UB to invest Rs400 crore for expanding capacity
Bangalore: United Breweries (UBL), India's largest beer and spirits company, plans to invest Rs400 crore to expand production capacity and launch Kingfisher wine. The company is also planning to enter the Chinese market according to Vijay Mallya chairman UB said. He said the investments would be made in a phased manner over the next three years to build and expand capacities in different parts of India, including in Rajasthan, Uttar Pradesh, Orissa and Andhra Pradesh.

Addressing the Annual General Meeting of UBL Mallya said the plan which would scale up the capacities of the company by 50 per cent envisages both setting up of greenfield breweries as well as augmentation of capacity and technology at existing sites.
The UB Group is also ready to start operations in China and Mallya said he had identified the executive who would be transferred there to kickstart the business.
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UB to launch Kingfisher wines in India
UB is also all set to enter the premium Indian wine segment soon under its flagship brand Kingfisher. After the recent acquisition of Bouvet-Ladubay from Taittinger of France, the company is in the process of importing its wines and marketing it across the country in the next six months. A state-of-the-art facility is being set up at Baramati in Maharashtra to bottle and package the French wines.

Mallya's demerged United Spirits Ltd bought Bouvet-Ladubay for about $20 million (Rs920 million) in June to broaden its product portfolio and capture a pie of the growing wine market in the subcontinent. Founded in 1851, Bouvet-Ladubay is described as one of the most respected wine-producers in Europe. Its winery is located in the French Loire Valley region.

UB said it will also grow its own vineyards in Maharashtra and indigenise wine production with the technology of Bouvet-Ladubay. The group company will build a winery with an installed capacity of 100,000 cases per annum at an estimated cost of Rs.80 million. Bouvet-Ladubay posted a turnover of $15 million by selling about 3 million cases in 2005 and has a major presence in Germany, Britain and the US, besides France.

The UB group already has two wine brands, Golconda and Bosca in the mass segment.
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Air Sahara's market share marginally increases
New Delhi: The market share of Air Sahara has marginally increased after its failed merger with Jet Airways. The share of Air Sahara increased from to 8.8 per cent in August 2006 as compared to 8.4 per cent during August 2005, the share of Jet Airways declined marginally from to 31.1 per cent from 31.7 per cent according to latest data on market share.

Private airlines have taken over three-fourths of the domestic aviation market this August, though the share of public sector carrier Indian rose by over 2 per cent as against last year. Private airlines including the low-cost carriers cornered as much as 77.7 per cent of the total market share, with Indian retaining 22.3 per cent.

The market share of Air Sahara, Kingfisher and Indian rose, while that of major players like Jet Airways, Air Deccan and SpiceJet showed a decline. Kingfisher's share increased from 8.2 per cent to 8.7 per cent while Air Deccan's share fell from 20.2 per cent last year to 18.3 per cent. The share of SpiceJet declined to 6.3 per cent as compared to 7.5 per cent during the corresponding month of 2005.
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ONGC to pay $425 mn for Columbian oil firm
New Delhi: Oil and Natural Gas Corporation (ONGC) will acquire 50 per cent stake in Columbian oil firm, Omimex de Columbia for $425 mn.

ONGC Videsh, the overseas arm of ONGC, and Chinese firm Sinopec are paying a total of 850 million dollars to acquire Omimex de Columbia that currently produces 20,000 barrels of oil per day.

"OVL and Sinopec are equal partners in the acquisition bid," said a company official. He said production can be ramped up to 1,00,000 barrels per day, half of which would accrue to OVL.
The firm has onshore production as well as exploration blocks in Columbia with the net proven reserves of around 157 million barrels.

ONGC will ship its share of crude oil from Russian oilfield Sakhalin-I in second week of November.

The company is planning to bring the first two cargoes of crude oil each with a capacity of approximately 700,000 barrels from Sakhalin-I project in Russia into India in October and December 2006.

OVL has 20 per cent stake in the ExxonMobil-operated Sakhalin-I project in Far East Russia.
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North Block mulls selloff in Hind Zinc
New Delhi: The finance ministry is considering a proposal to sell the government's remaining shares in Hindustan Zinc to the public.
A Cabinet note to this effect had been circulated and the Cabinet Committee on Economic Affairs was likely to take up the matter at its next meeting, official sources said.

The government wants to sell its stake in the company before April, since after that, Sterlite, the strategic partner in Hindustan Zinc, can buy the stake through a call option.

The government has a 29.53 per cent stake in Hindustan Zinc and going by the current price of about Rs584 per share, it could mop up over Rs7,200 crore.
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Bajaj Electricals gets orders from NTPC, BHEL
Mumbai: Bajaj Electricals' (BEL) engineering and projects business unit (E&PBU) has received orders worth over Rs70-crore for its various businesses. These include an order of Rs.53.75-crore from NTPC, the single-largest order received from the latter to design, supply and install five 33/11KV sub-stations, 240 km of 11 KV lines and 400 km of LT lines.

Bajaj Electricals has also been appointed by BHEL for station lighting of the 2x250 MW Bakreshwar thermal power project in West Bengal for Rs 7.10-crore. Besides, the company's transmission line tower business has also received an order for Rs10.57-cror e from GTL Limited for the supply of 50/60 metre ground-based telecommunication towers.

The Jaipur Development Authority has also given an order for supply and installation of decorative cast iron poles on the Tonk road from Ajmeri gate to Jaipur airport flyover.

Two other prestigious orders involve a Rs7-crore MMRDA order for providing signages on both the Western and Eastern express highways as also an order from Reliance Energy for lighting up the Western express highway and the Jogeshwari-Vikhrol Link Road w ith Bajaj galvanised smartpoles.
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Eicher Motors ties up with e-Logistics
New Delhi: Eicher Motors which makes commercial vehicles, has entered into a strategic tie-up with Chennai-based e-Logistics Ltd for supply of vehicle tracking systems.

The tie-up would enable dealers of Eicher Motors to offer tracking systems manufactured by e-Logistics as an after-market fitment on Eicher vehicles.

The GSM-based vehicle tracking offers 'eTrack' tracking solution without any driver intervention. The company has developed a customised version of the device for Eicher's customers. The units would be sold and installed by Eicher dealer network.
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Glenmark gets tentative USFDA approval for generic Ondansetron
Mumbai: Glenmark Pharmaceuticals' wholly-owned US subsidiary, Glenmark Pharmaceuticals Inc, has received a tentative USFDA approval to market its abbreviated new drug application (ANDA), Ondansetron Hydrochloride tablets, in the US market.

The tentative approval is for Ondansetron Hydrochloride tablets in 4 mg (base), 8 mg (base) and 24 mg (base) dosages. Ondansetron Hydrochloride tablets are the generic version of GlaxoSmithKline's Zofram Tablets, which are prescribed to help control nausea and vomiting.

The drug had annual sales of about $640 million for the year ended June 30.
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Mcleod Russel to acquire tea companies
Kolkata: Mcleod Russel India (MRIL), the biggest bulk tea producer in the world, plans to acquire tea companies after retiring the entire term loan component of Rs300 crore on its balance sheet within two years through a combination of internal accruals and private placement of equity.

Following private placement, the stake of the promoters would come down from the present level of 50 per cent to 45 per cent. After the retirement of the entire term loan, the company could go for acquisitions.

The B M Khaitan group, promoters of MRIL, acquired Williamson Tea Assam and Doomdooma Tea last fiscal making it the biggest bulk tea producer in the world with control over 70 million kg of tea annually.

MRIL would retire Rs200 crore debt in 2006-07 through a combination of internal accruals and private placement of equity to qualified institutional buyers (QIBs).

The company is also planning to raise $30 million through private placement to QIBs.
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India to ramp up operations in India
Mumbai: Internet major Yahoo! is planning to ramp up operations in India. Yahoo's chief operating officer Daniel Rosenweig on a visit to India recently said India would be amongst the top investment destinations for the company, whose services one in every two internet users accesses at least once a month globally. The company's engineering centre in Bangalore, the largest outside the US, has 800 people on its rolls, and is expected to rise to 1,000 by the year-end, representing one-tenth of Yahoo!'s global strength.

Yahoo! has announced plans to develop a mobile browser at its R&D centre in Bangalore. Yahoo! also plans to roll out newer products from the centre over the next 3-4 months.

Rosensweig claimed the company has garnered 85 per cent of the total Internet users in the country.

Yahoo! is also looking at launching mobile products in India that would be customised for the country's market. Yahoo!, which had earlier made an equity investment of $8.65 million in Bharatmatrimony.com, would look at similar investments in the country. These investments would be made depending on the opportunities that arise, even as is open to acquiring companies that fit it into its game plan, he said.
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Praj acquires US engineering firm for Rs22.5 crore
Mumbai: Praj Industries has acquired 100 per cent common stock of C.J. Schneider Engineering Co. Inc (CJS), a reputed Omaha-based corporation, having expertise and experience in providing detailed engineering services t o the bio-fuel industry including ethanol plants. Financing this acquisition did not involve raising any additional/outside funding.
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JL Morison launches baby product portfolio
Mumbai: JL Morison India has introduced a new product range of baby care products such as baby oil, nappy cream, soothing powder, nourishing bath soap and moisturising baby bath under brand name 'Morison Baby Dreams'. The company claims that all these products contain natural ingredients, which are safe and good for the baby.
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Gujarat Gas signs gas sales contract with BG Exploration
Mumbai: Gujarat Gas Company has informed the BSE that the company has entered into a long-term gas sales contract dated September 18, 2006 with BG Exploration and Production India (BGEPIL) for the supply of 1.65 million standard cubic metres of g as per day by BGEPIL to the company. The flow of gas is likely to commence in the third quarter of 2007.
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Strike at HMSI Manesar plant
New Delhi: The Manesar plant of Honda Motorcycle and Scooter India (HMSI), is witnessing a strike by contract workers who are demanding that they be regularized. The site saw one of the worst labour unrests last year, after about 200 contract workers struck work demanding regularisation of service.

They said production at the plant, which has a daily output of around 1,400 scooters and 400 bikes, is "normal so far" and added that the management and contractors are trying to broker peace with the striking workers.
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NTPC to increase power generation capacity three times
New Delhi: State-run NTPC to increase its power generation capacity by three times to 75,000 MW by 2017 while strengthening its focus on hydroelectric projects, coal mining and nuclear plants.

The company would add about 21,941 MW generation capacity during the 11th plan (2007-12) at an estimated expenditure of Rs 1,60,000 crore.

NTPC would have an installed capacity of about 51,000 MW by 2012 and more than 75,000 Mw at the end of 12th plan from 26,194 MW at present.

NTPC start coal production from one of the eight mines allocated to it by December 2007. The company is also looking to acquire coalmines abroad as part of efforts to ensure fuel security.
MRPL to raise Rs5,200 crore debt for refinery expansion
New Delhi: Mangalore Refinery and Petrochemicals (MRPL), a subsidiary of state-owned ONGC, plans to raise about Rs5,200 crore in the debt market to part finance the expansion of its refining capacity to 15 million tonnes.

According to the company the expansion of MRPL capacity from 9.69 million tonnes to 15 million tonnes expected to cost Rs8,000 crore will be done entirely on MRPL balance sheet. It said the project would be funded in debt-equity ratio of 2:1. The initial capital requirement would be from internal accruals and about Rs5,200 crore debt would be raised sometime in 2008. The project would be completed in 48 months.
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PVR to enter tier II, III cities; to invest Rs200 crore
New Delhi: PVR Cinemas has announced a foray into tier II and tier III cities of the country with 'PVR Talkies' and said it would be investing Rs200 crore over the next three years towards its expansion. PVR Talkies has already signed 53 screens across the country and is planning to spread in 13 states with a target list of over 70 cities.

This initiative would be kick-started with pilot projects in Aurangabad and Latur. The PVR Talkies in Aurangabad would have three screens with a seating capacity of 1,151 seats and Latur would have three screens with 1,148 seats. The theatre tickets would be priced in the Rs40 and Rs60 range and the theatres would be operational from last week of September this year, the company said.

The theatres would work on the principle of digitised content that would be distributed to them through satellite or fibre, upload to a digital cinema server, which serves it to a digital projector for screening.
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Wockhardt puts Dumex's dairy unit
New Delhi: Wockhardt which acquired Dumex India three months ago, has decided to put Dumex's dairy and milk processing unit on the block.

Wockhardt acquired Dumex to obtain its two main brands nutrition brands — Protinex and Farex. The pharma major had to buy this unit as a part of the composite deal because Royal Numico, the Dutch parent of Dumex wanted to exit India. However, Wockhardt already owns a similiar processing unit in Punjab and it is learnt that it wants to dispose the Dumex unit as it sees a duplication of assets taking place.

The 32-acre greenfield dairy and milk processing unit is located in Punjab and it was set up by Dumex to manufacture instant formula milk powder and heath-food supplement. The plant has a milk processing capacity of 2 lakh litre per day and was set up with a total investment of Rs170 crore. As per Dumex's original plan, the plant was to commence commercial production in December '06.

Dumex's milk processing unit can be sold for a premium to a company which considers milk processing as their core business. Sources say that some MNCs in the milk processing sector could be interested in the unit.
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