Indian oil companies gross refining margins rise
Mumbai: Domestic oil refiners' gross refining margins have been rising over the past two weeks.

It is learnt that Reliance Industries' (RIL) gross refining margins over the past fortnight have risen to $10-10.5 a barrel against $9 levels in the December 2005 quarter and $8.75-9 levels in mid-February. For Indian Oil Corporation, GRMs are hovering at $6.5-7 a barrel levels compared with $5.5-5.75 levels in mid-February.

Analysts say this is partly due to the fact that several refiners in the US and Asia have been shut in the past few weeks owing to annual maintenance. In addition, Indian refiners have purchased Brent, at $55-56 a barrel levels in mid-February. Oil refiners typically hold crude oil inventory for 28-35 days, say analysts.

The current pick-up in crude prices has also resulted in the spike in fuel prices globally, which also helps Indian refiners get better margins.

In addition HPCL and MRPL are planning refinery capex plans. Hindustan Petroleum Corporation (HPCL) is planning to raise the capacity at its Mumbai and Vizag refineries by 3.3 million tonne to 16.3 million tonne while MRPL will also expand capacity from 9.69 million tonne to 15 million tonne. Total domestic refining capacity is pegged at 134 million tonne and it is expected to reach 154 million tonne in 2007.
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ITC Foods to set up own biscuit making facility
Bangalore: ITC Foods, which at present sources its requirements for biscuits from contract manufacturers plans to set up its own manufacturing facilities in Karnataka and Uttaranchal.

The total capacity of these two factories will be around 10,000 tonnes and forms part of the Rs450-crore investment plan, announced last year.

In terms of value, Britannia and Parle have 38 per cent share each in the Rs4,500-crore biscuit market. ITC Foods, which is one of the latest to enter the market, is the third largest with a share of 8 per cent. Till 2004-05, its share was a mere 4.5 per cent.

The share of ITC's non tobacco division in recent times has started catching up with its tobacco division and is almost equal.
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Liberty Shoes to double capacity
Karnal: Liberty Shoes is setting up three new production facilities to double capacity to one lakh pairs of footwear per day from the present 50,000, over the next three years with an investment of Rs160 crore, of which Rs80 crore will be used in the new units and another Rs80 crore for further expansion.

The company's capacity will go up from 50,000 pairs per day to 75,000 pairs within the year and to one lakh pairs in three years.

One of the three units will be set up at Roorke in Uttaranchal with a Rs50 crore investment for leather footwear, while the other two will be set up at Ponta Sahib in Himachal Pradesh involving an investment of Rs30 crore for non-leather footwear. The company also plans to invest another Rs80 crore by 2008 for further expansion and the funds would be sourced through internal accruals and bank loans in a 1:1 ratio.

Liberty has also tied up with Wal-Mart for selling its products through the latter's outlets across the globe.
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Ranbaxy to acquire company in Italy
New Delhi: Rnbaxy Laboratories is acquiring the unbranded generic business of Allen S.p.A, a division of GlaxoSmithKline (GSK) in Italy. The company, however, did not disclose the value of the deal.

The deal, done through Ranbaxy's Italian subsidiary Ranbaxy Italia S.p.A, will come into effect from April 1, the company said in a statement.

Malvinder Mohan Singh, CEO and MD, Ranbaxy Laboratories, "This product portfolio complements Ranbaxy's own pipeline of products for the Italian market and will enable the company to utilise opportunities arising from future patent expiries."

Ranbaxy Italia S.p.A was incorporated in September 2005. It is currently engaged in filing Ranbaxy's portfolio of generic products with the Italian Health Authorities and plans to launch this portfolio over the coming years. Ranbaxy plans to launch its first product Sertralina Ranbaxy, in May 2006, the release said.
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Gitanjali forms JV with Sanghavi Exports
Mumbai: Gitanjali Gems has formed a new joint venture with Sanghavi Exports under which it will become a 50-50 partner in Spectrum Jewellery. The joint venture will manufacture and market the Sangini brand of diamond jewellery.

Spectrum Jewellery, earlier a part of the Sanghavi group, had purchased the brand from Diamond Trading Company, the sales and marketing arm of De Beers, in January 2006.
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Tupperware India to diversify into beauty, home care
New Delhi: Tupperware India, the direct marketing company is getting into the beauty and personal care and home care product segments. The company will also enter the clothing and nutritional product segments simultaneously. Earlier this month, the Foreign Investment Promotion Board (FIPB) permitted Tupperware to expand its product range.

In August 2005, the parent company, Tupperware Corporation, entered into an agreement with Sara Lee for buying its direct marketing business for $557 million in cash. Sara Lee operated in the beauty and personal care business. This acquisition has given the company the advantage of Sara Lee's existing market with established products.

The company sells its storage and serving products for the kitchen and home through the Tupperware brand and beauty and personal care products through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgarde brands.

The company will fund its expansion from profits from its Indian operations alone and it does not plan to bring in fresh investments from its parent company for this purpose, sources said.
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Dunlop to commence production
Chennai: Dunlop India will commence production at its factory in Ambattur here on or before August 31, according to a formal agreement signed between the Dunlop Factory Employees Union and the management representatives. The two sides had entered into an agreement 10 days ago that provided for taking up maintenance work from April 10 with production to begin four months later. The three-year agreement provides for a wage cut of 20 per cent, a retirement scheme for 300 workers to reduce the workforce to about 800, an incentive scheme and lay off compensation.

The agreement was finalised today in the presence of the Tamil Nadu Government's Labour Department officials with a specific date agreed upon for starting production.
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Opto Circuits to consolidate market share in healthcare
Bangalore: Opto Circuits (India) plans to grow through inorganic and organic means and consolidate its market share in healthcare products. The company had acquired EuroCor in January for 3.91 million. EuroCor is a leading German company with worldwide sales of its cardiac stents, which includes drug-eluting stents.

The company currently manufactures a range of healthcare products such as SPO2 probes, reusable sensor pulse oxymeters and cholestrol monitors for the export and domestic markets.

Addressing a press conference here on Monday, Vinod Ramnani, chairman and managing director, said the company was raising funds through its follow-on-public offer to upgrade its R&D infrastructure and set up marketing offices in key locations in Europe and South America as part its effort to reach new markets.

B Bhaskar, chief financial officer, said in addition to the acquisition cost, the deal also envisaged a restricted revenue sharing option to EuroCor of 3 million each in the next two years if the acquired company's turnover exceeds 10 million and 20 million, respectively by February 2007 and 2008.
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HLL hikes product rates
Mumbai: Hindustan Lever (HLL) has hiked prices of many of its products. For instance it has hiked prices of Surf Excel's 4 kg pack by 32 per cent to Rs395 from the existing Rs299.

The company has also raised the prices of the Lifebuoy soap for the 100, 125 and 300 gram units. For the 100 gm unit, the price has gone up from Rs9 to Rs10.

An HLL spokesperson said the hike was indicative of the market dynamics.

The company has also hiked prices of Fair and Lovely cream and Pears soap and across all the four offerings under the Surf Excel brand.

In addition to this, the company also recently increased the prices of its deodorants as well as colour cosmetics brand, Lakme.

Proctor & Gamble has not hiked prices so far. Detergent prices firmed up almost twice last year owing to the rise in the price of Liner Alkyl Benzene (LAB), a key ingredient used in detergents.
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NTPC not to buy gas from Shell
New Delhi: The National Thermal Power Corporation has said it will not buy natural gas from Shell as the price offered is economically unviable. It also says it will not renegotiate the price.

NTPC is now talking to other gas suppliers for its power plants. The Energy Coordination Committee headed by Prime Minister Manmohan Singh had decided that fresh imports of LNG may be made on the basis of marginal cost (prevailing international prices) at a level viable for the power sector without being constrained by prevailing domestic prices.

Shell India country head Vikram Mehta was not available for comments.
Earlier this year, a committee of secretaries had wanted NTPC to further explore the possibility of a deal with Shell and others with an eye on bringing down the cost of gas to levels acceptable to the power utility. Shell's offer worked out to $12-15 per million british thermal units (MMBTU), as compared to the prevailing market price of about $5 per MMBTU.
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