, to stop further investments in two group subsidiaries - the 6 MTPA refinery project, Nagarjuna Oil Corporation Ltd and the 1000 MW Nagarjuna Power Corporation.
This is part of a restructuring package for the cash-strapped company.
The package, finalised at the senior executives meeting (SEM) of FIs held recently, envisages staggering the repayment period for the term loans and NCDs into 12 years including a two-year moratorium and extending additional loans to fund the companys interest payments to the FIs for one-year upto March 2002.
NFCL will get a reprieve for two years in commencing its repayment to FIs, which will now start from July 2003.
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Infosys Tech offers ESOP
Bangalore: Infosys Technologies Ltd has decided to allot 883,170 equity shares at par value of Rs 5 per share to its 2183 employees under the employees stock option plan. An aggregate of 418,500 ADS linked stock options will be given to 277 employees.
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Spic pulls out of race for MFL
Chennai: Southern Petrochemical Industries Corporation Ltd (Spic) has decided to withdraw from the race for acquiring governments stake in the public sector Madras Fertiliser Ltd (MFL).
Spics decision to pull out of the race is likely to hit the already delayed MFL disinvestment process as several other companies that had evinced interest earlier too backed out later.
Spic was a serious contender for the ailing public sector company, as it had seen some synergy in the product lines of two companies.
Madras Fertilisers Ltd is one of the leading producers of NPK complex fertilisers and urea and had a turnover of Rs 1,230 crore. The Government, as part of its disinvestment move is putting on block 33 per cent equity stake in the Chennai-based company. The company does not have a full time managing director since the former incumbent left the office a couple of months back.
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Oriflame makes India its regional Asia hub
Chennai: Oriflame India has been made the regional sales and marketing and research and development hub of its parent company, the Sweden-based cosmetics major Oriflame International.

The Rs 100-crore Indian subsidiary, which is the fifth largest contributor to the Oriflame Group sales of $550 million, is also gearing up to launch a new product every month by 2003.

The company will target Bangladesh, Philippines and Vietnam markets from India besides Sri Lanka, Thailand, Malaysia and Indonesia. The company plans to grow its exports from India from the current two million units to 15 million units.

After launching five new products this year, the company has plans to introduce six new product lines next year and one new product each month the year after.
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Arvind Mills to market Healthtex in US
New Delhi: Arvind Mills has acquired an exclusive licence from the US-based V F Corporation to manufacture and market Healthtex, the $200 million global kidswear brand, in India.
Healthtex will be the third VF Corporation brand under the Arvind umbrella, the other two are Lee and Wrangler.
Company officials said, We are sticking to our plans of launching Healthtex in December. The branded kidswear segment is small and there is a good demand for childrenswear in the country. With Healthtex, we will be able to cater to both boys and girls between the age group 0-14.
The company proposes to launch 10 exclusive Healthtex stores in 8 metros initially which will be further taken upto 50 stores in the next 18 months. This apart, it plans to begin through 25 multibrands outlets as well.
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Movenpick expansion plans
New Delhi: Movenpick, the Swiss ice cream and coffee company is planning to open outlets in nine cities across India.
The cities where the company is planning outlets are Ahemdabad, Bangalore, Calcutta, Chandigarh, Chennai, Goa, Hyderabad, Mumbai and Pune.
A senior company official said the companys prime focus in the coming years will be India, as there are plans to open 25 outlets in India by 2003. The total investment on equipment for the next 2 years would be to the tune of Rs 3-4 crore.
Latest on cards is an outlet in Bangalore that is scheduled for opening on 4th October. There are also plans to open an outlet in Mumbai in Bandra by the end of the next year.
Also opening on 16th October is another outlet in Delhi at PVR- Vikaspuri.
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Titan clocks 9 per cent rise in sales
New Delhi: Titan Industries Ltd, the watches and branded jewellery-manufacturing company, expects to post over nine per cent growth in turnover at Rs 775 crore and also boost profit in this fiscal, a senior company official said.
Last year, Titan had registered a sales turnover of Rs 709 crore and Rs 21 crore profit. But, in the first quarter (April-June 2001-02), it had incurred losses of around Rs 14 crore over a turnover of Rs 102 crore.
Titan, he said, would also increase its exports during 2001-02 by about 20 per cent from last years Rs 45 crore.
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Amex launches travel card
New Delhi: At a time when business travel has become more frequent than ever before, managing expenses towards travel and entertainment have become prime source of concern for many corporates. This has prompted American Express Travel Services division to come up with solution - Business Travel Account (BTA).
BTA is a card-based, centralised air travel billing system from American Express Bank. However, BTA is a no-plastic virtual card. Having a BTA, companies can charge all their air travel bills to this account make a centralised payment through this account and thereby keep a tab on expenses towards travel and entertainment.
Travel agencies of a company having BTA transmit transactions on specially designed charge slips which are captured by the BTA system within three days after the ticket is issued. BTA not only brings savings on process costs related to expensing and reconciliation of air travel expenses, but also helps in managing the same.
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Amul to set up 4 pizza factories
Ahmedabad: Gujarat Co-operative Milk Marketing Federation (GCMMF), the owner of Amul, is planning to set up four pizza factories in the four regions of the country with an aim to sell at least 300,000 pizzas a day under the Utterly Delicious brand name.

The dairy cooperative is also expected to launch chocolate flavoured milk under the 'Amul' brand name next month to take on the existing players like Britannia Industries which sells the product under the Milkman brand.
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Bombay Dyeing to cater to the popular market
Mumbai: After having attained an upmarket image very successfully, Bombay Dyeing now intends to cater to the low end of the market and will launch a series of low-end products soon. These products aim to make a dent in the huge unbranded products market that appeal to price sensitive lower middle class consumers.
A company official said, the company will make these products available at an affordable price and guarantee quality and the present thrust of the company is to make its products available to the consumers in every nook and corner of the country.
In fact, Bombay Dyeing will have at least 1,000 retail outlets across the country either owned by the company or through franchises by the end of 2004.
At present the company is working on a plan to strengthen existing retail outlets and launch a host of popular home products, like bed sheets, pillow covers, towels, blankets, etc, at affordable prices.
In 2000-01, the Bombay Dyeing had a turnover of Rs 1000 crore, of which the textile business contributed nearly Rs 500 crore.
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SWC to set up arm in British Virgin islands
Kolkata: Shaw Wallace says it plans to float a new company abroad in the name of Shaw Wallace International that will act as a nerve centre for the overseas distribution of its products.
The proposed subsidiary or joint venture company will be set up at British Virgin islands or any other tax haven to enable it to globalise the business of liquor and beer by making inroads into new territories, an Shaw Wallace official said.
In addition, as part of restructuring exercise, which has identified three core areas -- brand ownership and marketing, liquor distilling and beer brewing, SWCL has undertaken an exercise to merge various investment companies into two manufacturing subsidiaries and merger of various liquor/beer manufacturing subsidiaries into just two manufacturing subsidiaries one each for liquor and beer, the official said.
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Orangeboom beer from Netherlands to be launched in India
Mumbai- Orangeboom, the beer from the Netherlands, made in United Dutch Brewery, a 100 per cent subsidiary of the Belgium based beer major, Interbrew, was formally launched in Mumbais open market on Wednesday.
The can of beer, to be priced at Rs 99 for 330 ml, will be competing in the Indian market with premium imported brands Heineken (Rs 134) and Corona(Rs 145).
The beer is now consumed in over 60 countries. Oranjeboom has made its mark in the world beer market with its strong presence in the duty free shops world over, UDB claims.
The name however, is not an indication to its taste. With an alcohol content of 5 per cent, the beer is mildly bitter.
The manufacturers of the beer claims the water used in making Oranjeboom is drawn from 100 metres deep well of crystal clear water.
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UB to hike Kalyani capacity
Kolkata-United Breweries (UB) group chairman Vijay Mallya said UB was stepping up its presence in West Bengal and has decided to double the capacity of Kalyani Breweries in West Bengal even as it submitted a rehabilitation package for Castle Breweries Ltd.
The expansion will increase Kalyani Breweries capacity to 4 lakh hectolitres per annum from 2 lakh hectolitres now.
UB at present controls more than 80 per cent of the beer market in West Bengal.
Mallya, however, did not reveal the amount that was needed to invest to increase the capacity. The group intends to shift some of the machines from its Bangalore brewery, which is being shut down.
Meanwhile, the group has submitted a revival package for Castle Breweries Ltd, formerly Jupiter Breweries Industries Ltd, to the Board for Industrial & Financial Reconstruction.
Located in West Bengal, Castle Brewery has a capacity of 50 hectolitres per annum.
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Rs 63-cr Glaxo VRS
Mumbai - GLAXO India will spend a little over Rs 63 crore for the voluntary retirement scheme at its factory in Worli, Mumbai.

The VRS offer between August 7 and September 4, received applications from all 492 workmen on the shop floor at the Worli premises.
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