Mallya committed breach of law: Jumbo
Bangalore: The Jumbo group, which manages Shaw Wallace & Co Ltd, has said that UB group chairman Vijay Mallya has committed "apparent acts of breach of law". This came in response to the public statement by Mallya that the observations made by the Jumbo group spokesperson in the wake of a Hong Kong court order was a desperate attempt to cause confusion and cast needless aspersions.

On Thursday, the Jumbo spokesperson, after the Hong Kong court judgment, said: "During the trial it was obvious that many acts of plaintiffs will clearly constitute criminal breach of the Indian law". Following Mallya's statement on Friday, a Jumbo spokesperson re-emphasised his earlier charge adding: "The order of the Hong Kong court clearly identifies Mr Mallya as the discretionary beneficiary of the Golden Eagle Trust. Mr Mallya is an Indian and a Member of Parliament. However, we understand that he has never disclosed the involvement of the Golden Eagle Trust to the enforcement directorate or any other government body voluntarily or during investigations in India. In our statement, we are obviously referring to such apparent acts of breach of law by Mr Mallya."
Back to News Review index page  

Singapore automotive firm opens shop in Vizag
Visakhapatnam: Santana Brothers Manufacturing Pvt Ltd, a Singapore-based automotive company, has opened its branch here and released into the market its auto components meant for two-wheelers. On the occasion, Martin Santana, the managing director, said the company has offices in Malaysia, Indonesia, Thailand, the Philippines, Vietnam, Taiwan, China and Combodia. He said it is supplying auto components, especially for two-wheelers, in all these countries and the turnover of the company's automotive segment amounted to roughly $5 million.

The company was also engaged in the fast-moving consumer goods (FMCG) segment and was doing a business of roughly $2.5 million per annum. He said he had high hopes of the Indian market and in fact the company had been exporting auto components from the country for two years. The first office in the country was opened here because of the Vizag port and it would be easier for the company to tap the Andhra Pradesh market from here.
Back to News Review index page  

Herbertsons: UB seeks appointing custodians for shares
Mumbai: The Vijay Mallya-controlled UB group has filed an interim application with the Supreme Court for the appointment of Kotak Mahindra Capital Company and Lazard India (the two merchant bankers of the respective parties [Vijay Mallya and Kishore Chhabria]) as joint custodians for all the shares which will be tendered in through the two open offers, a financial newspaper has reported. The application, which was made on January 5, will come up for hearing on January 12, 2004.

Mallya's counsel Fali S Nariman has made the fresh application which states that the two parties will have to set aside in the escrow, an amount which is equivalent to the total number of shares tendered in through the two offers at a price of Rs 215 per share. While Chhabria had made an offer to shareholders of Herbertsons at a price of Rs 210.74, Mr Mallya's counter offer is priced at Rs 215 per share for an additional 20 per cent stake in Herbertsons.
Back to News Review index page  

Kraft Foods bullish on India
Mumbai: Kraft Foods, the world's second largest food company belonging to the Altria group, is bullish on India and has plans to focus on the urban Indian consumer by launching durable packaged foods, say reports. Ajit Sahgal, general manager, Philip Morris Services India SA, who is in charge of Indian operations, said Kraft has entered India through the open general license (OGL). The company had obtained the FIPB approval way back in August 1996. Currently, the multinational is studying the Indian market, looking at the mainstream products and economies of scale.

Dinyar Devitre, senior VP and CFO, Altria Group, said that it is never too late to enter the consumer products business in any market, as long as one ensures that innovation keeps one ahead of the rest. Devitre, who is of Indian origin and an alumni of IIM-Ahmedabad, added that he has special attachment to this country and would take up the issue of better FDI norms to the higher levels with the governments of both, India and USA. Kraft Foods has a strong presence in the US and also in western Europe, Latin America and China. Its revenues for 2002 amounted to US$ 30 billion, while it posted a profit of $ 3.4 billion. Its major brands include Tang, Kool-Aid, Kraft Cheese, Philadelphia Cheese, Kraft Salad Dressings, Maxwell Coffee House, Jell-O, Toblerone, Minute Rice, Post Cereals, Oreo Cookies and Ritz Crackers. The market cap of the parent Altria Group on NYSE was US$ 110 billion at the end of 2002.
Back to News Review index page  

TCIL may increase stake in JV Hexacom
New Delhi: The Indian government may take a decision for enhancing equity of state-owned Telecom Consultants India Ltd (TCIL) in the joint venture Hexacom, a cellular operator in Rajasthan, by buying out part equity of Canada's Tele-system International Wireless (TIW). The other JV partner, Shyam Telecom, has already decided to exercise its option of taking proportionately the equity of 27.5 per cent owned by TIW, who is exiting from the venture.

In case the government and Shyam Telecom buy out TIW it will be a rude shock for Sunil Mittal-owned Bharti Group which has offered Rs 102 crore to TIW perceiving the venture as a good vehicle for its entry into Rajasthan where it has already got a Letter of Intent (LoI). It is believed that government had decided last year to exit from the JV after completing due diligence for which it could have got a price of Rs 13 to Rs 15.5 per share (face value of Rs 10) which itself is much lower than the TIW's asking price of about Rs 20.80 a share, a news agency reported.
Back to News Review index page