Reliance, Qualcomm talks make no headway on royalty issue
New Delhi: Even though Qualcomm Inc has offered
Reliance Communications sops like sharing marketing, advertising
and promotional cost and slashing the cost of handsets
based on volume commitments the latter has rejected all
the offers saying its wants an upfront reduction in handset
price. Reliance has demanded that Qualcomm reduce its
royalty as it was coming in the way of cheaper handsets.
While Qualcomm has maintained that a reduction in royalty
would not impact handset prices, Reliance has hardened
its position on the issue.
Reliance
Group chairman, Anil Ambani, said he wanted a transparent
and upfront handset price reduction as against the volume-led
discount on cost elements, other than royalty, that was
being offered by Qualcomm.
The
Ministry of Communication had also asked Qualcomm to remove
all bottlenecks hindering reduction in handset price.
Sources said that an offer to share advertising and marketing
cost is understood to have been given to the other CDMA
player in the country - Tata Teleservices. Both Qualcomm
and Reliance were not available for comment.
Qualcomm's
share price has taken a huge beating at Nasdaq where the
scrip has lost over $11 billion in market capitalisation
over the last few weeks. Analysts said that the drop in
Qualcomm's share price is probably due to Nokia's decision
to pull out of CDMA handset business. Qualcomm's stock
price has slipped from $47.05 on June 1 to $40.54 on June
29.
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Gillette
shifts base to Mumbai
New Delhi: Gillette India is in the process of
synergizing its operations with Procter and Gamble, which
acquired Gillette globally last year. Though the acquisition
is not leading to Gillette India's (GIL) merger with P&G
India, Gillette is relocating its base from its Gurgaon
office to move into P&G's headquarters in Mumbai.
The company said that although its corporate office would
be based out of Mumbai, its registered office will continue
to remain in Bhiwadi in Haryana.
The
company successfully integrated its business with that
of P&G and while some people have been absorbed into
P&G's operations in other countries such as Singapore,
many others have found placements in other FMCG or telecom
companies in India officials said. The company would be
closing down its distribution outlets in a phased manner
and would resort to utilising P&G's network.
Gillette
is also offering a voluntary retirement scheme and other
packages to some employees who face redundancy after the
new structures and processes are put in place.
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Ranbaxy
gets USFDA approval for Cefprozil
New Delhi: Ranbaxy Laboratories has received the
US Food and Drug Administration's approval to manufacture
and market Cefprozil for oral suspension USP, 125 mg/5ml
and 250 mg/5ml. The Office of Generic Drugs, USFDA has
determined the Ranbaxy formulations to be bio-equivalent
and have the same therapeutic effect as that of the reference
listed drug Cefzil for oral suspension by Bristol Myers
Squibb Company Pharmaceutical Research Institute, a company
release said. The total annual market sales for Cefprozil
are estimated at $93 million.
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Honda
June sales rise 23 per cent
New Delhi: Hero Honda Motors sold 278,660 motorcycles
and scooters in June, 23.3 per cent more than the 226,073
units it sold in the same month last year. Sales for the
month included 268,508 units in the domestic market and
exports of 10,152 units, the company said in a release.
Hero Honda sold 303,666 motorcycles and scooters in May.
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Xenitis
to establish chip making facility at Fab City
Hyderabad: Kolkata-based technology company, Xenitis
Infotech, is proposing to establish a Rs1,200-crore chip
making facility in the Fab City near here. Xenitis manufactures
personal computer and certain computer parts and has established
an excellent long-term relationship with Taiwanese and
Chinese hardware manufacturers and the move to set up
a manufacturing base for chips for mobile phones would
be a logical extension. The project would be taken up
in three phases of Rs400 crore each, and part-funded through
debt and equity.
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Honda
Civic set to roll out off Noida plant
Chennai: The first Honda Civic will roll out of
the Greater Noida plant on July 4. Takeo Fukui, CEO and
President of Honda Motor Company, widely considered the
father of the Civic, will flag the model off the line
and symbolically launch it into the Indian market.
In
1973, Mr Fukui was 28 when, as a junior engineer in Honda,
he helped develop the first Civic subcompact car with
a revolutionary CVCC (controlled vortex combustion chamber)
engine. This engine design and technology helped Honda
design a car that met the stringent emission laws of that
time in the US, even without the use of the expensive
catalytic converter and unleaded fuel.
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Eurocopter
to invest $1 bn in India
Mumbai: Eurocopter, the world's largest civil and
military helicopter manufacturer, is planning to invest
over $1 billion in India over the next two years.
A
wholly owned subsidiary of European aerospace major EADS,
the company has put in bids for over 500 helicopter manufacturing
contracts for Indian defence. The company is planning
to set up an Indian subsidiary, a helicopter training
school, and a maintenance, repair and overhaul (MRO) centre
for helicopters in the country.
The
company is bidding along with defence major Hindustan
Aeronautics (HAL) for light and 10-tonne helicopters for
the Army, Navy, and Air Force. Eurocopter is also planning
to hire a qualified workforce for its India operations,
based in Bangalore.
Eurocopter
is bidding for 260 single-engine high-altitude light reconnaissance
helicopters for the Army. The first 60 will be delivered
by Eurocopter directly, while the remaining will be manufactured
with HAL.
The
company is also bidding for VIP helicopter contracts for
the Indian Air Force and is also in talks with corporate
houses for VIP travel and offshore transportation. Eurocopter
is in the process of setting up a subsidiary, and a training
school, that would serve as a hub for Asia and will take
care of all requirements of flight engineering and repair.
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MS
to give competition to BlackBerry in India
Mumbai: Microsoft is planning to take on BlackBerry
in India. The US software powerhouse will begin supporting
"push" e-mail in mobile devices like pocket-PCs
and smartphones.
BlackBerry-enabled
handsets automatically download email periodically enabling
ease of mail access to their owners.
Microsoft,
too, with its Windows Mobile 5.0 platform, will ensure
that e-mail is automatically downloaded (termed "push"
e-mail) on mobile devices, just as one get e-mail in one's
Outlook inbox.
Microsoft's
major Windows Mobile device-maker partners in India are
iMate and HP, in addition to O2 and Eten. Microsoft officials,
while not commenting on the names of the operators they
would partner with for this service said they shortly
planned to introduce the service in around 15 handset
models, starting from around Rs15,000. (The BlackBerry
7100g, too, is priced at Rs15,000).
Research
in Motion (RIM, the developer of the BlackBerry wireless
platform) officials said, "RIM welcomes competition.
The more users are informed about the benefits of mobile
e-mail, the more popular it gets which is good
for us as the market leader.
BlackBerry
is really beyond e-mail our applications and solutions
platform is driving more value and benefits for enterprise
customers. RIM will continue to enable applications beyond
e-mail for corporate, SMB, and individual customers in
India."
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BSNL
gets a rap over network congestion
Mumbai: The Telecom Regulatory Authority of India
has said that private cellular operators are facing an
"extremely high-level of congestion" on Bharat
Sanchar Nigam Ltd's (BSNL) network, causing serious inconvenience
to mobile subscribers. Trai said the the congestion, which
at certain places was at "alarming" degrees,
was owing to a delay in provisioning of E1 circuits.
"As
on April 2006, the degree of congestion in 404 point of
interconnect (PoI) was greater than 5 per cent, in 264
PoIs the degree of congestion was more than 10 per cent
and in 101 PoIs it was over 40 per cent," TRAI secretary
Rajendra Singh wrote in a letter to BSNL chairman and
managing director A K Sinha.
According
to the letter the degree of congestion at some places
was over 90 per cent and was greater than 100 per cent
in eight places during peak hours.
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Navis
Capital Partners acquires Nirula's
New Delhi: Malaysia-based private equity fund Navis
Capital Partner has acquired Nirula's one of India's oldest
fast food chain, for an undisclosed amount with effect
from Saturday.
Navis
is the majority stakeholoder in Nirula's while an Indian
Samir Kuckreja also has a minority stake in the venture,
a company spokesperson said.
Navis
Capital Partners is a private equity fund based in Malaysia
which currently manages 500 million dollar in capital
commitments and has interests in various sectors including
hospitality, food processing, car rental, outdoor media
and others in eight countries across Asia.
Nirula's
today is a diversified group having a chain of business
hotels, casual dining restaurants, ice cream parlours
and food processing plants in India. The chain with over
60 outlets operating in five states successfully caters
to over 50,000 guests every day.
Kuckreja,
a relative of Nirula's former owners Lalit and Deepak
Nirula, has been appointed as the managing director by
the new management.
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Indian
companies slated to earn huge carbon credit benefits
New Delhi: Reliance Energy, Jindal steel, Gujarat
Ambuja, Grasim Cement are in the race to earn emission
reduction benefits. These companies have either registered
or applied for the registration of projects, in which
they will use technology to reduce their green house gas
emission and sell the quantity of emissions reduced to
developed countries, according to the United Nations Framework
Convention on Climate Change.
These
emission reduction benefits can bring in annual flows
of as much as $300 million into India.
Indian
companies recorded the highest number of Clean Development
Mechanism (CDM) projects at 69 of the total 225 registered
by developing countries so far, says the UNFCC.
According
to the Kyoto Protocol, it is mandatory for developed countries
to reduce their green house gas emissions to a certain
level to counter global warming.
Companies
from the developed countries can meet their green house
gas emission reduction requirement by buying certain units
of the emissions reduced, from developing countries who
still now do not have any mandated level.
India
claims to have earned more than Rs10,000 crore over the
last two years through emissions trading. Emissions reduced
or carbon credits are measured in units of Certified Emission
Reductions (CERs). Each CER is equivalent to one tonne
carbon dioxide reduction. An estimate by the TERI says
that if India can capture a 10 per cent share of the global
CDM market, annual Certified Emission Trading (CER) revenues
to the country could range from 100 million to 300 million
dollars.
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