Maruti prices marginally go up
New Delhi: Maruti Udyog (MUL) has hiked the prices of its cars by about Rs 350-1,926 to offset the increase in steel prices, according to reports. The price of the Maruti 800 has gone up by Rs 1,926 while the Zen and the WagonR will also cost Rs 1,925 more. The Alto and its utility vehicle, the Omni, will now cost Rs 550 more. The prices of the mid-size cars, the Baleno and the Esteem, are up by about Rs 350.
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Radico Khaitan installs ENA plant at Rampur Distillery
New Delhi: The Rs 620-crore Radico Khaitan has installed an extra neutral alcohol (ENA) deluxe plant at its Rampur Distillery. ENA is an input used in the production of liquor. Lalit Khaitan, chairman and managing director, Radico Khaitan, says: "The introduction of ENA deluxe marks a first in Indian liquor history. ENA Deluxe is a branded ENA, at par with the best in the world."

The company has invested Rs 20 crore. Of the total production of ENA Deluxe at Rampur, 60 per cent is sold in India and exported, while the rest is used for Radico's own IMFL brands. The company is exporting ENA to liquor majors in Europe and CIS countries. Commenting on the market for ENA Deluxe, Khaitan says: "We see a great market for ENA Deluxe and with a capacity utilisation of 100 per cent, we will be looking at increasing the production of ENA Deluxe. Radico will be acquiring and installing new distilleries in the near future."
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GM starts second shift at Halol
Hyderabad: General Motors India has started production in its second shift for the first time since its entry into India. The company is also planning a range of new launches. The company is upbeat with about 600 bookings in less than a week of the launch of its mid-sized notchback, the Chevrolet Optra, and backed by a wait-list for its hatchback, the Corsa Sail.

Launching the Chevrolet Optra in Andhra Pradesh, GM India sales director Sanjeev Garg said the company has opened a second shift at Halol in Gujarat. The plant, which has a capacity to turnout 25,000 vehicles per annum, was till recently operating one shift for its Opel range and recently commissioned Chevrolet Forrester and Optra offerings. "The response we received from the Chevrolet Optra has forced us to start production in the second shift earlier this month. We are looking at sales of about 1,000 units of the Optra a month and this will complement the buoyant outlook for the Opel Corsa and the Sail. Already, there is a huge wait-list for the Corsa Sail, the company's latest offering in the B plus hatch. By 2005, we will be able to touch total output of 50,000 units."
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Controls & Switchgear, French company join hands
New Delhi: Controls & Switchgear Group has announced a 50:50 joint venture with Leroy Somer of France. Leroy Somer is a part of the $15-billion Emerson Group of the US, with operations in the US, France and China. The new joint venture company, Leroy Somer & Controls India (Pvt.) Ltd., will focus on the growing Rs 200-crore alternator manufacturing industry. Speaking on the occasion, R N Khanna, chairman-cum-managing director, Controls & Switchgear Group, said, "This JV, with the vast range of products from both companies, will offer one of the most diversified portfolios in the industry."

Ashok Khanna, managing director of the Group, said, "Leroy Somer & Controls India Ltd will offer to the Indian customer a range of sophisticated and cost-effective designs, manufactured using technologies developed by Leroy Somer." The joint venture will establish a design and engineering centre with validation facility, which will be linked with the similar facilities in France. This centre will provide customers with rapid tailor made solutions for engineering problems around the world. Further, the facility is expected to grow rapidly besides opening up the possibilities of exports to Leroy Somer operations in China and France. Also, Indian genset assemblers with Leroy Somer & Controls alternators will have the benefit of providing their customers worldwide services of Leroy Somer International Servicing network.
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Rs 70.65 crore interest on MFL debt restructuring waived
Chennai: The Indian government has waived over Rs 70.65 crore in interest and the penal interest on earlier defaulted payments up to March 2003 as part of the debt restructuring proposal submitted by Madras Fertilizers Ltd (MFL). A newspaper report said that the company had submitted debt restructure proposals to financial institutions, banks and the government. The proposals with the financial institutions led by the IDBI and the banks, led by State Bank of India, were pending approval. The sources said that the Government had waived the interest and written off the penal interest as of March 2003.

It had also announced a moratorium on the principal amount estimated at Rs 220 crore up to March 2004. This put MFL on a better wicket during the current year because the Rs 70.65-crore waiver brought down the interest liability and enhanced profitability, in the backdrop of an accumulated loss of about Rs 146 crore, they said. This will improve the books of the company, which is going through the disinvestment process in which over nine players have submitted expressions of interest. The company had also asked for softer interest rates on the Rs 220 crore owed to the Government. The company hoped to get the interest rate down to 5 - 8 per cent from the prevailing 15 per cent. The ministries concerned were in discussion on the issue, they said.
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Kanbay launches Kanbay Managed Solutions
Pune: Kanbay International has unveiled Kanbay Managed Solutions, a vehicle for powering its entry into the business process outsourcing (BPO) segment and India is likely to be the destination for housing the BPO operations. Cyprian D’Souza, CEO, Kanbay India and chief people office, Kanbay Inc, announced the setting up of Kanbay Managed Solutions in the US and Canada as a wholly-owned subsidiary. “India could be the location for housing the operations. We are carrying out research on two to three countries for putting up the BPO centre and there is a possibility of this coming to India. China and the Philippines are also being considered."

As Kanbay has no experience in this business, the firm is looking at partners for venturing into this business. “We are looking at acquiring or merging with existing BPO companies in India, D’Souza said. "The company will focus in the financial services area and is talking to two or three large companies and are close to identifying work." Kanbay is working with financial services firms in the credit card, retail banking and insurance domain. The firm has just bagged a $65-million contract from Household International, a wholly-owned subsidiary of HSBC. This deal has come at a time when HSBC has taken over Household and indicated the confidence of the new owner in building on the relationship, D’Souza said.
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SC refuses to stay sale of Jessop to Ruia Cotex
Kolkata: The Supreme Court has refused to grant a stay on the sale of Jessop & Co Ltd to Ruia Cotex Ltd at this stage. The court made this observation following filing of a special leave petition by Jessop Staff Association, challenging an earlier decision of the Kolkata High Court which allowed the petitions of the Union government, Bharat Bhari Udyog Nigam Ltd (BBUNL) and Ruia Cotex in the 16-month battle over the disinvestment of Jessop.

According to a press statement issued by Ruia Cotex here Wednesday, the Chief Justice’s bench of the Supreme Court, comprising Chief Justice VN Khare, justice SB Sinha and justice Mathur, observed that in view of the judgment passed in the Balco disinvestment case, there was no need to grant stay on sale of Jessop to Ruia Cotex Ltd at this stage. The said bench has fixed July 28, 2003, for hearing whether the special leave petition filed by Jessop Staff Association and others opposing disinvestment of Jessop will be admitted or dismissed. “The observation of the bench sets the ministry of disinvestment free to go ahead with the sale of Jessop to Ruia Cotex,” the press statement said. The Attorney General of India, Soli Sorabjee, represented the union government in the case. Ruia Cotex was represented by Amita Agarwalla and Rakesh Dwivedi.
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LG eyes Rs 5,500-crore sales by 2004
Kolkata: LG Electronics India Ltd is vying for a sales turnover of Rs 5,500 crore by end-2004. The company pinning its hopes on colour TVs and air-conditioners as key drivers to meet its ambitious target. C M Singh, LG product group head of CTVs, said the company is expecting to close 2003 with a turnover of Rs 4,000 crore. LG had achieved a turnover of Rs 3,315 crore during 2002.

“CTVs and ACs will be the main drivers for growth in the future,” Singh said. In the first half of 2003, LG has reported an 89-per cent growth in CTV sales over the corresponding period in 2002 and has so far sold 8.5 lakh units. The company is a market leader in CTVs and currently has a 25 per cent marketshare in the CTV segment that is estimated at 72 lakh units annually. “The potential for growth in CTVs is huge and we still have a lot of work to do, especially in penetrating further in rural India. About 55 per cent of our sales currently comes from CTVs,” Singh said.
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Electrolux to set up sourcing division in Gurgaon
New Delhi: AB Electrolux (ABE) is setting up the first Indian sourcing division of its international purchasing office in Gurgaon. The establishment of this division is a part of ABE’s major expansion plan of sourcing raw materials, components and finished goods from the Asia Pacific region, reports said. Having identified India as an export hub, the new division will source these materials for group’s manufacturing units in Asia-Pacific, Europe and North America. To commence operations in September 2003, the division will focus on sourcing materials of casting (ferrous and non-ferrous), forging, transmission products, metal and metal components, mechanical and electrical components and plastic raw materials.

ABE currently has similar sourcing divisions in China, Taiwan, South Korea, Malaysia, and Thailand. ABE Asia Pacific purchasing vice president Nick Sowden said, “India mergesexcellently with our long term development strategy. The country has got a strong supplier base of global standards. India with its wealth of natural resources and rich history of industrial companies should provide a strong supplier base of many mechanical and electrical components.” He further added, “With the establishment of the sourcing division, ABE will be able to take the competitive advantage of Indian manufacturers, as many of them have already carved a niche in the global market.”
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Ford India to pass on benefits of localisation
Chennai: Ford India (Ford) will pass on the benefits of the localisation of its powertrain (which has helped to cut cost significantly) to its customers. Ford would provide more value to its customers at the the existing cost rather than drop prices of its models, said David Friedman, managing director and president, Ford India. “The level of localisation of the Ikon has shot up from 70 per cent to 90 per cent. We will provide greater value at specific price points to customers,” Friedman told at a press conference. Ford had earlier partnered with Hindustan Motors (HM) to make engines and transmissions at the latters assembly plant at Pithampur near Indore in MP.

The petrol (1.3 litre and 1.6 litre) and the Diesel (1.8 litre) engines are being made at HM’s facility. “Currently, we are using the powertrains for a part of our requirements while the rest is being imported. We will completely switch to the HM manufactured powertrains in the near future. We wish to be an Indian company producing world class products at Indian costs,” he explained. In line with this strategy, the company launched another top-end variant of Ikon branded Ford Ikon NXT SXi. The model will be priced at Rs 6.47 lakh and Rs 7.04 (ex-showroom, Chennai) for the petrol and diesel versions respectively. The car comes with two power train options of 1.6 petrol and 1.8 diesel engines and other features like 14 inch alloy steel wheel, chrome grill, chrome deck lid handle and monochromatic sporty front bumber with round fog lamps etc.
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Geometric Software net profit at Rs 28.33 million
Mumbai: Geometric Software Solutions Company has posted a net profit of Rs 28.33 million for the quarter ended 30 June 2003 as compared to Rs 24.46 million for the quarter ended 30 June 2002. The total Income has increased from Rs 153.61 million in the quarter ended 30 June 2002 to Rs 157.93 million in the quarter ended 30 June 2003. The consolidated results are as follows:

The group has posted a net profit of Rs 41.11 million for the quarter ended 30 June 2003 as compared to Rs 30.70 million for the quarter ended 30 June 2002. The total Income has increased from Rs 199.68 million in the quarter ended 30 June 2002 to Rs 240.39 million in the quarter ended 30 June 2003. Meanwhile, the company has also informed the Bombay Stock Exchange that in the coming quarter there will be organisational restructuring. Company chief operating officer Nitin Deshpande has expressed a desire to pursue other interests and plans to leave Geometric Software shortly. The new organisation structure assigns greater responsibilities to other management council members, thus ensuring steady growth to their career.
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