Lundbeck drops Citalopram case against Matrix Labs
Hyderabad: Matrix Laboratories Ltd (MLL) can now heave a sigh of relief. The Hyderabad-based drug major that has been thriving on Citalopram sales to the European markets, Lundbeck, the inventor of Citalopram, has on Monday withdrawn the infringement case filed against Matrix. Lundbeck initiated legal proceedings when Lagap Pharmaceuticals Ltd, a unit of Sandoz (Novartis), had launched Citalopram in the UK based on the active pharmaceutical ingredient supplied by Matrix.

Apart from filing infringement case against Lagap, the Citalopram inventor had also filed lawsuit against Matrix Labs and its directors and employees. "Lundbeck has withdrawn the infringement litigation against Lagap in the UK and allegations against Matrix management and employees," a senior Matrix official said. As a blockbuster drug, Citalopram contributed around 50 per cent of Rs 417-crore sales turnover of Matrix during last fiscal.
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GE, Bechtel make new offer to restart Dabhol
Mumbai: GE and Bechtel have made an offer to restart phase-I of the $3-billion Dabhol Power plant and complete its phase-II work. In a proposal sent to the Indian financial institutions (IFIs) led by IDBI, the two companies have said that their contractor claims and equity dues can be settled separately in order to expedite negotiations and restart the work. Though the decision of the foreign equity holders is being seen as climb down from their earlier stance, industry observes believe this is a positive development for the project, which is lying idle for the past 28 months.

GE and Bechtel have certain conditions, though: They want their outstanding contractor claims from the 2184-MW power project to be settled "on an equitable commercial basis" as part of the condition for actual restart of the plant. Equity claims will be negotiated separately through the ongoing international arbitrations, said a statement quoting a letter to the Indian FIs signed by Mr Scott Bayman, President and CEO, GE India and Richard Smith, vice-president and managing director, Bechtel Enterprises Holdings Inc. Indian FIs reacted with caution to the GE and Bechtel offer.
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GM launches automatic Optra
New Delhi: General Motors India is expected to launch the multi-utility vehicle Chevrolet Tavera next year in the price range of Rs 7-9 lakh. The company on Monday announced the launch of the automatic variant, called Optra AT, of its popular mid-size sedan, the Chevrolet Optra. The Optra AT is available in two variants priced at Rs 9,09,020 and Rs 10,28,972 (ex-showroom Delhi) with a two-year service holiday. "We expect the Optra AT to contribute to 15 per cent of the total sales for the Optra", Vij said.

The company believes that there is an increasing amount of consumer preference for automatic cars, more so in the premium end of the market. The Optra AT has features such as brake shift interlock, adaptive shift control logic (based on fuzzy logic), and hold mode among others. GMI has sold about 2,655 units of the Optra since its launch three months back. The company's total sales in the January-September period was 10,987 units. This consists of 398 units of the Opel Vectra, 7,159 units of the Corsa and 133 units of the Forester.
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Neelachal Ispat becomes second-largest exporter of pig iron
Kolkata: At a time when MMTC Ltd operates primarily as an export-import trading house, its joint venture with the Orissa Government, Neelachal Ispat Nigam Ltd (NINL), has emerged as the second largest exporter of pig iron from the country. The company is already established itself as a leading pig iron producing plant with annual production of 3,60,000 tonnes for the year 2003.

MMTC's another joint venture with the Orissa Government, Konarak Met Coke Ltd (KMCL), has commissioned its first unit of the power plant and generated power for captive consumption by NINL besides supplying surplus power to the State grid. According to MMTC source, the shortage of low ash metallurgical coke in the international market offers optimistic prospects for KMCL. The coke oven battery along with by-product plant of the company, due to be commissioned this year is expected to provide met coke for captive consumption of NINL, besides offering surplus coke and by-products to domestic users.
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M&M unit bags Deming award
New Delhi: The Farm Equipment Sector (FES) of Mahindra & Mahindra Ltd has received the Deming Application Prize for 2003. The prize is given to companies that have established total quality management (TQM) in their entire business operations.

M&M's FES is the first tractor company in the world to receive the award. Till date, only seven companies outside Japan have received this honour. The award will be presented to the company at a ceremony in Tokyo next month.
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Natco Pharma board to consider equity warrants conversion
Hyderabad: The board of Natco Pharma is scheduled to meet here on October 18 to consider conversion of 60-lakh equity warrants issued earlier in favour of its Chairman, V C Nannapaneni, and Natsoft Information Systems. The said conversion at a price of Rs 12.50 per share constituted 25.66 per cent of NPL's equity capital.

The allotment of shares was consequent upon exercising the option to convert the share warrants allotted on April 30 last year, the company has informed the stock exchanges.The shareholding of Nannapaneni would stand at 78,11,846 shares amounting to 33.41 per cent of NPL's enhanced equity, while that of Natsoft Info at 31,53,500 shares constituting 13.49 per cent.
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Aurobindo to raise Rs 229 crore via preferential offer
Hyderabad: Aurobindo Pharma Ltd (APL) has decided to go in for a preferential issue of 38-lakh equity shares/warrants for raising funds to the tune of Rs 229.52 crore. The company said its board has decided to offer these shares to three entities — Citicorp Banking Corporation, ChrysCapital and the APL Chairman P V Ramaprasad Reddy — at a premium of Rs 594 per share.

The funds are being mobilised for future research & development activities, potential acquisitions, repayment of high cost debts, working capital and general corporate purposes. Citicorp is an investment vehicle for funds managed by the UK-based CVC International. Its investment in 16.5-lakh shares of APL would constitute 5.89 per cent on the post-issue equity. ChrysCapital, a private equity fund based at Mauritius, would acquire nine-lakh equity shares, constituting 3.21 per cent of APL's enhanced equity. The offer of 12.5 lakh shares would enable the APL Chairman to marginally increase his holding to 28.93 per cent on the enhanced equity from the existing 28.31 per cent.
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Lupin calls off Newbridge discussions
Mumbai: The promoters of Lupin Ltd, Dr Desh Bandhu Gupta and his associates, and Newbridge Capital Ltd have called off discussions relating to possible divestment of 12.5 per cent of the promoter stake in the pharmaceutical company. Newbridge had issued a non-binding letter of intent to the promoter on July 9 declaring its intention to buy five million Lupin shares at Rs 252 per share.

A company's notification to the exchange said the Indian pharma company had signed the non-binding letter with Newbridge Capital for the sale of 50,37,713 equity shares of Rs 10 each comprising 12.55 per cent.The company has been informed by the promoters that Newbridge Capital and the promoters have now decided to discontinue negotiations in respect to the above sale of shares.
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Tata Tea to focus on three power brands
New Delhi: Tata Tea Ltd has identified three 'power brands' from its packaged, branded tea portfolio. The three brands the company proposes to focus on are- its flagship Tata Tea, Agni in the economy segment and Tetley in the premium segment. "While the company is making a lot of effort to develop Tetley, for Tata Tea we are looking at a 10 per cent value share of the tea market against the current 8.8 per cent,'' Vivek Mathur, vice-president, marketing, Tata Tea Ltd, said.

Tata Tea on Monday announced the launch of a new brand, Tata Tea Gold, to enhance its presence in the 'popular top-end segment', Percy Siganporia, deputy managing director, Tata Tea Ltd, said. "This is part of the exercise to build the Tata Tea brand," Siganporia said. The Tata Tea Gold blend consists of 85 per cent CTC from Assam and 15 per cent long leaves from Darjeeling. While the company already has Tata Tea Premium in this segment, Siganporia said the two brands were positioned `distinctly' from each other.
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