Gujarat NRE may be merged with GNCL
Kolkata: Gujarat NRE Power Ltd (GNPL) has taken the initiative to merge the company with Gujarat NRE Coke Ltd (GNCL), a Kolkata-based manufacturer of low ash coke. The Calcutta High Court has called for an extraordinary general body meeting of shareholders of both the companies on 15 July to discuss and finalise the issue. According to the draft scheme of the merger, GNPL's shareholders will get three shares of GNCL for every 10 shares held in GNPL. GNPL's shareholders will also get instant liquidity. The company, which is already facing a resource crunch for further development and depended to a very large extent on GNCL for financial and logistical support, will have a freer access to the financial strength of GNCL. The name GNPL suggests that the company generates power. But in reality it also produces low ash metallurgical coke similar to that of GNCL. GNPL produces about 78,000 tonnes of coke per year, while GNCL has the capacity of 1,38,000 tonnes per year. GNPL was originally incorporated to take up power generating business but it failed due to certain technical reasons. In the subsequent move, GNPL was converted into a coke-making company.
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Eli Lilly's Xigris drug registers 50% survival rate
New Delhi: Eli Lilly India has discharged Xigris, apparently the only drug to treat severe sepsis, to 100 patients in India with a survival rate of 50 per cent. Xigris, which will cost about Rs 5 lakh per patient, was launched in the country eight months ago, at the same time of its launch in the US. Sepsis is commonly referred to as blood poisoning. A severe condition is when vital organs start dysfunctioning due to sepsis. The cost of treating a patient with Xigris works out to between Rs 4-5 lakh. The high cost is also due to the incidence of 57-per cent customs duty on imports of this drug. Eli Lilly has been lobbying with the government to waiver the duty as is the case for many drugs used to treat other life threatening diseases. But their efforts were not successful. Eli Lilly India chairman and managing director Rajiv Gulati says: "The incidence of severe sepsis in India is 26,500 annually. Unfortunately, the awareness about the disease and the possible cure is still quite low in the country."
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Mayajaal Entertainment to set up sports village
Chennai: Mayajaal Entertainment is all set to inaugurate its 18-acre sports complex: Mayajaal's The Champ Sports Village. Built at an outlay of Rs 7 crore, the complex has cricket stadiums (both outdoor and indoor) tennis court, swimming pool, health club (gym, Jacuzzi, steam room, massage parlour), a mini-golf course, table tennis and snooker rooms. In addition, the sports village has smoking and non-smoking bars and a restaurant. "We will initially target the corporate segment for membership. In course of time, as in the US, we will have walk-in customers," says Dr V Chandrasekaran, chairman & CEO, Pentamedia Graphics. Mayajaal is a wholly owned subsidiary of Pentamedia Graphics. According to Chandrasekaran, the company will initially rope in 400 members while the membership schemes are being worked out. As per the current plans, Mayajaal will recover the investment made in the sports complex in three years' time. The entertainment complex currently earns around Rs 70 lakh per month. "The total investment made by Mayajaal will be around Rs 30 crore but the market valuation is around Rs 60 crore," says Chandrasekaran.
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Duroflex plans rubberised coir plant in Punjab
Kochi: Duroflex Ltd, a leading branded mattress manufacturer, plans a fully-automatic rubberised coir plant in Punjab in order to the growing demand for quality mattress within India and abroad. The company already has three rubberised coir units in Alappuzha, Hyderabad and Hosur. When the Punjab unit becomes fully operational, the production of Duroflex mattresses will be doubled, says George Mathew, executive director. Duroflex, founded in 1963 in Alappuzha, pioneered export of rubberised coir products 16 years ago and now exports its products worldwide. Lt Col Mohan Andrews, director, says Duroflex is the first mattress manufacturing company in India to get the ISO 9002 certification. "When the new unit in Punjab commences production, it will be the number one mattress making company in India."
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Nalco output excels in first quarter
New Delhi: National Aluminium Company Ltd (Nalco), a public sector undertaking under the ministry of mines, produced 72,848 tonnes of aluminium cast metal and 3.69 lakh tonnes of calcined alumina during the first quarter this fiscal as against the target of 70,100 tonnes and 3.79 lakh tonnes set for the two items, respectively. The aluminium major also produced 10.39 lakh tonnes of bauxite against a target of 9.65 lakh tonnes set for the April-June the quarter. It sold 64,344 tonnes of aluminium metal against a target of 70,300 tonnes during these three months. Aluminium exports during the quarter totalled 29,586 tonnes against a target of 30,400 tonnes.
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Coromandel Fert to increase authorised capital
Hyderabad: Coromandel Fertilisers Ltd (CFL), part of the Chennai-based Murugappa group, plans to enhance its authorised share capital to Rs 35 crore from the existing level of Rs 25 crore. This move comes after its need to issue shares to the members of EID Parry (India) Ltd in terms of the scheme of arrangement entered into recently. As per the scheme, CFL will acquire the farm inputs division (FIND) business of EID Parry, which also includes the pesticide business. Instead of this, CFL has agreed to allot its one share for every three shares held by EID Parry shareholders. The company also plans to alter its Objects Clause of Memorandum of Association to enable it carry out business of manufacture, sale, distribution and marketing of pesticides. Stating that the new business would not be germane to the business of manufacture, sale, distribution and marketing of fertilisers being carried on by it, the company has decided to seek the approval of its shareholders for the proposals at the annual general meeting scheduled for 17 July.
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Matrix Labs buys more Vorin shares
Hyderabad: The promoters of Matrix Laboratories Ltd (MLL) are still trying to consolidate their holding in the company. This comes at a time when the open offer to the shareholders of MLL by its promoters failed to create any notable response. The Ranbaxy-controlled Vorin Laboratories and the Chennai-based Shriram group-promoted Medicorp Technologies are scheduled to merge with Matrix. As per the scheme of arrangement, Matrix will allot two of its shares for every 13 shares held by the shareholders of Vorin and Medicorp, respectively. The Matrix promoters have of late started acquiring the shares of Vorin Labs, which will indirectly help them acquire shares in Matrix. MLL chairman and managing director N Prasad told the stock exchanges recently that he has acquired 6.5-lakh equity shares of Vorin, enabling him to acquire 1 lakh equity shares of Matrix on swap. Again during the last week, Prasad and MLL executive vice-president M Ravinder purchased 6.5-lakh equity shares each of Vorin, the Matrix compliance officer informed the stock exchanges. This enables each of them to acquire 1 lakh shares of Matrix on its merger with Vorin and Medicorp.
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Yamaha starts upgrading its Faridabad plant
New Delhi: Yamaha Motor India says it has started upgrading its plant in Faridabad to manufacture four-stroke motorcycles as part of its strategy to expand capacity and introduce new models. Presently Yamaha Motor manufactures its range of four-stroke bikes at the Surajpur plant and two-stroke bikes at the Faridabad facility. "Currently, our Faridabad plant caters only to the two-stroke motorcycles. Through this upgrading process, we aim to expand this facility to not only accommodate the production of our existing range of four-stroke models but also include the new models that are being planned for the future," says S.K. Taneja, executive director of Yamaha Motor India. In order to facilitate the upgrading, the company has rescheduled its production to four days a week. The non-production days will be utilised to train the workers to acclimatise them to new modifications at the plant. A wholly owned subsidiary of Japanese two-wheeler major, Yamaha Motor India plans to introduce two new models every year. It currently sells a range of motorcycles such as Crux, Crux R, Libero, Entire and RX 135.
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Gulf Oil forms 51:49 JV firm with Oil Bangladesh
Mumbai: Gulf Oil Corporation Ltd (GOC), a Hinduja group-owned leading lubricant company, has entered into a joint venture with Oil Bangladesh Ltd (OBL). As a result they have formed a new company: Gulf Oil Bangladesh Ltd (GOBL). GOC will hold a 51-per cent stake in the new venture, while OBL will hold a 49-per cent stake. According to the agreement signed in Dhaka, a lube-blending operation will be started in Bangladesh. This will function under the newly formed company. With this JV, GOC will become the first Indian lubricant company to invest in the international market. Says GOC executive director V Ramesh Rao: "Having established a strong presence in India, we are poised for expanding our operations overseas. We are happy to cement our fruitful association with OBL and start JV company in Bangladesh. It will be our endeavour to explore expansion opportunities in the international market and ensure improved shareholder value." Subsequent to the opening of the lubricants market in Bangladesh in 1997, Gulf Oil appointed Oil Bangladesh as its sole distributor in 1999.
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TRAI seeks clarification from Reliance, BSNL
New Delhi: The Telecom Regulatory Authority of India (TRAI) is seeking a clarification from BSNL and Reliance on their latest WLL schemes. "We have sought details from BSNL on its latest WLL scheme in which it has offered to give WLL connection at a price of Rs 20. In the case of Reliance, we have asked them why they did not send tariffs of 'monsoon hungama 501' offer to us before advertising it," says TRAI chairman Pradeep Baijal. "We have given them one week from Thursday to reply to us." "TRAI has apparently sought information from us regarding the WLL scheme, but it has not issued any letter or asked us to stop the offer," say BSNL officials.
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CSC nod to Rs 124 per share offer for Godavari Fertilisers
Hyderabad: The Cabinet Sub-Committee (CSC), which is dealing with the divestment of the state public sector units in Andhra Pradesh, has declared Coromandel Fertilisers Ltd (CFL) the preferred bidder in the sale of the state government's 26-per cent stake in Godavari Fertilisers & Chemicals Ltd (GFCL). CSC, which had postponed its meeting earlier on the direction of the Andhra Pradesh High Court on a suit filed by Krebs Biochemicals, met at the secretariat to consider the price bids based on the evaluation done by the implementation secretariat (IS) along with Adam Smith Institute, the advisers to state PSUs divestment in the state. CSC has accepted the uppermost bid price of Rs 124 per share offered by CFL and declared it as the preferred bidder, says IS chairman D K Panwar. "The CSC has also asked the IS to initiate action to close the deal. Accordingly, IS will enter into a sale-purchase agreement with the preferred bidder [CFL] shortly."
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TPC, Powergrid sign agreement for Tala project
Mumbai: Tata Power Company (TPC) and Powergrid Corporation (PG) have signed a shareholder's agreement and implementation and transmission service pacts for the Rs 1,100-crore Tala transmission project. The Tala Delhi Transmission Company, comprising 51-per cent stakes of TPC and 49 per cent of PG, plans financial closure by September 2003. The Tala-Delhi transmission project spanning over 1,200 km of 400 kV transmission lines will be constructed in five phases by December 2005. The project, which will be developed on debt equity ratio of 70:30 will facilitate evacuation of power from the 1,020 mw Tala hydroelectric power in Bhutan and carry surplus power from the eastern grid to the power deficit national grid. PG chairman and managing director R P Singh says PG has assured 100 per cent payment to TPC for transmitting power to the state electricity boards. The beneficiaries of the Tala project, the first of its kind in the private-public sector partnership after the enactment of Electricity Act, 2003, will include West Bengal, Bihar, Jharkhand and Sikkim in the eastern region and Haryana, Punjab, Rajasthan, Uttar Pradesh, Jammu & Kashmir and Delhi in the northern region.
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