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 buyer’s 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 Ranbaxy’s 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 company’s 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 government’s 23.49 per cent stake in PTL to nominate two nominees on the company board. Based on the Punjab government’s 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 PSIDC’s 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 SPGL’s 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 company’s 68th annual general meeting here Monday, Eveready’s 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 MBCL’s 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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