Tata Steel in JV with German co
New Delhi: Tata Steel is setting up a joint venture with IQ Martrade Holding Und Management of Germany to handle cargoes and provide complete port management services at various ports in India.

In the Rs 38 crore joint venture, Tata Steel holds 51 per cent equity while the remaining 49 per cent equity is held by the German collaborator.

The joint venture company will handle all the imports and exports of Tata steel through Paradip and Haldia ports. At home, it will provide port management services at Paradip, Haldia and Mumbai and will also undertake operations abroad.

The company will also engage itself in the development of berth, jetty and warehousing facility at various ports in India.

The German collaborator has 835 employees. It had a turnover of $175 million in 2000.
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Adani group ties up with Malay co
Ahmedabad: The Adani group has tied up with Malaysia-based Polygon Services as a technical partner for their Mundra Port project.

Polygon would operate only as consultants and not have equity participation.

Polygon will design systems and standard operating procedures and strengthen business processes as per global benchmarks. Integrated solutions are made possible by IT enabling of port operations as well as by providing interfaces with customers that Polygon will develop.

The Adanis hope to achieve international benchmarking in the bulk liquid and dry cargo operations through this tie up. A benchmarking exercise, comparing perforfance parameters of Mundra Port with similar ports worldwide, is already under way.

Polygon Services have extensive experience with some of the leading ports like Port of Singapore and Port Klang of Malaysia and Mundra Port would seek to leverage Polygons experience in this regard.
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Indian Rayon to set up unit in Bangalore
Mumbai: Indian Rayon, an A V Birla group company, is setting up a suits and jacket manufacturing unit in Bangalore. The ready to wear garments will be retailed under the Louis Phillipe and Van Heusen brands.

The unit is expected to start commercial production by the end of the year. An Italian company is providing the technology for the plant as also the style of the suits and jacket.

The unit would make 400 suits and jackets a day. The company is planning to price these products in the Rs 3,500 to Rs 12,000 range. A turnover of Rs 30 crore is expected in the first year.

The company has the worldwide rights for Louis Phillipe and Van Heusen brand of garments.
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Cisco Systems forays into India IP mart
New Delhi: Internet networking major Cisco Systems are entering the Indian market for communications systems based on internet protocol (IP) telephony solutions.

Ciscos IP-based products can be connected directly to the BSNL and MTNL networks to carry voice traffic from the internal enterprise PABX to anywhere in the world.

IP-based solutions would enable companies to install video conferencing, directory integration and such applications as prioritising calls, identifying calling party name and number, calls received, missed calls and dialled calls.

According to a 1999 research report by Frost & Sullivan, the Indian PABX market had been estimated at $63.9 million with more than a million unit lines.
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Compaq offers IT financing
New Delhi: Compaq Financial Services will offer a wide range of IT financing solutions for servers, desktops and notebooks.

The company, a wholly-owned leasing and financial asset management subsidiary of Compaq Computer, would provide IT acquisition and management solutions to Compaq customers.

The services will include asset tracking and management, customised financing solutions, needs assessment, technology upgrades and disposition of equipment.

India is the 42nd country in which the company provides customers with IT financing solutions.

"As one of the world's fastest-growing IT markets, India is an ideal geography for Compaq Financial Services," said CFS president Irving Rothman.

CFS India would offer leasing and finance solutions to government organisations, education, health institutions, finance, telecom and manufacturing enterprises, said CFS Asia Pacific managing director John Sutherland.
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CDC to pick up 20 pc stake in UTI Bank
Mumbai: Commonwealth Development Corporation (CDC) is expected to pick up 20 per cent stake in the UTI Bank.

Unit Trust of India (UTI) currently holds 65.65 per cent in UTI Bank Ltd.

Meanwhile, UTI Banks board of directors will be meeting on Friday to consider a preferential issue of equity shares to foreign investors.

In a notice sent to stock exchanges, the Bank said the board will consider a proposal to make a preferential issue of equity shares under SEBI guidelines at a price to be decided by the board to one or more foreign institutional investors (FIIs) or foreign direct investors.

The objective of the issue is to raise the tier-I capital of the bank with a view to increasing its capital adequacy ratio.

The bank has to seek approval of its shareholders and the RBI for making preferential issue of shares to a foreign equity fund.

The bank has to bring down its promoters' stake from the current level of 60.65 per cent to 40 per cent by the end of September as per Reserve Bank of India regulations, the notice said.

The UTI Bank was forced to call off its mega merger plan with Global Trust Bank (GTB) early this year, following allegations of share price manipulations.
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Titan to give up publishing
Bangalore: Titan Industries Ltd, India's largest watch maker, is pulling out of RDI Print & Publishing Ltd, the publisher of the Reader's Digest monthly magazine in India. It has already offloaded 65,000 shares resulting in a profit of Rs 9.66 crore. The remaining holding, roughly about 20,000 shares, in the publishing firm will be sold in the ongoing financial year, the company's latest annual report said.

Currently Titan, along with Tata Infomedia Ltd, holds about 78 per cent equity stake in RDI Print & Publishing Ltd.

A decision to exit Reader's Digest was taken by the company's board since publishing was not its core business.' This is despite the fact that RDI Print & Publishing Ltd continued to perform well, achieving a net profit of Rs 3.64 crore on an income of Rs 18.27 crore. It declared a dividend of Rs 100 per share resulting in a hefty 32 per cent yield on Titan's investment.

Titan may also dispose off its real estate holdings in Bangalore, which it acquired through Titan Properties Ltd.

Titan will focus on two core businesses -- watches and jewellery.

The company aims to build on its leadership stature in both segments and strive for revenue maximisation through cost reduction initiatives, better supply chain management and attractive dealer and consumer schemes.

But the company has stated plans to extend the Titan brand equity to other product categories within the personal accessories business and also deploy its precision engineering skills to make components for other industries.

Titan is likely to resort to a rights issue to infuse capital and expand its equity base in the first quarter of the next financial year, 2002-2003.
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TCS to go for IPO
Mumbai: Tata Consultancy Services (TCS) is in talks with top investment banking firms for its proposed initial public offering (IPO).

TCS is in talks with JM Morgan Stanley,DSP Merrill Lynch and Kotak Mahindra to explore if they can handle the IPO which is likely to be in the range of $100-$150 million.

The company, according to sources, will initially dilute about 10 per cent in the domestic market and pursue an overseas offering immediately after or maybe simultaneously.

TCS had been targeting the third to fourth quarter of 2001 for a possible entry into the capital market. At a recent press conference, TCS CEO, S Ramadorai had said that one of the key reasons for an IPO would be to create the currency for an acquisition. The process therefore is likely to be intensified once an acquisition target is finalized.

TCS is also among those suitors shortlisted for the final round of bidding for acquiring a controlling interest in CMC. The Government of India, which currently controls 83.31 per cent of CMCs equity capital, intends to disinvest 57.31 per cent of its holding to a strategic partner with an appropriate role in management.
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HLL exits animal feeds business
Mumbai: Hindustan Lever Ltd (HLL) exited the animal feeds business by selling its 26 per cent stake in Goldmohur Foods & Feeds Ltd (GFFL) to joint venture partner Godrej Agrovet.

HLL had earlier announced its intention to exist the animal feeds business, and in line with this, HLL had transferred its animal feeds business in April 2000, to GFFL, its 100 per cent subsidiary.

Earlier in January this year, Godrej Agrovet had acquired 74 per cent in GFFL. GFFL has now become a wholly-owned subsidiary of Agrovet, which is a leading player in the animal feeds and agricultural inputs market.

Commenting on the deal, Godrej Group chairman Adi Godrej said in a press statement: We have now integrated the operations of this business and the expected synergies of the combined operations, specially in the areas of procurement and R&D are being realised. We expect the two businesses to co-exist and grow the compound feed markets in India.

In the past few months, effective steps have been taken to arrest falling volumes and GFFL is now on a strong growth path. Operating profit has more than doubled in the period April-August 2001, as compared to the same period last year, the company said.

GFFL, with a turnover of about Rs 290 crore and a market-share of about 12 per cent in the organised sector, is a well-known player in the animal feeds industry. It sells its feeds under the brand Gold Mohur, which enjoys a strong goodwill and market support in the poultry and cattle feed markets.

The move has also enabled Godrej Agrovet to get a better geographical spread with GFFL having a strong presence in the western and southern markets.

Godrej Agrovet is part of the Rs 4,000 crore Godrej Group, and is a major player in the Indian agricultural sector, with a large presence in the compound animal feeds, integrated poultry, innovative agricultural input and oil palm plantation businesses. With a turnover of Rs 370 crore, the company has 37 manufacturing and processing units.
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Godrej Foods reports Rs 26 crore loss
Mumbai: Godrej Foods Ltd has reported a net loss of Rs 26.33 crore for the quarter ended June 30, 2001, as against a loss of Rs 6.15 crore in the corresponding period last year.

Net sales have dropped by 5.7 per cent to Rs 39.73 crore from Rs 42.16 crore last year. Total expenditure during this period has risen to Rs 59.78 crore from Rs 43.52 crore last year.

The financial year of the company was extended to 15 months ie March 31, 2001, to June 30, 2001.

In view of the prolonged recession in the international and domestic edible oil market, the company reduced the volumes of its trading activity, as also its branded edible oils products in order to reduce the business risks.

In the previous accounting year, the company had posted a net profit of Rs 1.18 crore.

The company had reported a turnover of Rs 174.44 crore for the 15 months period ended June 30, 2001, as against Rs 405.86 crore in the previous accounting year ended March 31, 2000.

The board of directors of the company have decided to demerge the manufacturing business of Godrej Foods together with its marketing, sales and finance and other related functions from Godrej Industries Ltd.
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Asahi (I) offers to acquire Float Glass shares at Rs 11
Mumbai: Asahi India Safety Glass Ltd (AISGL) is making an offer to shareholders of Float Glass India Ltd (FIL) to acquire up to 85,15,015 shares at Rs 11 per share.

The open offer follows AISGLs decision to purchase Japans Asahi Corporations 75-per cent holding in FIL. The board of AISGL, at its meeting, approved the proposal to acquire FILs Rs 5.85 crore, fully paid up shares, representing 75 per cent holding from Japanese company Asahi India Ltd (AIL).

Asahi Glass Co Ltd, a co-promoter and the single largest stakeholder of FIL, increased its stake in FIL from 49 per cent to 75 per cent early this fiscal. Asahi Glass Company had entered into an agreement to acquire the entire equity and preference share holding of its joint venture (JV) partners ACC, Tata Engineering and Tata International, which divested their combined stake of 26 per cent in FIL.
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Tata BP Lubes amalgamated into CIL
Mumbai: Tata BP Lubricants India Ltd has been amalgamated into Castrol India Ltd (CIL), following Tata groups decision to exit the lubricants business.

The board of CIL approved the proposal at a meeting on Thursday. Tata BP Lubricants was originally formed as a joint venture between the Tata Group and BP-Amoco of Mauritius.

After the completion of the transfer, BP Mauritius stake in Tata BP will increase to 99 per cent. According to a CIL press release, the Tata group and BP recently concluded negotiations for the transfer of the stake held by the Tata group and BP Mauritius. The press release said that the amalgamation of the two companies would provide several opportunities for savings through operational synergies.

The exchange ratio has been pegged at two shares of face value of Rs 10 each of CIL for 19 shares of face value of Rs 100 each each of Tata BP. The exchange ratio is based on an independent valuation done on behalf of both companies jointly by PriceWaterhouseCoopers and SB Billimoria & Co, the press release added.

Tata BPs products range includes lubricants, gear oils, grease and hydraulic oils of superior performance and value. The company had a market share of about 10 per cent in the commercial vehicle segment. It has a national distribution network with over 23 depots and 250 distributors.
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Unichem turnover rises to Rs 132 crore
Mumbai: Unichem Laboratories has registered a 14 per cent increase in turnover to Rs 132 crore for the first five months of the current fiscal, as against Rs 116 crore in the corresponding period last year.

The company expects to end the year with a growth rate of 19 to 20 per cent, Unichem chairman and managing director PA Mody said at the companys annual general meeting here on Thursday.

Dr Mody said that the company has entered into a memorandum of understanding (MoU) with the Indian Institute of Science, Bangalore, to undertake collaborative research by setting up a biotechnology laboratory at its new R&D centre in Mumbai.

Unichem wants to undertake gene research with a view to formulating new drugs.

Dr Mody said that Unichem expected to register an export turnover of Rs 25 crore this year, as against Rs 16 crore last year. Unichem is planning to enter the US market with its active pharma ingredients (APIs) and would be completing its first submission this month. The company recently opened a sales coordinating office in Moscow.
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