Birla Tyres to bundle life cover with products — Ties up with ICICI Lombard
Hyderabad: Birla Tyres, part of the diversified Rs 20,000-crore B.K. Birla group, has drawn up expansion plans which would entail creation of additional capacity to strengthen its domestic base, expand its export portfolio and make it a global outsourcing centre.

The company has come up with an innovative brand building exercise that seeks to bundle insurance package for drivers when they buy tyres. Addressing a press conference, the vice-president, marketing, Birla Tyres, Ajai Uppal, said that the company was working at 100 per cent capacity and has garnered total revenues of Rs 644 crore last fiscal. While we had added 15 per cent additional manufacturing capacity last year, we now feel the need to add further capacity to our manufacturing base at Balasore in Orissa. Kicking off `Jug Jug Jiyo' offer, which the company claims is a novel scheme wherein Birla Tyres has tied up with ICICI Lombard General Insurance Co, to offer Rs 2 lakh insurance benefit to the driver of truck on purchase of every pair of truck tyres. The scheme formally starts on June 14 and policy coverage is valid for one year from the purchase of tyres.
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Mangalam Cement told to reveal Lafarge's stake
New Delhi: The Board for Industrial and Financial Reconstruction (BIFR) has directed Mangalam Cement Ltd (MCL) to disclose the quantum of Lafarge holding in the company. It has also stipulated that the company should not redeem the unopted optionally convertible cumulative preference shares (OCCPS) without the board's prior approval or through sanctioned scheme. In its recent order, the board has directed MCL to clearly indicate the total equity shares Lafarge would be having directly or indirectly through its trustees, members and associates in the company. MCL has also been directed to submit a list of OCCPS holders who have opted for conversion. Taking note of the reports that `Lafarge and Italicement were in talks to buy the company' and also that the company had allotted 35.96 lakh equity shares on conversion of 14 per cent OCCPS in the ratio of one equity share for each OCCPS in their board of directors meeting held on December 14, 2002 without BIFR's prior approval, the board had issued a show-cause notice to the chairman-cum-managing director of the company on January 17 to clarify on the same.
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Pune to host new LG mfg plant
Pune: Maharashtra has pipped Tamil Nadu and Andhra Pradesh to the post. Pune has won over Chennai and Hyderabad with the electronics and consumer appliances giant, LG Electronics India Ltd, all set to house its second major manufacturing unit in the country at the Ranjangaon five-star industrial estate developed by the MIDC. The Rs 3,900 turnover company company had been talking of setting up a Rs 500-crore project that would be similar to LG’s Greater Nodia plant and would manufacture a similar range of products. The 925 acre Ranjangaon industrial estate is about 50 kms from Pune. Power supply sans fluctuation, a Rs 15 crore water project for 24 hour water supply, multi-lane highway link to Pune, a common effluent disposal facilities, 160 hectares residential area and space reserved for recreation and hotels too. LG has picked up the 2,12,221 sq mts plant at the Ranjangaon park.
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LG investment to be feather in state govt’s cap
Pune: Getting the Korean chaebol, LG Electronics, to invest in the state will be a coup of sorts for the Maharashtra government, which has often been accused of underselling Maharashtra as an investment destination esepcially when compared to its pushy neighbours in the south.It has been some time since the five star MIDC industrial estate at Ranjangaon has seen any action as far as new projects went. The MIDC developed this five star industrial estate with the objective of attracting MNCs and FDI into the state. So far projects worth Rs 4,100 crore have taken off at Ranjangaon which is now home to global companies such as Whirlpool, Matsushita (National Panasonic), Daewoo, Fiat India, Carraro India, Appollo, Bekaert, Harita Gramar, Tata Ryerson, Swarosky India and Bajaj Electricals. They have bought the plot from Escorts Ltd. Escorts had bought the plot in June 1998 for setting up their tractor, transmission systems and gears plant but this project did not take off. This plot has now been transferred to LG India.
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Tala Project seeks $62.5-m IFC loan
Mumbai: Tala Delhi Transmission Ltd (TDTL), a joint venture between the state-run PowerGrid Corporation and Tata Power Company (TPC) for 1,200-km Tala transmission line project, has sought a $62.5 million loan from the International Finance Corporation (IFC). The project cost is estimated at around $352 million. The IFC board is expected to give its consent in due course. According to IFC website, PowerGrid and TPC have jointly submitted a comprehensive plan for the proposed mitigation of environmental and social issues. IFC proposes to evaluate the project’s compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing the annual monitoring reports (AMRs). The AMRs would cover the performance of the ongoing project-specific environmental, health and safety and social activities. Periodic site supervision visits would also be conducted. Central government sources said that TDTL is expected to receive the approval of the Cabinet Committee on Economic Affairs soon. It would, in real terms, kickstart the project implementation. The Tala transmission line would pass through West Bengal, Bihar and Uttar Pradesh.
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Moody’s downgrades global tobacco majors
New Delhi: Moody’s Investors Service has downgraded its ratings on most outstanding tobacco settlement-related securitisations, including legal fee settlement transactions. Securities were removed from watch list for possible downgrade. The downgrades have been prompted by five factors: the downgrade of Altria Group Inc, the parent of Philip Morris USA, to Baa2 from Baa1 in April this year; the downgrade of British American Tobacco Plc to Baa1 from A2 in May; the placement of RJ Reynolds Tobacco Holding on review for possible downgrade; the decline in domestic tobacco shipments and; market share losses incurred by the major participants to the master settlement agreement (“MSA”) to the benefit of deep discounters that do not participate in the MSA, the agency has said. Asked if the rating action would have any ripple effect on the Indian industry, ITC senior executive vice-president K Vaidyanathan said, “I don’t see any impact on the Indian tobacco industry, considering that they are mostly Indian-owned and managed. If the management and ownership equations changed, then an impact will definitely be seen,” but not for now.
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ChrysCap sees jackpot with TransWorks deal
Bangalore: Guess who will be smiling all the way to the bank if the Aditya Birla Group were to acquire TransWorks, the Bangalore-based BPO (business process outsourcing) firm, as it is said to be doing? ChrysCapital, the venture capital firm, which owns close to 70 per cent of equity in the company. The VC’s BPO bet is obviously paying off big time, having already made a neat pile — said to be around $60 million (Rs 300 crore) according to the market — when Spectramind was acquired by Wipro last year. Although the deal has not been inked, TransWorks, which operates in the BPO and customer relationship management space, is close to being acquired by the Aditya Birla Group. Market estimates its valuation at Rs 100 crore, which means that if the deal goes through, ChrysCapital’s share will work out to Rs 70 crore. Its investment in TransWorks is some $9.5 million (Rs 45 crore).
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Cathay Pacific welcomes ATLA decision to allow flights to China
Mumbai: Cathay Pacific Airways has welcomed the decision by the Air Transport Licensing Authority (ATLA) in Hong Kong to grant the airline licence to fly to three destinations in the Chinese mainland, namely Beijing, Shanghai and Xiamen. ATLA has granted licences which will enable Cathay Pacific to fly three times a day to Beijing and Shanghai each and three times a week to Xiamen.

Cathay Pacific country manager India, Nepal and Bangladesh Tom Owen said: “We have a lot of plans in store in terms of China both as a destination as well as resuming flights in the country. ‘‘We are working on this aspect and are in talks with the Chinese government.” He further added: “We had applied for flying rights to the government and we are determined to resume flying in China.
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Eli Lilly launches multi-pronged initiative to fight MDR-TB
New Delhi: Eli Lilly has announced the launch of a comprehensive effort to fight the spread of multi-drug resistant tuberculosis (MDR-TB), a serious health threat particularly in developing countries. The effort will engage the expertise and resources of the World Health Organisation (WHO), the US department of health, Centers for Disease Control and Prevention (CDC) and an affiliate of the Harvard Medical School, according to a company release. As part of the effort, Eli Lilly will transfer its technology to manufacture capreomycin and cycloserine, the two major drugs used in combating MDR-TB. In India, Eli Lilly will partner with the Chennai-based Shashun Chemicals in the transfer of technology to manufacture cycloserine. The company will also establish a centre of excellence to train physicians and healthcare personnel. Eli Lilly is also set to establish a comprehensive surveillance programme to monitor the development of resistance against the combative anti-biotics.
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Kinetic plans homologisation for export markets
New Delhi: Kinetic Engineering is all set to extend its intensive standardisation (homologisation) programme for scooters to be sold in the European market into the South East Asia as well. Earlier this year, Kinetic began exporting scooters and scooterettes to Australia. By the middle of June, Kinetic’s scooter Nova will be homologated for Europe and the US. The company already exports to parts of Europe, the US, Mexico and West Asia. Homologisation involves meeting testing and vehicle standards of the country being exported to. “This would open many new markets for Kinetic especially in European countries which are large scooter markets,” Kinetic joint managing director Sulajja Firodia Motwani said. “This includes France, Italy, the UK, Spain, Ireland; and also many countries in the Eastern Europe such as Czech Republic, Hungary and Romania.” Motwani said that the company was also exploring markets in South East Asian countries like Hong Kong, Singapore, Thailand and Indonesia, but declined to comment on any negotiations that the company is probably involved in at this stage. Kinetic already has a collaborative tie-up with Hyosung Motor of Korea.
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Reliance strikes gas again, this time in MP
New Delhi: Reliance Industries (RIL) has made its second large gas discovery after the Krishna Godavari basin in the coal bed methane exploration block in Shahdol in Madhya Pradesh. This is RIL’s first onshore gas discovery and as per preliminary estimates, this reserve is to the tune of 7-10 million cubic metres per day, bigger than the Tapti oilfield which is owned by ONGC, RIL and BG. The country’s current consumption of gas is close to 60m cubic metres a day. The Shahdol reserve has the potential to generate close to 2000-3000 mw of power. The onshore discovery marks a major boost for RIL’s oil exploration game plan coming after the coastal finds. When contacted, RIL officials confirmed that work is in progress at the Shahdol block but did not comment on estimates. RIL is also currently working on the offshore blocks on the coast of Gujarat and Maharashtra. The onshore blocks of coal bed methane had been allotted last year on a competitive basis by the government which had gone to Essar, ONGC and RIL. Reliance was awarded two coal bed methane blocks, viz Sohagpur West and Sohagpur East under the first round of CBM policy. Sohagpur West and Sohagpur East CBM blocks, comprising area of 500 square kilometres (sq kms) and 495 sq kms respectively, are located in Shahdol district of Madhya Pradesh. The CBM blocks form a part of Sohagpur Coalfield.
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