document.writeln("

S&P: Cash outgo in settlement deal may adversely affect RIL
New Delhi: Global rating agency, Standard and Poor's, has cautioned that any substantial cash payment made out of RIL in the reported settlement deal between the warring brothers could impact the group's flagship company adversely.

"RIL's business and financial profiles could weaken materially if the settlement involves substantial cash payments by RIL, resulting in increased financial leverage or a transfer of any of its core oil refining and petrochemical businesses," the agency said in a Reliance rating statement from Singapore.

"A potential settlement of the differences between the Chairman and Vice-Chairman of RIL, as reported by the media, is by itself not expected to have an immediate impact on the rating," it said while quoting media reports on the possibilities of settlement between Mukesh and his younger brother Anil in the next few weeks. The company is rated at BB+/Stable by the agency.

However, it said that if the settlement entails a carve out and transfer of the group's telecommunication business along with power and energy business to the Vice Chairman as reported by media, then it is not expected to harm RIL and even have a positive bearing on the flagship company.

It said the outlook on the rating was stable, signifying that the rating on RIL was unlikely to change, with the exception of "material adverse developments" in the settlement between the Chairman and the Vice-Chairman.

Standard and Poor's expects that final settlement would balance the interests of all the involved parties - lenders and shareholders, given RIL's prominent position in India's private corporate sector and its linkages with the domestic and international banking system and capital markets.

RIL reported 30 per cent jump in revenues at US$ 16.7 billion and 47 per cent rise in net profit at US$ 1.7 billion in fiscal 2005 as compared to previous year's figures, reflecting its "superior" position in the refining and petrochemicals businesses.

Its debt servicing ability was adequate, while its debt to capitalisation was below 40 per cent for fiscal 2005, the rating agency noted.

Going forward, RIL was expected to maintain adequate liquidity, although a part of these liquid resources is likely to be deployed for the company's planned capital expenditures, S&P said.
Back to News Review index page  

Ratan Tata: Tata group planning huge investments in Karnataka
Bangalore: Tata Group Chairman, Ratan Tata said on Friday that his company was planning huge investments in Karnataka.

"I am planning huge investments in Karnataka in various areas of business...I will be back soon to discuss the details of the projects," he said after meeting the Karnataka Chief Minister, N Dharam Singh here.

The Chief Minister said that the State Government has invited the company to invest in sectors such as mining, small car manufacturing, besides IT and BT.

"I am happy with the discussions with Mr Tata as he has evinced keen interest in making investments in our State," he said.
Back to News Review index page  

Yamaha launches the Fazer - to pump in Rs.200 crore over three years
New Delhi: Yamaha Motors India Pvt Ltd has said that it would pump in Rs150-200 crore over the next three years to hike its production capacity and introduce new models to cross sales figure of one million units by 2009.

"The company would be expanding its existing production capacity at Faridabad, Haryana and Surajpur (UP) to 5 lakh units per year from the existing 3 lakh units. This would need about Rs70-80 crore," Yamaha CEO and Managing Director H Yanagi, said unveiling new variants of its model 'Fazer'.

The company, which saw its domestic sales drop to 15,278 units in May this year from 20,954 units a year ago month, is expecting to touch a sales figure of about 3 lakh units by the end of this year and touch the one million mark in the next four years, officials said.

Yanagi said the company also planned to roll out three-four new products by the end of this year in a bid "to claim 10 per cent share of the highly competitive bike market".

Yamaha was also mulling over bigger bikes in the above 150 cc category.
Back to News Review index page  

BSNL reduces DataOne installation charges
New Delhi: The State-run BSNL has reduced the installation charges of modems, taken on monthly rental basis from BSNL, to Rs250 from Rs500 earlier for its broadband service DataOne.

In case of customer purchasing modems on outright purchase basis from BSNL, the installation charges are waived off with immediate effect.

The security deposit (non-refundable) of Rs500, while renting modem from BSNL has been made refundable for all customers of DataOne including existing customers. But the tariffs of the broadband service remain the same.

BSNL's monthly plan is in the range of Rs500 to Rs3,300 for residences and Rs1,200 to Rs9,000 for businesses.

BSNL had set a target of achieving two million broadband customers in 2006 and three million in 2007.
Back to News Review index page  

Tata Steel to pick up IFC loan of $300mn
New Delhi: Tata Iron and Steel Company Ltd (Tata Steel) has said that it has signed a loan agreement with International Finance Corporation (IFC) for availing a $300 million loan to fund its future projects.

Under the agreement, IFC will provide the company with a corporate loan of $300 million, which consists of an A-loan of $100 million directly and a syndicated B-loan of $200 million, Tata Steel informed the Bombay Stock Exchange.

Bank of America N.A. Calyon, The Hongkong and Shanghai Banking Corporation Ltd. and Standard Chartered Bank would underwrite the B-loan, it said.

The IFC funding is an important part of the company's financing strategy. The IFC loan will help the company to finance its future projects by way of long term funding, it added.
Back to News Review index page  

Satyam and Australian varsity sign up for research and internship program
Hyderabad: Satyam Computer Services Ltd. has reached an agreement with Australia's Victoria University (VU) to jointly conduct research and also provide the university's students working experience on its projects.

Satyam co-founder and Managing Director, B Rama Raju, who witnessed the signing of the Memorandum of Understanding said, "The new alliance will enable up to ten VU students to undertake software development internship with Satyam each year."

The company would also recruit up to 20 software engineers from the university every year to undergo a three months' training in India and China.

The alliance paves the way for the parties to carry out joint research projects, as well as enable VU to nominate Satyam executives to deliver guest lectures to information and communication technology (ICT) students on subjects that represent core competencies within the company.
Back to News Review index page  

Bajaj Auto launches its cruiser bike 'Avenger'
Mumbai: Two-wheeler major Bajaj Auto Ltd (BAL) has launched the 'Avenger' motor cycle with the DTS-i technology, its latest offering in cruiser bike segment.

"The 180 cc Avenger is the technology showcase for the entire two-wheeler industry and will kick-start the cruiser segment in India," the company said in a statement here.

The bike has been priced at Rs60,000 and would be manufactured at the company's Chakan plant.

This is the second offering in the cruiser bike segment by the company after the 'Eliminator.'

The 'Avenger' retains all the advantages of Eliminator and comes with the DTS-i engine and better low-end torque. Vibrations have been eliminated at the handlebar and foot-pegs for a comfortable all day ride, the company said.
Back to News Review index page  

US company F5 Networks to launch in India
Bangalore: Seattle-based global leader in application traffic management, F5 Networks Inc., has announced its entry into the Indian market.

The company would bring its entire portfolio of products and solutions to India, senior company executives have said. Its products include BIG-IP, FirePass, TrafficShield and iControl.
F5 is already present in the Indian market through a primary distributor, VARs and its global partners.

The company said it had "strong and deep" partnerships with industry leaders like Oracle, Microsoft, BEA, SAP, Veritas and Siebel.
Back to News Review index page  

Faze Three bags order from US retailer Target
New Delhi: Faze Three Ltd has said it has bagged an order worth Rs16 crore from US-based retail major Target Stores for the supply of floor coverings.

The company has informed the BSE that it has ramped up its production capacities over the last one year as part of its strategy to meet the increase in demand post quota regime.

The expanded production facilities at Panipat are geared up to meet the order placed by Target in addition to the existing regular export orders of Rs40-60 crore annually, it added.
Back to News Review index page  

Kanbay Intl. to set up global training centre in Pune
Chennai: IT services firm Kanbay International, is expanding its facilities in Pune and Hyderabad in order to accommodate over 6,500 employees and has announced setting up of its global training centre in Pune.

The company said that it expects the new infrastructure to be ready by the end of the first quarter of 2006.

In addition to its development centres in Pune and Hyderabad, the company also has operations in Chennai, which came into its fold after the recent acquisition of Accurum, another IT services firm in the BFSI (banking, financial services and insurance) segment.
Back to News Review index page  

Corporate Results: NIIT
NIIT net up 88 per cent
New Delhi: NIIT Ltd has reported a strong 88 per cent year-on-year growth in its consolidated net profit at Rs35.6 crore and has declared a dividend of 55 per cent to its shareholders for 2004-05.

The company's global system-wide revenue was up 11 per cent during the fiscal ending March 31, 2005 at Rs636.3 crore.

The Board of Directors of NIIT have recommended an enhanced dividend of 55 per cent (Rs5.5 per share of Rs10 face value each).
Back to News Review index page