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IL&FS merges its road firms
New
Delhi: Three companies promoted by the Infrastructure
Leasing & Financial Services (IL&FS)-promoted
companies are being brought under one company viz; the
Gujarat Toll Road Investment Company (GICL). The combined
entity will have an asset base of over Rs1,000 crore.
GICL, an investment company, is a joint venture between
the Gujarat government and IL&FS. The merger is likely
to be completed by June 2005, and will be in two phases.
The Gujarat government and IL&FS will infuse Rs30
crore each into the merged entity and GICL will come out
with an initial public offering (IPO).
In the first phase of consolidation, the Ahmedabad-Mehsana
Toll Road Company (AMTRC) and the Vadodara-Halol Toll
Road Company (VHTRC) will be merged into GICL followed
by the merger of the North Karnataka Expressway into GICL.
After the merger, IL&FS, along with the wholly owned
arm, Consolidated Toll Network, will hold a 44.36 per
cent stake in GICL, the Gujarat government a 17.34 per
cent stake, Punj Lloyd 25.73 per cent, engineering major
Larsen & Toubro 9.74 per cent and AIG Indian Sectoral
Fund 2.83 per cent.
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Nestle
gets FIPB assent to sell pet food thru Excelcia
New Delhi: Nestle SA has received clearance from
the Foreign Investment Promotion Board to introduce pet
foods in India through its wholly owned subsidiary Excelcia
Foods. The Swiss food major has decided not to enter this
business through Nestle India its other subsidiary while
seeking permission for cash and carry wholesale trading
of pet foods. Earlier Nestle had signed a joint venture
with Dabur India for manufacturing and selling biscuits
through Excelcia. Since the joint venture was dissolved,
Execlcia has been doing no other business. As per Nestle
SA's proposal the pet foods will be imported from Nestle's
manufacturing facilities overseas.
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MSEB
issues contempt notice against DPC
Mumbai: The Maharashtra State Electricity Board
has issued a contempt of court notice to the Dabhol Power
Company in the Mumbai High Court against the Rs26,000-crore
arbitration filed by DPC in a London Court saying DPC
has violated the Supreme Court's injunction against starting
any arbitration proceedings. The Supreme Court had ordered
DPC to not move on any international arbitration until
it was resolved whether MERC or international arbitration
courts have the authority to solve disputes between MSEB
and DPC. The hearing will be heard on July 5
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Mallya
to drop case against Jumbo group
Bangalore: UB group and McDowell & Co have
decided against pursuing their legal case against the
corporate restructuring undertaken by Shaw Wallace &
Co and the sale of its shares to SABMiller. This development
came about after discussions between UB chairman and Jumbo
Group chairperson, Ms Vidya Manohar Chhabria, aimed at
resolving difference the country's two largest liquor
businesses. McDowell & Co owned about 10,000 shares
in SWC giving it the locus standi to move the court
against restructuring and sale of shares. SABMiller acquired
50 percent stake and management control in SWC's restructured
beer arm - Shaw Wallace Breweries - for $132.8 million.
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Shipping
firms' net soars 133 per cent
Mumbai:
The net profit of the eight listed shipping companies
leapt by 133 per cent in 2003-2004, on the back of an
over 100 per cent growth in three of the last four quarters,
as shipping charter rates posted record highs in the year.
The growth has been on the back of increasing demand for
commodities from China, the overall boom in the global
economy and a demand-supply mismatch in the availability
of ships, which have all resulted in pushing cargo rates
to unprecedented levels.
Shipping
Corporation of India, posted a 128 per cent rise in net
profits to Rs626.99 crore while GE Shipping, clocked a
116 per cent rise in net profit to Rs467.47 crore. Essar
Shipping posted a 105 per cent growth in net profits to
Rs129.55 crore, while Mercator Lines earned a net profit
of Rs45.39 crore in 2003-2004, 133 per cent more than
what it had earned in the previous four consecutive years.
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Cadbury
gets over worm controversy
Mumbai:
Cadbury India has seen resurgence in chocolate sales
after the melt down in sales in the wake of the worm controversy
last year. Last October worms were found in bars of the
flagship brand Cadbury Dairy Milk (CDM) in certain shops
in Kerala and Maharashtra after which the company saw
its value share melt from 73 per cent in October 2003
to 69.4 per cent in January 2004.
The
recovery began in May 2004 when Cadbury's value share
went up to 71 per cent. The company feels that the Amitabh
Bachchan campaign did a lot in helping to restoring customer
confidence in the quality of Cadbury Dairy Milk chocolate.
CDM contributes about 30 per cent to Cadbury India's turnover,
which stood at Rs 729.81 crore in the year ended December
2003. The Rs2,000-crore chocolate market witnessed a growth
of 4 per cent in 2003, according to AC Nielsen ORG Marg
retail audit data. The worm controversy did take a toll
on Cadbury's bottomline. For the year ended December 2003,
Cadbury's net profit fell 37 per cent to Rs45.6 crore
as compared with a 21 per cent increase in the previous
year.
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IOC
to scale up retail outlets for branded fuel
Mumbai:
Indian Oil Corporation (IOC) plans to increase the
number of its retail outlets selling branded fuels by
50 per cent by March 2005 to enhance its market share.
At present the company sells its branded diesel 'Xtramile"
at 1968 petrol bunks and branded petrol `Xtrapremium'
at over 846 petrol stations across the country.
The company feels that with the emission control standards
going up and new benchmarks expected under the automotive
fuel policy, Xtrapremium, with 91 Octane, will emerge
as a new benchmark in the market. IOC's
Xtramile enjoys a market share of over 80 per cent while
Xtrapremium has notched up a share of 30 per cent.
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LGEIL
plans 3rd unit in Gujarat
Mumbai:
LG Electronics India (LGEIL) is planning to commission
its third assembly unit in Gandhidham near Kutch in August
this year for which it has received clearance from the
Gujarat government. The company has received certain tax-exemption
benefits from the government of Gujarat for setting up
the plant. However, the products will not be produced
by LG but by a private player, Jaipur-based Genus Electronics
Company with whom LG has entered into an agreement. According
to the strategy Genus Electronics would produce colour
televisions, refrigerators, washing machines, and, microwave
ovens at the new plant, set up with at an investment of
Rs20 crore while LG would be the extended buyers for the
products to be manufactured at the plant.
Genus Electronics Company will start production by August-end
2004. The company will have an installed capacity to produce
three lakh CTVs, 1.5 lakh refrigerators, one lakh washing
machines, and, one lakh microwave, per annum. LG will
also implement PC colour monitor assembly activities at
the plant with backward integration wherein circuit boards
will be produced, and, assembled for CTVs at the new plant.
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Tatas'
release JRD comics as part of centenary celebrations
Mumbai:
On the occasion of the birth centenary of Jehangir
Ratanji Dadabhoy Tata, alias JRD, the Tata group celebrations
will encapsulate his life in a comic book. Titled JRD
- The True Conqueror, has been written by Margie
Shastri and designed by Souren Roy and will be edited
by Anant Pai, whose earlier works include the legendary
Amar Chitra Katha series and Tinkle.
According to Pai, "The book will narrate the life
story of JRD Tata and will cover his growing years, his
induction into the Tata group, his passion for flying
and his various achievements." A one-time effort,
the story will unfold in 32 pages and the comic will be
priced between Rs 30-Rs 35. India Book House (IBH), the
publisher of Tinkle and Amar Chitra Katha,
plans to print around 20,000 copies of the Tata comic
in August.
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ESPN,
Hathway resolve differences
Mumbai:
ESPN Star Sports and Hathway Cable have resolved their
differences on non-payment of dues and higher declaration
of subscribers. Thus ESPN Star Sports, which had cut its
signals to Hathway since June 18 night, resumed beaming
signals on Thursday night.
The two parties have now signed a memorandum of understanding
(MoU) with Hathway Cable paying around 70 per cent of
outstanding dues of over Rs1.2 crore. The rest is to be
paid during the next week.
The dispute began when ESPN Star Sports alleged Hathway
of not paying the dues. Hathway countered the allegation
saying that the broadcaster was using arm-twisting tactics
to raise commercial fee payout to cash in on the ongoing
and upcoming big ticket events like Euro Cup 2004 and
Asia Cup cricket tournament.
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