Michelin acquires 14.9% stake in Apollo Tyres
New Delhi: Global tyre major Michelin and Apollo Tyres has signed an agreement to set up a joint venture company, Michelin Apollo Tyre Ltd, for the manufacture and sale of truck and bus radial tyres in the country. The joint venture will manufacture tyres under the brand names of both Michelin and Apollo. Michelin will hold 51 per cent share in the company. The partners plan to invest $70 million (Rs 322 crore) in the manufacturing facility.

Michelin will also pick up 14.9 per cent equity stake in ATL through the preferential allotment route for a consideration of about $28 million (Rs 129 crore). It can by virtue of this investment nominate two members to the board of ATL. Onkar Kanwar, chairman, ATL, said: "Our partnership with Michelin marks a new chapter in Apollo Tyres's history. It's a win-win situation for both of us. The manufacturing facility will be located in the state that gives the best incentives for investment. We will have to choose between states like Maharashtra, Karnataka and Tamil Nadu. Our effort will be to start commercial production by September 2005."
Back to News Review index page  

Exide expansion job at Pune factory through
Kolkata: Automotive battery major Exide Industries has recently completed the expansion programme of its Pune factory, said S B Ganguly, chairman. Exide has invested Rs 20 crore for the expansion of the Pune factory. The capacity of this plant has been increased from 4.5 million units per annum to 5.5 million units per annum. According to Ganguly, Exide spends Rs 50-60 crore every year on expansion projects. He said the company is holding talks with the UK-based automobile company, Rover, for becoming an original equipment manufacturer of the company. According to him, the deal is more or less finalised.

"Rover will be outsourcing 36 components from different parts of the world. Out of the 36, two to three will be outsourced from India. Apart from Exide, I have learnt that Bharat Forge is also having talks with Rover," Ganguly said. In this context he said Exide has already started exporting its products to Sri Lanka and Singapore. The proposed joint venture between Exide and Sri Lanka is also underway.
Back to News Review index page  

Cognizant Tech charts out expansion plans
Hyderabad: Cognizant Technology Solutions has drawn up plans for expansion. The plans include doubling of staff in Hyderabad, commissioning its China facility, either through own centre or a strategic acquisition, and commencing its business process outsourcing operations. Company vice-president R Chandrasekaran and S Shankar, director-project, said after the company had acquired the Amex operations from Silverline Technologies, it has moved into a full-fledged development centre particularly focusing on financial services operations. Cognizant expects to double the staff strength from 300 by next year.

"We are also establishing a Web Centre of Excellence that will help our global clients address new areas such as e-business projects, specially portal and content development," they said. "We are awaiting certain regulatory clearances to locate our own development centre in China. This is not only aimed at facilitating our own clients expanding operations into China, but also at leveraging the potential of doing business with other markets from there, possibly Japan. This could also be achieved through some strategic acquisitions, which we are currently in the process of identifying."
Back to News Review index page  

ONGC seeks govt nod for retail venture plan
Chennai: Oil and Natural Gas Corporation is awaiting the central government's nod to rope in non-public sector financial institutions for its proposed joint venture for getting into retail marketing. "We have talked to some financial institutions who have shown interest," said Subir Raha, chairman and managing director, ONGC. He, however, declined to name them. The decision to go for non-public sector institutions is to ensure that there is no conflict of interest in the retail market.

ONGC will hold a 49-per cent stake in the proposed joint venture company and the institutions the balance. The idea is to ensure that the new company is not classified as a public sector unit and, hence, will have the freedom that the private sector does in hiring people at market-related pay packages, rather than those followed in the government-owned units.
Back to News Review index page  

JB Chemicals unveils two new products
Mumbai: JB Chemicals & Pharmaceuticals (JBCPL) has launched two new therapeutic products, in the antibacterial and nutraceutical segments respectively. Cefjoy (Cefpodoxime Proxetil) is useful in the treatment of a wide range of infections among both adult and paediatric patients. It is a pioneer stomach-friendly brand containing a combination of Cefpodoxime and Lactobacillus. Cefjoy is available in 100mg and 200 mg tablets and dry syrup dosage forms.

Zudo is a capsule supplement containing a blend of 33 multivitamins, multi minerals, anti oxidants and Omega 3 acids. It helps improve heart, bone, skin and neurological health. According to J B Mody, chairman and managing director of JBCPL, the launch of Cefjoy and Zudo will help the company expand its product portfolio and increase the market coverage.
Back to News Review index page