Reliance to set up petrochemicals unit
Mumbai: Reliance Industries' board of directors has approved a plan to set up a new petrochemicals unit and issue 120 million warrants to its owners to expand its equity base.

RIL would invest $3 billion in the petrochemicals project that would have an annual capacity of 2 million tonnes, and would be completed by 2010/11, according to a statement from the firm.
The cracker will make ethylene, propylene and other special derivative products, it said.

Reliance Industries is the world's top maker of polyester yarn and fibre.

The company's board has approved a preferential allotment of 120 million warrants Mukesh Ambani chairman RIL.

After the conversion it would increase the firm's paid-up capital to Rs1500 crore ($342 million) from 1393 crore, the statement said.
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HLL's food business to be revamped
Mumbai: Hindustan Lever plans to make certain changed in its foods business "for the company's long-term food strategy."
According to MK Sharma, vice-chairman, Hindustan Lever the company will move from a conceptualisation stage to an implementation stage.

The processed foods industry in India is valued at $70 billion (Rs3,00,000 crore), according to the ministry of food processing and only a fraction of this -less than 5 per cent- belongs to the organised sector.

HLL is looking at growing the small categories and increasing market share in others.

At present, foods makes up only 15 per cent of HLL's sales, while for its Anglo-Dutch parent Unilever, the foods business contributes 54 per cent of its turnover.

The renewed initiatives will be rolled out on the back of a positive showing in the company's foods business in 2006. HLL's foods portfolio brands such as Kissan, Annapurna, Brooke Bond and others delivered an overall 9 per cent growth while the ice-creams segment grew more than 30 per cent.
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Spentex looks at more acquisitions
New Delhi: Spentex Industries, India's biggest yarn maker, plans to almost double its manufacturing capacity to 10 lakh spindles from 5.70 lakh spindles at present in two years by expanding existing units and acquiring companies in India and abroad. The company plans to add 2.5 lakh spindles this year itself.

The company acquired Cimmco Spinners of S K Birla Group and Indo Rama Textiles last year and also the Uzbekistan-based Tashkent-To'yetpa Tekstil for Rs364 crore, which catapulted it ahead of Vardhman group in terms of manufacturing capacity.

Spentex is looking at acquiring medium to large sized companies and may clinch a couple of deals in the next few months.
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Telcos against consumer grievance cell
New Delhi: Telecom operators are against the initiative of the Telecom Regulatory Authority of India (TRAI) to set up a mechanism to address consumer complaints.

The Cellular Operators Association of India (COAI) says that the industry is already undertaking various measures to address the grievances of consumers, including setting up an ombudsman. It says the COAI is drafting a common industry Manual of Practice that will address the concerns of the consumers.

The Association of Unified Telecom Service Providers of India (AUSPI) said that an institutional mechanism for redressal of consumer grievance already exists in the form of call centres, a Common Charter of Telecom Service and a nodal officer.

Consumer groups however, have sought out TRAI and have even suggested imposing financial penalties on operators that do not address consumer complaints within a stipulated time period.
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Reliance to cut LPG supply by 40 pc
New Delhi: Reliance Industries, which meets 20 pc of the country's LPG demand, is planning to slash LPG production at its Jamnagar refinery from 2.6 million tonne to 1.6 mtpa from April 1, 2008.

Indian Oil Corporation executives said the petroleum ministry has been informed of Reliance's decision to cut LPG production. Reliance's Jamnagar refinery is India's biggest refinery and produces over 7,500 tonne of LPG a day.

Government sources said any shortfall of LPG from Reliance could be bridged through imports though there is lack of adequate infrastructure to handle significantly higher imports. IOC said it has asked Reliance to review its decision.

Reliance sources said the company was producing LPG in surplus as PSU firms were increasing their own production and reducing purchases. Reliance has requested the petroleum ministry to let it export the surplus LPG or sell it domestically as automobile fuel. At present, the government does not allow LPG exports since the country faces a deficit. Only state-owned oil companies are permitted to sell indigenously produced LPG as automobile fuel.
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