Pvt utilities too take T&D hit
Mumbai: The Private utilities comprising Tata Power Company (TPC), Reliance Energy, Calcutta Electricity Supply Company (CESC), Surat Electric Company (SEC), Ahmedabad Electric Company (AEC) and Noida Power Corporation (NPC) are not free from the menace of large scale commercial losses (transmission and distribution - T&D losses). Pune-based consumer organisation Prayas in its report on performance of private electricity distribution utilities in India : need for indepth review and benchmarking has pointed out TPC’s loss at 2.5 per cent, NPC -8.4 per cent, CESC -23.4 per cent and AEC -18.1 per cent (for 2000-01). Though the losses of Reliance Energy, the erstwhile BSES Ltd came down significantly between 1994 and 2000, in the recent years they seem to have slightly increased. As per the BSES’ annual report data, this rise seems to be from 11.6 per cent to 13.6 per cent during 2000-01 and 02-03. According to Prayas, T&D losses of 23.4 per cent of CESC were far higher than other utilities or even the Central Electricity Authority (CEA) norms for state electricity boards (SEBs). It is unfortunate to know that the urban private utilities are not free from the menace of power theft,it said. In terms of receivables, the performance of these utilities have been reasonable with receivables in the range of 1.7 to 3 months of billing. However, there has been a large variation in the manpower efficiency of these utilities. The SEC and NPC have the lowest distribution manpower cost at Rs 0.05 per unit sold, whereas in the case of CESC, it has been the highest at Rs 0.21 per unit sold. The average man-month cost of TPC at Rs 38,700 man-month has been 4 to 6 times that of other utilities.

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Indian Hotels embarks on merger of investment cos
Mumbai: The Indian Hotels Company Ltd (IHCL) has begun consolidating its investments companies as a part of its restructuring exercise. Taj Trade Investments Ltd and Taj Holdings Ltd both investment companies under the Taj umbrella are being amalgamated into Taj Investments Ltd. The latter is also an investment company. IHCL spokesperson when contacted confirmed the development. According to the spokesperson, the amalgamation of the two investment companies into Taj Investments Ltd is a part of IHCL’s strategy to reduce the number of its subsidiaries. The companies have submitted their proposals for amalgamation to the Bombay High Court which is yet to pass its order. The spokesperson, however, did not comment on the savings that will accrue to IHCL post amalgamation of these subsidiaries. IHCL is also focusing on restructuring of companies forming the Taj group including holding structure of the company. The move is part of the initiative chalked out by the company in the previous fiscal. Among other initiatives by the group are selective strategic acquisitions that meet stringent financial criteria, renovations and brand relaunch, and reduction in interest costs through restructuring debt and sale of idle and non-performing assets. IHCL is also continuing with its amalgamation programme to reduce the number of subsidiaries within the company. Under the programme, Covelong Beach Hotel India Ltd and Coromandel Hotels Ltd have been amalgamated with Oriental Hotels Ltd. All three companies are part of the Taj Group. IHCL has already received orders sanctioning the company to proceed with the planned amalgamation from the Madras High Court. These mergers are also expected to reduce costs and raise savings by combining resources in different areas of operations.
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Sartorius India plans foray in Pharma, F&B segments
Bangalore: Sartorius India, a joint venture between Germany-based biotech engineering solutions company, Sartorius AG and local entrepreneurs, is set to foray into new businesses following the parent company acquiring 40 per cent stake in another German firm Diessel. The new JV will enable the biotech engineering solutions firm to cater to the pure pharma and food and beverages (F&B) segments.Sartorius India has been identified by the parent to start the new venture from where the company would be addressing these segments in both Indian and international markets by leveraging the technical expertise of Diessel. One of the directors of Diessel would shift base here to address the markets in India especially in the F&B segment. Sartorius India managing director Dr Anil Paul Kariath said, "This joint venture is primarily focused on exports especially in the case of pure pharma sector. However, we would also cater to premium pharma customers in India." The solutions offered through this venture includes plants and equipment for these two sectors. The new venture would be catering to Asia-Pacific, Middle East and Indian markets.
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UPS Jetair planning to go solo in India
New Delhi: UPS Jetair Express, the Indian joint venture of $31.3 billion United Parcel Service, is planning to go alone in India but at the same time may go in for strategic tie-ups. The company’s director and chief executive officer Jeff Fairbairn said, "We don’t rule out strategic cooperation because it is a different country. But we are particular about certain standards being in place in all our branches and, therefore, careful about tie-ups. The best way so far is to do it ourselves." UPS had in January 2001 tied up with Jetair to form UPS Jetair Express. With an initial investment of $4.5 million (Rs 21 crore), the joint venture company now operates from 13 locations. From the initial five flights, UPS has now grown to operate thirteen 767 flights in a week out of Mumbai. On its relationship with Jetair, Fairbairn said the tie-up had helped UPS in recruiting more talented persons who would be encouraged to work in international offices of the company. In line with its change in international brand positioning with a new logo, the Indian operation will also be looking at more business than only express cargo.
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HMSI to invest Rs 300 cr for expansion, to double sales
New Delhi: India’s largest scooter maker Honda Motorcycle and Scooter India (HMSI) would invest Rs 300 crore in the next two years to double production capacity to six lakh units, a top company official said on Sunday. HMSI, which made net profit within two years of its inception in 2000, would also double its turnover this fiscal from Rs 500 crore last year due to growing sales, HMSI president Haruo Takiguchi said."The Rs 300 crore investment for raising capacity to six lakh units by 2005-06 will be met through both internal accruals and borrowings from institutions like ICICI and Tokyo-Mitsubishi," he said. HMSI also aims to more than double its sales this year from 1.60 lakh units sold last year, he said adding that "we have already invested Rs 300 crore for capacity expansion and the additional Rs 300 crore investment will be enough to meet demands for the next couple of years." The wholly-owned subsidiary of Honda Motors of Japan has also firmed up plans to roll out 50cc and 250cc motorcycles next year with an investment of over Rs 20 crore.

According to an agreement with Hero Honda, (a Honda subsidiary), HMSI cannot launch motorcycles till June 2004 while Hero Honda cannot plunge into the scooter market till the same period.
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ONGC’s 1.6 million tonne of Sudan crude for MRPL in ’03-04
New Delhi: State-run oil and natural gas corporation (ONGC) will this fiscal ship half of its share of 3.2 million tonne of crude oil in a sudan oil field, for processing at Mangalore Refinery and Petrochemicals Ltd (MRPL)."We plan to import 1.6 million tonne of crude oil from greater nile oil project in Sudan (where ONGC Videsh Ltd - the overseas arm of ONGC has 25 per cent stake) during 2003-04," company sources said here. Two shipments of 600,000 barrels each (80,000 tonne) have already reached Mangalore while a third parcel of one million barrels has been loaded and is likely to reach Indian shores by the month end or early July.
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Express Trade Show attracts bigwigs of hospitality sector
Bangalore: The two-day Express Hotelier & Caterer Trade Show, which concluded on Sunday, kept its word of bringing the biggest hospitality exhibition to South India. With 130 stalls at the Kanteerva stadium here showcasing products and services from a wide spectrum of the hospitality trade, the show witnessed a fine gathering of hospitality’s prestigious companies and leading professionals. Entry through invitation and a thorough follow-up via tele-marketing and mailers ensured that the show was visited by decision-makers from the trade. Professionally managed, the long-lasting dearth for a high quality trade show was fulfilled. Offering a full course of business and promotional opportunities, the one stop showcase saw exhibitors from sectors like food service & kitchen equipment, bakery & confectionery, hotel engineering, information technology, architectural & interior products, food & beverage and housekeeping.
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Eveready to make steel torches
Kolkata: The tea- to- batteries major Eveready Industries India Ltd is planning to fortify its flashlights division during the current fiscal. Incidentally, it has hinted at continued reduction in bonus for its tea division workers in West Bengal and Assam. Eveready, which came back into the black during the year to March 31, 2003, with a profit of Rs 11 crore on net sales of Rs 942 crore, has said the steel flashlights will be launched shortly. The company makes brass, aluminium and plastic flashlights at its own plant in Lucknow. The Eveready brand has a strong presence in the Indian market of 180 lakh pieces. The company’s foray into steel torches is seen as an attempt to offer a wider choice of products to customers at an affordable price.

It feels its flashlights business is better placed to take on foreign competition, than the tea business. Moreover, the popularity of FM radios across the metropolitan cities in India will boost sales of dry cell zinc carbon batteries, the company feels. Eveready said it does not see cheap imports as a threat as the lower duty rates will allow matching reduction of material costs. It claimed to have become globally competitive.
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Natco Pharma to launch another anti-cancer drug
Hyderabad: Within days of its successful launch of Zoledronic Acid, an anti-cancer drug in the injection form, Natco Pharma Ltd (NPL), the Hyderabad-based company that is currently in the process of wiping off its accumulated losses, has announced the launch of another anti-cancer drug, Letrozole, in the tablet form in 2.5 mg dosage under the brand Letronat. In a press release, the company said Letrozole, the non-steroidal aromatase inhibitor, was indicated for first-line treatment of advanced breast cancer in post-menopausal women with hormone receptor positive or hormone receptor unknown locally advanced or metastatic breast cancer. According to the company, Letrozole was also indicated for the treatment of advanced breast cancer in post-menopausal women with disease progression following anti-estrogens therapy.
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Combining cost, tech gains is Exide's new mantra
Hyderabad: Exide Industries Ltd (EIL), the Rs 890-crore storage battery leader that registered success in retail segment with innovative strategy of positioning various brands in diverse segments, has chalked out another strategy this time of combining the advantages of cost and technology, mainly aimed at differentiating its products from others in the market place.
As an outflanking movement to corner competition, the company had planned three different brands with three distinct positions and recorded success in its efforts last year. The strategy was to make Exide All Terrain Battery (ATB) occupy a premium position, with three-year warranty. Exide Max, another brand with only a year's warranty, would cater to the popular segment that was more price-conscious. Conrex was positioned to garner market share from the small-scale manufacturer. The strategy has already started paying rich dividends. As a result, the company posted a net profit of Rs 52.33 crore on a turnover of Rs 889.76 crore during last fiscal as against a net profit of Rs 31.41 crore on a turnover of Rs 798.69 crore in the previous year. The reserves stood at Rs 116.98 crore as on March 31, 2003.
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Pennar Aluminium awaits IDBI revival package
Hyderabad: Pennar Aluminium Company Ltd (PALCO), the Hyderabad-based ailing aluminium rolled and wire products manufacturer that is currently under the purview of the Board for Industrial and Financial Reconstruction (BIFR), expects the Industrial Development Bank of India (IDBI), the operating agency appointed by BIFR, to take a final decision on the revival package shortly.

The company, which suffered a net loss of Rs 30.41 crore for the year ended December 31, 2002, has accumulated losses up to Rs 278.63 crore as against the paid-up equity of Rs 120 crore. The company has a huge debt burden of over Rs 360 crore. In a communiqué to shareholders, the PALCO chairman, Nrupender Rao, said the company has incurred losses due to continued financial difficulties during last year. With the banks suspending all credit facilities, the company could not procure raw material to run the plant continuously. PALCO carried on its operations last year mainly on a job work basis, he said.
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Suzlon to set up wind turbine plant in Pondy
Chennai: The Rs 600-crore Suzlon Developers Pvt Ltd is setting up a Rs 35-crore wind turbine and blades manufacturing unit in Pondicherry. The unit is expected to go on stream by December,
Tulsi Tanti, chairman and managing director of Suzlon, said. "We will manufacture everything required for a wind power project, except the towers," he said. Suzlon has manufacturing centres at Diu and Daman. Since the company is getting more business from the South, as well as from overseas markets, the company thought it fit to have another production centre in Pondicherry, Mr Tanti said. The company received an order for 50 turbines from the US and 24 have been supplied so far.
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ITC gets Golden Peacock award for cleaner tech
New Delhi: ITC Ltd has been declared the winner of the prestigious `Golden Peacock Environment Management Award' at the 5th World Congress on Environment Management being held at Palampur in Himachal Pradesh. The award was presented to ITC by the World Environment Foundation (WEF). The award to ITC is in recognition of its introduction of cleaner technology. The paper major has set up the first chlorine-free pulp, paper and paperboards plant in the country, apart from its afforestation efforts, reduction of green house gases and contribution to overall socio-economic development through its paperboards and speciality papers business. ITC had recently initiated a `Cleaner technology programme' at its paperboards plant in Bhadrachalam in Andhra Pradesh. The company implemented the elemental chlorine-free (ECF) bleaching system for the manufacture of pulp, paper and paperboards in the unit, with an investment of Rs 225 crore.
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Petro-product co offers stock option to staff
Thiruvanathapuram: Handing out stock options to employees is perhaps quite normal for businesses operating in domains such as informational technology or pharmaceuticals, but not for companies in the more `traditional' manufacturing sector. However, giving some employees and distributors a stake in the company is what a small, Thiruvananthapuram-based petroleum products maker has chosen to do. Pure Petroleum Products Pvt Ltd, manufacturers of the `Action' brand of lubricants and greases, has given all its Kerala-based distributors and some key employees a stake in the company. While its 12 distributors in the State have together received a 24 per cent share in the company, key employees have together got a 5 per cent share.
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