Gartner predicts 10% job cuts in US due to BPO
Mumbai: Ten per cent of US employees working for IT companies are estimated to lose their jobs by the end of 2004, according to the estimates released by research and advisory firm Gartner. "More jobs are likely to move offshore to destinations like India, China, Romania, Bulgaria, Russia and the Philippines. We estimate that by the end of 2004, 10 per cent of employees in IT companies and 5 per cent employees in user organisations will lose their jobs due to offshoring of work. Of these less than 40 per cent employees will get redeployed. This means that backlash against offshoring will get more severe before the situation gradually improves," says Gartner Research Director Rita Terdiman.

Gartner also estimates that BPO opportunity for India is increasing dramatically. "By 2007, India would have cornered $13.5 billion of global offshore BPO business," says Gartner principal analyst Debashish Sinha.
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Jet Air eyes $60-million profit in two years
New Delhi: Jet Airways has targeted a $60-million profit in the next two years by making best use of its available resources and without going in for job cuts. The airline is reiterating its intention to fly on international routes. “Our immediate agenda is to achieve a profitability of around $60 million. In the first year we intend to increase our profitability and then expand into international sector if the government allows us to do so,” says Jet Airways CEO Wolfgang Prockschauer . He said as only 30 per cent of the bilateral air traffic rights were utilised by Air-India and Indian Airlines, there is room for three to four airlines sharing the remaining bilateral rights.
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Welspun Gujarat registers Rs 11.08-crore profit in Q1
New Delhi: Welspun Gujarat Stahl Rohren has reported a profit-after-tax of Rs 11.08 crore during the first quarter ended June 2003 as against a loss of Rs 2.69 crore in the corresponding quarter of the previous year. The total income during the quarter shot up 354 per cent to Rs 240.71 crore from Rs 53.01 crore. The profit-before-tax in April-June 2003 stood at Rs 18.01 crore while the profit before interest, depreciation and tax was Rs 30.65 crore.

Another group company, Welspun India Ltd, reported a marginal improvement in profit after tax to Rs 5.97 crore during April-June 2003 as against Rs 5.68 crore in the first quarter ended June 2002. Total income rose to Rs 73.87 crore from Rs 55.83 crore while the PBIDT increased to Rs 18.17 crore from Rs 16.97 crore and profit-before-tax went up to Rs 8.39 crore from Rs 5.84 crore. The board of directors of Welspun India and Welspun Gujarat met on Monday and approved the unaudited financial results for the first quarter of 2003-04. During the current financial year, Welspun Gujarat is executing a Rs 393 crore pipeline project for Gail Ltd and has also bagged orders worth $102 million Rs 470 crore from Iran. The company has also announced prepayment of Rs 100 crore rupee loans to IFCI.
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TCI to launch gift cheque scheme for travellers
Mumbai: Travel Corporation India (TCI) plans to launch the TCI gift cheque scheme on 19 July. This will be available at a minimum value of Rs 1,000 and will enable a customer to purchase any holiday in India and overseas or against any other travel service provided by TCI. It is also increasing its focus on newer markets in Cyprus, China, New Zealand and the Scandinavian countries. This launch is part of TCI’s 43rd anniversary celebrations which will be kicked off on 19 July.

Also part of the celebrations is a series of workshops and seminars for travel agents which is an endeavour to educate the travel agent more so that he is fully aware of all aspects of what he is dealing with. TCI is also focussing on developing new markets like Russia, the Middle East, China. Katgara added that among new markets, Cyprus and New Zealand are the two newer emerging markets among the other destinations worldwide. TCI is also looking at tailor-made holidays as the free individual traveller (FIT) concept is now emerging as an important aspect of travel. In this respect, Katgara mentioned that participative holidays were slowly becoming increasingly popular.
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New amendment to slash backlog of patenting for Indian applicants
Mumbai: Indian patent applicants can avail of their patents within a month’s time following the deferred examination system introduced in the second amendment to the Patent Act, according to news reports. The development assumes significance since a backlog of 44,000 odd applications were pending as on 19 May 2003. Addressing a symposium on ‘Intellectual Property Rights and Patent Act Amendments’ here on Tuesday, department of industrial policy and promotion director Rajeev Ranjan said around 1,200 applicants have opted for this new system since 20 May 2003 after the amendment was passed. According to the second amendment, a request for examination system has been introduced and, therefore, all the patent applications in which First Examination Report has not been issued on or before 19 May 2003 will now be examined under section 12 only after filing a request for examination on Form-19 with prescribed fee.

In the earlier systems, each and every patent application had to be examined which has now been corrected through this amendment. This resulted in a huge backlog in excess of 44,000 patent applications, Ranjan said. “The statutory period for clearing the patent application under the second amendment is 18 months but we are capable of doing it within 30 days,” Ranjan said. The number of patent examiners too have been increased to 270 from the existing 100. Appointment orders for 132 examiners have been issued, while recruitment for another 40 examiners is currently under process, he added.
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Car sales spurt 23% in June
New Delhi: Car sales increased by a robust 23 per cent in June 2003, thanks to a jump in sales of automobile majors like Maruti Udyog, Hyundai Motor and Tata Engineering. Total sales went up to 52,029 units from 42,331 units in the same month of last year, according Society of Indian Automobile Manufacturers (Siam) data. Cumulative (April-June 2003) sales also grew by 30.5 per cent to 1,49,701units over 1,14,676 units sold in the year-ago period. Following an 8-per cent excise duty reduction to 24 per cent in the budget, car sales received a major boost and have been witnessing a steady rise. Bus and truck sales rose by 25 per cent to 18,330 units as both light and heavy vehicles clocked higher sales.

The commercial vehicle segment posted a 19.7 per cent rise to 46,899 units during the first three months of this fiscal against 39,179 units during the corresponding period of last year. Two-wheelers registered a 6.35 per cent jump to 4,19,396 units as motorcycle sales slowed down and scooter sales went up, while mopeds skidded. Motorcycle sales went up by a modest 8.86 per cent to 3,23,873 units (2,97,504 units), while scooters reversed by posting a 6.30 per cent rise at 68,801 units (64,718 units). Moped sales dived by 16.7 per cent to 26,722 units (32,102 units). Utility-vehicle sales grew by a healthy 28.6 per cent to 10,751 units in June this year as major players like Mahindra & Mahindra (M&M), Tata Engineering and Toyota Kirloskar posted growing sales. Multi-purpose-vehicles drove northward by witnessing a 13.3 per cent rise to 4,558 units (4,022 units). Sales of three-wheelers went up by 14.3 per cent to 20,185 units (17,645 units). Market leader Maruti Udyog posted a 34.5 per cent rise to 24,540 units, while sales of the second largest auto maker Hyundai Motor India jumped by 40 per cent to 11,941 units.
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Dr Reddy's to announce Q1 results on 31 July
Hyderabad: The board of directors of Dr Reddy's Laboratories Ltd is scheduled to meet on 31 July to consider and take on record the unaudited financial results of the company for the first quarter of the current fiscal year ended 30 June 2003, the company informed the stock exchanges this week.
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Show-cause notices on Sirpur Paper Mills
Hyderabad: The excise department has served show-cause notices on Sirpur Paper Mills Ltd, the Hyderabad-based Rs 233-crore paperboards manufacturer, on the issue of clearance of paper and paperboards at concessional rate of excise duty. According to SPML management, the issue initially pertained to clearance of production during March 1992 to September 1996. The department served similar notices for the period October 1996 to March 2002. The show-cause notices sought an amount of Rs 17.61 crore as interest and penalty. With the company making a representation to the department, the proceedings under the show-cause notices were dropped by the Commissioner of Central Excise during October 1997.

The SPML management, through notes forming part of the latest audited annual accounts, informed the shareholders that similar notices for a subsequent period - October 1996 to March 2002 - were received for a further amount of Rs 10.77 crore. According to the company, the department had gone in appeal to CEGAT and the appeal was dismissed by CEGAT vide its order dated September 24, 2002. Once again, the department issued notices on the same subject matter on new grounds for the period September 1994 to September 1999, confirming a demand for an amount of Rs 18.08 crore along with penalties of Rs 18.63 crore, taking the total amount to Rs 65.64 crore.
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Coromandel makes open offer for 20% GFCL stakes at Rs 124
Chennai: Coromandel Fertilisers Ltd, which acquired the Andhra Pradesh state government's 25.88-per cent stake in Godavari Fertilisers and Chemicals, has made an open offer to buy up to 64 lakh equity shares of Rs 10 each, representing 20 per cent of the equity, at a price of Rs 124 per share from the other shareholders of the company. Coromandel Fertilisers, a subsidiary of EID Parry (India) Ltd, a Murugappa group company, had signed an agreement on 12 July to acquire the Andhra Pradesh government's stake at Rs 124 per share, thus taking its total holding in Godavari Fertilisers to 40.14 per cent.

The open offer is being made at the same price at which it bought the Andhra Pradesh government's stake. Coromandel Fertilisers will be spending Rs 79.36 crore to acquire the 20 per cent stake through the open offer, which is expected to be open from 11 September to 10 October. Godavari Fertilisers manufactures DAP and complex fertilisers under the Godavari brand name. Its plant is situated in Kakinada in Andhra Pradesh.
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BPL Soft Energy breaks even
Bangalore: BPL Soft Energy Systems Ltd, a wholly-owned subsidiary of BPL Ltd, has achieved financial breakeven during 2002-03, following significant improvement in its operations. A higher growth rate combined with cost reduction across the value chain helped the company achieve this milestone after having incurred a loss of Rs 2.81 crore during last fiscal. The company posted a profit before tax (PBT) of Rs 39 lakh for the first time since its inception during fiscal 2002-03. BPL Soft, which was set-up as a green field project with an initial outlay of Rs 80 crore, manufactures and markets premium quality dry cells, alkaline batteries and a range of lighting products.

The company's turnover has increased to Rs 97 crore (Rs 87 crore) and the EBIDTA has increased by 40 per cent to Rs 10.5 crore during this period. In a stagnant dry cell market, the company has outperformed the industry by registering a growth of 22 per cent in sales of dry cells to 166 million batteries compared to the same period in the previous year.
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Samsung eyes Rs 110-crore turnover in Kerala
Kochi: Samsung India Electronics Ltd has achieved a 43-per cent growth in Kerala in the first half of this year, thereby clocking a sales turnover of Rs 45 crore over the corresponding period last year. The company had registered a 45 per cent value growth for its consumer electronics business and a 39 per cent business growth for its home appliance business in the State in the January-June period, M.B. Lee, vice- president (marketing), Samsung India, said. "Based on our strong performance in the State in the first half, we are expecting to notch up a sales turnover of Rs 110 crore this year, which will be a 55 per cent jump in revenue over the company's performance in the previous year," he said.

Samsung, which is a leading brand in the State in the colour television, washing machine and microwave oven product categories, is planning to further consolidate its position in the market by enhancing its penetration levels in the State as well as increasing its visibility in the second half of the year, Lee said. To further strengthen its brand awareness in the State, the company is planning to carry out Dream Home Roadshows in the towns of Pathanamthitta, Alapuzha and Kollam in July-August. The week-long roadshow in each location will showcase Samsung's latest high-tech digital products such as Plasma Display Panel, Home Theatre System, DVD players, Plano Digital flat TV, CD-based audio systems etc.
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More than one-third VSNL employees seek VRS
Mumbai: More than one-third of Videsh Sanchar Nigam Ltd's (VSNL) staff has opted for the company's voluntary retirement scheme which closed on 14 July. The VRS at the one-time public sector company would lead to an outgo of around Rs 97 crore which was the budgeted amount provisioning for around 1,000 employees opting for it, said Radhakrishnan Nair, head of human resources at the company.

Nine hundred and fifty employees, representing 34.75 per cent of the employee strength of the company, have opted for VRS, said the company, in its notice to the stock exchanges on Tuesday. The number of executive staff who opted for retirement was 245 and non-executive 705. The VRS exits have resulted in a reduction of 22.9 per cent of the executive staff and 42.25 per cent of the non-executive staff. This is the second VRS from the company, the earlier one of 2001 (before the company was divested to the Tata group), having fetched a response from 87 employees, said Nair.
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Sify net loss down by 51% to $4.46 million in Q1
Kolkata: Sify, India's premier internet, networking and e-Commerce company, on Tuesday reported a 51-per cent decline in its net loss at $4.46 million during the first quarter ended June 2003 compared to $9.18 million in the corresponding quarter of last fiscal. Sales revenue during the quarter increased by 49 per cent to $12.95 from $8.71 million and the company incurred a planned cash loss of $1.37 million compared to $4.37 million for the same quarter last year.

"It was not too difficult a choice for us to evaluate between maintaining cash profits and incurring one time marketing expenses for the expanding cybercafe business, the number of which exceeded 1,000 this quarter and is becoming a model for delivering broadband internet across the country," Sify managing director and CEO R Ramaraj said. Cash burn during the quarter was $1.57 million attributable substantially to investments made in expanding the technology infrastructure to support the envisaged expansion in the cybercafe business, Ramaraj said in a release. The company had exited the set-top box joint venture with Baron and the India Plaza portal during the quarter and also sold investment in the Satyam Institute of E-Business in the first week of July to concentrate on core businesses, chief operating officer George Zacharias said. The rationalization will allow the company to use USD29 m in cash in hand as of date (USD 23 m at the end of quarter) in a focussed manner, he said.
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