RIL gets nod for Dibrugarh plant
New Delhi: Reliance Assam Petroche-micals Ltd (RAPL) has received the environmental clearance for its Rs 3,198-crore petrochemicals complex at Dibrugarh in Assam, which will pay the way for setting up an integrated petrochemicals project that will come up in phases. The total requirement of the land for the project is 1,108 acres. This will involve displacement of people from Lepetkata, where it will be located. The number of affected families is 251, out of which more than 60 per cent are "encroachers of the government and tea garden lands." The environment and forests ministry has said that the affected families will be paid as per the "relief and rehabilitation package," as approved by the Assam government. The ministry has, nevertheless, not specified whether or not the encroachers will be compensated. The Assam state pollution control board has already given the green signal to the Dibrugarh project. The first phase of RAPL's project will consist of integrated gas separation and gas cracking plants, pipeline facilities for transportation of feedstock, storage, utilities and township. The proposed capacity of the plant in the first phase is 2 lakh tonnes per year of ethylene and downstream polyethylene products. The other main products are 2 lakh tpa of HDPE, 7,341 tpa of fuel oil and 89,000 tpa of fuel gas. A gas-based captive power plant of 60 mw capacity turbine would also be installed.
Back to News Review index page  

Reva develops high-end battery technology
Bangalore: Reva Electric Car Company (RECC), a pioneer in EV technology in India, is working on developing high-end battery technologies and fast-charging technologies to enable cars to cover longer distances and charge much faster. RECC's plan to introduce bigger vehicles covering longer distances depends a lot on these new technologies. At present, Reva EV has a mileage of 80 km per charge and is suitable only for city driving. Says RECC managing director Chetan Maini: ''Currently, the lead acid batteries that are being used gives a mileage of 80 km per charge and has a life of four years before it has to be replaced. 'Our R&D team is working on developing Lithium Ion batteries for the car which will give a mileage between 150 kms and 300 kms and a battery life of around 15 years. The battery will have three to four times more power than the current batteries at the same weight." The company has drawn a roadmap regarding the evolving of battery technologies for the EV.
Back to News Review index page  

Zenovus to be merged with Dr Reddy's Labs
Hyderabad: Dr. Reddy's Laboratories has decided to merge with itself its wholly owned subsidiary, Zenovus Biotech Ltd. Dr Reddy's has informed the stock exchanges that since Zenovus was its wholly-owned subsidiary, there will be no issue of equity shares of Dr Reddy's in favour of the shareholders of Zenovus. The company said upon amalgamation becoming effective in terms of the scheme of merger, the investments made by Dr Reddy's in Zenovus, appearing in its books of account at present, will stand cancelled. Dr Reddy's had earlier set up Zenovus to develop and commercialise a new technology platform in the biotechnology area. It planned to focus on the development of monoclonal antibodies through this subsidiary. While approving the audited financial results for the fiscal ended 31 March 2003 at the meeting held in the US recently, Dr Reddy's board of directors had decided to merge Zenovus with itself. It has also decided to close down the operations of its diagnostics business. The company will now place these resolutions before the shareholders and seek their consent at the ensuing annual general meeting scheduled to be held on 25 August.
Back to News Review index page  

Rane Brake launches asbestos-free clutch discs
New Delhi: Rane Brake Linings (RBL) has launched "the country's first" cost-effective asbestos-free aftermarket clutch discs. The produt has been developed by RBL exclusively for LuK India, part of the German LuK GmbH, and may not be a wide offering. Asbestos-based components are cheap to produce, while asbestos-free ones are expensive. With global multinational companies, including LuK, now aligning themselves with environmental standards, asbestos-free components is one of the ways forward. Under this arrangement, Rs 128-crore RBL will supply LuK with their AF4059 grade of asbestos free clutch facings for the heavy commercial vehicle (HCV) and LCV segment. "Previously, asbestos-free products used to be about 40 per cent more expensive, sometimes double the cost, of asbestos-based components. However, we have managed to rationalise our product and we are pricing it only marginally above asbestos-bases products," says Rane Brake Linings president S Sundar Ram.
Back to News Review index page  

VSNL acquires international IP-VPN service provider
Mumbai: Videsh Sanchar Nigam has said that it has acquired the assets and network of an international Internet Protocol-based virtual private network solution provider in the US, Europe and the Far East. VSNL America Inc, VSNL's wholly-owned subsidiary which was formed last month, is expected to own and operate the international assets, a company news release said. The acquired company has a "ready-for-service" network in 15 countries but VSNL will introduce services in a phased manner with initial focus on eight countries including the US, European countries and Far East countries. The company did not reveal the price of the acquisition or the name of the company acquired. The international VPN network is considered a rapidly growing business, with the market size expected to grow up to Rs 400 crore over the next three to four years. But sources close to the company say VSNL has acquired the assets and network of US-based business networking services provider Gemplex with which it had tied up for IP VPN services in November 2002.
Back to News Review index page  

OSIC bond issue for high-cost debt swap
Kolkata: Orissa Small Industries Corporation (OSIC), the nodal organisation set up by the Orissa state government for developing small industries in the state, has chalked out plans for a Rs 20-crore bond issue, essentially to swap it against the high cost loans of Rs 20 crore it now holds. The OSIC board is expected to meet soon to finalise the mandate for appointment of a merchant banker for structuring the instrument. The bond tenure is said to be for two years. State government sources say the city-based Srei International Finance has already made a presentation to OSIC for taking up the job of structuring the instrument. The bond may carry a coupon rate varying between 9.5 and 10.5 per cent, and will be payable semi-annually.
Back to News Review index page  

Zodiac Clothing to offer 50% dividend
New Delhi: The board of directors of Zodiac Clothing Company have recommended a dividend of Rs 5 per share (50 per cent). The company has also informed the Bombay Stock Exchange that the board has approved a proposal for expanding the production at its manufacturing facility in Bangalore by about 1 million shirts.
Back to News Review index page  

BEL bags Tamil Nadu police order
Bangalore: Bharat Electronics Ltd (BEL) has received a prestigious order from the Tamil Nadu state government to supply and install a state-wide digital microwave communication network for its police on turnkey basis. The contract is worth Rs 8.02 crore and BEL will also commission the 2-ghz, 120-channel system, according to a press release. The 28-link network will enable high quality transmission and networking of speech, data and fax messages among all district HQs and Chennai. BEL will completed the contract, including the system design and manufacture of 8-mb microwave radios, antenna, multiplexers and exchanges along with towers and power supply system, in a relatively short seven months, the defence PSU said.
Back to News Review index page  

Reliance ups product prices of polymers
Mumbai: Reliance Industries Ltd has hiked the prices of polymers, fibre intermediates and polyester products except polyethylene terephthalate, effective 1 July 2003. The company has hiked prices of fibre intermediates, purified terephthalic acid and mono ethylene glycol by 11.9 per cent and 18.2 per cent each to Rs 33.00 per kg (Rs 29.50) and Rs 38.70 per kg (Rs 32.75) respectively. Among polyester products, PET prices have been slashed by 5.6 per cent to Rs 51 per kg (Rs 54). Partially oriented yarn prices are up 9.1 per cent to Rs 65.65 per kg (Rs 60.15) while polyester staple fibre is up 3.7 per cent to Rs 56.75 per kg (Rs 54.75). Prices of polyethylene were up 8.1 per cent to Rs 40.20 per kg (Rs 37.20), polypropylene was dearer by 4.8 per cent to Rs 43.35 per kg (Rs 41.35) while polyvinyl chloride prices were hiked 12.2 per cent to Rs 40.50 per kg (Rs 36.10). Linear Alkyl Benzene prices were up 1.9 per cent to Rs 54.40 per kg (Rs 53.40). The price-hike may be a reaction to the recent increase in international prices of naphtha, the primary raw material for petrochemicals, says an analyst.
Back to News Review index page  

Oberoi calls off tie-up with Jass Hotel
New Delhi: The Oberoi Hotels has declared the termination of its management agreement with Jass Hotel, Khajuraho, with immediate effect. In a statement, the group has said that following the termination of the management agreement, the property will no longer use the Trident brand name.
Back to News Review index page  

Neuland exports ciprofloxacin to US
Hyderabad: Neuland Laboratories Ltd (NLL), the Hyderabad-based pharmaceutical company, has informed the stock exchanges on Tuesday that it has executed the first commercial shipment of Ciprofloxacin Hydrochloride USP valued at $40,80,00 to the US.
Back to News Review index page  

Corolla, Qualis to cost more
Bangalore: Toyota-Kirloskar Motor Company has increased the price of its luxury sedan Corolla by around Rs 8,500 while a decision on the quantum of increase in the price of the Qualis will be taken shortly. Toyota-Kirloskar had earlier said that the decision to hike the prices has been taken because of the increase in steel prices and the cumulative increase in diesel prices. The price of the base model of the Corolla is around Rs 9.16 lakh. The Corolla has sold 2,003 units between February and May while the Camry has sold 334 units during January-May. The company has set a sales target of 10,000 units of the Corolla for 2003. Developed at an investment of over Rs 70 crore, the ninth generation luxury sedan has been adapted for Indian conditions and is being manufactured at the company's plant in Bidadi in Karnataka. The company expects to have a market share of around 10 per cent by 2010 in all the segments including Corolla. Currently, the Corolla has a 55 per cent local content. However, the company has plans to increase that figure soon. Toyota has so far sold more than 30 million Corollas in 142 countries worldwide. It accounts for around 25 per cent of Toyota's car sales globally.
Back to News Review index page  

Century Plywoods to foray into laminate market
Kolkata: Century Plyboards (India) Ltd plans to venture into the laminate market in a major way with the commissioning of its Rs 38-crore laminate producing unit in November 2003. The company's deputy managing director, Sanjay Agarwal, says the laminate factory project is spread over two phases. While the cost of the first phase is Rs 26 crore, that of the second is Rs 12 crore. The first phase will be commissioned in November and will be funded through internal accruals and a loan of Rs 17 crore from State Bank of India. The second phase will be commissioned in August 2004 and is set to cost Rs 12 crore, of which Rs 8 crore will be taken care of by a SBI loan. ``We have already acquired the land and is located near our existing factory in South 24 Parganas. We have already ordered the machinery. The initial capacity of the unit will be one lakh sheets per month and subsequently this will be increased to three lakh sheets per month,'' says Agarwal. The plywood manufacturing capacity of the company is 25,000 cubic metres per annum. Capacity utilisation is expected to go up from 16,000 cm per annum in 2002-03 to 19,000 cm in the current financial year.
Back to News Review index page  

Hero Honda sales rise 15% in June 2003
New Delhi: Hero Honda Motors Ltd has said it sold 1,60,889 two-wheelers in June 2003, registering a growth of 15 per cent over the 1,39,993 vehicles it had sold in the same month last year. Cumulative sales during April-June this year rose by 8.8 per cent to 4,58,789 units from 4,21,681 units in the corresponding period last year, Hero Honda said in a statement here. The Karizma, the new bike launched in June, sold 1,963 bikes in 20 days.
Back to News Review index page  

Bajaj Auto two-wheeler sales down 7.5% in Q1
Mumbai: Despite a 11.2-per cent rise in motorcycle sales to 2,40,530 units in the first quarter of 2003-04, Bajaj Auto Ltd's (BAL) total two-wheeler sales have declined by 7.5 per cent to 3,02,580 units. According to an official statement, sales of three-wheelers gained by 3.2 per cent to 45,002 units but cumulative sales of two and three-wheelers dipped by 6.2 per cent to 3,47,582 units. Exports were up 82.6 per cent to 34,089 units. With a view to improving distribution channels, BAL has reduced its dealer receivables from over 10-days' sales to three days. It is moving towards its target of zero credit. "While this did affect first quarter volumes, the company is convinced that `cash and carry' sales policy is more appropriate for a healthy network in the long term,'' the statement said. According to it, first quarter bike sales had healthier product mix with the executive and premium models accounting for 48 per cent of sales as against 27 per cent in the year ago period.
Back to News Review index page  

GAIL inks pact with PY-1 consortium
New Delhi: GAIL (India) Ltd and the PY-1 Consortium, which consists Mosbacher India LLC (MIL) and Hindustan Oil Exploration Company Ltd (HOEC), have entered into an agreement for the sale of gas and its transportation. B S Negi, director (planning), GAIL, Robert Mosbacher of MIL, and Ajit Kapadia of HOEC, signed the agreement here on Tuesday. Under the terms of this agreement, GAIL is to take delivery of natural gas from the PY-1 Consortium's offshore facilities and transport the gas condensate through a pipeline to its onshore facilities in Tamil Nadu. This, according to a GAIL statement here, is the first Cauvery Basin offshore gas field being developed. GAIL will be laying its first offshore pipeline, which will connect one of the major independent beneficiaries, Pillai Perumal Nellore power plant, in the State. The PY-1 is an offshore field of Cauvery Basin and is located at a distance of 18 km from the shore, Porto Novo. This pipeline will commence operations within a span of two to three years. The PY-1 consortium is a joint venture enterprise with participating interest of 54:46 between MLC and HOEC, respectively. These discovered offshore fields in Cauvery Basin were awarded by the Union Government to the consortium under the pre-NELP round.
Back to News Review index page  

Indal to expand Hirakud smelter
Kolkata: Indian Aluminium Company Ltd ( Indal), an Aditya Birla group outfit, has decided to expand its Hirakud smelter in Orissa from 57,200 tonnes to 65,000 tonnes by transferring 54 pots currently lying idle at the closed smelter at Belgaum in Karnataka. The expansion programme will be completed by the end of the current year. The company's captive power plant at Hirakud will also be expanded adding generation capacity of 100 MW so that the increased power requirements for the expanded capacity at Hirakud smelter can be met while excess power can be wheeled to the sheet plant at Belur in West Bengal. The company president and chief executive officer Dr S K Tamotia says Indal will continue to leverage its dominant presence in chemicals as a key earnings driver in the future. Immediate term growth will emanate from expanding presence in the downstream businesses, with a bias towards value added applications and exports.
Back to News Review index page  

India Cements loss rises to Rs 201 crore
Chennai: Chennai-based India Cements Ltd has reported a whopping net loss of Rs 201.37 crore for the fiscal ended March 2003, as against a loss of Rs 0.81 crore during the corresponding fiscal. Net sales were at Rs 1,026.93 crore (Rs 1,188.56 crore) The loss was substantially lowered by a deferred tax asset of Rs 114.08 crore, which has been added to the profit and loss account. Total expenditure was at Rs 1,000.30 crore (Rs 1,027.89 crore). Interest and other charges (taken at the contracted rates and not at the rates of the corporate debt restructuring programme) stood at Rs 258.54 crore (Rs 205.44 crore). Depreciation accounted for Rs 81.39 crore (Rs 87.47 crore). Loss before tax was at Rs 307.23 crore (Rs 7.56 crore). Paid-up share capital remained unchanged at Rs 138.59 crore. The company has attributed the loss to excess capacity in the south and the free fall in cement prices caused by the supply side pressures. As against the capacity of 45 million tonnes in the south, the consumption during the fiscal was only 30 million units, which resulted in the industry operating at 65 per cent of its capacity The fall in the selling price has resulted in the gross realisation per tonne declining by Rs 388 per tonne. Also, the drop in prices has lead to the bottomline getting eroded by Rs 194 crore, the press release explained.
Back to News Review index page