Singapore firm to acquire majority stake
in Hughes Soft
New Delhi: The Singapore-based contract electronics manufacturer Flextronics has offered to buy a 55 per cent stake in Hughes Software Systems (HSS) for $226 million (about Rs1,017 cr), and has made an open offer to buy another 20 percent stake in the company. The deal is said to be the biggest acquisition in the Indian IT sector. Flextronics would pay Rs547 per share, a 5 per cent premium over Hughes Software's closing price on Monday, to buy the shares held by DirecTV, a company controlled by News Corp's Fox Entertainment. The company plans to make an open offer for an additional 20 per cent equity in the next four days as per the Securities and Exchange Board of India norms. The acquisition of Hughes Software would make Flextronics perhaps the only fully integrated solutions provider in the world according to the company sources.
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BPCL: VRS a success
Mumbai: Bharat Petroleum Corporation will be reducing the number of people on its payroll by 445 after the closure of its voluntary retirement scheme. The company said the response to the scheme was overwhelming. Of the 445 people leaving the company, about 120 are from the management cadre, 70 from the clerical order and 255 are labour. BPCL has 12,433 employees. The VRS package offered includes remuneration equal to two months' salary for every year worked with BPCL, or salary for the remaining number of years of service - whichever is lesser. A number of those leaving will be joining rival private sector companies, putting up their own marketing networks.
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Indian Oil most profitable PSU
New Delhi: According to the findings of the Public Enterprises Survey 2002-03 released here on Tuesday by the Ministry of Heavy Industries and Public Enterprises, Indian Oil Corporation (IOC) has notched up the highest turnover of Rs1,23,628 crore during fiscal 2002-03, among the 240 Central public sector undertakings, while Oil and Natural Gas Corporation (ONGC), fourth in terms of turnover after Hindustan Petroleum and Bharat Petroleum, posted the highest annual profit of Rs10,529 crore during that year.

Though the Food Corporation of India (FCI), Steel Authority of India and Kochi Refineries ranked fifth, seventh and tenth, respectively, in terms of turnover, they were far from the top profitable PSUs for that year.

According to the survey, the total net profit of the 240 CPSUs increased from Rs25,978 crore in 2001-02 to Rs 32,141 crore during 2002-03, while the EPS increased from Rs2.45 in 2001-02 to Rs2.86 in 2002-03. Among loss-making CPSUs, National Fertiliser Corporation tops the chart with an annual loss of Rs 1,166 crore in fiscal 2002-03 followed by Hindustan Fertiliser with a loss of Rs1,058 crore.
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IOC net up 14.6 percent
Mumbai: Indian Oil Corporation has reported a 14.6 per cent jump in net profit to Rs7,005 during 2003-04 and the company's board has proposed a 160 per cent dividend for the year, in addition to the 50 per cent interim dividend paid in January.

IOC's dividend outgo for 2003-04 was estimated at Rs 2,453 crore, compared with Rs2,258 crore in 2002-03. The company's sales were estimated at Rs130,203 crore at the end of March 2004, nine per higher than the previous financial year.

Profit before tax rose 15 per cent to Rs9,691 crore, while the earnings per share was pegged at Rs 60 at the end of March compared to Rs 52.4 at the end of 2002-03. The book value per share was 22 per cent higher at Rs197.32.
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Valecha Engg bags Vadodara airport contract
Mumbai: The Mumbai-based company Valecha Engineering engaged in construction of high-end infrastructure and engineering projects, has been awarded the Rs15.21-crore project from Airports Authority of India (AAI) for upgradation of the Vadodara airport.

The project, to be wrapped up in 15 months, involves strengthening of runway, provision of shoulders, construction of isolation bay and other associated works. The job involves significant earth work, soil stabilisation, laying wet mix macadam, bituminous pavement, rigid pavement, plain cement concrete, brick work and laying NP4 600mm diameter pipe.

Valecha Engineering has executed similar projects at Dimapur Airport in 2002, which was completed five months ahead of schedule, and at India's busiest airport, Mumbai International Airport in 2003, which was completed within 150 days as stipulated in the contract, apart from resurfacing the Chennai airport in 2003.
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Dabur goes to court against Emami
New Delhi: Dabur India has filed a contempt suit in the Delhi High Court against Emami and some of its officials for failing to withdraw the `Himani Sona-Chandi Amritprash' advertisement from television channels despite a HC order.

Dabur has asked the HC to seek from Emami and its officials "to show cause as to why proceedings for contempt of this honourable court and the orders passed by it be not initiated against them for having continued with the telecast of the impugned TV commercial on May 30, 2004, and May 31, 2004, in contravention of the order of this Honourable Court on May 28." Dabur also wants the court to issue directions to Emami for discontinuing the ad.

Earlier on May 28, the Delhi HC had allowed an injunction application filed by Dabur alleging that Emami's TV commercial starring Bollywood actor Sunny Deol was disparaging and had directed Emami to refrain from broadcasting this ad. Upholding Dabur's contention that Emami commercial showing Chyawanprash as "bad for use in summers" was "disparaging" the court had directed Emami to withdraw the ad.
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Indo Rama in outsourcing pact with Indo Rama
Bangalore: Indo Rama has entered into an agreement with Accenture to outsource its transaction-based finance functions. According to a press release from Acenture the pact is designed to help Indo Rama improve its business efficiency by allowing it to focus on its core activities leading to overall cost savings. The company did not disclose the deal size. According to the deal, Accenture will deliver financial transaction processing and financial management reporting services. Around 90 Indo Rama employees will make a transition to Accenture.
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Bombay Dyeing's new ad campaign
Mumbai: Bombay Dyeing plans to launch a massive ad campaign through electronic and print media for its new range of products in the bed and bath linen and home towels segments and is in the process of launching 150 new designs in these segments, which will be hitting the national market through its extensive franchise network. The campaign starring Gladrags super model Amita Holkar will have the tagline`Bring home style.' This campaign will reinforce the company's vision to hold the dominant position in the bed sheet and towel segments.
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Nirma Q4 net profit up 22 percent
Mumbai: Nirma has posted a Net profit of Rs 659.5
million in Q4 2004 as compared to Rs 540.0 cr profit registered in Q4 2003. The Net sales of the company were Rs 5,763.6 million for the said period compared to Rs 5,042.4 million recorded last year.
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Shell to increase outsourcing to India, Malaysia
Houston: In order to save $850 million annually beginning 2008, Shell Oil is cutting 600 to 800 information-technology jobs in the United States and moving most of these jobs to India and Malaysia.

The company said the move would help it to improve quality and reduce cost. Shell hopes to make the reductions by 2006. The job cuts will be made through attrition, reducing the number of contractors, reassigning some employees to other jobs and offering voluntary severance packages. Currently, Shell has a total IT manpower of 9,300 personnel globally, including 2,200 in the United States. Most of the domestic IT jobs are in Houston.
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Tata Motors enters used truck business
Mumbai: Tata Motors has entered the used truck business with a new brand -- Tata Preowned. The company has launched the business at five-six of its dealerships, mostly in Punjab and Uttar Pradesh. Tata Motors is targeting a business of Rs50 crore from the venture in two years time.

According to the business model, neither Tata Motors nor the dealer will buy the used truck from the seller because of the tax issues involved. On the other hand the dealer will hold the truck on behalf of the seller and subsequently sell it to a buyer. The margin money will be divided between Tata Motors and the dealer.

Tata Motors main contribution would be to do a certification of the vehicle. The company has stipulated that the age limit for the trucks would be five years. The seller can also exchange his own used truck against a new vehicle at the dealership. Shriram Recon is one the major players in the used trucks business and opened country's first showroom for reconditioned preowned trucks in Nerul, Navi Mumbai.
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