Eicher to hive-off Royal Enfield into a new unit
New Delhi: Eicher Motors is hiving off its motorcycle unit, Royal Enfield into a new wholly owned subsidiary. The company plans to rope in strategic and financial investors to exploit the growth potential of the two-wheeler business.

The company did not comment on the details of the potential partners and the quantum of funds the company was planning to raise through equity.

Transferring of the motorcycle division would be carried out by way of a slump sale and on a going concern basis to the new company, it added. It is a part of business restructuring undertaken by the Eicher under which the group companies, Eicher and Eicher Motor were merged while the tractor division was hived off to Tractors and Farm Equipment Ltd.
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Tata Power's thermal power plant contract for BHEL
New Delhi: Tata Power has given Bharat Heavy Electricals (BHEL) a contract to set up a 250-MW thermal power plant in Maharashtra. Under the contract, BHEL would design, manufacture, supply, test and commission the thermal station at Tata Power's Unit-8 in Trombay, a BHEL release said.

The equipment would be manufactured at BHEL's Haridwar, Tiruchi, Hyderabad, Bangalore, Bhopal and Jhansi plants while the company's Power Sector Western Region would be responsible for commissioning, the release said.

Currently, BHEL is executing orders for two thermal power plants, each of 250-MW capacity, at Korba East, Lehra Mohabbat, Bhilai, Mejia and Chanrapura, and one unit each at Parli, Paras and Santaldih, it added.
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DS Const gets project from NHAI
New Delhi: DS Constructions has bagged a project that includes four-laning of the Gwalior-Jhansi section on NH-75 by the NHAI on Build-Operate-Transfer (annuity) basis. The 80.127-km long project will be constructed at a cost of Rs650 crore over a concession period of 20 years, which include construction period of 30 months.

The company said that with this project its order book stands in excess of Rs4,000 crore in the roads, highways and expressway sector.
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Ranbaxy to acquire equity stake in Zenotech
Hyderabad: Ranbaxy Laboratories (RLL) will soon acquire a sizeable equity stake in Hyderabad-based pharma company Zenotech Laboratories Ltd (ZLL), which is developing generic cancer drugs for Ranbaxy to market in the US and Canadian markets.

Sources said the offer could result in Ranbaxy acquiring around 10 per cent equity stake in Zenotech as the minimum price of Zenotech shares work out to around Rs80 per share if the last six months average price on the bourses was calculated. Zenotech is likely to offer the equity at a significant premium to the minimum price, sources said, adding that it would enable the company to raise Rs20-30 crore.

Last month, Ranbaxy's wholly-owned subsidiary, Ranbaxy Pharmaceuticals Inc , had signed an agreement with Zenotech under which Zenotech would develop, submit for regulatory approval and manufacture a total of 11 oncology products to be co-marketed in the US and Canadian markets.
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Tatas walk out on Bangla projects
After months of indecision by the local government, the Tata Group has decided to suspend work its Bangladesh projects. This increases the likelihood of the $3 billion investment going to of other South East Asian nations.

Alan Rosling, executive director of Tata Sons, said, "Now we are frustrated and disappointed as we spent huge money, time and energy in these project,'' he said.

On Sunday, Bangladesh's industries minister, Motiur Rahman Nizami, said a parliamentary election due in January made it difficult to accept the Tata investment at this point and the government needed more time to evaluate Tata's proposals, especially with regard to the price of natural gas and guarantees for its supply.

Ever since the Tatas had first signed the expression of interest with the Bangladesh government in 2004, there was stiff oppostion from the local steel makers who had objected to Tata's projects saying the projects would make local steel companies redundant. There were also objections from economists on the offer of subsidised natural gas to the Tatas.

The Tatas even submitted a revised plan in April which increased the price of gas to the market levels.

Rosling said. ''We strongly believe that the investments proposed by us would be beneficial to both Bangladesh and the Tata group.'' He added that, "We now understand that the Government is only likely to take matters forward after the elections scheduled for January 2007.''
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FLAG Telecom selected by China Netcom
New Delhi: China Netcom, a fixed line telephone operator in Northern China, has selected FLAG Telecom, a subsidiary of Reliance Communications, as its preferred international carrier to provide trans-pacific bandwidth for its fast-growing broadband operations. FLAG Telecom would provide 40 GB of international bandwidth to China Netcom.

The increased capacity would also be deployed by China Netcom to broaden its service bouquet by providing solutions such as virtual private network services, Internet media and TV applications in the Chinese market.

FLAG has also been chosen by Bahrain's telecom operator Batelco, which is in the process of moving all its international circuits for voice telephony to the Reliance Communication's global telecom arm. Batelco has been a customer of FLAG Telecom since 1997. Reliance has 60-65 per cent market share of the voice calls from Bahrain to India. The deal is estimated to be close to $40 million.
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SpiceJet signs pact with Galileo, to offer low fares
New Delhi: SpiceJet and Galileo International have signed an exclusive agreement to provide SpiceJet's low fares and inventory on the Galileo GDS platform. Galileo Flight Integrator is a product introduced by Galileo exclusively for low-cost airlines giving them accessibility to an extensive network of travel agents from across India and the world.

According to the company, this creates opportunity for increased revenue and enhances productivity for travel agents, as it provides Galileo connected agents with access to SpiceJet's full range of fares including periodic promotional fares. In addition, the seamless Web-based service also empowers agents to conveniently access over 49 daily flights on SpiceJet, allowing more choice and flexibility to book low fares, rendering the Galileo Flight Integrator an attractive tool for travel agents.

SpiceJet currently offers over 2.8 lakh seats a month on its present network and plans to increase the capacity towards the year end to 5 lakh seats per month.
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Radio City plans to garner 30 per cent share in two years
Chennai: Radio City is planning to garner a market share of 30 per cent of the FM radio market, estimated at Rs600 crore in the next two years. Currently the FM radio market is about Rs250 crore and Radio City has a 40 per cent share. This year with more FM licences being awarded, the FM radio market is likely to be about Rs350 crore.
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Fiat plans 1.1 litre, CNG variants of Palio
Mumbai: Fiat India is making plans to modify its existing passenger car range to avail itself of tax sops offered by the Government. The company plans to equip the Palio 1.2 litre variant with a de-tuned 1.1 litre engine. The company also has plans to introduce a CNG variant of the 1.1 litre variant.

According to industry sources, these modifications are most likely to be introduced with a face-lift of the hatchback variant. The new tweaks in the engine configuration is primarily due to the tax sops available on cars that are less than four metres in length and have an engine capacity less than 1200 cc.

The company feels this is necessary for being competitive in the industry. Other players like General Motors India are contemplating on a similar strategy for their upcoming model Aveo U-VA.

In order to boost sales, Fiat is now going to undertake a nationwide campaign for a free service camp that would further enhance confidence and trust among the existing customers and also show that the company is here to stay.
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Satyam in pact with Swedish company for content management services
Hyderabad: Satyam Computer Services has entered into a pact with EpiServer, a Swedish content management and portal software company. EpiServer is a provider of .NET-based content management applications and is the creator of EpiServer, a product numerous corporations rely upon as a platform for Internet, intranet and extranet content solutions. The partnership will enhance Satyam's ability to implement and provide training services for EpiServer-based solutions, and EpiServer will benefit from the company's global presence and implementation expertise.

This alliance will enable Satyam to garner clients by combining its consulting and delivery capabilities with EpiServer exceptional reputation and market presence in the Nordic countries, he added.
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Mcdowell to amalgamate group cos
Mumbai: Mcdowell & Company is planning to amalgamate Shaw Wallace Distilleries, Herbertsons and six other group companies with itself and demerge its investment business into McDowell India Spirits Ltd.

The composite scheme of arrangement would be effective only from the date the other petitions filed before the Karnataka High Court and Bombay High Court are allowed by the respective High Courts.

In addition to this, the company had proposed a scheme of amalgamation, under which its non-operative overseas wholly owned subsidiaries, Asian Opportunities and Investments Ltd in Mauritius and Zelinka Ltd in Cyprus were to merge with the company.

Due to business needs, the board of directors of the company decided to withdraw the scheme of amalgamation and the High Court of Karnataka has, by its order dated July 07 permitted such withdrawal. Earlier on February 6, Mcdowell and Company shareholders and creditors approved the composite scheme of arrangement with requisite majority.

The shares of the company were trading at Rs414.30, up 1.46 per cent at the BSE.
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Satnam Overseas to export Uttaranchal basmati rice to Europe
New Delhi: Delhi based company Satnam Overseas and Haryana based KRBL have signed an agreement with Uttaranchal basmati rice growers to buy and market their product in the international market. Satnam Overseas markets the Kohinoor brand rice and assured growers in Uttaranchal that it would buy organic Basmati paddy at Rs22.50 per kg and Pusa organic Basmati paddy at Rs15 per kg while Haryana-based KRBL, which sell rice under the brand name of India Gate Basmati would procure Basmati paddy at Rs22.50 per kg.

The two companies have assured the government of Uttaranchal that they would display the name of Uttaranchal on their rice bags which will be sent abroad. The agreement with these two companies would remain effective for three years after which it can be extended.

According to government statistics, a total of 500 hectares of land is under organic Basmati rice cultivation in Uttaranchal on which nearly 800 tones of paddy is grown every year. The demand for Basmati rice is rapidly growing in Europe especially in Germany, Switzerland, Holland, Italy and the Scandinavian nations. To keep pace with growing demand the Uttaranchal government has decided to expand the cultivation to 800 hectares from the present 500 hectares. Farmers too are being encouraged to grow organic Basmati.
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