Essar agrees to acquire Algoma Steel
New Delhi: Essar Steel has announced that it will acquire Algoma Steel of Canada for 1.8 billion Canadian dollars (approx USD 1.58 bn) to be paid in cash.
Algoma Steel is an integrated steel producer based in Sault Ste. Marie, Ontario with steel shipments of 2.4 million tonnes in 2006. It has revenues of 1.9 billion Canadian dollars, primarily from the manufacture and sale of rolled steel products, including hot and cold rolled steel and plate.

The offer price of 56 Canadian dollars per share represents a premium of 48 per cent to Algoma's stock price for the 20-day period ending on February 14, 2007 when Algoma confirmed that it was in discussions regarding a potential transaction, a joint statement by the two companies said.

The arrangement must be approved by Algoma's shareholders by the affirmative vote of at least 66 per cent (2/3rd) of the votes cast, in person or by proxy, at a shareholders meeting, and is subject to customary closing conditions including necessary regulatory approvals.
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Nestle bids for Mount Everest Mineral water
Mumbai: Nestle Waters, a unit of Nestle SA has put in a bid for Mount Everest Mineral Water Ltd., according to a report in a leading economic daily. The Tata group is also reported to have bid more than Rs200 crore for the company, which sells the premium Himalayan brand of bottled water.

Nestle sells the Perrier brand of bottled water and launched Nestle Pure Life water in India in 2001 but pulled the brand a couple of years later.
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BHEL reports Rs2,510 crore turnover
New Delhi: Engineering firm Bharat Heavy Electricals has recorded a turnover of Rs2,510 crore from products and systems developed through its in-house research efforts. The turnover through commercialisation of its indigenous products is almost 14 per cent of the company's total turnover of Rs18,702 crore in the last fiscal, BHEL said in a statement on Monday.

In 2006-07, BHEL spent 58 per cent more than the previous fiscal in research and development at Rs238 crore.

BHEL has also set up a Centre of Excellence for Surface Engineering to consolidate its position in crucial technology areas and improve manufacturing processes, the statement said.

In 2006-07, the company had developed technologies like maintenance free Brushless Exciter for hydro generators, 1100 kW flame proof squirrel cage induction motors and advanced digital flame scanner for reliable flame monitoring in boilers, it said.

BHEL is also developing a more energy efficient single cylinder non-reheat steam turbine for 100-140 MW application suitable for plants with large amount of waste heat and no reheat option.
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TCS net up 44 per cent
Mumbai: Tata Consultancy Services (TCS), the largest software exporter has reported a healthy fourth quarter net profit up by about 44 percent from a year ago. This was possible with international companies outsourcing more back office and software work to India, a company statement said.

TCS said net profit for the three months to March rose to Rs1195 crore (US $ 272 million dollars) from Rs832 crore in the year-earlier period, according to a notice on the Mumbai stock exchange website.

Income in the fourth quarter rose 40 per cent to Rs5267 crore. For the full year, TCS net profit gained 42 per cent to Rs4213 crore on income of Rs1891 crore, up 41 per cent from the year earlier.
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GM to launch Chevrolet Spark today
Mumbai: General Motors India plans to launch its much awaited small car, the Chevrolet Spark in India today.

The company will introduce the small car initially in the North with New Delhi and Mumbai getting the first feel of the car. North India, especially Delhi holds the record for highest car sales. Mumbai and the West region is important as it is near to the Halol factory in Gujarat.

According to senior officials, the company will initially produce 2,000 Spark units per month at its Halol facility despite having a total production capacity of 85,000 units per annum.

The company also manufacturers the Chevrolet brand of cars (Tavera, Aveo and Optra) at the same facility. Production schedules will not harm the demand-supply curve for the current model range.

The first small car from GM stable is likely to cost Rs3.25-Rs4 lakh (ex-showroom, Mumbai). It will be fitted with a four-cylinder, 1-litre (1000 cc) petrol engine, though industry sources said they are working on a new-generation Spark, which may be introduced when the small car production is shifted to the upcoming Talegaon plant in Maharashtra.
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Jet announces expansion plans
Mumbai: Jet Airways announced plans of acquiring 20 wide-bodied aircraft for $2.1 billion.

The delivery of the aircraft will begin this month and will comprise 10 state-of-the-art Boeing 777-300 (Extended Range) and 10 A330-200 Airbus aircraft.

Starting with the wide-bodied aircraft, Jet Airways has redesigned everything, offering new products in the first, premier and economy classes and also holds options of further adding aircrafts of each type. The airline has recently signed an agreement for the purchase of 10 Boeing 787 Dreamliner with delivery commencing in 2011, which will cost the company $1.6 billion.

All facilities offered will be premium, and hence a premium will have to be paid by the passengers but the prices will be competitive, a senior Jet Airways official said.

Each of the eight first class suite providing over 26 square feet of usable space features dual sliding doors will give complete privacy for the passengers officials said.

The suites will have the world's longest first class bed of 83 inches, massive 23 inch flat screen monitors and carefully designed storage areas, including a personal hanging wardrobe and under ottoman stowage.

While Boeing 777-300 ER will be configured in three classes -- first class, premier and economy, the A330 will be configured in two classes of 30 premier and 190 economy seats.

Jet Airways will launch daily services to New York via Brussels in early August with the Boeing 777. It also plans daily services to San Francisco via Shanghai with the 777 fleet in the winter of 2007.

The A330 will be deployed on daily Delhi-London services and on flights from India to Singapore, Kuala Lumpur, Johannesburg and Toronto via Brussels.
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ONGC, BG, RIL consortium to invest $520 million in PMT fields
New Delhi: The consortium of Oil & Natural Gas Corporation (ONGC), British Gas and Reliance Industries (RIL) will invest Rs2,192 crore ($520 million) in Panna-Mukta-Tapti fields in the western offshore of the country to raise the output by 30 per cent.

Officials said the gas production will increase from 13 million metric standard cubic meter per day (mmscmd) to 17 mmscmd by August /September this year.

ONGC holds 40 per cent in this field while BG and Reliance have 30 per cent each. Earlier, the consortium invested $200 million in increasing oil production from the fields to 42,000 barrel per day from 29,000 barrel per day.

The joint venture sells six mmscmd from the field to GAIL at $4.75 per million british thermal unit (MBTU). Another 4.8 mmscmd is sold to customers like GSPC at $4.08 per MBTU while the remaining 1.3 mmscmd is sold at $5.7 per MBTU.

The consortium was marketing 13 mmscmd gas jointly, but the additional volume expected from August/September would be sold by the three companies separately in proportion to their shareholding.
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Motorola takes back case against BSNL
Mumbai: Global telecom equipment company Motorola has withdrawn its case against state owned BSNL filed more than five months ago with the Delhi High Court challenging the disqualification of its $4.8 billion tender.

Now the lowest bidders of the contract - Ericsson AG and Finland-based Nokia can share the 45.5 million line contract among themselves.

Motorola said it was withdrawing the case as the state-owned company was "unable to place any orders pursuant to this tender during the pendency of the petition."

"In view of the tremendous telecom growth taking place in the country and BSNL's petition of capacity constraints to have its share in this expansion, Motorola has decided to withdraw the case. Withdrawal of the case in no way reflects any change in Motorola's original position that its bid was in compliance with the tender conditions," the company said in a release here today.

Motorola, on October 9, 2006, filed a petition in the Delhi High Court challenging its disqualification by BSNL. The US telecom handset and equipment major and Chinese equipment major ZTE were disqualified by BSNL on "technical grounds".
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Lanco's SEZ approved
Hyderabad: The Lanco group's proposed $1-billion IT special economic zone (SEZ) planned near Hyderabad has received clearance.

The Lanco group has conceptualised this as a sector specific SEZ for IT and IT-enabled Services slated to come up at Manikonda Village, Gachibowli, Rajendranagar Mandal, Ranga Reddy district in Andhra Pradesh. The SEZ would be spread over 25 acres and the proposal is to develop over five million square feet of space for IT companies. The developers have also proposed to have IT and commercial space of 2.5 million square feet outside the SEZ area.

The Lanco chairman, L. Madhusudhan Rao said, "The sanction is a recognition of Lanco's credentials and track record in creating global scale landmarks in all areas of Infrastructure. We are pleased with the confidence shown in us by the Government and private companies in awarding us challenging assignments."
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