A-I plans Lufthansa link to boost Europe, US sectors
New Delhi: Air-India is planning a comprehensive commercial alliance with Lufthansa to boost its business in the European and American markets. Preliminary negotiations with the German carrier have been completed and Air-India chairman K Roy Paul is visiting Frankfurt next week to discuss tie-up details. The proposed collaboration will enable Air-India to market various destinations in Europe and the US which are connected by Lufthansa from its Frankfurt hub. The primary goal of the proposed commercial alliance is to increase Air-India’s market share on the India-US route to 25 per cent as compared to the 12 per cent at present, the new civil aviation minister, Rajiv Pratap Rudy, has been informed. During a presentation here on Thursday, Air-India officials briefed the minister on efforts to improve the product offered by the national carrier. The alliance planned by Air-India with Lufthansa is expected to be far stronger than the current tie-up with Air France
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Govt unveils selloff plan for 7 PSUs
Mumbai: The Union government on Friday announced an ambitious plan of disinvestment for at least seven of the public sector undertakings (PSUs), including National Aluminium Corporation Ltd (Nalco), within the next four months. The PSUs in which disinvestment process is expected to be completed by November this year are Nalco, National Fertilizers Ltd (NFL), Engineers India Ltd (EIL), Shipping Corporation of India (SCI), State Trading Corporation of India (STCI) Ltd, Hindustan Organics Chemicals Ltd (HOCL) and engineering major Balmer & Lawrie Ltd. This was revealed by disinvestment minister Arun Shourie in Mumbai on Friday to reporters on the sidelines of a news conference to launch the initial public offering (IPO) of Maruti Udyog Ltd (MUL).
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Govt Clears 21 FDI Proposals
New Delhi: The government has cleared 21 FDI proposals worth Rs 35.55 crore investment, including Rs 27 crore proposal by Advanced Mineral Asia for acquisition of shares in the Indian venture. Finance minister Jaswant Singh cleared these proposals on the recommendation of the FIPB, which held a meeting on May 8, says an official statement. The major investment proposals pertain to business of introduction of technology for CTVs, petrochemicals, wholesale trading, surgical equipment, printers, cameras, software development and cotton or other textile fabrics.
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MGL exploring NCD, ECB issues for debt restructuring
Mumbai: Mahanagar Gas Ltd (MGL), a joint venture of Gas Authority of India Ltd, British Gas and the Maharashtra government, has been exploring options of creation of security and escrow account, going in for external commercial borrowing, issuance of non-convertible debenture (NCD) issue for restructuring its debt. MGL has an outstanding loan of Rs 22 crore of IDBI and Rs 31 crore of Oil Industry Development Board (OIDB). MGL discussed these possibilities at its board meeting held on May 27 in New Delhi. Sources told FE that MGL has yet to take any final decision in this regard as these options were under its active consideration. MGL’s current outstanding to IDBI stood at Rs 22 crore which is at 12.5 per cent after reduction of rate from 16 per cent after payment of Rs 1.17 crore premium for rescheduling the terms. The company was looking at the option of continuing with IDBI loan since prepayment was not viable. MGL was considering creation of security of 1.33 times the current outstanding of Rs 22 crore. Security would consist of CNG assets, land and building which would save a penal interest rate of 1.05 per cent.
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BHEL shipments to Iraq may leave Chennai today
Chennai: The gas turbines and power equipment of Bharat Heavy Electricals Ltd (BHEL) are likely to leave the Chennai port to Iraq on Saturday. The consignment was held up at the port ever since the Iraq war broke out. The Chennai Port Trust (ChPT) sources said that in a slightly complicated operation, one container was loaded in a ro-ro vessel on Friday, while a couple of others would be loaded on Saturday. The vessel is likely to leave the Chennai port on Saturday to an Iraqi port. According to ChPT sources, the held-up consignment was supposed to be exported to Iraq before the war broke out under the United Nations' oil-for-food programme. The company also sent another consignment. However, since there were no UN inspectors to receive them at the Umm Qasr port in Iraq, the equipment was diverted to a port in the United Arab Emirates.
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Aftek Infosys to pick 100 per cent in Arexera Info for 6.5 million Euros
Mumbai: The Mumbai-based Aftek Infosys, which currently holds 49 per cent of stake in the Munich-based Arexera Information Technologies GmbH, plans to acquire the entire 100 per cent of the equity in the company over the next four years for 6.5 million euros. Aftek Infosys chairman and CEO Ranjit Dhuru said that according to the terms of the agreement if Arexera exceeds its targets, then Aftek Infosys would pay them 50 per cent more than the agreed amount. If the company underperforms, then Aftec Infosys would acquire the remaining stake for no extra investment. Aftek Infosys acquired the 49 per cent stake in Arexera in an all cash deal for 8.86 million euro. Mr Dhuru added that 34 per cent of the company’s revenues comes from Germany and expects revenues of 4.5 million euros from this region by year-end.
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MUL pegs annual capital expenditure at Rs 350 cr
Mumbai: Maruti Udyog Ltd (MUL) has lined up an annual capital expenditure of Rs 350 crore for product development and upgradation for the next two years. The company has also reiterated its focus on small cars below the Rs 4 lakh mark as it believes that the growth potential of the Indian car market lies in this segment. The small car segment constitutes 80 per cent of the Indian car market and Maruti has a 64 per cent share of the pie. “Maruti will make capital investments for maintenance, R&D for new models, and aims to improve productivity by 50 per cent in the next three years”, MUL managing director Jagdish Khattar said at the company’s first roadshow for the IPO slated to open on June 12. He added that Maruti has started production at the third plant and has been producing 1,700 cars per day for the last three weeks. Suzuki Motor Corporation (SMC) chairman Osamo Suzuki said, “We will make Maruti as a R&D base for cars in Asia, outside Japan”. SMC holds 55 per cent stake in MUL. On the issue of US-based General Motors’ influence on MUL’s affairs, Suzuki said, “though GM holds 20 per cent stake in Suzuki, it is not going to have an influence in MUL”. GM has its own subsidiary in India and manufactures some models from the Opel range.
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BPCL net up at Rs 1,821 cr
Mumbai: Bharat Petroleum Corporation Ltd (BPCL) has reported a 80.72 per cent increase in the net profit at Rs 1,821.1 crore for the year-ended March 31, 2003 as compared to Rs 1,007.7 crore for the previous year. For the reporting year, the net sales reported a 24 per cent increase at Rs 56,818.4 crore as compared to Rs 45,801.1 crore for the previous year. The company has attributed the growth in sales to increased sales of high speed diesel, motor spirit, LPG, aviation turbine fuel and lubricants which has offset the decrease in sales of naphtha and kerosene. The steady rise in the import parity prices of petroleum products during the year has contributed in higher purchase of products for resale, increase in inventory and higher sales. The board has declared a dividend of 130 per cent, the total outgo for which will be Rs 499.97 crore.
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Gufic Biosciences moves into veg seeds mkt
Mumbai: Gufic Biosciences is foraying into the Rs 2,500 crore vegetable seeds market by launching a range of vegetable seeds under the ‘Gufic seeds’ brand. The company has already initiated a soft launch in 18 towns in Maharashtra. In India, the vegetable seeds market is dominated by players like Mahyco, Monsanto and Syngenta. According to Gufic Biosciences chairman and managing director Jayesh Choksi, “In the seeds market of even three to four large MNC-players, there is scope for a local player.”
Gufic could go beyond its targeted market share of 15-20 per cent in the vegetable seed market, considering its low R&D costs and gestation periods as compared to its competitors, he added.
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Gujarat Pipavav Port plans to expand capacity
New Delhi: Gujarat Pipavav Port Ltd (GPPL) plans to augment its container handling facility in the coming years. The port, situated in the Saurashtra region, at present has 10 million tonne per annum (mtpa) capacity. The Pipavav Port was the first private sector port in the country. With the port company setting up Pipavav Rail Corporation Ltd (PRCL) in JV with the Railways, it has also become the first private entity in development and operation of rail links in the country. PRCL holds concession for developing, operating and maintaining the Surendranagar-Pipavav railway line on build-own-operate-transfer basis for 33 years. The project providing broad gauge rail connectivity was commissioned earlier this month.
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HPCL, Visakhapatnam Port may sign agreement for storage cavern soon
Mumbai: The underground storage cavern of the state-run Hindustan Petroleum Corporation Ltd (HPCL) has run into rough weather with the Visakhapatnam Port Trust (VPT) asking the oil company to sort out issues relating to its refinery land lease. The site identified for the cavern project falls on land leased by VPT. The cavern was to be commissioned this year but is now expected to start only in 2006. HPCL’s refinery at Visakhapatnam also stands on VPT land. Sources said that VPT and HPCL are at loggerheads over the lease of the plot where the refinery is situated. VPT has refused to sign the land lease agreement for the cavern with HPCL till the refinery land issue is resolved. HPCL executive director C Ramulu admitted that the land lease agreement is yet to be signed. He said: HPCL and VPT are discussing the issue for arriving at mutually agreeable solution. VPT and HPCL are expected to sign the land lease agreement immediately thereafter, he added. The construction work of the cavern will commence upon signing of the land lease agreement.
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Fiat (I) expects diesel models to drive sales
New Delhi: The Indian unit of troubled Italian carmaker Fiat Auto SpA said on Friday it expects its new diesel models launched two months ago to help reverse slowing sales in 2003. A spokesman at Fiat India Pvt Ltd, 97 per cent owned by its Italian parent, said the automaker was aiming to sell 40,000 to 42,000 cars this calendar year. That is up 25 to 30 per cent from the 32,111 units it sold in 2002. The launch of new diesel versions of its Palio hatchback and Adventure will also help reverse the sales slowdown of the previous year, he added. Fiat’s sales surged after the launch of its Palio compact car in September 2001 but slowed from an average of nearly 4,000 cars a month in the second quarter of 2002 to a little over a 1,000 in the fourth.
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HC clears amalgamation of Floatglass, Asahi
New Delhi: Auto Glass manufacturer Asahi India Glass Ltd (AIGL) has come a step closer towards the amalgamation of its subsidiary Floatglass India Ltd (FGL) with itself. The Delhi High Court has sanctioned the Scheme of Amalgamation of FGL with AGL. FGL has been serving the architectural segment of the glass industry. AIGL holds 79.6 per cent equity in FGI, which it had acquired in 2001 consequent to initiatives of Asahi Glass Company (AGC), Japan, to restructure its Indian operations. Under the original terms of the merger, Asahi India will issue three equity shares of Re 1 each, fully paid-up and four 10 per cent cumulative redeemable preference shares of Rs 10 each, fully paid-up to the shareholders of FGI for every eight equity shares of Rs 10 each, fully paid-up held by them in FGI. The appointed date for the merger is proposed to be April 1, 2002. AIGL reported a net profit of Rs 18.47 crore for the year ended March 31, 2003 against a net profit of Rs 11.86 crore recorded for the same period during the previous year. For the year ended March 31, 2003, the company reported sales of Rs 251.09 crore (Rs 233.17 crore) FGI had reported a net profit of Rs 13.21 crore on total sales of Rs 245.97 crore for the year ended March 31, 2003. The company had reported a net profit of Rs 4.37 crore on total sales of Rs 243.93 crore in the same period during the previous year
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BIFR issues orders to wind up Pennar Profiles
New Delhi: The Board for Industrial and Financial Reconstruction (BIFR) has directed issuance of a show cause notice (SCN) for winding up the ailing aluminium profiles company, Pennar Profiles Ltd (PPL), part of the Hyderabad-based Pennar group.
At the recent hearing, the board said that in spite of having allowed more than adequate time and opportunity to the existing promoters and exploring all other possible avenues for rehabilitation, it was not possible to formulate any acceptable revival scheme for the company which could enable it to make its net worth exceed the accumulated losses.

However, as a last opportunity, the promoters or workers of the company - after forming a workers' industrial co-operative society (WICS) - could submit a viable fully tied-up proposal with or without one-time settlement (OTS), with or without co-promoter to operating agency (OA) within a stipulate time-frame.
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MIMS moves to expand hospital support services
Hyderabad: Keeping in mind McKinsey's projections that Indian health industry may require 1.50 lakh beds by 2012, Medwin Institute of Medical Sciences (MIMS) has decided to expand the scope of `hospital supportive services' by joining hands with Jan Shikshan Sansthan (JSS), formerly known as Shramik Vidyapeeth. "The McKinsey outlook calls for huge deployment of paramedical staff," Dr Mohd Samiullah Khan, deneral manager (Tech), Medwin, said. According to him, each bed requires 3.5 trained personnel (as against 4.5 in the West), including 0.75 paramedical staff. The agreement with JSS envisaged imparting training in the areas of water treatment therapy, physiotherapy, lab techniques, ward clerks and medical secretaries. "Our aim is to cater to the growing need for trained personnel in these areas," he said. "According to an estimate, 90 per cent of corporate hospitals will go for computerised working pattern.
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International Tractors to set up unit in Lanka
New Delhi: International Tractors Ltd, manufacturer of the Sonalika brand of tractors, is planning to set up a manufacturing facility in Sri Lanka to produce tractors and other agricultural implements. According to L.D. Mittal, chairman, International Tractors Ltd, the facility would be a medium sized unit and work on the plant is expected to start in a few months time. The company is expecting to do business of about 1,000 tractor units in the first year of operations in the country. "We would also look at manufacturing smaller components at the plant at a later stage," Mittal said. Interestingly, production at the plant is intended only for the domestic Sri Lankan market rather than for exports. "The domestic market in Sri Lanka has a very high potential for growth. There is little awareness about farm mechanisation in the country",Mittal said.
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Mudra heads South for growth — Winds up PR outfit.
Mumbai: Mudra Communications has set up an operating board comprising senior managers to grow and strengthen areas that it believes are "scalable and best in class". It has also exited the public relations arena and identified the South as a focus area for growth. The four offices — Bangalore, Chennai, Kochi and Hyderabad — whose consolidated billing is Rs 100 crore, will now collectively be known as Mudra South. "It is a much wider canvas than four individual units as we will be giving clients one big agency that can hook into our bigger national or international (DDB) network," said Madhukar Kamath, MD & CEO, Mudra.
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