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Hewitt
survey: Fringe benefit tax to hit corporate bottom lines
New Delhi: A survey of 29 firms conducted by Hewitt
Associates finds more than 70 per cent, saying that the
Fringe benefit tax (FBT) will have a sizeable financial
impact. While 7 per cent of the total 29 firms say that
the impact may even be severe.
A
large number of companies have also said that they will
pass on some amount of the FBT tax burden on to their
employees. On cost heads like telephones, hospitality,
entertainment, conferences and sales promotion expenses
companies though are ready to bear the complete tax burden
as they are considered pure business expenses.
But
perks like repair, running and maintenance of cars, scholarships
to children, use of health clubs and foreign travel may
see a large part of the tax burden being passed on from
the companies to employees.
According
to the survey, the worst hit will be the controversial
superannuation fund. As many as one-third of the companies
say that they may even remove superannuation as a component
of pay completely.
But
the companies are not looking at trimming down annual
salary increases or taking away most of the perks. Instead
sharing the tax burden with employees seems to be the
most preferred solution for them.
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IOC
puts in bid for Turkey's TUPRAS refinery
Jerusalem: The Indian Oil Corporation (IOC) has bid
to acquire Turkey's giant petroleum refinery TUPRAS, which
has a combined processing capacity of 27.6 million tonnes
per annum.
The
company has submitted a letter of intent to the Turkish
Privatisation Administration (PA) to acquire 51 per cent
stake in TUPRAS, for which eleven other local and international
oil firms are also in the fray.
It
is the second time that block shares of TUPRAS have been
put on sale.
The
first time the tender was held for the block sale of some
65.76 per cent of shares, the Council of State nullified
it saying it goes against public interest, Turkish daily
News reported.
Four
local firms, Zorlu Group, Petrol Ofisi (POAU), OYAK and
Opet, and seven international firms or consortiums, besides
IOC, have applied to the PA to obtain the details and
conditions for the tender, it said.
The
international firms include Russia's Repsol, Poland's
PKN, Italy's ENI Spa, Austria's OMV and some joint consortiums
involving US firms and Shell.
TUPRAS
owns four refineries of Izmit, Izmir, Kirikkale and Batman
with a combined capacity of 27.6 million tonnes per annum.
With the total processing capacity of all refineries in
Turkey amounting to 32 million tonnes a year, its share
is a whopping 86 per cent of the country's total capacity.
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Cordys
and Tata Consultancy Services announce global alliance
Santa Clara, USA:
Cordys, Inc., a global software company that provides
a next generation Composite Application Framework, has
announced a global strategic alliance with Tata Consultancy
Services(TCS), a world-leading information technology
consulting, services, and business process outsourcing
organization.
The alliance will strengthen TCS' and Cordys' ability
to satisfy the increasing worldwide demand for a service
oriented architecture (SOA) and Enterprise Service Bus
(ESB)-based approach to IT landscapes by providing horizontal
and vertical solutions based on Cordys' next generation
framework.
TCS will develop, implement and support solutions based
on Cordys technology, which brings heightened levels of
IT optimization and total business integration. Meanwhile,
Cordys will offer its next generation technology to existing
TCS customers, who will benefit from Cordys' open and
flexible infrastructure.
Under the agreement, TCS and Cordys will be working on
various SOA initiatives in the TCS Hi-Tech Lab in Santa
Clara, California. The jointly staffed SOA initiatives
will be the focal point for the development and implementation
of a series of advanced Cordys ESB-based solutions that
will enable TCS to better serve key vertical sectors,
such as financial services, retail, healthcare, government
and manufacturing, with specifically developed solutions.
The joint laboratory is already developing a number of
ESB-based solutions that will be introduced to the market
in the coming months. These include vertical solutions
around RFID, as well as solutions that address Compliance
Lifecycle Management, Single Customer View and Flow through
Provisioning.
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Zee
Sports launched
New Delhi: Zee Telefilms has formally launched Zee
Sports pitching it as a channel "by, for and of the
Indians". The broadcaster aims to grab a share of
the Rs500-crore advertising pie garnered by sports channels.
According to channel officials, the channel is designed
as a true sports viewing destination encompassing the
latest sports content with live sports action, entertainment
from the world of sports, interviews and news, all with
a focus on India.
The channel will air news and shows on sports targeted
at the youth. It will show live cricket, football, tennis,
motor sports, boxing, beach volleyball and snooker. An
investment of over Rs150 crore is being earmarked for
the channel.
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Essar
Steel becomes totally integrated steel producer
Mumbai: Essar Steel has announced the completion of
the acquisition of Hy-Grade Pellets Ltd (HGPL) and Steel
Corporation of Gujarat Ltd (SCGL) from Stemcor, UK.
Both the companies are now fully owned subsidiaries of
Essar Steel Ltd.
"With these acquisitions, Essar Steel becomes a totally
integrated steel producer with end-to-end control over
raw materials, processes, technology and finished products.
The acquisition of HGPL will bring in benefits of high
quality raw material and considerably better yields in
steel making," Essar Steel said in a news release.
HGPL operates a 4-million tonnes per annum pellet plant
in Visakhapatnam.
SCGL's acquisition will bring in 1.2 million tones of
cold rolling capacity into Essar Steel.
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Raymond
announces JV with Italian woollen fabric company
Mumbai: Raymond Ltd has announced that it plans to
set up a joint venture with Italian woollen fabric manufacturer,
Lanificio Fedora, with an investment of Rs40 crore.
Raymond would transfer its existing carded woollen unit,
making largely blankets and shawls, at Jalgaon to the
new joint venture.
The partners would take a 50:50 stake in the joint venture,
which will be called Raymond Fedora Pvt Ltd. With this
joint venture, the company will incorporate the technical
expertise and industry experience of its partners within
its existing business to offer world-class products for
the domestic and international markets, Raymond officials
said.
The unit had a turnover of Rs17 crore last year and a
low capacity utilisation due to severe competition from
cheaper acrylic based products.
Apart from access to technical expertise from Lanificio
Fedora, the new partnership will see the enhancement of
the current manufacturing capacity from 15 lakh metres
per annum to 25 lakh metres per annum in the first phase.
The venture will have a product mix that includes blankets,
shawls and fancy woollen jacketing and expects to export
around two-thirds of its output. The expected turnover
in the first year of the venture is likely to be around
Rs65-70 crore. Lanificio Fedora is a producer of carded
woollen fabric and is shrinking its operations in Italy.
In February this year, Raymond had announced a joint venture
with another Italian company called Cotonificio Honegger,
which is part of Gruppo Zambaiti, manufacturer and marketer
of high value shirting fabrics.
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Ranbaxy
acquires Spanish firm`s generics line
New Delhi: Ranbaxy Laboratories has announced that
it has bought a generic product portfolio containing eighteen
products of Spanish pharma company Efarmes, SA, according
to a press release. The products belong to the cardio-vascular
system, central nervous system and pain management segments.
Commenting on the development, company officials said
that the acquisition fortifies their presence in Spain
while augmenting their existing product portfolio. With
this strategic development, the company will be able to
provide a wide range of generics in this part of the world
as well.
Ranbaxy already has a presence in 21 of the 25 European
Union countries and is further consolidating its presence
now.
With a prescription medicine market, valued at around
$10 billion and growing at approximately 10 per cent per
year, Spain ranks ninth in the world. The generic market,
which Ranbaxy shall be targeting, is valued at $700 million
and is estimated to grow at 30 per cent per annum.
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Idea
offers 99 series in Andhra Pradesh
Hyderabad: Idea Cellular Ltd is launching its unique
number series that begins with 99 for new users of its
mobile service in the State. The number nine is generally
considered auspicious in the country.
Idea is promoting this offer through a creative campaign
that highlights the luck the number 99 brings into people's
lives. The campaign includes concepts such as Navaratnalu
- gold rings studded with nine stones, Navarasalu,
which depicts the nine emotions of man, and Navadhanulu,
which represents nine grains - the highest spiritual level
of worship.
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Swedish
device security products firm forays into India
Mumbai: Device security products company Pointsec
has announced its India entry, saying that its India operations
will be a launch pad for further expansion in the APAC
region. The company, a subsidiary of Swedish company Protect
Data AB, has introduced its mobile device security products
in the country.
In the first year, it would primarily focus on the enterprise
segment, particularly security-sensitive verticals such
as IT services, BPO, banking, financial services, insurance
and telecom, said a statement. The company has also appointed
Trident Infotech Services as a premium distribution and
service support. Pointsec plans to set up its own India
office by this September.
According to a company statement, Wipro Technologies,
Syntel and ITC Infotech have already signed up with Pointsec
for enterprise wide application of Pointsec products to
secure data on mobile devices.
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Corporate
Results: Tata Tea, VSNL
Tata Tea pays 100 per cent
Mumbai: A strong performance in brand sales has helped
Tata Tea report a net profit of Rs129.92 crore for the
year ended March 31, 2005, a jump of 41 per cent over
the pervious year's Rs91.53 crore. The board of directors
has recommended a dividend of 100 per cent (85 per cent
last year).
Income from operations was Rs899.63 crore against Rs782.42
crore. The profit before tax was up 72 per cent at Rs111.73
crore (Rs65.14 crore).
In India, Tata Tea's market share has gone up from 14
per cent to 20.1 per cent.
Through Tata Tetley operations, it has a 27.5 per cent
market share in the U.K., 42.3 per cent in Canada, 11.3
per cent in France and 21.4 per cent in Australia.
VSNL
doubles profit
Mumbai: VSNL, a Tata group company, has reported a
100.26 per cent rise in net profit in 2004-05 at Rs756.4
crore compared with Rs377.7 crore in the previous fiscal.
The board has recommended a dividend of Rs4.50 per share
and a one-time special dividend of Rs1.50 per share on
account of extraordinary income of Rs6 per share for the
financial year 2004-05.
Total income rose to Rs3410.4 crore against Rs3371.1 crore
in 2003-04.
Net profit for the fourth quarter ended March 31 rose
to Rs399.2 crore from Rs82.2 crore in the same period
previous fiscal, while total income increased to Rs934
crore (Rs813.2 crore).
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