Bajaj plans split into two companies
New Delhi: Bajaj Auto is planning to split into two companies. While one will be a pure automobile manufacturer, the other will be an investment company, Bajaj Auto chairman and managing director Rahul Bajaj said. "There is a proposal to create a separate investment company by shelling out about Rs 1,000 crore from the cash surplus of Rs 3,000 crore of Bajaj Auto."

"We are examining the proposal in a bid to improve the P/E (price-earning) multiple of the company by creating a separate company. While Bajaj Auto will remain the manufacturing company, the investment company will be the holding company," he said. He said the plan is yet to be taken up by the board of Bajaj Auto. The proposal is being studied by tax consultants and by his two sons who are also part of the management — Rajiv as joint managing director and Sanjiv Bajaj as vice-president (finance).
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Ford to roll out two India-centric models
New Delhi: Ford India is planning a big push in the volume segment with two new product development projects. Code-named the B226 and the B376, component orders are now being put in place and the products are due for debut in 2004 and 2005, respectively. Vendor sources were quoted as saying that the B226 is expected to be a hatch in the upper B segment while the B376 will be a sedan straddling the B and C segments.

Ford India MD David Friedman said: "We are planning a new model every year and we intend to make them locally. For that you need advance planning and we are working with component makers on new models in different segments where we don't participate now. We've been investigating different types of models for different segments."
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Ranbaxy gets US approval for generic antibiotic drug
New Delhi: Ranbaxy Laboratories said it has received approval from US-based regulatory authorities for its generic version of antibiotic, Ofloxacin. The original patent holder for the drug is Ortho McNeil Pharmaceutical Inc and its drug is called Floxin. The US Food and Drug Administration has given a green signal to Ranbaxy to manufacture and commercialise Ofloxacin tablets in strengths of 200 mg, 300 mg, and 400 mg.

"The Office of Generic Drugs, USFDA has determined Ranbaxy's Ofloxacin tablets, 200 mg, 300 mg, and 400 mg, to be bioequivalent and, therefore, therapeutically equivalent to the listed drug (Floxin{lcub}logicalnot_shy{rcub} tablets, 200 mg, 300 mg, and 400 mg, respectively, of Ortho McNeil Pharmaceutical, Inc),{lcub}rdquo{rcub}," the company said.
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Cognizant recruitment spree in high speed
Chennai: Cognizant Technology Solutions is increasing its headcount at an aggressive rate of 100 per week. The company, at this speed, will end the year with a total of 8,500 to 9,000 people on its rolls, reports say. As of June 2003 quarter, Cognizant's manpower strength was at 6,700. In the last two months it has added 500 and increased the total to 7,200. The company is following a 50:50 ratio of fresh and lateral talent in its recruitment programme.

Kumar Mahadeva, chairman and CEO, Cognizant, said "Cognizant is growing faster that we anticipated. We now expect to exceed our earlier guidance of at least $354m for the calendar year 2003." "We are continuing to invest heavily in Practice Leaders, Client Partners (who have more of a management consulting or Big 5 profile) and in sales and marketing. We tend to over invest in these areas but this is a good reason for clients to be extremely happy with our performance."
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British Airways to open centre in Gurgaon
Bangalore: British Airways (BA) is planning to set up a call centre in Gurgaon. BA, apart from viewing call centres as a tool to save costs and improve customer and distribution services, is taking another step under its 'Future Shape and Size' programme, a restructuring exercise designed to trim flab and cut costs across the globe. The BA call centre may be up and running by October-November 2003.

BA officials say the airline is trying to consolidate its distribution outlets at the four gateway cities of Delhi, Mumbai, Chennai and Kolkata, and reduce frontline staff by putting up a call centre. The airline also houses its corporate head offices for the India region in Gurgaon. Both customers and agents alike can call up a local number for any queries or reservations in their respective cities.
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IOC to bid for oil block in Kuwait
Kolkata: Indian Oil Corporation (IOC) will bid for an oil block in Kuwait, company chairman and managing director M S Ramachandran said in Kolkata. The company has formed a consortium with ONGC Videsh (OVL), the overseas arm of ONGC, for the purpose. British Petroleum and Occidental Oil and Gas Corporation are two other partners in the consortium.

"The block situated in north Kuwait is now producing 4,50,000 barrel per day. The project envisages to double production to 9,00,000 BPD," the IOC chairman said. The investment for two Indian oil companies is pegged at $700 million. N K Nayyar, director (planning and business development) of IOC, said the corporation and OVL would have 10 per cent interest in the block.
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L&T to meet on demerger plan
Mumbai: The Larsen & Toubro (L&T) board will be meeting within the next two weeks to finally approve the scheme of arrangement for the demerger of its cement business. A detailed scheme of arrangement has been developed by the L&T management in compliance with regulations. Y M Deosthalee, chief financial officer of L&T, said: "We are set to place the scheme of demerger in front of the board. The board meeting would be scheduled within two weeks. The procedure of seeking other required regulatory approvals would be followed by the board meeting."

"The L&T employee trust has also been formed. The board would also consider the mode of funding the acquisition of Grasim's stake in L&T by the foundation," he said. He declined to divulge further details. The foundation would be investing Rs 470 crore in acquiring L&T shares from Grasim. The scheme translates into Kumar Mangalam Birla acquiring 51.5 per cent controlling interest in a 16.5 million tonne cement company for a net investment of Rs 2,200 crore (Rs 22 billion). Birlas then emerges as India's largest cement producer with a combined capacity of 31 million tonne.
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Tata Motors to take overseas plan seriously
New Delhi: Tata Motors has charted out an overseas plan for its commercial vehicles business including setting up of manufacturing units or assembly lines in a few countries and tying up with dealers in some others. It has also set a target of increasing turnover from exports from the present 8-9 per cent to around 15-20 per cent in the next three-four years.

Tata Motors director (commercial vehicle unit) Ravi Kant said the SIAM annual convention here today that the company has identified over a dozen overseas markets including South Africa, Sri Lanka, Bangladesh and Malaysia, among others, for its overseas push. Exports, which contribute 8-9 per cent to the company's net sales, would go up to 15-20 per cent once this ambitious plan fructifies, he said.
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