MGL seeks delay in public float to '05
Mumbai: Mahanagar Gas Ltd (MGL), which is a joint venture (JV) of Gas Authority of India Ltd (Gail), British Gas (BG) and the Maharashtra government, has sought the approval from Foreign Investment Promotion Board (FIPB) for extending the time limit for public flotation to December 2005 from December 2003. MGL has called upon FIPB to amend the current JV agreement so that it will be allowed to continue with the arrangement of foreign equity participation up to 50 per cent in the paid-up capital for a further period of two years. MGL's present shareholding comprised Gail 49.75 per cent, BG 49.75 per cent, Maharashtra government 0.50 per cent. FIPB had amended its original approval on October 3, 2001 to continue with the arrangement of 50 per cent foreign equity participation in the capital of company until December 2003. Further, FIPB, through the same letter, also permitted MGL to make private placements as and when required to the extent deemed necessary prior to the public flotation. As per the present FIPB approval, BG's contribution was to go up to $15 millions. Though, BG has given full equity contribution in terms of Rs 44.45 crore, in the dollar terms the equity contribution received from BG amounted to $12.19 millions.
Back to News Review index page  

TCS to set up Linux lab in Delhi, ropes in IBM, CA
New Delhi: Tata Consultancy Services (TCS) is planning to set up a centre of excellence Linux Laboratory in its Delhi facility where it will showcase Linux-installed machines to demonstrate the capability of open source software. IBM and Computer Associates are already on board for the lab and it will be operational in July this year, TCS architecture and technology practice head Gautam Shroff said, adding the company is in talks with other companies as well. The laboratory will have Linux installed on a number of non-high-end machines but of reasonable calibre that has everything required to run an IT organisation in terms of management software, the middleware and desktops end-to-end, he said.
Back to News Review index page  

Infosys puts off ADR issue till July to 'beat the heat'
New Delhi: Infosys' $400-million sponsored ADR programme has been delayed, at least till July. The ADR was earlier expected to hit the market by June but in view of the beating taken by Indian tech stocks and the backlash in the US against outsourcing to India, the (Infy) management has decided to postpone the issue.The company will now go ahead with the issue after announcing its June quarter results. The offer document to convert 2-3m equity shares into ADRs has been underwritten and was filed with the SEC last month. Widely seen as a showpiece offering for Indian tech sector, the issue is believed to been postponed, thanks to weak investor confidence and bleak market conditions - Indian tech stocks fared poorly despite a rising Nasdaq
Back to News Review index page  

Bajaj Auto sales down 5.9 per cent in May
Mumbai: Bajaj Auto Ltd (BAL) has reported a 5.9 per cent decline in total sales of two and three wheelers at 1,27,156 units in May as against 1,35,126 units sold in same period last year. The sale of two wheelers was down by 8.3 per cent at 1,10,726 units (1,20,795 units in May 2002) while that of three wheelers rose by 14.6 per cent at 16,430 units (14,331 units), BAL said in a release here on Sunday. Motorcycles sales witnessed a growth of 8.6 per cent at 87,217 units (80,275 units) in second month of this fiscal. At 45,593 units, the Bajaj Byk and Boxer continued to dominate the market. The Hoodibaba Caliber 115 has doubled its pre-launch sales level in under three months of launch at 19,592 units while Pulsar sales witnessed a 100 per cent rise at 21,887 units.
Back to News Review index page  

Mumbai Port's Ballard Pier extension plan gets cruise cos' lukewarm response
Mumbai: Mumbai Port Trust (MPT), which plans to develop its Ballard Pier extension as a cruise terminal, has received lukewarm response with none of the international cruise liners evincing any interest in the project. Only three companies have submitted their expression of interest (EoIs) - JM Baxi's United Liner Agency, Satyagiri Shipping and Aquarius Yatch Club, Mumbai Port officials said. We were expecting international cruise liners to keenly participate in the terminal development and use it as a turnaround port. Interna-tionally, cruise liners do operate terminals such as in Singapore and Malaysia. However, the response to our port has been disappointing, a top port official said. Mumbai port would have served as an excellent origin or destination point for tourists flying into Mumbai, for embarkation or disembarkation with its excellent rail-road-air connectivity within the country as also international.
Back to News Review index page  

VSNL's IPLC volumes tripple in '03
Mumbai: Internet gateway and services provider Videsh Sanchar Nigam Ltd's (VSNL) internet private leaseline circuit (IPLC) bookings trippled in financial year ended March 31, 2003, with data traffic accounting for over 25 per cent of its revenue.
"IPLC segment has grown significantly during the fiscal, due to an increase in call centre operations and software developments in India, apart from the country becoming a back office for outsourcing operations," VSNL head corporate business VS Shridhar said here on Sunday. The Tata Group firm's 64 kbps equivalent IPLC circuit bookings grew to 35,712 circuits in FY-03, compared to 10,907 bookings recorded in FY-02, he said, adding that data traffic accounted for about 25 per cent of VSNL's total revenues, compared to 11 per cent in FY-02
Back to News Review index page  

ONGC, Reliance find place in FT Global 500 list this year
New Delhi: Oil and Natural Gas Corporation (ONGC) and Reliance Industries Ltd (RIL), have found a pride of place among the world's 500 largest companies this year. ONGC, the public sector giant, is ranked at 326th in the Financial Times Global 500 list, with a market capitalisation (M-cap) of $10.7 billion and is categorised in the oil and gas sector. Reliance Industries, largest private sector company, with a M-cap of $8.4 billion is ranked at 442nd place and features in Diversified Industrial sector. Both ONGC and Reliance are the new entrants in this year's list. Hindustan Lever, which had featured in last year's list at 450th place, did not find a mention this year.
Back to News Review index page  

STAR, Sony put content firms on notice
Mumbai: Star and Sony Entertainment Television (SET) have put television content companies on notice asking them to be ready for a substantial reduction in their production fees once the Conditional Access (CAS) regime comes into force from July 14. These broadcasters have said CAS is likely to reduce viewership initially, and thus result in a fall in advertising revenue.A face-off between broadcasters and content companies could thus be on the cards. Nervous TV producers have reacted by pleading with the government to hold CAS in abeyance. However, with the latest announcement slashing import duty on set-top boxes, the Union government seems to have decided to stick to the July 14 date.
Back to News Review index page  

Ranbaxy to fly with `Vision Garuda' to scale new peak
New Delhi: All set to scale new frontiers of science on the wings of its "Vision Garuda" - home-grown pharmaceutical major Ranbaxy Laboratories Ltd has commenced the roll-out of its "Vision for 2012", a master plan to achieve significant business in proprietary products by 2012. "Vision Garuda" or `Galvanise Aspirations for Ranbaxy's Unceasing growth in the Decade Ahead' seeks to "harness the power of one" to achieve its mission for 2012. Pharmaceutical industry sources said that the game plan was a melting pot of ideas that resulted from brainstorming sessions between Ranbaxians, healthcare professionals, McKinsey and another couple of consultants from the US. Ranbaxy officials are, however, tight-lipped on what exactly Vision Garuda envisages. Meanwhile, the company has begun rolling out its 10-year vision to its employees starting April 2003 and the exercise is expected to be completed in three months, according to sources. While precise details are still under wraps, Vision Garuda is believed to entail a strategy to help the company sustain its growth and help it achieve its mission to be an "international research-based pharmaceutical company" - with an emphasis on research into Novel Drug Delivery Systems and Drug Delivery Research.
Back to News Review index page  

CESC plans Rs 9-cr resort near Budge Budge unit
Kolkata: CESC Ltd is planning to set up a resort near its Budge Budge power plant. informed sources said. The resort, proposed to be set up at a cost of Rs 9-crore, will come up on a 60-acre plot of land, about one-and-a-half km away from the 500 MW Budge Budge plant in the South 24 Parganas district. The plant was set up in the nineties. The project, which has been conceived as part of the group's environment-friendly measures at its power plants, will initially come up utilising a quarter of the land which has already been acquired. The project is expected to be launched by next year. The resort was expected to come up around a high concentration ash slurry disposal project which is slated to be put up at the Budge Budge plant. This slurry would actually dispose ash through a network of pipelines which will be taken to the land earmarked, which will then be utilised to make solid mounds. "Because of very quick solidification of the slurry, the process offers no air or water pollution during disposal," the sources said. Vegetation would then be grown on these mounds.
Back to News Review index page  

GAIL makes counter offer for Haldia Petro
New Delhi: GAIL (India) Ltd has made an offer to acquire management control in the beleaguered Haldia Petrochemicals Ltd (HPL). In a meeting held late last week, GAIL countered Indian Oil Corporation's (IOC) offer to acquire 26 per cent stake in HPL and take charge of the company, according to company officials. The Chatterjee group and West Bengal Industrial Development Corporation (WBIDC) hold 26 per cent apiece with the rest held by the Tatas. In July 2002, GAIL had decided to take a 10 per cent stake in HPL involving an investment of Rs 200 crore. This was contingent upon the financial institutions agreeing to restructure the debt, which had reached unmanageable levels. Recently, the FIs made it clear that any debt restructuring would be contingent upon the induction of a strategic partner with management control.
Back to News Review index page  

Bharat Scans opens new centre in Chennai
Chennai: Bharat Scans opened its fourth medical imaging centre in Anna Nagar, a Chennai suburb,on Sunday. The earlier three imaging centres are also located in Chennai. Sophisticated diagnostic technology at competitive rates is Bharat Scan's strength, said Dr R. Emmanuel, managing director. Bharat Scans allows itself to be used as a launch vehicle for new technology by GE Medical Systems. The same leads to a discount on the purchase of equipment, and the consequent space to offer competitive rates, said Dr Emmanuel. He added that GE Medical benefits by using Bharat Scans' as a referral for potential clients.
Back to News Review index page