RIL,
Grasim raise $150 million from SBI
Mumbai: State Bank of India (SBI) has provided
$50 million to Grasim Industries, the AV Birla Group flagship.
SBI has also concluded a deal for syndication of the buyers
credit facility of $100 million for importing crude by
Reliance Industries Ltd (RIL).
The loan to Grasim has a five-year tenure, with an interest
rate of 5.1 per cent, including all costings. The syndication
deal for RIL was priced very competitively. The Grasim
loan had been raised for general corporate purposes and
for repayment of higher interest loans. But this loan
will not be used for any part of the acquisition of L&T's
cement business. SBI has introduced an exclusive desk
for syndication of credit and treasury products and has
already syndicated deals worth Rs 1,900 crore. Grasim
Industries group executive president and CFO D D Rathi
had said that the L&T deal will not strain the balance-sheet
size of Grasim and the acquisition cost will be met through
internal accruals. Grasim will also prune its capex plans
for the financial year to Rs 350 crore.
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Go
back
to school, ONGC tells its staff
Mumbai: For the first time, a public sector company,
Oil and Natural Gas Corporation (ONGC) has started do
polish the skills of its employees. The company is training
its technical staff to keep them abreast with the changing
technologies. Towards this it has launched a study programme
for its executive staff called Unnati Prayas, which aims
at upgrading staff skills. ONGC has tied up with the Punjab
Training University (PTU) and the residential course will
be conducted by PTU at Dehradun. An ONGC official says
as many as 935 staff are presently undergoing training
at the institute which took off on June 2 this year. About
1,098 staff had applied for a screening test, of which
935 passed the test. The entire fee for the course as
well as expenditure on books and accommodation will be
borne by the corporation.
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Ranbaxy
gets FDA approval for Ganciclovir
New Delhi: Ranbaxy Laboratories has received approval
from the US Food and Drug Administration (FDA) to manufacture
and commercialise Ganciclovir capsules in 250 mg and 500
mg strengths. The Division of Bioequivalence has determined
Ranbaxys Ganciclovir capsules, 250 mg and 500 mg,
to be bioequivalent and, therefore, therapeutically equivalent
to the listed drug Cytovene capsules, 250 mg and 500 mg,
respectively, of Roche Palo Alto. In 2002, sales for Ganciclovir
capsules totaled $31.9 million (Rs 150 crore).
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Deepak
Fert
to foray into realty business
Mumbai: Pune-based Deepak Fertilisers and Petrochemicals
Corporation Ltd (DFPCL) has roped in Knight Frank as its
real estate consultant to foray into its long-standing
wish to foray into realty business. Knight Frank will
assist the company to evaluate various options and crystalising
its real estate business model. The companys annual
report 2002-03 says: As part of the diversification
strategy to broadbase our investment basket, the company
has invested Rs 36 crore in land to move into value-added
real estate business. In this regard, Knight Frank is
assisting the company in evaluating various options and
crystallising the preferred business model.
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PTL
to seeks to amend articles of association
Mumbai: Punjab Tractors Ltd (PTL) will seek its
shareholders' permission to amend the articles of association
(AoA), enabling the acquirer of the state governments
23.49 per cent stake in PTL to nominate two nominees on
the company board. Based on the Punjab governments
disinvestment policy, Punjab State Industrial Development
Corporation Ltd (PSIDC) was in an advanced stage of disposing
off its entire equity stake in tractor company in one
block, PTL informed the Bombay Stock Exchange. The company
board has decided to recommend to the shareholders the
amendment to AoA, facilitating the acquirer of PSIDCs
stake in PTL to nominate two directors on the board. (PTI)
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SPGL
lendersto take stock of developments
Mumbai: The lenders to the troubled Spectrum Power
Generation Ltd (SPGL), with an exposure of around Rs 820
crore, have convened a special meeting on Tuesday in the
wake of the recent Supreme Court order asking the company
to issue shares of Rs 52.04 crore to the financial institutions
and banks by July 10. SPGL, which was to issue the shares
by June 19 as per the apex court order of May 8, had approached
the latter with a plea that the deadline should be extended
by three months for this purpose.
However,
the Supreme Court in its order of June 26 ruled that SPGL
should complete the issuance of shares by July 10.
Institutional sources told that the meeting was necessary
to look into these developments. The financial institutions
and banks would also discuss the SPGLs decision
to defer board meeting to July 16 from June 30.
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Eveready
looks for US partner for battery unit
Kolkata: Eveready Industries India Ltd wants to
rope in a strategic investor from the US for its battery
division. It has been planning a demerger of its battery
and tea divisions for quite some time now. Briefing reporters
after the companys 68th annual general meeting here
Monday, Evereadys executive vice-chairman and managing
director, Deepak Khaitan, said that the company is open
to the idea of roping in a strategic partner from the
US. The partner may even be given a small equity stake.
We are open to a valid investor from the US but
it will take some time as the economic condition there
now is not very good, Khaitan said.
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Ind-Swift
Labs allots 13,40,000 equity shares
New Delhi: The Chandigarh-based Ind-Swift Laboratories
Ltd has allotted 13,40,000 equity shares at a price of
Rs 25 each on a cash basis to Shukdev Finvest Pvt Ltd
(5,00,000 shares), Sri Ganesh Biotech Pvt Ltd. (4,40,000
shares), Multi Biz Ecom Pvt. Ltd (4,00,000 shares), the
company informed the National Stock Exchange, following
its board meeting on June 28, 2003. The company has also
approved the reduction of dividend on 5 per cent non-cumulative
non-convertible redeemable preference shares from 5 per
cent to 1 per cent. Most of the allotees , who had already
accepted the company's proposal to reduce the dividend.
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Eicher
Motors plans to focus on commercial vehicles
Pune: The Rs 1,200-crore plus Eicher Motors Ltd
(EML) plans to to raise its presence in the commercial
vehicles business, which seeks to mark a significant growth
over the next two years, by entering the market with a
range of products across various segments. The company
has put in place Rs 100-150 crore strategic investment
and product development plan that will see it significantly
increase its market shares by tapping evolving market
segments for commercial vehicles. The company would launch
a 25-tonner multi-axle vehicle with a payload capacity
of 17 tonnes three months from now, a senior company official
told on Monday. "The vehicle is already being piloted
across the country for various applications and will be
commercially launched within three months,'' the official
said. Eicher Motors, a significant player in the light
and medium commercial vehicles business till recently,
entered the heavy commercial vehicles business in January
this year with a 16-tonne HCV.
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Gulf
Oil to finalise growth plans with IDL
Hyderabad: After the merger of IDL Industries with
itself last year Gulf Oil Corporation Ltd (GOCL), the
Rs 450-crore Hyderabad-based lubricants and explosives
major belonging to the Hinduja group, is currently in
the process of finalising growth plans while consolidating
the synergies of IDL and Gulf Oil India. The company,
which now owns one of the world's largest lubricants and
explosives business, has chalked out a strategy not only
to significantly step up exports of both lubricants and
explosives, but also to explore major business opportunities
in mining and speciality chemicals. With properties at
Mumbai, Silvassa, Delhi, Bangalore and Hyderabad, GOCL
is also considering plans to develop some of these for
real estate activities.
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USFDA
nod to Dr Reddy's bulk drug facilities
Hyderabad: Dr. Reddy's Laboratories Ltd, the Hyderabad-based
pharmaceutical major listed on the New York Stock Exchange
(NYSE), has recorded yet another milestone in its operations
with the United States Food & Drug Administration
(USFDA) successfully completing inspection of the company's
bulk actives facilities. According to Dr Reddy's, it has
received `acceptable letters' from the USFDA for two of
its bulk actives facilities based at Hyderabad. The USFDA
had inspected the two facilities from March 2 to 3, this
year. The USFDA inspection covered a total of three bulk
active products. One facility was for omeprazole and tizanidine
HCl and the other facility was for keterolac tromethamine,
the company said. Currently, Dr Reddy's has a total of
six bulk actives manufacturing facilities and all them
were USFDA-inspected.
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Divis
Lab procures CoS from European body
Hyderabad: Divis Laboratories Ltd (DIL), the Hyderabad-based
pharmaceutical company, has informed stock exchanges on
Monday, that it has received Certificate of Sustainability
(CoS) from the Council of Europe, European Directorate
for the Quality of Medicine, Strasbourg Cadex, France,
for the manufacture of Nabumetone and Diltiazem HCI at
its Unit-1 located at Choutuppal near Hyderabad. Further,
the company has also informed that it has obtained the
ISO-9001-2000 (Quality), ISO-14001 (Environment Management)
and OHSAS-18001 (Safety and Occupational Health) Certification
from BVQI, London, for its Unit-2 at Chippada near Visakhapatnam.
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Power
Grid, Tata
Power tie
up for transmission
New Delhi: Power Grid Corporation of India Ltd
(PGCIL) has entered into a joint venture with Tata Power
to develop a 1,200 kilometre (km) long transmission line.
The link will evacuate power from the 1200 MW Tala hydroelectric
power station in Bhutan to the eastern region of the country.
While Tata Power will hold 51 per cent in the joint venture,
PGCIL will hold the remaining 49 per cent, with the latter
guaranteeing the former's returns from the project. PGCIL
will not only obtain all the clearances to build the project,
it will also be responsible towards collecting the revenues
from the purchasing State electricity boards. Addressing
a press conference here on Monday, the PGCIL chairman
and managing director, R.P. Singh, said that ``this (the
project) was the beginning of public-private participation
in power transmission (and) should be a trend-setter for
future investments.'' The project is being set up at a
cost of around Rs 1,980 crore including sub- stations,
to evacuate power from the 1020 MW Tala hydro-electric
power project in Bhutan to the eastern region. Project
investment for the joint venture portion is estimated
at Rs 1,100 crore, wherein PGCIL would invest Rs 162 crore
and Tata Power Rs 168 crore towards equity participation.
"The rest of the money, Rs 770 crore, would be financed
by various bankers and financial institutions including
IFCI, ADB and SBI, who have not sought guarantees for
the funding," Mr Singh said. The project is slated
to be commissioned by mid-2006.
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CPCL
expansion: higher flexibility on the anvil
Chennai: The Rs 2,360-crore, three million tonnes
per annum expansion project of Chennai Petroleum Corporation
Ltd, that is 92.5 per cent complete, is expected to give
the company two significant advantages. First, the company
would be able to process more of high sulphur crude, which
costs less, and yet produce the same quality end products
as with low sulphur crude. Second, because of the `hydrocracker
unit', the yield of high value distillates will increase
- by about 7 per cent. Briefing newspersons on the progress
of the project here on Monday, CPCL's officials said that
more the difference between prices of high sulphur (Arab
mix) crude and low sulphur (Brent) crude, the more would
CPCL benefit. Again, as part of the project, the hydrocracker
unit has been introduced and the fluid catalytic cracking
unit (FCCU) has been revamped, to handle a variety of
crudes. The hydrocracker plant has been linked up with
all the three units of CPCL's Manali complex (the two
existing and the new one), so that crude from all the
three units could be processed by the hydrocracker.
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Wockhardt
Life sells off Merind assets
Mumbai: Wockhardt Life Sciences has sold off the
assets of its subsidiary Merind Ltd to the holding company
Khorakiwala Investments and Holdings Pvt Ltd for consideration
of Rs 9.28 crore, according to the company's annual report.
This results in a loss of Rs 86.02 crore to the company,
which acquired Merind from the Tatas' at Rs 95.3 crore
in 1998. Subsequently, through an open offer, Wockhardt
Life Sciences had increased its stake to 96 per cent in
Merind. Merind Ltd has a major presence in the Vitamin
B12, Corticosteroids and anti-depressant therapeutic segments.
Wockhardt had substantially invested to expand the Vitamin
B12 manufacturing facility to almost double the existing
capacity. Currently, Merind carries out contract manufacturing
business for Wockhardt Ltd.
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Khemka
family row affects Interbrew's Indian foray
Bangalore: The Indian foray of Interbrew, the Brussels-based
world's third largest brewer, has hit a road block with
its strategic partner, Sun Group, putting investment plans
on hold. Sun, promoted by the Delhi-based Khemka family,
partners Interbrew in Russia and had plans to extend the
tie-up into the Indian beer market as well. Interbrew
along with Sun had evinced interest in leading domestic
brewers, UB Group and Shaw Wallace, before yielding ground
to global rivals such as Scottish & Newcastle and
SABMiller. Later, Sun, which was leading Interbrew's charge
in India, had talked with various industry professionals
to work out a detailed entry strategy, which looked at
the possibility of bringing together a string of dispersed
small independent brewers in the country. Sources said
Sun Group's executive director, Shiv Vikram Khemka, held
discussions in this regard with certain constituents of
the domestic brewing industry.
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Bata
shareholders pass all nine resolutions
Kolkata: Bata India Ltd on Monday announced that
all the nine resolutions, placed before the company's
shareholders at the 70th AGM on June 27, have been passed
by the requisite majority. According to an official release
issued by the company here, the scrutiny of number of
votes cast at the poll was conducted at the office of
AMI Computers Ltd (company's share transfer agents) on
June 28.A shareholder holding the requisite proxies had
demanded the poll. Among the scrutineers, appointed by
the chairman, A.L. Mudaliar, at the AGM venue on Friday,
were A.B. Anand, vice-president & company secretary,
as the employee member and S.N. Kundu, member and shareholders'
representative.
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H&R
Johnson posts Rs 400-crore turnover
Pune: H&R Johnson (India) Limited has become
the first tile company to cross the Rs 400-crore turnover
mark which it achieved during 2002-03 when it touched
Rs 416 crore. The company has set itself a target of crossing
Rs 1000 crore by 2008 with the company growing at about
20 per cent per annum. The company is expanding capacity
at its main plant in Pen, near Mumbai, and getting into
more value added products. R Kurup, president (sales &
marketing), H&R Johnson, said the company had managed
to achieve this growth rate when most tiles manufacturing
companies were finding the going tough. The company was
keeping pace with the changes in the market, which was
moving from ceramic tiles to vitrified tiles, which the
company addressed thorough the launch of Marbonite and
Porselano brands. Johnson is further expanding capacity
to manufacture vitrified tiles from 18,000 square metre
per day to 27,000 square meter per day at its Pen facility
with investments of Rs 75 crore, Kurup said.
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Matsushita
plans battery unit in Hosur
New Delhi: Matsushita Battery Company Ltd (MBCL),
which markets automotive batteries under the brand Panasonic,
is setting up a Rs 100 crore automotive battery facility
in Hosur, Karnataka. The facility, expected to start production
by early 2004 with an initial capacity of 1.2 million
units per year, is part of MBCLs joint venture (JV)
with Bangalore-based Base Corporation Ltd. The latter
is an exclusive importer, marketer and distributor of
Panasonic battery products in the country. The new facility
is being set up because large scale operations are not
possible due to the 51 per cent import duty that the batteries
attract.
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Cummins
plans technology centre in India
Pune: The $5.7-billion Cummins Inc is planning
to set up a technology centre in India. The company is
considering Pune, Bangalore and Hyderabad as possible
locations for housing the technology centre. Ravi Venkatesan,
chairman of Cummins India Limited and vice president of
Cummins Inc, said a decision would be taken in four to
six weeks. The top team from Cummins visited India and
have decided that India was a good place to do research
and product development, Venkatesan said. The centre would
be working on modelling and simulation. Cummins is also
growing its exports and was working at becoming the sole
source worldwide for a range of engines and increasing
component exports from Cummins India, Venkatesan said.
CIL has also started exporting small gensets to China
and Korea.
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UB
turns around, posts Rs 1.44-crore net profit
Bangalore: United Breweries has posted a net profit
of Rs 1.44 crore for the financial year ended March 31,
2003, as against Rs 9.39 crore net loss in the previous
fiscal. However, the consolidated figures for the period
shows a net loss of Rs 9.05 crore in 2002-03 compared
to Rs 24.76 crore in 2001-02. Net sales stood at Rs 352.13
crore last fiscal as against Rs 201.08 in the previous
fiscal. Meanwhile, United Breweries Holdings has posted
a net loss of Rs 160.47 crore (inclusive of exceptional
items-one time provisions alongwith VRS) for FY2003 compared
to Rs 41.32 crore in FY2002. Revenues stood at Rs 46.78
crore as against Rs 169.30 crore in the previous fiscal.
According to a statement by the company here on Monday,
the core activities of the company will be the development
of real estate. Commenting on the results, UB Group
president and chief financial officer AK Ravi Nedungadi
said, United Breweries have posted a 17 per cent
growth in volumes from 26 million cases to 30.5 million
cases during FY2003 and has a market share of 36 per cent.
An improved profitability is expected in both volumes
and market this fiscal with indications of consolidations
in the market which is expecting a total shake out.
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