Vodafone to invest $2 billion
New Delhi: Vodafone said it would invest $2 billion over the next couple of years to expand Hutch-Essar's reach in rural India and also said it would offer cheaper mobile rates and better services to customers.

Arun Sarin CEO Vodafone said Hutch-Essar would soon become the country's number one player with a target of 100 million customers. Hutch-Essar currently has a customer base of 24.4 million.

While Vodafone had bid $11.1 billion for Hong Kong-based Hutchison Telecom's 52 per cent stake in the mobile venture and other economic interests, the remaining 15 per cent is held by minority Indian shareholders, who have opted to continue as partners.

On Vodafone's offer to buy out the 33 per cent stakeholder Essar, Sarin said that his first, second and third preferences would be that Essar should stay put.
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Nortel, Ericsson, Nokia awarded 4 million BSNL line deal
Barcelona: Bharat Sanchar Nigam (BSNL) has awarded a 4 million line cellular contract to Nortel, Ericsson and Nokia for $250 million.

The move will enable the PSU to ease pressure on its network as its mega 60 million GSM line project is now stuck in the Courts.

Dayanidhi Maran, Union Communication and IT Minister, said while BSNL was capable of handling the crisis arising out of the Court case, it has now placed additional orders with the equipment vendors which had won the contract the previous time. As per the tender conditions, BSNL can give additional orders of up to 20 per cent to the existing vendors without going for a rebid.
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Tatas to manufacture pick-up vehicle in Argentina
Mumbai: Tata Motors has signed an agreement with Fiat S.p.A, Italy that gives the Tatas a licence to build a pick-up vehicle at Fiat's plant in Córdoba, Argentina. The vehicle will bear the Fiat nameplate. The project would have an investment of $80 million, said a joint statement from the two companies. The first vehicle will roll off the Córdoba assembly line in 2008. Annual production will be around 20,000 units.

The pick-up, based on the new generation Tata pick-up truck, will be sold in South and Central America and select European markets through Fiat Automobiles' distribution and importer network.

Fiat also signed an agreement for a feasibility study on the possibility of cooperation in commercial vehicles.
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Videocon to set up Rs 6100 crore LCD facility in Italy
Mumbai: Consumer electronics major Videocon Industries has announced an investment of euro 1.06 billion (Rs6,100 crore) to set up a greenfield LCD panel manufacturing facility in Italy.

The LCD television segment is the fastest growing one in the TV sector. Videocon Industries would be investing ¤300 million through equity participation in the venture, while euro 700 million will be raised through bank loans.

The project will be partly financed by the Italian government with ¤ 180 million central government grant and an additional 40 million euros regional authority grant.

Spread across 150 acres, the LCD facility is expected to employ close to 1,000 people and have an annual capacity of 5.76 million LCD panels - four times its current production in Italy. Videocon is already present in Italy through its acquisition of durables maker Thomson's assets.

Videocon has also re-engineered the Thomson plant at a cost of 300 million euros and invested about 171 million euros for research and development of plasma television sets.
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Apollo to invest in tyre retreading plant in Haryana
Mumbai: Apollo Tyres plans to invest Rs5 crore in a retreading tyre plant in Haryana. Apollo intends having 2-3 such satellite plants strategically located in the country which will be ideally located in and around commercial vehicle transport centric areas. The company has invested in imported machinery for the upcoming plant though the process of retreading has been developed in house by the company.

A retread also known as `recap' is a manufacturing process designed to extend the lifespan of a worn tyre.

Apollo will buy old tyres from its chain of established dealers (3,000 exclusive) and retread them later.

It may also develop a new chain of dealerships dedicated specifically for this new business; something similar to the `True Value'- second hand car business of Maruti Udyog, said senior officials.
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Airtel slashes domestic roaming charges
New Delhi: Bharti Airtel has cut domestic mobile roaming tariffs and scrapped the rental for roaming services, in line with telecom regulator Telecom Regulatory Authority of India's guidelines issued last month.

With the cut the charges for receiving incoming calls on roaming would come down to Rs1.75 per minute and that for making STD calls to Rs2.40 per minute. The current charge for receiving incoming calls and making STD calls while roaming is Rs3.54-3.99 per minute, a statement from the company said.

The company has also done away with monthly rental of Rs49. Also the outgoing SMS while roaming would now cost Rs2, from the Rs3.45 being charged at present.

The tariff reduction is in line with pricing changes ordered by the TRAI in January, under which a reduction in roaming tariff of up to 56 per cent had been stipulated for operators, besides an abolition of roaming rental charges and surcharge on national roaming services.
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Hindalco's Novelis buy fails to impress rating agencies
Mumbai: Fitch Ratings has placed Hindalco Industries' National Long-term AAA rating and its 'AAA' rated Rs50 crore non-convertible debenture programme on Rating Watch Negative, while affirming its National Short-term rating at F1+.

Fitch Ratings has simultaneously placed the Issuer Default Ratings (IDR) of 'B' for Novelis Inc and its subsidiary Novelis Corp on Rating Watch Negative.

Earlier, Crisil placed its rating on Hindalco Industries' outstanding long-term rating of AAA/Stable on "Rating watch with negative implications" for its non-convertible debentures programme of Rs1,594 crore. Crisil has also reaffirmed P1+ rating for Rs25 crore short term debt programs.

The rating agencies feel the proposed acquisition cost is significantly larger than the company's net worth of about Rs9,500 crore (as on March 31, 2006). The company is proposing to fund this acquisition through debt which will have an adverse impact on the capital structure of the firm.
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I&B ministry sends notice to Nimbus over live feed
New Delhi: The government has issued a show cause notice to private sports broadcaster, Nimbus asking why action should not be taken against the latter for refusing to share the live telecast of India-Sri Lanka cricket matches with Prasar Bharti despite a recent Ordinance making it mandatory.

The notice was sent on Tuesday evening for violation of the sports broadcasting signals (mandatory sharing with Prasar Bharati) Ordinance, 2007, which mandates that private broadcasters have to share live feed of sporting events of national interest with public broadcaster Prasar Bharati.

As per the penalties specified in the Ordinance, the punishment could include revocation or suspension of licence, permission or registration and even a pecuniary penalty not exceeding Rs1 crore.

Interestingly, the Delhi High Court is already hearing a petition filed by Nimbus against the Ordinance.

Apart from this, the court is also hearing a petition filed by the government against an earlier single-judge order that had directed Prasar Bharati to telecast the India-West Indies series, but with a seven-minute delay.
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Coke India posts 12 pc increase in volumes
Gurgaon: Coca-Cola India has reported a 12 pc increase in unit-case volume for the fourth quarter ended December 2006, against a decline of 4 pc in the corresponding quarter the previous year.

The Coca-Cola Company announcing its quarterly results in Atlanta on Wednesday stated that continued investments in marketing initiatives around the quality and safety of its products, and the focus on execution in the consolidated bottling operations, resulted in strong growth and share gains.

Growth has been reported across the company's product portfolio, including soft drinks, juices and juice-based drinks.

Analysts said Coca-Cola India's decision to split up its bottling and marketing operations into two independent units has begun reflecting on the company's performance. The company also announced a $250-million restructuring exercise for its bottling and marketing operations, aimed at driving manufacturing efficiencies, realigning idle company-owned capacities, and buying out excess capacities of co-bottlers.

Coca-Cola's international operations have delivered a 6 pc unit case volume growth in the quarter and for the year. Coca-Cola's key markets - India, China, Russia, Nigeria, North and West Africa and Middle East - have reported double-digit growth.
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