Air-India plans non-stop US flights
Mumbai: Air-India is planning to launch non-stop services to the US by February 2007, after it takes delivery of its three B777-200LR aircraft from Boeing Company, beginning November 2006.

Air-India is acquiring eight 777-200LR Worldliners as part of its proposed acquisition of 68 aircraft from Boeing for an estimated US$8.1bn. Currently, Air-India operates 28 flights a week to Los Angeles, Chicago, New York and Newark connecting via European destinations including London, Frankfurt and Paris.

The proposed flights from India to the US will do away with the UK visa requirements for US passengers.

The world's largest airline firm American Airlines is operating its daily transatlantic flight non-stop between New Delhi and Chicago, while Continental Airlines is operating daily non-stop between New Delhi and New York.

Air-India operates a fleet of eleven 747-400s, two 747-400 Combis, two 747-200s two 747-300 Combis, three 777-200ERs and twenty one Airbus 310-300s.
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OVL plans block buyouts, JVs abroad
Mumbai: ONGC Videsh (OVL) is planning block buyouts and exploration joint ventures overseas to source around 22 million tonne (mt) crude by 2010. The company is planning to source crude mainly from the Asia Pacific, the Middle-East, Africa and Latin America.

By 2008-09, the parent company, ONGC, will provide 50mt crude for the refineries at Kakinada in Andhra Pradesh, Barmer in Rajasthan and Mangalore Refinery and Petrochemicals (MRPL).

ONGC is producing 23mt crude from its wells in India annually and has lined up a Rs10,000 crore investment to raise the production capacity to 28mt in three years. The remaining 22mt should have to be sourced from abroad. For 10mt crude, ONGC has already tied up with some countries in exploration and production according to an industry source.

Exxon Neftegas (30 per cent), Japanese consortium Sodeco (30 per cent), affiliates of Rosneft, the Russian state-owned oil company, RN-Astra (8.5 per cent), and Sakhalinmorneftegas-Shelf (11.5 per cent) are its partners in the project.
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Bharti to raise FDI limit
Mumbai: Bharti Tele-Ventures is planning to raise the foreign direct investment (FDI) ceiling to 74 per cent from the present 49 per cent and has placed a special resolution seeking shareholders' permission.

The government through a press note 5 (2005 series) dated November 3, 2005 has enhanced the FDI ceiling from 49 per cent to 74 per cent in telecom.

To comply with the listing agreement requirements, FDI guidelines, other statutory requirements and shareholder agreements, the company is required to broaden its base. It is, therefore, proposed to amend article 117(a) of the Article of Association to increase the existing limit of directors from 18 to 21.

The existing article will be replaced by a new one, which would state that the company's management will comprise not less than eight and not more than 21 directors, "unless a greater number is required for legal, regulatory, listing requirements or to meet the provisions of the shareholder agreement".
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Ruia in acquisition mode of sick companies
Kolkata: After completing the acquisition of the shut Orissa Government PSU, IDCOL Rolling Mills (IRML) the Ruia group is in the final stages of completing the acquisition of Hirakud Cables, which is another ailing State PSU. The total acquisition cost, inclusive of liabilities for the two companies, is estimated to be close to Rs20 crore. Both the companies are located at Hirakud in Orissa.

Company sources reveal that IDCOL Rolling will be renamed Hirakud Industrial Works (HIW) and the operations of both the companies will be integrated with engineering and construction major Jessop & Co.

Set up in 1968, IRML was previously a unit of the State undertaking Industrial Development Corporation of Orissa Ltd (IDCOL) and was converted into a wholly owned subsidiary in 2002. The company was put on the block for divestment in 2003.

The total acquisition cost of IRML was close to Rs7 crore for Ruia including the bid price of Rs1.11 crore and other financial liabilities. Ruia Group has also taken over the liability of the existing 25 employees in IRML.

Hirakud Cables is an aluminium wire and power transmission tower manufacturer and was once profitable posting over Rs 100 crore turnover before turning sick.
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Usha Martin's US unit likely to start production by Sept.
Kolkata: Usha Martin's wire rope manufacturing facility in Houston, US is expected to commence production by September this year.

While the project in its entirety would be implemented in three phases and would have a capacity to manufacture 25,000 tonnes of wire rope a year, the first phase would have an installed capacity of 6,000 tonnes.

The company has pegged the US market for wire rope at 220,000 tonnes of which fifty per cent is imported into the country. In the first full year of operations, the company hopes to sell 10,000 tonnes.
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Mercator announces Q3 net at Rs.59 crore
Mumbai: Mercator Lines has reported a meager rise in net profit at Rs58.68 crore in the quarter ended December 31, 2005, as against Rs58 crore in the corresponding previous quarter.

According to the company a substantial increase in interest (255 per cent) and depreciation (185 per cent), coupled with higher provision of tax (197 per cent) impacted profits.

During the three months ended December 31, 2005, the income from operations increased by 70 per cent at Rs282.38 crore (Rs166.28 crore), while the operating profit increased by 47 per cent at Rs109.37 crore (Rs74.15 crore).

The company has approved the issue of bonus shares in the ratio of 3:2 and the issuance of securities by public or private offering in the domestic or international markets, in the form of ADRs/ GDRs/ bonds/ equity shares or in any other form for an aggregate amount not exceeding $75 million or an equivalent amount in any currency.
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Dunlop dues estimated at Rs.300-cr
Kolkata: The new promoters of Dunlop India estimate the total fiscal liabilities payable by Dunlop over a period of two to three years at approximately Rs300 crore, with a book liability of over Rs650 crore.

This coupled with an estimated Rs100-crore capital expenditure required to get the plant and machinery in working order will require a funding of Rs350 crore over a period of two to three years.

Given that Dunlop was acquired from Jumbo Group at a notional price of Rs25 crore, the total acquisition cost inclusive of fiscal liabilities and excluding the capital expenditure required, are now estimated at Rs375 crore.

Informed sources said that the Pawan Ruia-controlled management in Dunlop is now busy raising finances preferably loan finances without any equity string attached, from overseas markets. Dunlop has also applied for a Rs100-crore loan with a domestic agency to part-finance the same.

In case pure loan finance is not available, the company may consider preferential allotment to the financing agencies.
The Ruia group acquired Dunlop India and Falcon Tyres through an Rs200-crore block deal.
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Amtex plans Rs.100-cr Chennai unit
Chennai: US-based Amtex Systems is planning to set up a six-lakh sq ft facility in Chennai to offer IT infrastructure services. The facility will be ready by '07. The company has committed an investment of Rs100 crore for the project, which will be funded internally, Amtex said.

Unlike existing IT infrastructure offerings, this one from Amtex will be a 'ready to operate' facility, with hardware, software, relevant skilled manpower and support services available on top of a 'plug-and-play' facility, an Amtex statement said.
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