L&T, Piramal to bid for Mumbai airport
Mumbai: L&T, Bharti & Changi are planning to bid for the modernisation-cum-privatisation of Delhi airport. Larsen & Toubro has formed a consortium with the Ajay Piramal-controlled Piramal Enterprises and Hochtief Airport GmBH of Germany to participate in the privatisation of the Mumbai international airport. L&T has also joined hands with the Mittal-controlled Bharti Enterprises and Singapore's Changi Airport to bid for the modernisation-cum-privatisation of the Delhi international airport. The estimated investment in the modernisation of the two metro airports are estimated between Rs4,500-5,000 crore.
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Cummins India to pay 200 pc dividend
Pune: Cumins India board has recommended a dividend payout of 200 per cent including the already declared interim dividend of 100 per cent for the year ended March 31, 2004. Cummins India recorded sales revenues of Rs932.4 crore for the year ended March 2004 as against Rs832 crore last year, registering a growth of 12 per cent. This includes a growth of 28 per cent in exports and nine per cent in domestic sales.

Further, due to improved demand and operational performance, sales for the January to March 2004 quarter showed a growth of 26 per cent over the immediately preceding quarter ended December 2003 and 21 per cent over the corresponding quarter of the previous year, the audited financial results of the company has said. Other income increased from Rs45.7 crore in the previous year to Rs76.7 crore for the fiscal ended March 2004 primarily due to dividend and treasury income. This includes a dividend of Rs24.5 crore from the subsidiary, Cummins Diesel Sales and Service (India) Ltd as against a dividend of Rs16.9 crore last year. Depreciation expense was Rs29.9 crore (Rs26.6 crore). Profit before tax was Rs138.1 crore (Rs120.9 crore). Profit after tax was Rs109.3 crore(Rs94.3 crore). Earnings per share were Rs5.52 (Rs4.76).
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Swaraj Mazda to foray into 10-16 t segment
New Delhi: Swaraj Mazda is planning to foray into higher tonnage vehicles as well as put a focus on exports in the current fiscal.
The company, which is at present strong in the five to nine tonne category is considering launch more products in the 10-tonne and above range and the 16-tonne segment this year as it expects the the market for both goods and passenger vehicles to grow.
Swaraj Mazda sold 10,279 units in 2003-2004, and is eyeing a growth of 30-35 per cent in the current fiscal with its capex plans in place.

The company plans to increase capacity by investing about Rs160 crore over the next three to four years. The investment would increase the company's production capacity to 36,000 vehicles from the current 10,000 units per year. It would also cover setting up of manufacturing facilities for transmission gears, and bus bodies/cargo box.

For its exports, Swaraj Mazda is receiving help from CDC Capital Partners in finding and facilitating new markets for exports. However, Swaraj Mazda exports are only to those countries where the Japan-based Mazda does not have a presence. The company will be actively targeting the African markets this year and is eyeing to increase total export volumes by over 50 per cent.
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ONGC hit by LPG subsidy
New Delhi: Gas PSU, Oil and Natural gas Corporation (ONGC) registered an under recovery of Rs2,600 crore because of subsidies on cooking gas and kerosene during 2003-04 while it lost another Rs1,300 crore due to appreciation of the rupee.

According to senior executives in the company the company's gross realisation during the last financial year was estimated at $28 a barrel while net realisation was estimated $25 a barrel due to the subsidy burden that it had to carry.

He added that there has been a slight improvement in per barrel realisation during the current financial year. Last year, ONGC and GAIL India were asked to share the subsidy burden on liquefied petroleum gas (LPG) and kerosene sold through the PDS. The under recoveries on the sale of two cooking fuels was estimated at over Rs8,000 crore during 2003-04 as the subsidy per cylinder of cooking gas alone was estimated at over Rs100.
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HP: to increase outsourcing to India
Bangalore: Hewlett Packard is planning to turn its India operations into a back office hub and will provide support services to its customers all over the world from centres based in India. HP has been handling a large chunk of its own global accounting functions from its subsidiary in Bangalore for more than three years. Now the company feels that it can extend these accounting services to its clients. HP is setting up a back-office accounts processing facility in Bangalore for Procter & Gamble (P&G), according to other HP sources in India.
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Satyam says it won't be taken over
Hyderabad: B Ramalinga Raju chairman, Satyam Computer Services has denied any acquisition bid by large global system integrators and has said that any acquisition bid is "not in the interest of the investor community and business. He was speaking at the global analysts meet organised at the Satyam Technology Centre on Thursday, He said Satyam sees a bright future and we are keen to prove that we should perform as other global players, if not better than them.

There is an emotional attachment when one is engaged in business of building a firm such as Satyam. In both technical and financial perspectives, acquisition is not in the interest of the business," he said. Raju said the company would grow through the inorganic route by targeting domain competencies in specific verticals or look out for opportunities into new geographies. Satyam's BPO subsidiary, Nipuna Services, is likely to break-even and make a profit this year.
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Pepsi gets into tea
Kolkata: The cola giants are now battling it out over tea.
Pepsi has entered into a joint venture with Hindustan Lever (HLL) for the launch of tea. With Coke offering the Georgia brand of tea competition in the beverage market is sure to heat up. Pepsi has extended its alliance with HLL into a JV in April, to build up a portfolio of "healthy refreshment beverages." The two companies are planning to look at a unified portfolio of hot and cold drinks through a combined fountain, vending and institutional initiative.

Customers will be able to pick up Lipton, Taj Mahal, Bru, Pepsi Cola, 7-UP or Mirinda from the same point of sale, say sources.
Both the cola companies feel that there is huge potential in out-of-home vending in India. Tea companies are welcoming the move and say that it opens up a big opportunity for tea companies to supply instant teas or tea concentrates to dispensing machines. Coke's sells 55 cups per day of Georgia tea with its cardamom flavour being the most popular. Pepsi-HLL has already picked up on that detail and offers cardamom and diet cardamom tea, besides ginger and masala-flavoured tea.
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