HCL signs five year outsourcing deal with Teradyne of US
New Delhi: IT services company HCL Technologies has signed a five-year, multi-service outsourcing deal with Teradyne, a US-based supplier of automatic test equipment.

The deal worth $70 million will lead to HCL taking over the entire IT operations of Teradybe that had revenues of $1-billion last fiscal.

The deal includes IT consulting, application development and IT infrastructure management, involving data centre, network, security and help desk services. HCL will also absorb Teradyne's existing IT staff.

This is the fourth outsourcing deal HCL has got this year, taking the total value to over $1 billion. The Teradyne deal will get HCL revenues worth $25 million in the first year itself. The total value of the deal could go up to $125 million over the five-year period.

Teradyne supplies automatic test equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defence industries. In 2005, Teradyne had sales of $1.08 billion, and now employs about 4,000 people worldwide.
Back to News Review index page  

Nilgiri's to offload stake to Actis
New Delhi: The Bangalore-based family-run retail chain Nilgiri Dairy Farm, is learnt to be in final-stage talks to offload about 26-28 per cent stake to private equity firm Actis Capital Partners and maybe another strategic investor. Nilgiri's currently has about 35 franchise stores and has plans of expanding this to 100 by the year-end.

Market sources say the deal size could be worth Rs240-280 crore. Banking industry sources, however, pointed out that it might be difficult for a foreign private equity firm such as Actis to invest directly in Nilgiri's due to restriction in FDI in retailing. Private equity firm Actis has raised about $475 million funds to invest in the Indian market. The firm has indicated that it plans to invest about $100-125 million every year, though the figures may vary depending on the actual size of deals struck.
Back to News Review index page  

Aztecsoft Q1 net profit up 26 per cent
Bangalore: Aztec Software & Technology Services (Aztecsoft) has posted a 26 per cent growth in its net profit to Rs9.27 crore (on consolidated basis) for the first quarter of fiscal 2006-07,ended on June 30 as against a net profit of Rs7.38 crore in the corresponding quarter of the previous fiscal.

The consolidated revenue of the company for the quarter stood at Rs59.48 crore that is a growth of 41 per cent over the corresponding quarter of fiscal 2005-06 which was Rs42.28 crore. Offshore operations contributed 85 per cent of the total revenue for the company during the quarter.

In sequential terms, the net profit of the company fell marginally by about 12 per cent to Rs9.27 crore as against Rs10.53 crore reported in the previous quarter (Q4 2005-06 that ended on March 31).
Back to News Review index page  

Dhampur Sugars implements expansion projects
New Delhi: Dhampur Sugar Mills Group is implementing expansion projects with an investment of Rs863 crore. The first phase involving Rs530 crore is already under implementation and would be completed before March 31 next year, according to a company release.

By the end of the expansion drive, the Group's crushing capacity would reach 46,250 TCD from the current capacity of 30,750 TCD. Captive power generation would reach 197MW from the current 54MW. The capacity of its distilleries will also increase threefold to 300 KLPD from the existing 100 KLPD.
Back to News Review index page  

DaimlerChrysler to launch premium end E-class
Mumbai: DaimlerChrysler India (DCI) is said to be planning to import the premium Mercedes Benz E 350 to the Indian market. It will initially bring in 40 limited `Avant Garde' units of the E class variant. The model will be available in September this year with an approximate pricing of Rs63-64 lakh (on-road, Mumbai).

Reportedly there has been overwhelming consumer interest for these models from prospective customers. The company has so fart received orders for 30 units. The units would be imported from Germany through the CBU (Completely Built Unit) route. With the FOB (Free on Board) value of the car being more than $40,000, the variant can be easily introduced in the market without homologation — (road worthiness certificate) process. The time consuming process otherwise takes six months and is undertaken at ARAI (Automotive Research Association of India), Pune.

The `Avant Garde' model has a V6 petrol engine and Adaptive Brake Hydraulic System. The E 350 is priced in the Rs63-68 lakh price segment earlier occupied by the old S-350 variant while the new S-class (S 350) is priced at Rs83 lakh (on-road, Mumbai). The price valuation of the E 350 variant is relatively 10-12 per cent cheaper due to bulk import by the company.

According to sources, an individual import of the variant would otherwise costs Rs78 lakh. The E 350 model will also add to the arsenal of the E-class range currently present in the country. DCI has petrol and diesel variants of the E 280, while the E 200 Kompressor petrol model is available as the entry level variant in the E-class range.
Back to News Review index page  

Airtel launches games-on-demand service
New Delhi: Bharti Airtel has launched games-on-demand service on its broadband network, aimed at the growing market for online games in the country. Users can play games online through the Airtel broadband consumer portal for Rs199 a month.

The company expects that it will help increase its broadband subscribers from the current figure of 35,000 but did not divulge details.

The country's online gaming industry is expected to be around $4 million but is expected to grow to $200 million in four years.

The company is launching 50 games which will be increased to 300 by the end of next year. The games are will interest both the first timers and hardcore gamers and we are targeting users between age group of 14-35 years.
Back to News Review index page  

Tata Motors to introduce new Tatamobile in 2007
Mumbai: Tata Motors plans to introduce a new Tatamobile in 2007. The new version will be based on a new platform with CRDi engine technology as a possible option in the pipeline. TheTatamobile is a pick-up vehicle forming part of the light commercial vehicle range.

Tatamobile was formerly launched in 2002 and a sports utility truck variant was later introduced in 2005. Dealers say the double cab pick up is available for Rs5.21 lakh (on road price, Mumbai) while the single cab is available for Rs4.84 lakh.

In the domestic market, with sales averaging 1,800 units per month, Tata Motors has a market share of 44 per cent while Mahindra & Mahindra is the market leader in this niche segment.
Back to News Review index page  

Meridian launches 'Fly' mobiles
Hyderabad: The $1.2-billion UK based mobile phone handset company Meridian Mobile, has launched five new phones under the brand name Fly, targeting the middle level user segment. The company expects to roll out 15 more models by the end of the year. The company plans to set up 5,000 points of sales with its mobile phones within three months and has reached 1,500 retail points. It has tied up with retail chains — Pantaloon and Subhiksha, for store in a store presence.

The Meridian Group is into distribution of FMCG products in Europe and markets about 2 million handsets a year. Within three years, the company has grown in market reach and expects to further consolidate its presence both in Europe and India, and new markets in the region.

The company expects to sell about three million handsets globally, with a good number of sales coming from India.
Back to News Review index page  

Indian cos jump ahead in Fortune 500 list
New York: Indian companies are jumping ahead in the list of Fortune Global 500 companies. Reliance Industries (RIL), India's biggest private sector company, has moved ahead 75 positions to 342 in 2006 from 417 in 2005. State Bank of India (SBI) has entered the list and has become the sixth Indian domestic firm to feature in the league.

RIL is ranked 30th among refining sector companies while its net profit rank is 194 compared with 183 in 2005. All five companies which found mention in the list last year viz; Indian Oil (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Oil and Natural Gas (ONGC), have improved in the ranking on the list of world's biggest 500 companies.

The six Indian companies on the list, are topped by IOC at 153rd position, followed by RIL at 342th rank, BPCL at 368, HPCL at 378th, ONGC at 402nd and the new entry SBI has been placed at 498th rank.

RIL has moved by 75 ranks on the list from the previous year, while IOC has gained 17 positions, BPCL has jumped 61 ranks, HPCL has moved up 58 positions and ONGC has scaled up 52 positions. RIL figures among the top 25 climbers on the list.

While Exxon Mobil leads at first position, retail giant Wal-Mart Stores holds the second position. Royal Dutch Shell, BP, General Motors, Chevron, DaimlerChrysler, Toyota, Ford and ConocoPhillips are the others on the top ten list.
Back to News Review index page  

Subhiksha readies for expansion
New Delhi: India's largest discount retail chain, Tamil Nadu-based Subhiksha Trading Services, has announced plans to launch 600 new stores by 2007 in Delhi, Maharashtra, Gujarat, Andhra Pradesh and Karnataka with Rs300 crore investment.

The first phase involving an investment of Rs100 crore will see a rollout of 145 new stores in Delhi and National Capital Region (NCR).

The company plans to sell telecom products and services in these stores, in addition to its current product range of groceries, fruits, vegetables and fast moving consumer goods (FMCG). In the next two months, 120 of these stores will become operational. The existing stores will also accommodate telecom products.

The company sells the same branded goods at a discounted price, which any other store sells at the maximum retail price.

Subhiksha currently runs a Rs340 crore business with its 145 stores across 31 metros and semi-metros of Tamil Nadu. With 600 new stores, the turnover of the company is expected to cross Rs600 crore.
Back to News Review index page