ONGC's revenues could take a hit
New Delhi: If the Government accepts the recommendations of the Tariff Commission it is likely that Oil & Natural Gas Corporation (ONGC) will suffer a setback in revenues. The Commission, in its draft report on producer prices of gas has suggested an 8-per-cent increase in the price of natural gas produced by ONGC to Rs3,450 per thousand standard cubic metre (SCM). This is far lower than the 20 per cent increase (Rs3,840 per thousand SCM) announced by the Government.

The Commission's suggestion is calculated on the basis of the natural gas price of Rs3,200 per thousand SCM, revised by the Government by 20 per cent on June 5, sources said. ONGC's annual revenue from the sale of about 50-53 MMSCMD gas is Rs5,000 crore. The company's gas sales are at around 18 billion cubic metre (BCM) and if the 8-per-cent increase is factored in, ONGC's revenue will increase by Rs450 crore, which is lower than the additional revenue of Rs1,150 crore that the company would have earned if the 20 per cent increase is considered.
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Motorola, Tech Mahindra in tie up
New Delhi: US based maker of telecom equipment Motorola, and infotech solutions company Tech Mahindra have formed a joint venture company called CanvasM to develop innovative applications for telecom subscribers. The company will enable network service providers and enterprises to launch applications such as mobile wallet, m-commerce, entertainment applications and productivity applications.

While Tech Mahindra will bring its experience in applications development and integration capabilities, Motorola will contribute through its application portfolio and service delivery platform.

CanvasM will be headquartered in Noida. The joint venture will set up a research and development centre in Noida and Bangalore.
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Maruti hikes prices by Rs500-5,000
New Delhi: Maruti Udyog citing pressure from increasing input and freight costs, has hiked prices of certain models, including those of the Alto and M800, from Rs500 to Rs5,000.

The increase, with effect from Tuesday 2nd August, 2006 varies from 0.17 per cent to 1.47 per cent, and was brought about by an increase input costs and freight costs.

Post-hike, best-selling models Alto and M800 will be dearer by Rs500 across all variants. The largest price hike is on the newly launched WagonR LPG, which will be costlier by Rs5,000, while the mid-size sedan Esteem will see a rise of Rs1,000 across all variants.

Prices of all variants of the Omni have been increased by Rs500-3,000.

There would be no change in the prices of the Swift, Zen, Baleno (Vxi) and the WagonR (Petrol).
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Britannia plans to outsource production
Kolkata: Britannia Industries plans to help set up new contract manufacturing units at least at 35 locations in the country in the next two to three years and will contribute financial support to the extent between Rs150 crore and Rs175 crore. The company has identified all locations and biscuit brands for contractor manufacturers.

In addition to meeting a portion of investment for setting up the contract manufacturing units, the company would expand and renovate its own manufacturing facilities in Uttaranchal, Delhi, Chennai and Kolkata so as to ensure the company's organic growth.

The new thrust areas of the company in future include diversifying the product portfolio to include food and snacks, either organically or through acquisitions in India. The company would also pursue growth through opportunities internationally, replicating the successful business available for mass consumption.

The company recently acquired a stake in Bangalore-based Daily Bread, a speciality manufacturer and retailer of premium quality bakery products. This acquisition marked Britannia's entry into the high-end freshly baked gourmet food.
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Bangla power venture not cancelled: Tata
Mumbai: Tata Power's plan for a 1,000-mw power project in Bangladesh is still on Ratan Tata, chairman of the Tata Group told shareholders here on Tuesday.

He said Tata Power is still considering the project. However, the Bangladesh Government would take the final decision on the project, he said. The proposed project has support from the World Bank and the Asian Development Bank.

Tata Power is also actively pursuing power projects with a total capacity of 15,000 mw. This includes two coastal power plants in Maharashtra with a capacity of 2,000 mw and captive power projects for Tata Steel in Chattisgarh, Orissa and Jharkhand with a combined capacity of 2,744 mw. Further, he said that the company has received request for qualification for two ultra mega power projects totalling 8,000 mw.
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Essar calls off BPL Mobile sale to Hutchison
Mumbai: The Essar group has called off the proposed sale of BPL Mobile to Hutchison-Essar citing non-receipt of clearances for merger of the Mumbai circle operations of BPL with that of Hutch-Essar. The company also had apprehensions that it would have to relinquish spectrum up to 15 MHz upon the merger. The original deadline under the share purchase agreement was June 30, 2006, but it had been extended by a month, with no approvals in sight, the sources added.

The Essar group is of the opinion that there was no clarity regarding whether and when the Government approvals would be received, with 10 months having elapsed after the original agreement, said sources close to the deal.

Last year, Essar had acquired majority a stake in BPL Communications, which was the holding company of BPL Mobile and BPL Cellular, which in turn would be sold to Hutch-Essar, the joint venture between Hutchison Telecom and the Essar group.

BPL Cellular, with operations in Kerala, Tamil Nadu and Maharashtra, was integrated with Hutch-Essar earlier this year, but the Mumbai circle required special permissions because it would be an intra-circle merger.
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Tata Motors plans to expand retail network
Mumbai: With Tata Motor's Rs1 lakh car set to hit the roads soon, and amidst growing demand for its utility vehicles in smaller markets, the company plans to strengthen its retail presence in the smaller markets. The company plans to have 600 showrooms by 2008 from the existing 140 within two years.

The company plans to sell a million vehicles, and to achieve this target our retail network has to be overhauled. The company would also be looking at newer retail formats such as setting up sales-cum-service outlets at petrol pumps. Eventually, the company may look at retailing out of kirana stores.

In order to increase penetration, Tata Motors is also planning to offer easy finance schemes to consumers in smaller markets through sister companies such as Tata Motor Finance.
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Tata Motors registers 44.5 per cent rise in June sales
Mumbai: Tata Motors has reported total sales of 45,056 vehicles (including exports) for July, a growth of 44.5 per cent over 31,173 vehicles sold in July last year. Cumulative sales for the company is at 1,71,210, a growth of 44.3 per cent.

The company's sales of commercial vehicles in July in the domestic market were 21,534 units, an increase of 54.3 per cent over 13,957 vehicles sold in July of the previous year. Cumulative sales of commercial vehicles in the domestic market for the fiscal were 84,676, an increase of 65.4 per cent over the corresponding period last year.

The passenger vehicle business reported a total sale of 18,238 vehicles in the domestic market in July, an increase of 40.4 per cent over July, 2005. Indica sold 11,941, a growth of 62 per cent. The Indigo family (Indigo & Indigo Marina) registered total sales of 2,589, a decline of 16.5 per cent over last July. Sumo and Safari accounted for sales of 3,708 units, a growth of 46.8 per cent over the last period, with Safari registering its highest ever-monthly sale of 1,229 units.
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MTNL to set up Sanchar Haats' at Metro stations
New Delhi: Mahanagar Telephone Nigam has signed a pact with the Delhi Metro Rail Corporation to set up `Sanchar Haats' at all Metro stations from Rithala to Shahdara. Out of the 18 Metro stations, the DMRC has allotted space at 17, excluding Shastri Park, for a three-year period.

The `Sanchar Haats' will be set up in a month's time. This will enable users to pay MTNL bills, buy post-paid and prepaid connection along with recharge coupons.
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Wipro enters into licensing pact with British Telecom
Bangalore: Wipro's global IT services division, Wipro Technologies, has signed a licensing and development agreement with British Telecom to jointly develop an advanced mobile/remote workforce management system. The deal involves joint development of BT's `mPower' product and non-exclusive licensing of `mPower' intellectual property rights to Wipro.

`mPower' developed by BT's Research and Venturing business enables organisations to mobilise their enterprise applications, whilst enabling their remote workers to communicate, collaborate and co-ordinate effectively to achieve their individual and collective goals.

Wipro will carry out development work over the next 12 months to `productise' `mPower' for BT, the company said in a press release. The company will also develop its own `mPower' related offerings that it can provide to its customers as well as license to other companies providing workforce management solutions.
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HLL looks for buyer for Lever House
Mumbai: Hindustan Lever Ltd is planning to move all its businesses under one roof and is said to be considering shifting its HQ to a much bigger complex possibly in the Mumbai suburbs where it's research centre is located.

The company is believed to have put its 43-year-old headquarters (HQ) at Backbay Reclamation in south Mumbai on sale. The sale of the six-storeyed building at Backbay Reclamation grounds is also expected to help HLL prune operational costs and create a cash surplus for its existing businesses.

Average property rates in Backbay Reclamation range between Rs17,000-Rs25,000 per sq ft. The Mumbai HQ, currently, houses around 700-800 employees, while the Bangalore office houses around 300 employees.
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Eicher Motors to hive off Enfield unit
Mumbai: Eicher Motors would seek shareholders approval for the sale of its Royal Enfield business unit to a new subsidiary company, proposed to be set up in the National Capital Region.

Shareholders would consider the sale of its Enfield business unit located at Chennai through a postal ballot.
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RIL to invest Rs500-cr in retailing agri products
Chandigarh: The Reliance Industries (RIL) and the Punjab government have signed an MoU for setting up an ambitous Rs5,000-crore agri retail business.

In the first phase, RIL will invest Rs500 crore by October into the project dubbed as the farm-to-fork retailing. This initiative will contribute fresh, frozen and processed fruits, vegetables, grains, oilseeds, poultry, and dairy products to Reliance's upcoming chain of retail outlets across the country.

The project aims to benefit 80 per cent of farmers in Punjab and open newer doors for farm retailing nation-wide.

Government officials said the initiative would support grain buying for the Central pool, provide warehouse financing to prevent distress sale at harvest time, promote education and health care, and further strengthen infrastructure for improving the living standards in rural Punjab.

Punjab finance minister Surinder Singla said the land allotted to RIL was lying vacant for two years and that it would now be put to good use.

The RIL CEO said RRL would work closely with the state agriculture universities, the department of agriculture and the government of Punjab.
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