ONGC clocks record profit at Rs 10,529 cr
New Delhi: Oil and Natural Gas Corporation’s (ONGC’s) net profit has jumped 70 per cent to Rs 10,529.33 crore in 2002-03 as opposed to Rs 6,197.87 crore a year ago. The company’s turnover has increased from Rs 22,514.2 crore in 2001-02 to Rs 34,536.4 crore, up 53.4 per cent in 2002-03. ONGC is the first Indian corporate with profits crossing the Rs 10,000 crore mark. This is the highest ever net profit and dividend recorded by any Indian corporate. ONGC has declared a dividend of 300 per cent amounting to Rs 4,277.80 crore. Out of this, an interim dividend at the rate of 170 per cent amounting to Rs 2,424.09 crore has already been paid. The quantum jump in the exploration and production firm’s net profit was primarily due to it selling crude at international prices to domestic refiners as against a cap price of $16 a barrel paid to it during the administered pricing previously.

Addressing a news conference in the capital on Monday, ONGC chairman and managing director Subir Raha said that about 80 per cent of the increased turnover was because of crude and products (LPG and naphtha) being sold at international prices. ONGC, which will invest Rs 16,566 crore (Rs 10,309 crore in India and Rs 6,257 crore in oil fields abroad) in 2003-04, is projecting revenues to go up to Rs 37,088 crore during the current fiscal.
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CDC to re-enter domestic mid-size company segment
Mumbai: In a bid to tap the investment potential of growing Indian medium-size companies, CDC Capital Partners is to re-enter this segment with plans to make equity and quasi-equity investments in the range of $3-7 million. The mid-size company segment provides an attractive and untapped market for growth capital and the unit looking after investments in these companies would operate from Bangalore. CDC Bangalore operations head Subba Rao would look after this new function. He currently spearheads links with the corporates in the Indo-US tech corridor along with team members Amit Sharma and Jabez Muthyala, according to a release issued by CDC. CDC had made a proposal to L&T to pick up upto 6 per cent in the company’s cement business which had run into a huge controversy over some restrictive clauses in the proposal. CDC also holds about 20 per cent stake in UTI Bank Ltd. The company’s track record of exits in this segment, from companies like MRO-tek and Daksh, are obvious pointers to growth market opportunities, the release added.
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ONGC keen on HPCL stake in MRPL
New Delhi: Oil and Natural Gas Corporation (ONGC), which recently bought the 20.9 per cent stake held by banks and financial institutions in its subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL), is interested in picking up 16.97 per cent stake of Hindustan Petroleum Corporation Ltd (HPCL) to further consolidate its holding in the loss-making refinery before making an open offer to buy out public holding. While petroleum ministry was in agreement with ONGC’s plan to acquire HPCL’s stake in MRPL, the approval of the disinvestment ministry, which has initiated the privatisation, is awaited. HPCL is on the privatisation block and the government’s 34.01 per cent stake in HPCL is being sold to a strategic partner along with management control. ONGC, which acquired the Aditya Birla group stake at Rs 2 per share and infused additional Rs 600 crore capital, acquired 20.9 per cent shareholding of banks and FIs at par value of Rs 10, now has 72 per cent holding in MRPL. ONGC CMD Subir Raha indicated that ONGC was keen to buy out HPCL’s stake in MRPL, but said taking that decision rested with the government.
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Alstom projects posts Rs 65 cr net
New Delhi: Alstom Projects India Ltd on Monday announced a net profit after tax of Rs 64.67 crore for the year ended March 31, 2003, on a revenue of Rs 6,21.8 crore. The company’s board has recommended a dividend of Rs 3 per share for the year. A company release said Arun Thiagarajan has been appointed as a director on the board. It has been decided to re-convene Tenth AGM of the company to approve the accounts of the merged company formed from amalgamation of Alstom Transport, Alstom Systems and Alstom Power Boilers with Alstom Power India. The meeting will take place on September 4, 2003. The name of the merged company has been changed to Alstom Projects India Ltd with effect from November 11, 2002.
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Reva Electric set to roll out 15-seater mini-bus in Bangalore
Bangalore: Reva Electric Car Company (RECC), the first to introduce an electric car in the Indian market, is all set to bring an electric mini-bus to the city roads in the country. The proposed 10-15 seater mini-bus will be launched in Bangalore early next year. The company is targeting IT and BPO companies with campuses outside the city and schools as potential customers to the new vehicles. RECC managing director Chetan Maini said the vehicle will be priced competitively as the basic technology used is the same as for the Eva car. "The technology is the same but we need to have more powerful batteries and motors," he added. Though he refused to provide a clear idea about the pricing of the new vehicle, Maini said it would be in the range of 15 to 20 per cent more than the Reva car. The basic model of the car is currently priced at Rs 2.48 lakh.
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Ranbaxy receives FDA nod to sell Isotretinoin 30 mg capsules
New Delhi: Ranbaxy Labora-tories (RLL) has received approval from the US Food and Drug Administration (FDA) to manufacture and commercialise Isotretinoin Capsules USP, 30 mg, representing a new dosage strength for Isotretinoin. Ranbaxy’s wholly-owned subsidiary in the US, Ranbaxy Pharmaceuticals Inc (RPI) will market this product under the brand name Sotret. This product is expected to provide dosing flexibility to physicians and complement the existing strengths (10, 20, and 40 mg) currently available in the market that are commercialised under the Ranbaxy label. Isotretinoin capsules are indicated for severe recalcitrant nodular acne. However, because of adverse effects associated with its use, Isotretinoin is reserved for patients with severe nodule acne that are unresponsive to conventional therapy, including systemic antibiotics. Overall sales of this drug totalled $415 million (Rs 2,000 crore) in the US last year. Sotret is being promoted by the Ranbaxy Brand Products Division (BPD) as part of efforts towards building a portfolio of products with brand names, according to a company release.
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Yamaha (I) soft-pedals on new models, plans upgrades instead
Mumbai: Yamaha Motor India (YMI), which turned into a 100 per cent subsidiary of its Japanese parent in August 2001, is still cautious with its India strategy. The company is still not keen on the volumes game through rapid introduction of new models which has been the strategy of a number of Indian two-wheeler manufacturers. Instead, the company is planning upgrades of its existing models like the Crux series and Enticer to consolidate its existing marketshare. According to HMI director (marketing) H Sakurai, "We will be definitely looking at upgrades of our existing models during the current year." He, however, did not divulge the company’s roll-out plans for new models during the year. YMI has already launched a new variant of the Libero, its offering in the deluxe segment. "We have given it a new classy international look," added Sakurai. The model accounts for around one-third of the company’s motorcycle sales. YMI is targeting to sell a total of around 4 lakh units during the current calendar year.
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NTPC to focus more on hydro power
Koldam: Hydro power is expected to become a substantial part of National Thermal Power Corporation’s (NTPC) generation portfolio. The company plans to nearly triple its power generation capacity to 57,000 mw by 2017 out of which hydro will have a component of 11,000-12,000 mw. Speaking to reporters, NTPC executive director (hydro) KB Dubey said the company would also be diversifying into new areas including power transmission as part of its efforts to convert itself into a full-fledged power utility by 2007. The hydel capacity addition would involve an estimated investment of around Rs 55,000 crore. NTPC’s first hydro project is coming up at Koldam on the river Sutlej in the Bilaspur district of Himachal Pradesh. The 800 mw project, scheduled to go on-stream in 2007, achieved a milestone recently with daylighting of its two diversion tunnels.
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Punj Lloyd achieves financial closure for Gail project
New Delhi: Punj Lloyd Ltd has achieved the financial closure for its three sections of Gas Authority of India’s 42-inch diameter natural gas pipeline from Dahej in Gujarat to Vijaipur in Madhya Pradesh. Punj Lloyd mandated IL&FS to syndicate the facilities aggregating Rs 277 crore with a consortium led by Punjab National Bank. The other participating banks and financial institutions were Oriental Bank of Commerce, Canara Bank, Allahabad Bank and Bank of Maharashtra, J&K Bank, Punjab & Singh Bank, UCO Bank, Bank of India.
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Link Locks to upgrade facility for export plan
New Delhi: Local locks manufacturer, Link Locks, is currently upgrading its facility to drive its products in to the highly competitive European and South East Asian markets. This, in fact, would make it the first lock making company to export from India. What is interesting is that, in order to meet the stringent product quality norms, Link Locks is importing the raw material (steel and other metals) to make these locks from Europe itself. This is turn would be re-exported back to Europe as finished products. Brushing aside doubts about the economic sense in doing so, Mohammad Ali, director, Link Locks, points out that the company "would not be competing on the price plank alone, but on quality as well. We want to be perceived as a quality product". The exports would be of only locks using the pin cylinder mechanism, and not the lever technology locks. "We are targeting exports of about 2,000-5,000 units per day", Ali says.
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SkyCargo plans services to Moscow
Abu Dhabi: Emirates SkyCargo starts its services to Moscow's Domodedova Airport on July 1, with 15 tonnes of cargo capacity in wide-bodied A330-200 aircraft, five times a week - Tuesday through Saturday. The new service will connect with flights on the Emirates' network, boosting the vibrant trade between the CIS and the rest of the world. Cargo agents have already commenced bookings and expressed keen interest in taking advantage of Emirates' fast onward connections to destinations throughout the Middle East and the Indian subcontinent, according to a statement from Emirates airline. SkyCargo expects to enhance trade with not just Russia's traditional partners, but also throughout Emirates' network that spans 66 destinations in 46 countries.
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Tata Engg may get new name
Mumbai: Automobile major Tata Engineering is contemplating a change of name. For its upcoming AGM of July 21, the company has proposed in its notice to shareholders a special resolution allowing name change from Tata Engineering and Locomotive Company Ltd to Tata Motors Ltd or Tata Automobiles Ltd or Tata Auto Ltd or Tata Automotives Ltd or such other name as may be approved by members of the company.'' The change is to better reflect its business of automobiles." Tata Engineering is seeking shareholder permission for an enabling resolution to raise Rs 500 crore through issue of securities, to augment long-term financial resources. Explaining it, the notice said, in 2001 Tata Engineering had envisaged capital expenditure programme of Rs 1,307 crore for funding ongoing capex, product development, investments for strategic alliances over the next three years and debt restructuring.
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Acquisition of duplex board mill at Coimbatore — ITC begins fresh talks with BILT
Kolkata: Ballarpur Industries Ltd (BILT) of the L.M.Thapar group has started fresh negotiations with ITC Ltd on the sale of BILT's duplex board mill at Coimbatore in Tamil Nadu. Paper market sources have it that an MoU between the two companies has already been signed with the objective of finalising a deal. While sources in ITC Ltd's Bhadrachalam Paperboards Division have confirmed that negotiations have been going on for the last couple of months, nothing has been finalised. The sources have indicated that they are aware that BILT is keen not only on getting out from the Coimbatore-based BIPCO Ltd but also on exiting from the duplex board manufacturing business. When contacted, a board level source in BILT told that no such MoU had been signed. Commenting on the rumour that an MoU had been signed , the source said that a section of paper merchants might have thought so following the visit of some senior executives of ITC Ltd to the mill. It may be noted that the Coimbatore mill with an annual production capacity of about 66,000 tonne of duplex board was taken over by BILT about four years ago.
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HMT, State Bank of Mysore ink pact
Bangalore: HMT Ltd has entered into a memorandum of understanding (MoU) with the State Bank of Mysore (SBM) to work together to promote agriculture mechanisation in south India. SBM-HMT Agri Farm Scheme, launched under the pact, will extend finance facility to farmers purchasing HMT tractors with 10 per cent margin money. The finance will also be provided for purchasing agricultural implements, trailers, cultivators and a host of other equipment used by farmers with a margin money of 20 per cent.

Loans will be available with a minimum of Rs 50,000 and it will carry a concessional interest rate of one per cent less than the market rate.
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STAR opens office in Dubai Media City
Abu Dhabi: Asia's leading media company, STAR Group, a wholly-owned subsidiary of News Corporation, has become the latest broadcasting giant to join Dubai Media City. The company will be using its Dubai Media City facility as an operational base to bring the world's best TV channels to the region. STAR's offices will be located in Dubai Media City's new Boutique Offices and will become operational in August, according to a statement from Dubai Media City. "DMC's advanced, comprehensive and fully-customised facilities make it an ideal operational base for STAR to grow our business in this region," said Altaf Alimohamed, president, digital platforms group, STAR (Middle East) Ltd.
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Bajaj Auto launches overseas arm in Dubai
Abu Dhabi: Bajaj Auto, which registered a 100 per cent growth in exports last year, has launched its first overseas division at the Jebel Ali Free Zone in Dubai emirate as part of its intensified campaign in the international markets with the focus on the Gulf and West Asia, South America and South East Asian countries, according to a senior company official. Bajaj Auto established it's first-ever overseas divisional office in the Jebel Ali Free Zone in January this year. The office was officially launched by Rajiv Bajaj, joint managing director, Bajaj Auto Ltd, India, here. Bajaj later inaugurated the showroom of Dubai Auto Gallery, who are the exclusive authorised distributors for Bajaj Auto in the UAE. Bajaj also announced the global launch of a specially designed motorcycle for the courier and delivery segment.
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Shareholders okay Parry's financial recast
Chennai: The shareholders of Parry's Confectionery Ltd (PCL) have approved the proposal for financial restructuring of the company at the extraordinary general meeting of the company held here on Monday, according to a press release. The board also decided to set off the accumulated losses against the share premium account of Rs 33.19 crore. As a part of the restructuring the company had closed the Manapakkam plant in August 2002. The company now plans to dispose of the assets of the plant, which are in surplus and release the funds invested in them.The company had an unaudited accumulated loss of Rs 16.42 crore on March 31, 2003. This includes a one-time expenditure of Rs 14.56 crore incurred towards product withdrawal and expenditure related to business method restructuring cost in the year ended March 31, 2000.The company has also a balance of deferred voluntary/separation expenditure incurred at the Manapakkam location to the extent of Rs 73 lakh on March 31, 2003.
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