Central Coalfields targets 42 mt output for current fiscal
Kolkata: Encouraged by its performance in the last few years, the Ranchi-based Central Coalfields Ltd (CCL) has set an annual production target of about 67 million tonnes (mt) of coal in the terminal year of the Eleventh Plan (2011-12) as against its actual production of about 40.5 mt in the year ended March 2006.

The company has planned to achieve a production target of about 42 mt in the year 2006-07.

Capital expenditure outlay of Rs3,276 crore is envisaged for the Eleventh Plan, of which about Rs465 crore will be spent during the current fiscal.

The company has achieved highest-ever production in 2005-06. It also achieved a growth of 152 per cent in profit from about Rs438 crore in 2004-05 to about Rs1,099 crore in 2005-06. This has led to increase in the company's net worth from about Rs896 crore to about Rs1,293 crore, which is more than the paid-up capital of the company.

The company has earned a profit of about Rs74 crore in April against the budgeted profit of about Rs45 crore and a profit of about Rs70 crore during the same month last year.
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Starbucks Coffee mulling India launch
Boston: Gourmet coffee major, Starbucks Coffee Company, appears to have firmed up plans to enter the Indian market in the next 18 months as part of its plans to expand its global footprint.

The Seattle-based coffee chain may be negotiating with a Mumbai-based realtor to enter the metro markets where a large chunk of its target audience exists. Starbucks is eyeing markets where it currently does not have stores for potential expansion. Its list of potential markets includes Russia, Italy, India and Brazil.

The companyu is looking at operating 15,000 stores at home and another 15,000 abroad, increasing revenue 20 per cent and profit at a 20-25 per cent clip annually over the next three to five years.

The company recently reported record fiscal second-quarter revenue and earnings. Revenue for the period ended April 2 rose 24 per cent from the year-earlier period to $1.9 billion, helping boost net income to $127.3 million.
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Hind Lever divests Quest stake for Rs.54-cr
Mumbai: Hindustan Lever Limited has divested its 49 per cent stake in Quest International India to ICI India for Rs54 crore.

Quest International, previously a joint venture with HLL, will now be wholly-owned by paints major ICI India. ICI India had acquired a majority stake (51 per cent) in Quest International, engaged in the fragrances, flavours and food ingredients business, in 2001 for a consideration of Rs152 crore.

Quest International had been formed under the joint venture arrangement between HLL, ICI India and Quest International BV, where ICI India and Quest International BV held 51 per cent and the balance 49 per cent was with HLL. The joint venture arrangement between ICI and HLL was for a period of five years, which expired in March 2006 and after that ICI had the right to buy the remaining shareholding in Quest.

In keeping with its new strategy to focus on its core businesses, FMCG major Hindustan Lever Ltd today announced the divestment of its nickel catalyst business to ICI India Ltd for a consideration of Rs 21 crore. The nickel catalyst business is a sub-unit of the speciality chemicals division of HLL's chemicals and agri operations.

An HLL statement said ICI will take over the manufacturing facilities of its nickel catalyst operations that forms part of the Taloja Factory near Mumbai.
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ITC earnings up 36 pc in Q4
Kolkota: FMCG major ITC Ltd has posted a 36 per cent growth in post-tax profit (before exceptional items) and a 27.9 per cent jump in net turnover for the fourth quarter ended March 31, 2006.

Earnings stood at Rs567.47 crore against Rs417.42 crore in the same period previous year. Turnover increased from Rs2,177.11 crore to Rs2,784.46 crore. ITC's profitability was once again driven by the cigarette segment followed by hotels and paperboard businesses.

Non-cigarette FMCG business continued to be a drag on the bottomline, although the company managed to pare down loss from Rs68.5 crore in the fourth quarter of fiscal 2004-05 to Rs42.34 crore last year.

The board of directors has recommended a dividend of Rs2.65 per ordinary share of Re 1 each.

The company has reported a 24.1 per cent growth in post-tax profit (before exceptional items) at Rs2,280 crore for 2005-06 compared with Rs1,837.07 crore in 2004-05. Net turnover grew 28 per cent at Rs10,317.56 crore against Rs8,057.75 crore.

Cigarette continues to be the mainstay of the company and it grew 13.3 per cent last fiscal. However, its strategy to diversify into other business has started paying rich dividends. The non-cigarette segment grew 46.2 per cent fuelled by a strong performance of hotels, paperboards and agri-businesses.

Over the last six years, the net turnover of the non-cigarette businesses has grown at 30 per cent to touch Rs4,707 crore in 2005-06. Consequently, its share in the company's turnover has increased from 25 per cent in 2000 to 48 per cent in 2005.
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ICC tribunal asks VSNL to allow access to FLAG
Mumbai: Tatas-owned Videsh Sanchar Nigam Ltd (VSNL) suffered a setback today when an arbitration tribunal of the International Chamber of Commerce directed it to grant Reliance Infocomm-owned FLAG Telecom Group access to its landing station in Mumbai.

In its notice to the Bombay Stock Exchange, VSNL said, "The tribunal by majority decision has ordered the company to grant FLAG access to the Mumbai cable landing station of the FEA cable system for the purposes of installation, inspection, testing, training and other functions so as to equip capacity of the FEA cable system to any level."

VSNL had been blocking FLAG's access to the landing station, restricting Reliance network's ability to receive overseas calls routed through the FLAG network. The battle between VSNL and FLAG Telecom has been raging for a few years and has been cited as one of the reasons for the high international bandwidth prices in India.

FLAG Telecom claims the ruling will enable it to reduce international bandwidth prices, which is crucial for BPO operations and other international telephony services.

There are six major cable systems that land in India today. VSNL has often been accused of monopolising the international bandwidth when it is believed that less than 35 per cent of submarine design capacity passes through the landing station controlled by VSNL. Lit bandwidth capacity, which is the capacity available for sale, in the country is at least 500 Gbps. Only about 10 per cent of this capacity is currently utilised.

Last year, the Telecom Regulatory Authority of India (Trai) effected a 70 per cent reduction in international private leased line circuits (IPLC).

About two years back Reliance had alleged that VSNL was blocking access to FLAG Europe Asia (FEA) cable at the latter's Mumbai landing station.

"In order to exercise its rights, FLAG has been forced to initiate arbitration proceedings under the provisions of the construction and maintenance agreement (C-MA)," FLAG Telecom had said.
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IL&FS Investment closes initial offer of the Pan Asia Project Development fund
IL&FS Investment Managers Ltd has informed BSE that the Pan Asia Project Development Fund achieved its first closing with domestic investors at US$ 25 million and a co-sponsorship commitment of US$ 10 million from ORIX Corporation, Japan.

The Fund would target investments for project development of infrastructure projects in the Asian region, including India. The Fund expects to have a total corpus of US$100 million with about 50 pc being targeted from international investors.

This fund will be managed by a subsidiary of the company.
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Apollo Tyres to come up with 1:6 rights, public issue
New Delhi: Apollo Tyres Ltd (ATL) is to come up with a rights issue of equity shares, followed by a Rs200 crore public issue. Both the issuances would be at a premium to the Rs10 face value of equity share of the company.

For the rights issue, one rights equity share would be issued for every six equity shares held as on the record date. Moreover, for every four equity shares allotted on a rights basis under the rights issue, the allottee would receive one warrant. The warrant holder would be entitled to apply for one equity share of Rs10 each for cash at a premium, at warrant exercise price, for each warrant held, at any time during the warrant exercise period.

A communique from the company to the stock exchanges said that the issue price of the equity shares to be issued under the rights issue and the exercise price/terms of warrant would be decided closer to the record date.

As far as the public issue was concerned, the issue price would be decided closer to the public issue date.
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IOC loses Rs.100-cr daily on fuel sales
New Delhi: The country's largest fuel retailing firm, Indian Oil Corp (IOC), is losing about Rs100 crore daily on sale of petrol, diesel, lpg and kerosene below the production cost. According to company officials, the Rs3-4 per litre hike in auto fuels planned is not sufficient to cover the deficit.

"Our under-realisation stands at Rs100 crore per day," S Behuria, chairman of IOC, said today. The company, which lost Rs14,011 crore in revenues during FY06, projected a total under realisation of Rs8,300 crore in the first quarter of the current financial year.

Petrol is currently being sold at a loss of Rs10.55 a litre, diesel at Rs9.88 a litre, kerosene at Rs16.78 per litre and LPG at a loss of Rs120 per cylinder, Behuria said.

Public sector oil firms, stand to lose Rs73,500 crore in revenue this fiscal.
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IOC Q4 FY06 net at Rs.4031-cr
New Delhi: A government grant of Rs6,571.44 crore in the form of oil bonds, received in March 2006, helped Indian Oil Corporation (IOC) post a net profit of Rs4,030.57 crore for the fourth quarter ended March 31, 2006 - an increase of 351 per cent, as compared to Rs892.92 crore in Q4FY05.

Net sales in the quarter under review rose 15.6 pc to Rs43,788.45 crore from Rs37,875.84 crore in the comparable quarter last fiscal.

The board has recommended a dividend of Rs12.50 per equity share.

IOC recorded a net profit of Rs4,915.12 crore for FY06, marginally higher than the previous fiscal net profit of Rs4,891.38 crore. Net sales rose 21.06% to Rs1,65,813.03 crore from Rs1,36,956.74 crore in FY05.
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Godrej Q4 net down 12 pc, to pay Rs.5 a share
Mumbai: Godrej Industries Ltd has reported 12.16 per cent decline in fourth-quarter net profit at Rs 26.60 crore. Lower selling prices and drop in volumes in its oleochemicals impacted its performance.

For the full year, Godrej's net profit was down at Rs71.20 crore from Rs75.75 crore the previous year.

The chemicals division contributed 64 per cent to the total revenues. Revenues fell by six per cent to Rs512 crore (Rs543 crore) due to significant drop in selling prices internationally and lower domestic realisation.

The company's board also approved a dividend of Rs5 per share.

It approved a proposal for sub-division of the face value of the share to Rs1 from Rs6.
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RCF net up at Rs.80-cr in Q4
Mumbai: Rashtriya Chemicals & Fertilizers Ltd (RCF) has reported a higher net profit of Rs79.72 crore for the fourth quarter of 2005-06 against Rs60.45 crore in the year-ago period.

Total income (net of excise) has increased to Rs860.05 crore from Rs703.57 crore.

For the year, the company has posted a net profit of Rs147.96 crore (Rs140.96 crore).

Total income (net of excise) has increased to Rs3,114.89 crore (Rs2,840.08 crore). The board of directors has recommended a final dividend of 10 per cent.
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