The Chatterjee Group in consortium to acquire Basell for $5.7 bn
Kolkata: Purnendu Chatterjee of The Chatterjee Group (TCG), along with a few partners, has succeeded in acquiring the assets and debts of the $8.4-billion Dutch petrochemical major, Basell NV, for euro 4.4 billion ($5.7 billion).

The TCG, along with the US-based Access Industries Inc (owned by the Russian born oil billionaire Leonard Blavatnik), emerged as the sole contender after outbidding 43 others over the last few days, after Iran's National Petrochemical Company, was finally sidelined owing to pressure applied by the US State Department.

Iran is already on the American sanction list and the US law prevents US firms from dealing with Iranian governmental agencies.

Basell, which was a 50:50 joint venture between Germany's BASF AG and Royal Dutch/Shell Group, was set up in 2000. It has over 6,600 employees, including two Nobel laureates on its staff. The company has 23 manufacturing units worldwide and its products are available in more than 120 countries. In 2003, its turnover was $8.4 billion.

It was announced that the sale agreement was likely to be closed by the second half of 2005. Apart from TCG and Access Industries, the New York-based equity fund, Blackstone Group, Haldia Petrochemicals Ltd and a few others might also participate in the acquisition process.

The sheer size of the acquisition price, approximately Rs25,000 crore, makes the deal the biggest ever acquisition by any Indian corporate body. It surpasses ONGC Videsh's $1.7-billion purchase of 20 per cent stake in the Sakhaklin oilfield, the Reliance Group's buyout of FLAG Telecom and the Tata acquisition of Tetley and NatSteel.

Though sources in TCG said that raising funds for the acquisition was not a difficult proposition, the funding equation remains unclear.
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ONGC strikes oil and gas off Mumbai High and KG Basin
New Delhi: The ONGC has reported three oil and gas finds - one in shallow-waters on the West Coast and two in the deep-waters in Krishna Godavari (KG) basin on the East Coast. ONGC is the 100 per cent operator of this block.

Giving out technical details, an ONGC statement said that in the western offshore region, the company had made a significant oil and gas find at a location 60 km south south west of the Mumbai High Field. Multiple oil and gas bearing sands have been identified in the Panna Formation and testing of the two objects had concluded. The deeper object has flowed 4,90,376 cubic m of gas per day and 2,491 bbl of oil per day. The shallower object has flowed 4,51,838 cubic m of gas per day and 2,045 bbl of oil per day. The oil and gas are of high quality, the company said, adding that this find had opened up a new exploration opportunity in sands within the Panna Formation off Mumbai High field.

The integrated interpretation of 3D seismic data and analysis of attributes indicate a possible aerial extent of about 25 sq km, which is likely to increase after delineation drilling.

On the East Coast, ONGC made two more gas strikes in its on-going `Sagar Samriddhi' Deepwater Exploration campaign. Well VA-2 in block KG-OS-DW-IV at allocation 35 km off Amalapuram coast was spudded on March 24, 2005 in 689 m water depth targeting potential meandering channels.

The well has been completed to the target depth of 2,614 m and has flowed 3,26,545 cubic m of gas per day. This prospect will be integrated to up-scaled exploitation plan of G-1 and GS-15 structures where ONGC is developing India's first digital oil field in the KG basin.

In another location in KG offshore, ONGC's drillship, Sagar Vijay, emerged third time lucky in its exploration campaign. This is again a strike in pre-NELP nomination block IG, where ONGC is the sole operator. Well G4-4, under drilling at a water depth of 331 m, is located 38 km from Amalapuram coast.

The presence of gas has been confirmed while drilling and through wire-line testing. The lead through this strike would yield fresh impetus in the integrated development plan of G4 and GS-29 prospects, the company said.
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Tata launches mini truck ACE
Bangalore: Tata Motors has announced the launch of the country's first indigenously developed mini-truck, Tata Ace.

The company invested around Rs180 crore to develop the Tata Ace, which will introduce a new category in the commercial vehicle segment. Company officials said that there was a growing market for last mile distribution vehicle, and that the Ace was designed to fulfil this need. Officials said a study conducted before working on the project indicated that customers want a low maintenance cost vehicle, which has higher driver safety, and better driving comfort. The customers were even willing to trade fuel efficiency for power.

The Tata Ace is part of the company's New Products' Introduction Programme. The 0.75-tonne Tata Ace is fitted with a diesel engine and has all-steel cabin and has several car-like features including, two-toned seats, an instrument cluster, utility trays, magazine pockets, twin blade, twin speed wipers and combination switches.
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Lupin signs pact with Cornerstone
Mumbai: Pharmaceutical company Lupin Ltd and US-based Cornerstone BioPharma, Inc (Cornerstone) have entered into a $10.5 million licensing agreement for collaboration in clinical development of a novel drug delivery system (NDDS) for an anti-infective product.

As part of the agreement, Lupin would receive, in aggregate, an amount of $10.5 million, of which a part is linked to the achievement of certain milestones, the company informed the Bombay Stock Exchange today.

Cornerstone would have the rights to sell and market the prescription drug in US upon Food and Drug Administration (FDA) approval, Lupin said.

The oral solid anti-infective market in the US represents approximately $10.2 billion. This partnership would bring clinical value to this market, it said.
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Solaris Chemtech to invest in bromine plants
New Delhi: Solaris Chemtech, a Rs250-crore Thapar Group company, has announced an investment of Rs120 crore to increase production of its niche chemical products bromine and speciality bromine.

The company will commission two bromine plants at Khavda in the Rann of Kutch. Bromine is used in the agro-chemical and pharma industry in the country and Solaris has a 60 per cent share of the domestic liquid bromine market.

The niche bromine business of the company clocks Rs50 crore of business and with the new plant, it hopes to grow this business to Rs200 crore by 2008, while it is targeting an overall turnover of Rs500 crore by the same year.

Solaris Chemtech also sees scope in exporting this commodity in the future to China, Korea, Taiwan, Malaysia, Singapore and Thailand, where bromide is largely used as a flame retardant, especially in the of hardware durables.
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Taj Hotels to operate resort in Malaysia
Mumbai: As part of its global strategy to establish its presence in key gateway cities and leisure destinations, Taj Hotels Resorts and Palaces signed a management contract with Rebak Island Marina Berhad to operate and manage the Rebak Marina Resort, a 106-room premium resort on the island of Langkawi in Malaysia.

This deal comes close on the heels of the Taj signing a development and management contract to operate a resort property in Dubai last month.

The Rebak Marina Resort is located on a 390-acre island off the Langkawi mainland and has mountains, cliffs, and beaches. The resort has the only fully-equipped marina in Malaysia, facilitating the maintenance of sailing yachts. It is close to the airport and is a 15-minute ferry ride from the mainland jetty.

The Taj will shortly take over the day-to-day operations of the resort and run it under the Rebak Marina Resort brand. Simultaneously, the management will work with the owners to undertake a $5-million upgradation and renovation programme, which is scheduled to be completed over 12-18 months, it said.

Langkawi, a prime tourist destination in Malaysia, is made up of 99 tropical islands in the Andaman Sea and lies in north-western Peninsula, close to the Thailand border. DRB HICOM Group is a conglomerate with interests in Automobile manufacturing and distribution, property development and infrastructure and service sectors.
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Corporate Results: HDFC, Flextronics Software
HDFC net up 16.7 pc in Q4
Mumbai: The Housing Development Finance Corporation (HDFC) has reported a 16.7 per cent increase in net profit for the fourth quarter ended March 31, 2005. Net profit for the quarter amounted to Rs347.8 crore against Rs297.97 crore in the corresponding quarter of the previous year.

The company has announced a dividend of Rs17 per share. Income from operations at Rs952.3 crore (Rs824.3 crore) rose by 15.5 per cent. Gross profit increased 16.6 per cent and stood at Rs418.3 crore (Rs 358.3 crore); while profit before tax stood at Rs412.99 crore (Rs351.7 crore), showing an increase of 17.4 per cent.

For the year 2004-2005, the company reported a 21.6 per cent increase in net profit at Rs1036.59 crore, against Rs851.78 crore the previous year.

The cost-to-income ratio of the company has improved every year for the last seven years, and is the lowest among all the financial institutions, officials said. While income from operations rose 10.8 per cent, to Rs3400.6 crore, up from Rs3068.76 crore the previous year, total expenditure rose by only 5.3 per cent, to Rs2134.96 crore (Rs2027.28 crore).

Gross profit rose 21.4 per cent, to Rs1275.5 crore (Rs1050.6 crore) while profit before tax rose by 22.3 per cent, recorded at Rs1256.79 crore (Rs1026.98 crore). Provision for tax was 25.68 per cent higher, at Rs220.2 crore (Rs175.2 crore).

The company's return on equity is 28.5 per cent and the capital adequacy ratio at 13.4 per cent. Loan disbursals for the year totalled Rs12,697 crore, increasing by 28 per cent; approvals aggregated to Rs19,715 crore, up 30 per cent. The total loan portfolio of the company at Rs37,216 crore, rose by 29 per cent over the year.

The consolidated annual net profit amounted to Rs1,124 crore, up from Rs947 crore; profit after tax amounted to Rs1,124 crore, up from Rs947 crore.

The board of directors of the company have also approved the reappointment of Deepak Parekh as the company's Managing Director (Designated as Chairman) for three years with effect from March 1, 2006, and the reappointment of K.M. Mistry as Managing Director for five years with effect from November 14, 2005, subject to shareholders' approval.

Flextronics Software Q4 net rises 42 per cent
New Delhi: Flextronics Software Systems Ltd (FSS) has posted a 42-per cent rise in its consolidated net profit for the fourth quarter ended March 31, 2005 at Rs30 crore against Rs21.2 crore in the corresponding period of the previous year.

During the quarter, its sales grew 28 per cent on consolidated basis to touch Rs130.1 crore as compared to Rs101.9 crore in the year-ago period..

The consolidated numbers include the performance of FSS along with its subsidiary, Tenet Technologies.

During the quarter, FSS added 12 new customers for products and services. The overall utilisation in IT services business continued to remain strong at 92 per cent. The services business grew sequentially by 11 per cent during the quarter due to ramp up in relationships with key accounts and from new clients.

For the financial year ended March 2005, FSS' consolidated net profit stood at Rs107.8 crore, up 40 per cent over the previous year. Total income rose 33 per cent to Rs490.3 crore.
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