Nicholas Piramal quits pharma alliance
New Delhi: First it was Cipla and now it's the turn of Nicholas Piramal India Ltd (NIPL) to opt out of the Indian Pharmaceutical Alliance (IPA), a platform that was the brainchild of Ranbaxy promoter the late Parvinder Singh. The development comes even as the four-year-old IPA acquired a new set of office-bearers. Early this week, IPA saw H.F. Khorakiwala, chairman of Wockhardt Group and vice-president, IPA, succeed Dr K. Anji Reddy of Dr Reddy's Laboratories Ltd (DRL) as President of the IPA. Dilip S. Shanghvi, chairman & managing director of Sun Pharmaceutical Industries Ltd, will be the new vice-president, an IPA communiqué said.

But what the note did not say is that NPIL had opted out of the pharma platform. The IPA secretary-general, D.G. Shah, confirmed the recent exit of NPIL. However, he was unwilling to comment on the development. Meanwhile, other members of IPA told that it was "professional differences" that lead to Cipla's exit last year and NPIL's this year. Some IPA members observed that NPIL's exit was in the offing, with company top brass not seeing eye-to-eye with other members on issues related to data exclusivity and compulsory licensing. Further, they point out that NPIL and DRL were engaged in a spat over DRL's biotech cancer drug a matter that had landed up at the Drug Controller General of India's doorstep to be resolved. The IPA, initially formed by eight national companies in November 1999, now has 10 companies in its fold. They are Alembic, Sun Pharmaceuticals, Cadila Healthcare, Torrent Pharmaceuticals, DRL, Unichem Laboratories, Lupin Laboratories, USV Ltd, Ranbaxy Laboratories and Wockhardt.
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Linc Pen to manufacture Mitsubishi products
Kolkata: Linc Pen & Plastics Ltd, in collaboration with the $500-million (Rs 2,250 crore) Mitsubishi Pencil Co of Japan, plans to take up manufacture of international quality hi-tech pens from the stable of the Japanese writing instruments major. Having a strong presence in the mass segment (below Rs 10 segment), Linc now plans to make a major foray into the high quality market through both assembling and manufacture of some of Mitsubishi's new products in the roller and gel pens segment. The Japanese company is a world leader in Uni-ball pens.The company on Wednesday launched "Uni-ball Fusion", a new age colourless ink product from Mitsubishi. Briefing newspersons here on the special features of its new product and marketing plans, Dipak Jalan, managing director of the company, said the new colourless liquid ink pen, priced at Rs 50 each, was aimed at a compact target audience with a penchant for new writing instruments.

The marketing strategy for the new pen, based on the concept of "a pen which writes with water" is now being worked out, as part of a total Rs 4 crore ad spend by the company. According to Mr Jalan, the prime objective of tying up with an international player in the fast evolving writing instruments market was the scope for manufacturing these products at home. He said Linc was now fully equipped to manufacture these products at its modernised factories in Goa and Kolkata. The company now markets some 15 roller and gel pens of Mitsubishi, which contribute some 25 per cent to the total sales turnover of the company. Linc has more than 50 products in its armoury, and is well geared to cater to the vast Indian market for writing instruments, set to grow at an annual average of 15 per cent.

Linc has been distributing the Mitsubishi pens from as early as 1992, and was now well poised for both assembling and manufacturing these products on a larger scale to cater to the Rs 1,500-crore Indian writing instruments market. In total, Linc manufactures some 5 lakh pens in various product categories and 4 lakh refills per day at its units in Kolkata and Goa, and an associate unit in New Delhi.
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Novartis receives exclusive marketing rights for Glivec
Mumbai: Novartis India Ltd (NIL) has become the first pharmaceutical company in India to be granted exclusive marketing rights for its oncology drug, Glivec, by the Controller General of Patents and Trademarks of India.

"The granting of the first pharma `exclusive rights' marks the beginning of a new chapter in the history of patents in India. This is a positive signal to the international community that India is progressing towards meeting all its obligations under TRIPs," Ranjit Shahani, vice-chairman and managing director of the company told press persons here on Wednesday.

Describing Glivec as a breakthrough product in the treatment of cancer, he said it was one of the first oncology drugs that validate rational drug design based on an understanding of how some cancer cells work. It is a signal transduction inhibitor, which potentially interferes with the pathways that signal the growth of tumour cells, he pointed out.
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Natco bags award for cancer drug research
Hyderabad: After bagging the Department of Scientific and Industrial Research (DSIR) annual award for its research & development efforts, Natco Pharma Ltd (NPL), the city-based integrated pharmaceutical company, has now won the award in `Best technology development in R&D' from the Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI).

In a press release, NPL said it was chosen for the FAPCCI annual award for its efforts made in R&D, especially in the successful development and commercialisation of an innovative technology for the manufacture of Imatinib Mesylate, an anti-cancer drug.
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3 FIIs pick 4.6% promoters' stake in Pantaloon Retail
Mumbai: Even as Pantaloon Retail is making a preferential issue to the promoters of the company at Rs 112 per share, the promoters have sold their 4.6 per cent stake in the open market for about Rs 275 per share last week. The shares have been picked by three FIIs - T Rowe Price,Capital International and Llyod George. Sources said these FIIs have purchased the shares from the promoters on November 4. At the board meeting held on November 11, the board approved allotment of 9,53,000 equity shares at Rs 112 per share to promoters and associates. It also approved allotment of 10 per cent 2,13,547 unsecured fully convertible debentures (FCDs) of Rs 1,000 each convertible into equity shares in two tranches within 18 months from the date of allotment of FCDs.

The first tranche of conversion of FCDs would take place on October 10, 2004, which would result in 9,53,335 equity shares at Rs 112 per share, and the second will take place on April 10, 2005 (for 9,53,335 equity shares) at Rs 112 per share. Earlier this week, the promoters informed the stock exchanges about the sale of their 4.67 per cent (8.5 lakh shares) stake. In July this year, the promoters had sold around 10 per cent stake (around 18-19 lakh shares) in the open market and these shares were bought by various mutual funds and FIIs for about Rs 96-97. Following the stake sale, the promoters' holding has come down from 51.95 per cent in June 2003 to 41.04 per cent in September 2003.
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Tata Steel banks on carbon trading to fund expansion
New Delhi: Tata Iron and Steel Company is banking on carbon trading to generate funds for its various modernisation and expansion projects at its steel works in Jamshedpur, over the next few years. The company has lined up 12 projects involving an estimated investment of around Rs 3,700 crore. Of this, approximately Rs 800-crore investments is likely to be funded through carbon trading, company officials said. Four projects involving a total investment worth Rs 2,200 crore are already under implementation. In this, Tata Steel has already received a commitment for Rs 125 crore from New Energy and Industrial Technology Development Organisation (NEDO) of Japan.

These projects pertain to waste heat recovery from blast furnace stoves, coke dry quenching, conversion of coal-fired boilers to by-product gas firing and modernisation and upgradation of the plant's capacity from 4 million tonne to 5 million tonne. NEDO will provide technology and machinery worth Rs 125 crore for these projects. As part of the carbon trading agreement, Tata Steel will reduce carbon dioxide emission to the extent of 1,70,000 tonne while the credit for this reduction will go to Japanese companies.

Carbon trading is essentially a deal to offset one company's high carbon dioxide emission above permissible level by tying up with another company whose emission levels are lower than the permissible level. Together, the average would work out within the permissible level. Another contract in the range of Rs 60-70 crore is being studied now, said R.P. Sharma, head of environment management in Tata Steel. He said in the case of carbon trading, there is no real cash flow but the investments come in the form of technology and equipment.
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OVL to remain flagship for investments abroad
New Delhi: ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corporation (ONGC), will be the country's flagship company for acquisition of oil and gas fields abroad. OVL will continue to enjoy fast track project approval and special empowerment, according to an official release. Recently, the heads of Indian Oil Corporation, GAIL (India) Ltd, Bharat Petroleum Corporation Ltd, Hindustan Petroleum Corporation Ltd and Oil India Ltd met the Petroleum Secretary, B.K. Chaturvedi, and sought equity stake in OVL.

Overruling the proposal of IOC and GAIL (India), the meeting decided not to split OVL and continue it as country's flagship oil and gas project acquisition firm overseas. OVL currently owns participating equity in 10 projects in eight countries. ``There is no change in the status and empowerment of OVL, nor is any change intended. Further, there is no plan for ONGC to form another subsidiary or joint venture for overseas exploration and production (E&P) investments,'' the release has said. ONGC-OVL will continue to consider participation of other public sector undertakings in E&P investments on a case-to-case basis. According to sources, the meeting considered forming a company similar to OVL with ONGC, IOC, BPCL, HPCL, GAIL and OIL as promoters to acquire acreage abroad "There is no plan for ONGC to form another subsidiary or joint venture for overseas E&P Investments," the release adds.
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BPL to raise $100 m from external borrowing for turnaround
Bangalore: BPL Ltd, the beleaguered consumer durables conglomerate, is raising $100 million through external commercial borrowing (ECB) from a clutch of European financial institutions and banks at "attractive interest" rate.According to top company sources, the company would receive the funds in two tranches of $60 million and $40 million each. BPL expects to deploy the cash raised to replace the existing loans and for operational need. Infusion of new funds is expected to mark the company's turnaround. The BPL stock gained momentum since August 1 trading session and rose to Rs 44.30 on the National Stock Exchange from Rs 34 as on July 1. However, the stock has since lost some value and closed at Rs 41.50 on Wednesday at the NSE.

"Once the money comes in and the market gets to know the identity of the overseas lenders for certain, there could be some further action on the scrip," a broker with a domestic brokerage said. The funds would be used to repay some of the existing debts owed to local financial institutions and American Express. It is understood that ICICI, one of the top lenders to the company, is currently rescheduling its loans to BPL. Also, some of the financial institutions' debts to the company are likely to shrink as BPL partly pays off with the new funds, according to market sources. The company is currently finalising a corporate debt restructuring exercise with the existing domestic creditors for re-bundling loans with reduced interest rate over a longer period or for one-time settlement.

Its debt burden is estimated at over Rs 1,200 crore, and efforts are on to bring it down to Rs 700 crore in three years. The ECB is expected to revitalise the company's production and marketing initiatives which suffered serious setbacks over the last 18 months due to the mounting debts and working capital crunch. The company has been carved into four groups - consumer durables business group, which will manage the main branded business such as CTVs, mobile phone handsets and other digital wireless products, electronics manufacturing services business group, which will perform the outsourced product design, manufacturing and assembly work for the companies, healthcare business group and soft energy business group. The electronics manufacturing services business group already has outsourcing deals from multinationals such as Haier, Philips and a few prominent domestic brands.

BPL was hopeful of re-emerging as one of the top players in the "exciting entertainment and digital wireless communications" market, the top company source said. It reiterated that an equity deal with Japan's Sanyo was on the cards, which would further bolster its financial and technological position. Sanyo was keener to invest into the television business, and not home appliances, the source also added. Further, the company was actively pursuing strategic equity divestment in components and soft energy businesses, sources said.
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LG Pune factory to be made export hub
Pune: LG Electronics India Pvt Ltd (LGEIL), the wholly-owned subsidiary of LG Electronics, South Korea, is all set to place Pune on the global map with its products. K.R. Kim, managing director, LGEIL, told presspersons that plans had already been put in place to make the Pune factory, situated at Ranjangaon near Pune, the export hub. The factory, being built up on a 50-acre land, would become operational by August 2004.The facility currently would cater to the production of refrigerators (10 lakhs) and colour television, CTV (six lakhs). The CTV would cater to the export model, high-end model and big size TV screens. Kim said the Pune facility would cater to the markets of West Asia,Africa and the neighbouring countries. Exports to the tune of $40 million had been carried out during the current fiscal and the target was to achieve exports of $300 million by 2006.

Giving figures, he said Maharashtra during the last calendar year had contributed to sales of Rs 390 crore and for the current calendar year sales had touched Rs 550 crore (January-October 2003), an increase of 31 per cent. On an all-India basis the company had recorded sales of Rs 3,600 crore for the previous calendar year and this year the target was Rs 4,500 crore, he said. Talking about the other expansion plans, Kim said Pune would have a human resources training centre, the first of its kind in India. This would be a full-fledged training centre imparting training for field staff on all models and equipment brought out by LG into the market. The centre was expected to become operational by April 2004 and would be housed at the same Ranjangaon complex. About 35 personnel could be trained as one batch, which would be across all the products. The Pune facility would also house the research and development centre, which was being set up on the same lines as that of Noida. The R&D centre would look at modification of technology to suit the local requirements, he said. This would also be operational by April 2004.
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Residency Hotel to offer service apartments
Chennai: The Residency, a three-star hotel in T.Nagar, Chennai, plans to introduce service apartments, as part of its Rs 10-crore renovation plan. The hotel plans to convert some of its 112 rooms into a business centre and a fitness centre and three service apartments - rooms with living and dining spaces and a kitchenette - to cater to long-staying guests. The renovation will take up to 18 months, K.C. Tharyan, executive director, The Residency Group of Hotels, told reporters on Wednesday. The renovation will leave the hotel with 100 rooms, but with a new look.Tharyan said The Residency was the first hotel in its category to cater to middle level managers, a strategy that has given it 80 per cent occupancies for the past 10 years.

During this period, Chennai's three star hotels grew six-fold, from 196 rooms to the present 1,250 rooms. This has resulted in intense competition and is one of the reasons that has prompted The Residency to renovate. During the renovation the hotel will cut its rates by 20 per cent, with rooms available from Rs1600 to Rs 3200, exclusive of taxes. The Residency Group, which has a second hotel in Chennai, also operates hotels in Coimbatore and Bangalore and is a part of the SAS Hotels & Enterprises, an Appaswamy Group company.
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Shalimar Paints in talks with 2 global majors - Plans strategic tie-ups in non-decorative coatings
Kolkata: Shalimar Paints Ltd (SPL) - said to be the oldest paints company in the country (Howrah factory set up in 1902) - is in dialogue with two top global paint companies for a strategic tie-up in non-decorative coatings. Briefing newspersons here on Wednesday on the company's future plans, Asim Mukherjee, president, said talks were now in an advanced stage and an announcement was likely within the next two months.Fresh acquisitions within the country, especially in the southern region, where the company does not have a manufacturing facility at the moment, was also not ruled out. Pointing out that Shalimar was now totally debt-free, S. Sarda, president, corporate affairs, said the plan was to make investments ranging between Rs 20 and Rs 50 crore for such acquisitions. The company intends to take its current market share of 5 per cent of the total organised paints market in India (around Rs 4,500 crore) to 8-9 per cent within the next two years.

Sarda said the newly acquired (through an auction sale) factory of
American Paints (a part of the Shehrwin Williams group) in Sikandrabad, UP, at a cost of Rs 3 crore, has now become fully operational and was feeding the northern States with a whole range of special products, including the latest in architectural coatings - Superlac Satin Soft Sheen Enamel and Super Lustre Finish. Mukherjee said as part of the new business plan, the company has re-launched operations in the Rs 125-crore North-East market, by opening a regional office in Guwahati. "The market situation is fluid as the hitherto market leader's share is up for grabs."

He said Shalimar wanted to make a dent in the North-East market and consolidate its present position (12 per cent share) by growing rapidly to achieve a minimum 15 per cent market share in the region in the next two years. The North-East market has the presence of all major players with local manufacturers claiming nearly 35-40 per cent of total sales.Shalimar, which now has three manufacturing units (Howrah, Nasik and Sikandrabad), according to Sarda, was expecting at least a 15 per cent growth in turnover during the current fiscal over the Rs 160 crore recorded during 2002-03. It posted a positive growth in the first quarter of this fiscal. The OP Jindal group and the Jhujhnuwalas of Hong Kong jointly hold 62 per cent in SPL (31 per cent each), and out of the remaining 38 per cent, public holding is 20 per cent with the balance 18 per cent held by FIs and other institutions.
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