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TCS expands operations in Tamil Nadu

Chennai: Tata Consultancy Services (TCS) is expanding its operations to other cities in Tamil Nadu with an investment of Rs1,200-1,500 crore over the next two-three years. Of this the company would invest Rs120 crore to set up operations in Coimbatore. It will initially be setting up its development centre with a seating capacity for 2,000 people on a 5-acre campus in the city. The facility is expected to be ready in the next 18 months.

The company is also investing close to Rs1,200 crore to build its largest facility in Siruseri near Chennai which will have a seating capacity for over 23,000 people.

TCS has over 13,000 professionals based in the state.
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HP starts new facility in Chennai
Chennai: Hewlett Packard has opened a new three-lakh square-feet facility in Chennai for global delivery services. This is the company's second centre in Chennai which will accommodate 3,000 people. It has already recruited about 700 people, including 300 through campus selection, for the facility.

The company announced the launch of the facility at Connect 2006, a three-day ICT event organised by the Confederation of Indian Industry (CII) and the government of Tamil Nadu.

HP expects to scale up its headcount to about 5,000 in the next two years in Chennai. It already employs around 2,000 people at its business process outsourcing unit in the city.

The centre would focus on key outsourcing engagements covering all aspects of IT and IT-enabled services, including application services, IT infrastructure management (servers in the US would be managed from the Chennai centre), technical support and BPO.
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Telecom service quality poor: Trai
New Delhi: A survey by Telecom Regulatory Authority of India (Trai) has found that 60 per cent of telecom operators do not meet the benchmark criteria for standard quality of services.

According to Trai, "On an all-India basis, 59.52 per cent of operators do not meet the benchmark criteria for all the parameters. In the mobile segment, the customer perception of overall customer satisfaction level is poor in all the circles with only 10 cellular licensees out of a total of 105 surveyed meeting the benchmark of 95 per cent," it said.

In Delhi, only Bharti and Hutch have attained the overall customer satisfaction level. The lowest overall customer satisfaction level is with MTNL Delhi (88 per cent).

In Mumbai, Tata has achieved the benchmark. The lowest is with Hutch (87 per cent). None of the operators meet the benchmark in Kolkata and Chennai.
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Bharti likely to run Tesco as franchise
New Delhi: Bharti is likely to enter retailing in partnership with Tesco, the UK-based global retail giant and may become a franchisee for Tesco in the country.

At the moment, FDI in retail is permitted only in single-brand retail and international retail chains can operate franchisees 100-per cent foreign investment is allowed in cash-and-carry retail.

Bharti's retail foray is likely to be through a mix of store formats — small and big outlets and hypermarkets. The initial rollout will be in Delhi, the surrounding national capital region and in Ludhiana.

The venture is likely to under Bharti Enterprises, the group holding company.
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Titan may become franchisee of Hugo Boss watches
Mumbai: Titan Industries will soon sign an agreement with international fashion brand Hugo Boss for becoming its franchisee for watches in India.

According to sources, the agreement will be for a period of five years and Titan will receive 10 per cent of the revenue as fee. The Hugo Boss range would be sold both through Titan's exclusive showrooms and its multi-brand outlets.

Currently, Titan has a similar agreement with Tommy Hilfiger to retail its brand of watches through Titan outlets.

The Titan retail network consists of roughly 185 "World of Titan" stores across the country. The company also retails its watches through another 150 multi-brand outlets.
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HLL to merge Modern Foods with itself
September: Hindustan Lever plans to absorb subsidiary Modern Food Industries to utilise its distribution reach and help increase sales of its foods.

HLL will also absorb Modern Food's unit, Modern Food and Nutrition Industries. The board of Modern Food has also approved the proposal, the company said.

In May this year, HLL chairman Harish Manwani said HLL plans to expand its foods business, taking advantage of its parent's product portfolio and its large retail network. The company hasn't specified the products it plans to introduce.

HLL's board has also decided to separate its factory land at Shamnagar, in the eastern West Bengal state, and Jamnagar, in the western Gujarat state, and vacant land at Daverashola, in the southern Tamil Nadu, into three companies that will be fully owned, it said in the statement.

Processed foods such as jams, squashes, salt and soups accounted for about 3 per cent of HLL's first-half revenue.

Sales from processed foods increased 27 per cent to Rs185 crore ($40 million) in the six months ended June 30. The division made a profit before interest and tax from the business of Rs451 lakh, from a loss in the year-earlier period.

HLL purchased 74 per cent of Modern Food from the government in January 2000, for Rs126 crore.

In November 2002, HLL bought the remaining 26 per cent of the company for Rs44.07 crore.

Modern Food's loss widened to Rs15.06 crore in 2005 from Rs9.84 crore the previous year, according to HLL's annual report for 2005. The company has six plants making bread that is sold across the country.
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Government may force drug makers to cut prices of key brands
New Delhi: Drug makers Shreya Life Sciences and Wockhardt are likely to face government pressure to reduce the price increases of some of their key brands. The two companies had increased the prices of some products by more than 20 per cent in previous occasions and government is suggesting a formula to arrive at the retail price applicable now, after rolling back the increase in the scrutiny period.

In line with its plan to ask 11 drug makers to lower prices of some of their price control-free drugs, the chemicals and fertilisers ministry may ask Shreya Life Sciences to bring down the price of its Emidoxin tablet, which according to ORG-IMS figures saw an increase of about 24 per cent to Rs 14 for 10 tablets between July '04 and July '05.

The government will also ask Wockhardt to reduce the prices of two different strengths of its oral anti-diabetic tablets sold as mopaday, which according to NPPA, increased by about 24 per cent between April '04 and April '05.

The government may also request Wockhardt to reduce the price of its Practin and Libotryp tablets too. Both are priced below Rs10 and Rs11, respectively, for strips of ten and rose to a little less than Rs14, during the same period.

To arrive at the applicable price today, companies will have to first reduce the increased price in the scrutiny period to below 20 per cent. Then they could add the price increases effected in subsequent years to this lower base price to arrive at the current price.
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US companies are India Inc's largest business partners: Report
New Delhi: US companies have emerged as India Inc's largest business partners, with the US receiving the highest amount of RBI-approved investment of $225 million between April 2005 and January 2006.

In the decade up to 2005, the US attracted the highest share of Indian direct investments approvals of $2,159 million, followed by Russia with $1,763 million. Mauritius was third with $1,038 million approvals.

According to a FICCI-Ernst & Young report `Direct Investments in the United States of America by Indian Enterprise' the software and BPO sector accounted for the largest share (58 per cent) in terms of the number of deals involving the US during 2004-06.

Healthcare comprising pharmaceuticals, biotech and healthcare services accounted for 17 per cent, while the remaining 25 per cent of deals were in sectors such as telecom, textile, automotive and financial services.

The report said that with high levels of technological expertise and knowledge, entrepreneurial development, management skills and infrastructure, Indian companies have truly come of age and are being viewed as competent business partners by their US counterparts.

The report added that Indian enterprises have contributed significantly to the US economy. They are no longer just outsourcing partners; their presence in the US business community as competent business partners is increasingly becoming clear.

Not only are Indian companies creating new jobs and boosting wages, investments from India are strengthening US manufacturing and contributing to rising productivity.

The key decision drivers for Indian enterprises investing in the US include access to foreign markets, production facilities and international brand names, according to the report.
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domain-B : Indian business : News Review : 11 September 2006 : companies