ACC: Volume growth and higher realisations boost margins
Associated Cement Companies, the single largest cement producer in the country and part of the Holcim-Gujarat Ambuja combine, has lined up a capital expenditure plan of Rs 691 crore for fiscal 2006.

Of this amount, between Rs 350 crore and Rs 400 crore will be spent on expansion and modernisation of Lakheri Cement Works, including a 25-MW captive power plant. The rest of the capex will go towards another 25 MW generator at Kymore Cement Works and expansion of grinding capacities at assorted plants of the company

ACC posted a net profit of Rs231.34 crore for the quarter, an increase of 26.94 per cent as compared to the Rs182.24 crore reported for the same quarter of previous year.

Total revenues for the quarter increased by 13.35 per cent to Rs1,389.91 crore from Rs1,226.19 crore.

As compared to a net profit of Rs192.48 crore, or Rs10.46 per equity share, reported for the quarter ended December 2005, profit for the March 2006 quarter on a stand alone basis has increased by 22.34 per cent to Rs235.48 crore, or Rs12.69 per equity share. Stand alone revenues for the quarter at Rs1,381.82 crore were higher by 24.87 per cent from Rs1,106.61 crore reported for the December 2005 quarter.

ACC shipped 49.28-lakh tonnes of cement during the first quarter, an increase of 10.77 per cent from 44.49 lakh tonnes shipped during the same period of previous year.

The results are not strictly comparable with the previous year quarter as the company had undertaken major restructuring exercises recently. It sold off the refractory business to private equity investors last year. Asbestos sheet manufacturer Everest Industries, which was a subsidiary of ACC, was also sold off.

The company has sold its real estate in Delhi for a consideration of Rs140.2 crore this month. The profits from this sale would be reflected in the results for the second quarter ending June 2006.
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Chevron to acquire 5 per cent of Reliance Petroleum for Rs1,320 crore
Mumbai: US-based oil major Chevron Corporation has agreed to pick up a 5 per cent stake in Reliance Petroleum (RPL), on the eve of its IPO. Chevron would acquire the stake from Reliance Industries Limited (RIL) at Rs60 per equity share for a total consideration of Rs1,320 crore or nearly $300 million.

The transaction has been routed through Chevron India Holdings, a Singapore based subsidiary of Chevron, which would acquire 22.5 crore equity shares of RPL.

After the stake sale to Chevron, RIL's post-IPO holdings in RPL would come down to 75 per cent. Post IPO, institutional and retail investors would hold 20 per cent of RPL.

The agreement between RIL and Chevron also provides for sale of an additional 24 per cent stake in RPL to Chevron in future. As and when this additional stake sale happens, Chevron's stake in RPL would rise to 29 per cent and RIL's stake would decline to 51 per cent.

If the additional stake acquisition is concluded at the same price of Rs60 per share, the total investment by Chevron would go up to Rs7,656 crore or ($1.71 billion) making it the single-largest FDI flow into the country so far.

The agreement between RIL and Chevron also covers cooperation between the two companies in sourcing of crude oil and marketing of refined products for RPL's proposed refinery. RPL is building a 27-million tonne per annum export-oriented refinery in Jamnagar, Gujarat.

The refining capacity shortage in western countries is expected to worsen in future, making it imperative for companies like Chevron to look for alliances in other parts of the world. The RPL refinery would have the ability to process heavy and sour grades of crude oil, which are cheaper.

The two companies are expected to cooperate in other areas of the energy value chain and jointly bid for domestic exploration blocks in the next round of the NELP, for which the government expects an investment of up to $7 billion by successful bidders of this round in exploration.
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Blue Dart plans Rs25 crore on fleet and facility expansion
Blue Dart Express Ltd plans to invest Rs 25 crore in expansion this year that includes two new Boeing 757 aircraft to its fleet of five 737s freighter and adding on 45 new facilities by June 2006. The company already has 217 facilities in India.

The new aircraft induction would help the company increasing its daily tonnage movement from166 tonnes to handle 250 tonnes each night.

Ahmedabad will become the company's seventh domestic hub. Blue Dart currently operates across 39 route networks each night.
Blue Dart has invested Rs 1 crore in its new integrated hub in Chennai, located at the Old International Terminal, and will be the first of the six planned in the capital of Tamil Nadu.

Chennai has gained in importance with its emergence as the preferred IT / ITeS destination, back office processing for global banks and multinationals and new manufacturing facilities including automobiles being established in the past few years, which has led to a growth in package volumes.

In 2005, Blue Dart handled over 2.8 million shipments in Chennai, servicing the information technology, auto, textile, telecom and finance industries from this region.
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TCG not to sell stake in Haldia Petro
New Delhi: The Chatterjee Group (TCG) has announced that it would not sell its stake to the West Bengal government even as the Company Law Board (CLB) deferred the matter for further hearing till July 4.

The CLB also gave a go ahead to the HPL Board meeting but warned both parties against raising the "contentious issues". Earlier the CLB had suggested that the state government either buy TCG's stake through West Bengal Industrial Development Corporation or sell its own stake to resolve the Haldia Petro imbroglio.

Acting on CLB's suggestion, the West Bengal Government had offered to buy rival TCG's entire holding in HPL at a price not lower than Rs28.80 per share. The CLB had asked TCG to convey its response by today.

However, during the proceedings today TCG refused the proposal saying WBIDC's offer was not clear and there was no clarity on price.
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Delphi lines up $10-million investment in India
New Delhi: The largest US auto component supplier Troy- (US) based Delphi Corp, which was spun off by GM in 1999, has announced that it plans to invest $10 million during the next two years to increase production capacity at its plant in Bangalore.

In October 2005, Delphi had filed for bankruptcy under Chapter 11 in the US and recently arrived

The investments in its Bangalore plant will enable Delphi to increase production of critical auto components known "halfshafts" by more than 100 per cent during the next three years. The Bangalore facility, which was started in 1995, is a supply base for local and export customers in the US and Europe.
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GAIL signs MoU with energy infrastructure group
New Delhi: GAIL India Ltd has signed a MoU with Arrow Energy, Australia and Energy Infrastructure Group, Sweden, for cooperation in Coal Bed Methane (CBM) projects in India, Australia and other countries of mutual interest.

Arrow Energy holds substantial CBM acreages and has vast experience in Australia and GAIL has an offer from Arrow for joint participation in CBM projects in Eastern Australia, which are different stages of exploration, appraisal and development.

GAIL has indicated that it may float a special purpose vehicle (SPV) along with Arrow for CBM projects in Australia. GAIL is interested in participating across the entire chain from source to market, covering exploration and production, processing and transmission and marketing of CBM along with Arrow, to make it as an integrated and sizeable project.

Australia holds around 9 per cent of world's proven coal reserves and accounts for 7 per cent of coal production.

The Indian government recently announced the Third Round of Coal Bed Methane, where ten blocks are under offer, for which GAIL has indicated its intention to bid along with technically competent CBM partners.
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BPCL opts for L&T-Provenco technology to enhance petrol station operations
New Delhi: Larsen & Toubro Ltd and New Zealand's Provenco will supply petrol station forecourt technology to Bharat Petroleum Corporation Ltd (BPCL). The technology will apply across 77 BPCL petrol stations in the northern and western regions. The initial project period is nine months.

This will be BPCL's first use of retail automation technology at its petrol stations in commercial quantities.

Under the deal, Provenco will supply retail forecourt (the fuel dispensing area) technology to BPCL petrol stations including its point-of-sale, back office system, category management like dry stock and wet stock and electronic payments. It will integrate forecourt devices like dispensers, tank guaging system, RFID (Radio Frequency Identification device) tag readers used for identifying the attendant who delivers fuel and EDC (Electronic Data Capture) machines used as indoor payment terminal for night transactions.

Other integration includes remote monitoring of sites from the BPCL headquarters, software for managing a convenience store at the forecourt and vehicle care system. The software will be integrated to BPCL's SAP for better monitoring and control. The system will also have a self-service option on the forecourt for paying for fuel at the pump without the need to go into the shop.

L&T is the leading supplier of petroleum dispensing pumps and systems in India. Its product range includes standard duty, heavy duty, single / dual nozzle, mechanical / electronic display dispensing pumps and multi-product dispensing units for dispensing up to five grades of fuel. Its solutions are modular, scaleable and can be upgraded to suit various forecourt topologies and meet customer requirements.
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Aarti Drugs forms JV with Chinese co
Mumbai: Aarti Drugs Ltd has entered into a JV with China's Huanggang Yinhe for manufacturing and selling active pharmaceutical ingredients in China.

The JV will lead to the formation of Huanggang Yinhe-Aarti Pharmaceutical Company Ltd, a new company.
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Eastern Silk places Rs50.50 crore with private equity with IL&FS
Kolkata: Eastern Silk Industries Limited (ESIL) has placed Rs 50.50 crore as first private placement of equity with IL&FS' Leverage India Fund, at Rs250 per share to part finance its Rs70-crore expansion project. The remaining funding will come from promoters' equity of Rs7 crore and internal accruals Rs12 crore.

The expansion will be carried out in ESIL's existing site at Anekal near Bangalore. Upon completion of the expansion in March 2007, the company expects its realisation per metre to double from $10 to $20.

ESIL is a and exports its products to the US, UK and Australia.
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Hindustan Zinc hikes price by Rs8,300
New Delhi: Hindustan Zinc Limited, part of Vedanta Resources, has hiked prices by Rs8,300 per tonne. This is the fourth price hike by the company since the beginning of the month indicating a strong growth of Zinc in the metal market.

The price hike indicates a global demand surge, which is also reflected in the price movement in the London Metal Exchange.
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Apollo Tyres to raise Rs 450 crore to fund expansion
Mumbai: Apollo Tyres Ltd will raise Rs450 crore from issue of securities in domestic or international markets to fund its global acquisitions and capital expenditure.

The board yesterday approved the issue of securities through public issue, rights issue or otherwise, in one or more trenches, subject to shareholder approval.

Apollo Tyres is also planning to increase its authorised capital from Rs50 crore to Rs75 crore by amending the memorandum and articles of association, it added. The company would seek the shareholders approval by way of postal ballot.
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S Kumars Nationwide to raise $50 million to fund growth
Mumbai: S Kumars Nationwide Ltd will raise $50 million to fund its growth plans.

It has placed $50 million, including a green shoe option of $5 million of unsecured and un-rated five-year foreign currency convertible bonds with a coupon of 2 per cent.

The company has also made an application to list the FCCBs on the Singapore Stock Exchange.

Jefferies International Limited was the sole book-runner and manager on this transaction.
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General Atlantic invests in Sharekhan
Mumbai: Private equity firm General Atlantic LLC (GA) will invest Rs144 crore in online brokerage firm, Sharekhan.

Sharekhan would use the proceeds to fund its company's strategic initiatives.

The investment will be through a combination of primary investment in the company and secondary investment to buy the entire shareholding of First Carlyle Ventures (The Carlyle Group.
Abhay Havaldar, managing director and Sunish Sharma, vice president, General Atlantic will join Sharekhan's board of directors.
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Cipla raises $170 million from GDR issue
Mumbai: Pharma major Cipla Ltd has raised $170 million through the issue of 1.10 crore GDRs, to be listed on the Luxembourg Stock Exchange traded on the Euro MTF Market of LSE.

The over 1.10 crore GDRs were placed through book building route at $15.39 per GDR representing one underlying share which would be listed on the Bombay Stock Exchange Ltd and the National Stock Exchange of India Ltd.

Cipla has also entered into a purchase agreement with CLSA Singapore Pte Ltd and Kotak Mahindra (International) Ltd, which acted as joint global co-ordinators and joint book runners for this offering, the company informed the Bombay Stock Exchange.

The company had launched the issue on April 10.
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LG Balakrishnan to make preferential allotment to IFC
Mumbai: LG Balakrishnan & Bros Ltd, a leading supplier of transmission chains to both automobile and industrial segments, will allot equity shares worth $5 million on a preferential basis to International Finance Corporation, the private lending arm of World Bank.

The company is seeking shareholders' approval through postal ballot for allotting the shares in one or more tranches and plans to allot optionally convertible secured bonds worth approximately Rs100 crore on rights basis to shareholders.

The bonds of Rs101 each, are convertible into equity shares within seven years from the date of allotment, would have an effective yield of 8.75 per cent per annum and carry a coupon rate of 1 per cent per annum, it said.
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Rajesh Exports bags designer jewellery order from Sharjah
Mumbai: Rajesh Exports Ltd has bagged a Rs178-crore export order from Sharjah-based Excel Goldsmiths for supplying designer jewellery.

This order will be executed before by July 31, 2006 at the company's Bangalore facility.
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Satyam & Optimation sign strategic partnership in New Zealand
Satyam Computer Services Ltd and Optimation, a leading New Zealand software and technology services company have tied-up help New Zealand Companies optimise their use of technology as an enabler for business. Optimation will be Satyam Computer's exclusive representative in New Zealand.

The partnership is for six years, which has resulted in the development of the Equip utilities billing software suite amongst other successful projects.

The two companies are currently working with the top three telecommunications companies in Australia and New Zealand, having built the ninth-largest data warehouse in the world.
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Elecon turnover up 60 pc at Rs 445 cr
Mumbai: Elecon Engineering Company Ltd has posted an increase of 60 per cent at Rs445 crore in its turnover for the financial year 2005-2006 as compared to Rs278 crore in the previous year.

The material handling equipment division has achieved around three-fold increase in turnover at Rs 209 crore in 2005-06 as compared to Rs76 crore in the previous year, it informed the Bombay Stock Exchange. The gear division posted a 17 per cent increas e in its turnover at around Rs 236 crore during the year as compared to Rs 202 crore last year.

The company has a current pending order book position of about Rs 600 crore. Elecon supplies hi-tech material handling equipment to core industrial sectors such as steel, fertiliser, cement, coal, mining, power generation and port mechanisation in India as well as abroad.
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