MICO to set up fourth production facility
04/04/96
The Bangalore-based Motor Industries Co. Ltd. (MICO), a subsidiary of Robert Bosch GmbH, West Germany, plans to set up a fourth production facility in Baroda.
The company has decided to manufacture petroleum injection tubes in India. The company proposes to introduce the petroleun injection systems in India which was developed by the parent company.
Besides, manufacturing the petroleum injection systems,
the Baroda plant will also undertake the manufacture of other auto accessories
like spark plugs, single cyclinder fuel injection pumps and nozzle, multi-cylinder
fuel injection pumps, governors, feed pumps glow plugs and injection timers.
The estimated cost of the project is about Rs 150 to Rs 200 crore which
will be met through the company's internal accruals.
Video Conferencing facilities to help MICO increase exports
25/06/96
The Rs.960 crore Motor Industries Company (Mico), the leading auto ancillary
company in the country, has set up a unique video conferencing facility
between its headquarters in Bangalore and its parent Bosch's headquarters
in Stuttgart.
As a result, direct communications would now be possible with Bosch customers and offices worldwide. Being a major auto component company, Bosch, a 51 per cent stakeholder in Motor Industries, has a large marketing network spread around the globe. It also has significant technical expertise which is now with in direct reach of its Indian subsidiary. This will significantly aid the nearly Rs.1,000 crore company's exports. Over 1995, the company's overseas business rose 23 per cent (Rs.96.3 crore out of Rs.931.4 crore total turnover).
Anagram Grenfell to enter into Investment Banking and Asset
Management
26/06/96
Anagram Finance, a member of the Rs 2,000-crore Lalbhai
Group, is expanding into investment banking and asset management by restructuring
its present set up. The leading non-banking finance company (NBFC) is lining
up a joint venture with Deutsche Morgan Grenfell, a 100-per cent Deutsche
Bank subsidiary, and a Singapore-based stock-broking firm. Christened Anagram
Morgan Grenfell Securities Company, the new firm will be a 50:50 venture.
Foreign Investment Promotion Board (FIPB) clearance is expected in the
next few weeks. The setting up of Anagram Morgan Grenfell will kick-start
a major restructuring exercise. Two existing companies in the Anagram stable
will be merged into the new company. Anagram Securities, which has a paid-up
capital of Rs 3 crore, and Anagram Stock Broking, which has Rs 3.5 crore
as its paid-up capital, will be integrated into Anagram Grenfell.
Colgate -Palmolive to enter into oral pharmaceutical products
26/06/96
Colgate-Palmolive (India) is kicking off its foray into oral pharmaceuticals with a range of product launches. Many of the products will be introduced for the first time in Asia. Priced between Rs 60 and Rs 140, the products will be prescriptive in nature and will be sold through chemist outlets. The initial launches will be in the major metros, and the company is hoping to cover the rest of the country by August.
Worldwide, Colgate has a major presence in oral hygiene
products, apart from toothpastes and toothbrushes. New products will supplement
existing product range.
PAL faces crisis following large scale cancellation of Peugeot 309 bookings
26/06/96
Premier Automobiles Ltd (PAL) seems to be heading for yet another crisis in its joint venture with Peugeot of France, PAL-Peugeot Ltd, following large scale cancellations of Peugeot 309 bookings. Of the 1,08,000 Peugeot 309s booked since PAL-Peugeot opened bookings last year, as many as 60,000 have sought cancellations demanding refund of the booking amount.
The booking application has a clause which states that
the consumer will be returned the booking amount within 60 days of the
cancellation. However, a number of consumers have complained of not having
received the money though the stipulated period is over. Since the company
has committed to pay an interest of about nine per cent on the booking
amount, a delay of this kind would lead to a considerable increase in the
financial costs of the company.
Hoechst to take on lease the vaccine production facilities of BAIF Laboratory
26/06/96
BAIF Laboratory, a "guaranteed" company of the Bharatiya Agro Industries Foundation (BAIF), will lease its vaccine production facilities at Wagholi, near here, to Hoechst, the German pharmaceutical major, according to an MoU signed in March this year.
The 99-year lease will allow Hoechst to manufacture its veterinary products range here. It was likely that Hoechst would source its South East Asian market requirements from here.
Under the terms of the MoU, BAIF is likely to opt for a one-time payment of between Rs 10 crore to Rs 17 crore as the value of its assets and will get a lease fee of about Rs 1 crore annually for 10 years, after which the fee will taper off drastically. They will also get a royalty fee while products will be termed `Produced by BAIF Lab, marketed by Hoechst'.
BAIF is likely to lease 30 acres of land to the new entity. The state Government had earlier given 260 acres to BAIF for its afforestation projects at Wagholi, of which it will seek to buy 30 acres from the Government and lease to the company.
BAIF Laboratory's present dire straits is the story of good intentions gone awry. BAIF, a public trust which works in the area of rural development found linkages between poor cattle health, low milk yield leading to low income for the farmer. With an estimated cattle population of 150,000 heads
of cattle in India in 1974, BAIF set up a plant to manufacture
`foot and mouth' vaccines. The equation was that with such a large cattle
population 3.5 million doses would sell easily.
Nagarguna Fertiliser joins Oil Exploration consortium
28/06/96
Nagarjuna Fertilisers and Chemicals Limited (NCFL), the Hyderabad-based fertiliser company, is planning to enter the oil exploration business.
The company is joining a comsortium to prospect for gas in the KG OS 90/1 field, off Andhra Pradesh. NCFL plans to use natural gas as raw material for its expansion phase of its fertiliser project.
Interestingly, two oil majors, ONGC and Chevron have abandoned the field in the past.
Hindustan Oil Exploration Company has formed a consortium with the British company Hardy Oil and the Canadian Nicco Corporation for detailed exploration studies. Nagarjuna Fertilisers has just joined the consortium with the British company Hardy Oil and the Canadian Nicco Corporation for detailed exploration studies. Nagarjuna Fertilisers has just joined the consortium with a 20 per cent stake.
Hardy Oil will be the field operator with 30 per cent
equity, with Nicco and HOEC holding 25 per cent each.
Mukund to diversify in Aluminium
03/07/96
Mukund Ltd, the leading ministeel mill in the country, is foraying into the aluminium sector with a joint venture project at Angul in Orissa for manufacture of 50,000 tonnes per annum of cold-rolled products.
Mukund has joined hands with Fata Hunter of Italy and Global Emerging Markets of UK for the Rs.228.5 crore, export oriented project. The three partners will together have 45 per cent of the total equity component of Rs.118.5 crore in the project.
Fata Hunter will be supplying the critical equipment , namely casters and mill for the project.
The debt portion of Rs.110 crore is being financed through
a loan from Italian bank Effibanaca, which has been guaranteed by SBI and
ICICI.
P&G and Godrej heading for split
03/07/96
Procter & Gamble's (P&G) joint venture with Godrej Soaps is heading for a vertical split. The two partners, who hold 50 per cent equity each in the distribution company P&G Godrej, have more or less made up their minds to call it a day. The legal papers to formalise the split are in the process of being finalised.
P&G which has two outfits in India - P&G Home Products (a wholly-owned subsidiary) and P&G India Ltd (the US major holds 65 per cent with the remaining 35 per cent held by the public) - will now go it alone in the Indian FMCG market.
P&G had an agreement with Godrej on three counts.
P&G had bought over a clutch of Godrej brands including Cinthol, Key,
Trilo, Ganga in soaps and detergents and the two scourer brands Biz and
Wah. P&G had also agreed to source its entire toilet soap requirements
from Godrej Soaps and agreed to pay a price for any unutilised capacity
at Godrej's Vikroli plant.
P&G to launches Head &Shoulder by year end
21/06/96 Product launch, ind- con. durable, for. inv-joint venture
Procter & Gamble (P&G) will make a second splash in the over Rs 200-crore hair-care market by launching its famous international brand, Head & Shoulders, by this year-end. Tentatively scheduled for December, the launch wil be P&G's second in hair care after Pantene which was introduced in November 1995.
Head & Shoulders together with Pantene lords over
the global hair-care market with a 18 per cent marketshare. While Pantene
is positioned as an over-all health shampoo with protein, Head & Shoulders
has carved a niche for itself in anti-dandruff treatment.
Modiluft to take Boeing-737-300s on lease to replace Luftahansa's Boeing 737-200s
07/06/96
ModiLuft has decided to opt to lease Boeing 737-300s to replace Lufthansa's Boeing 737-200s. The development signifies the finals step in the termination of the ModiLuft-Lufthansa relationship. ModiLuft plans to replace each of the three Lufthansa planes with 737-300s.
The airline has no intention of hanging on to Lufthansa's planes beyond the end of the month. He added that his airline would benefit tremendously by flying the 737-300s.
The leasing of 300s will lead to higher lease rentals
as the series aircraft are much `younger' than the 200s. However, they
also pointed out that Modiluft will save on fuel as the 300 series is much
more fuel efficient and will have 18 extra seats, which will increase its
seat capacity by around 30 per cent.
Bharat Forge launches joint venture for precision small forgings
11/06/96
Bharat Forge Limited , flagship company of the Rs 1200 crore Pune-based Kalyani Group, has signed a joint venture agreement with Metalart Corporation of Japan and a leading Japanese trading house, Nissho Lwai Corporation, to set up a new company for the manufacture of precision small forgings for the passanger car and two wheeler industries. The new company is named Kalyani Nippon Forge Limited. The agreement was signed on behalf of Bharat Forge by the company's vice-chairman and managing director, Baba Forge by the company's vice -chairman and managing director, Baba N Kalyani. Norio Yanai, president of Matalart Corporation and Yoichi Yammne, deputy
general manager of Nissoho Lwai Corporation singned on
behalf of their respective companies.
Mahindra Ford to focus on producing deisel version of " Escorts"
20/06/96
Mahindra -Ford had taken a strategic decision to produce more diesel varsions of its passenger car, Escorts, than the petrol-drivens ones. Around 60 per cent of cars which will roll out of its Nashik plant are expected to be the diesel version.
The company has taken a decision to this effect as it anticipates a higher demand for the mid-size diesel passenger car. It plans to produce around 25,000 of Escorts at the Nashik plant of Mahindra & Mahindra.
Mahindra-Ford's preference of the diesel version for the Indian market could be seen from the fact that the first Escorts or the 'Job One' to roll out of the plant in August this year will be a 1800 cc diesel car.
Till now, only Pal-Peugeot has announced plans to launch
a diesel version of its 309 for this segment of the domestic market.
Bayer India to invest 400 cr by year 2000
Bayer India, the Indian subsidiary of the German giant Bayer AG, has decided to enter into a series of co-marketing and co-licensing arrangements with Indian Companies. The German giant is also planning to invest nearly Rs.400 crore over the next four years in the country.
The occasion of the company's 100 years in India, said
that the German company was planning to invest DM 1 billion in the region
by 2000 of which DM 150-200 million would be invested in India.
Ashok Leyland enjoys good demand as market conditions improves
20/06/96
Truck major Asok Leylands has done well in the light commercial vehicles category following the good demand, and notched up sales of 10,000 units in 1995-96 in the sector, as compared with sales of a little over 3,000 units in 1994-95.
To get a hold on the higher tonnage segment of trucks in the country, the company will be introducing the range of Iveco-Cargo 14-and 16-tonne models this year. The move will pose a challenge to the supremacy of the Telco range.
The commercial vehicles business had become buoyant and was more viable now in view of better freight rates.
Those in the business, could easily pay back an interest of 27 per cent as a result of higher earnings of around 29-30 per cent. Further, volumes are going up as more investments in stock matkets.
The company, which has a strong presence in the Sri Lankan
Market, intends to access new markets like South Africa, Egypt and Kenya
this year, where the Iveco-Cargo range of vehicles is already popular.
Later on, the plan is to step up exports to south Asian markets.
P&G to launches Head &Shoulder by year end
21/06/96
Procter & Gamble (P&G) will make a second splash in the over Rs 200-crore hair-care market by launching its famous international brand, Head & Shoulders, by this year-end. Tentatively scheduled for December, the launch wil be P&G's second in hair care after Pantene which was introduced in November 1995.
Head & Shoulders together with Pantene lords over
the global hair-care market with a 18 per cent marketshare. While Pantene
is positioned as an over-all health shampoo with protein, Head & Shoulders
has carved a niche for itself in anti-dandruff treatment.
Gujrat Gas , HOEC and US based MNC forms syndicate to exploit coal bed methane gas
23/06/96
Gujarat Gas Company, Hindustan Oil Exploration Company (HOEC) and Detroit- based MCN Corporation have joined hands for exploitation of coal-bed methane gas in the Ahmedabad and Mehsana districts of Gujarat state.
The trio have already signed an agreement for the venture and will shortly submit an application to the Foreign Investment Promotion Board (FIPB) to enable the US company's investment in the venture. While the finer details are still being worked out, the total investment in the venture is projected at several hundred million dollars.
Gujarat Gas, which is a joint venture of the Arvind Mafatlal
group and the GIIC, already has a close working relationship with HOEC
with a director of the latter company present on the board of Gujarat Gas.
The venture is expected to augment gas resources for Gujarat Gas, which
is primarily engaged in distribution of gas in the state.
Fate of Enron power projects still in dark
18/06/96
The Shiv Sena BJP government in Maharashtra is still in the dark about the fate of the controversial Rs.6,400 crore Enron power project in the state, Maharashtra energy minister Gopinath Munde said here today. "The ball is now in the Centre's court and we are waiting for a final clearance. The state Cabinet had much earlier approved the revised 2170-MW capacity fuel-based power project and sent it to the Union energy ministry for its final clearance. "But, so far, they have not communicated to us." Enron is now ready to start the construction work of the plant immediately provided it gets the Centre's clearance. Mr. Munde remarked that already there has been much delay in the implementation of the project and any further delay will lead to escalation of the project cost.
The energy minister said for obvious reasons they had to scrap the previous agreement which the Congress (1) government in the state had made with Enron because some "foul play was detected".
CBI alleges Reliance-Enron for flaring gas worth $30m
19/06/96
Petroleum News
Enron, operator in the combine with Reliance, is alleged to have done major damage to the Mukta and Panna oil and gas fields by flaring gas to the tune of around $30 million in the last fiscal alone. Sources point out that this has been made possible by a specific provision the contract agreed to by government where no penalty or a limit for flaring has been specified.
The fields had come into the limelight following a controversial award to the Reliance-Enron combine more than two years ago. Insiders say, Enron Oil and Gas along with its partners RIL and ONGC are carrying out a practice started by ONGC earlier. In the absence of pipelines and tanker facilities the gas has to be flared off and the whole thing may be stopped by the middle of next year when the venture hopes to put in place a terminal to use that gas.
The CBI is now reported to have instituted a preliminary enquiry into the issue, for which the ministry of petroleum and natural gas is yet to receive any intimation; the formal order for inquiry is at the instance of the short-lived BJP government.
Between April 1995 and March 1996, Panna and Mukta produced 10.9 billion cubic feet of associated gas, which if taken at the price of $ three per million BTU, works out to $30.6 million worth of gas destroyed by Enron last year alone.
CBI initiates inquiry into award of oilfields to Reliance- Enron consortium
17/06/96
The CBI has initiated an inquiry into the award of the Mukta and Panna oilfields to the Reliance-Enron consortium by the P V Narasimha Rao government.
The government did not take reimbursement of past costs into consideration in awarding Mukta and Panna to Enro-Reliance the way it did in giving Ravva to the consortium of Videocon and Command Petroleum of Australia. Both contracts involved explored and developed oilfields.
The government offered to purchase crude from the Reliance-Enron consortium at a highly inflated rate of $20 per barrel which was $4 more than the then prevailing international price of $16 per barrel. The government at the time was paying $8 per barrel for crude oil supplied by its own company ONGC.
The terms for the release of oilfields at Panna and Mukta were based on the concept of investment multiple (IM) while for Ravva the post-tax rate of return was the premise.
Indian Hospital Corporaion to enter into joint venture with US firm for Health Care venture
15/06/96 cor, joint venture, ser-hospital & health care
The Indian Hospital Corporation (IHC), a part of the Apollo Hospitals group, has shortlisted two US companies United Healthcare and US Healthcare as potential collaborators in its managed health care venture. IHC is negotiationg with both the US health care firms and hopes to finalise a joint venture with either one of them by August. The total investment in the health care project would be around Rs.100 cr and IHC and its foreign collaborator would share their equity in a 51:49 ratio. A portion of the equity would also be offered to the public.
IHC also proposes to launch a Rs.500 crore fund to invest in a chain of day care hospitals, secondary health care centres and pharmacies. Of this amount, it plans to raise Rs.200 crore through the equity route and another Rs.300 crore in the form of debt. IHC has already floated a company called Family Healthcare Limited for the managed health care venture. New ventures of the group are usually financed by IHC. IHC and Apollo Hospitals have cross holdings in their respective companies.
Apple launches colour scanner
17/06/96
Electronics Computer News Fulfilling its commitment to helping users easily incorporation colour images into documents as well as world wide web pages, Apple Computer today announced immediate availability of the Color One Scanner 600/27. The new colour desktop scanner offers a wide range of image and document management capabilities at an affordable price to Macintosh users in eduaction, the home and small businesses.
Apple launches colour scanner
17/06/96
Electronics Computer News Fulfilling its commitment to helping users easily incorporation colour images into documents as well as world wide web pages, Apple Computer today announced immediate availability of the Color One Scanner 600/27. The new colour desktop scanner offers a wide range of image and document management capabilities at an affordable price to Macintosh users in eduaction, the home and small businesses.
Shaw Wallace part ways with Aiwa for audio sets manufacturing venture
28/06/96
Shaw Wallace Electronics Limited (SWEL) has decided to part ways with its Japanese joint venture partner, Aiwa Company Ltd. SWEL has offered the Dubai based Jumbo Electronics Ltd, to replace it in the joint venture. Both SWEL and Jumbo Electronics Ltd, are Mr Manu Chhabria- owned companies.
The joint benture between SWEL and Aiwa was not a profitable venture. "Since SWC was focussing only on profitable ventures such as liquor and beer all other non-profitable ventures such as electronics and hotels would be closed."
The $4-billion Japanese Aiwa, has a technical
collaboration and brand
licending agreement with SWEL for manufacturing audio
sets-including two
models of walkman, four models of portable radio and two
models of digital
hi-fi sets and colour TVs.
The company plans to focus only on liquor and beer
businesses. SWC was
open to strategic alliances with foreign liquor
companies, he added.
Deutsche Bank leads in fixing higher interest rates on one year deposits
03/07/96
Deutsche Bank has taken the lead in fixing a high rate of interest on term deposits for a period of one year and above. The board of the country's premier bank, State Bank of India, is meeting on Thursday to take a decision on the new rates. SBI is expected to set a benchmark for all other public sector banks.
In Deutsche Bank's case, the new rates are 14.5 per cent
for a 12-15
month deposit and 14 per cent for a 15-24 month deposit.
As required by RBI
the interest on the 30 day to 12 month period remains at
the specified 11
per cent maximum. The bank has not as yet taken a
decision on reviewing the
prime lending rate, the rate will be brought down
slightly.
Consortiums shortlisted for 2000 MW Chandil Power project in Bihar
03/07/96
A consortium led by Amalgamated Transpower and another by Euro Capital respectively, have been shortlisted to develop the 2,000 mw Chandil power project in Bihar. The consortium led by Amalgamated Transpower includes Ontario Power, a multi billion dollar state-run utility of Canada. Euro Capital is a German company, which is also working on two more projects in the country.
This follows the RP Goenka (RPG) group walking out on the project, ostensibly due to its inability to obtain counter guarantees for the project. The first phase of the project was earlier supposed to cost Rs 1,250 crore, which has since gone up considerably.
It may be pointed out that the consortium led by
Amalgamated Transpower
has also been shortlisted for two other projects in the
north east, which
includes the 1,200 mw Teesta power project in Sikkim and
the privatisation
of the Meghalaya State Electricity Board (MSEB), which
would involve
generation, distribution and transmission. The Bihar
government would soon
be inviting global bids for another mega project at
Nabinagar with a capacity
of 1,000 mw, which can ultimately be raised to 3,000 mw.
Genting to partner Jindal in thermal power project in Madhya Pradesh
22/06/96 cor- Jindal power , joint venture, infra-power
Jindal Power has roped in Genting, one of the largest
industrial
conglomerates of Malayasia, to be an equity partner in
the 1,000 MW
coal fired thermal power project being set up in Madhya
Pradesh.
The capital cost of the project is not known However,
similar projects
of 1,000 MW, recently cleared by the Central Electricity
Authority (CEA),
have cost around Rs.4,000 crore.
Genting which has assets worth $2,322 million, would
initially hold
45 per cent of the total equity of the project. Jindal
Power would hold
55 per cent stake and their stakes would be subsequently
diluted to 26 %
each. A portion of the equtiy may be offered to the
public subsequently.
The project, to be set up in Raigarh in Madhya Pradesh,
would operate
on a debt-equity ratio of 70:30. The equity portion of
the first phase
itself would therefore be around Rs.700 crore.
The Jindals were earlier negotiating with two diferrent
US companies for
a joint venture for the power project but talks fell
through because the
US companies did not want to tie up with a limited
company as it would not
be beneficial to them for taxation purposes.
The joint agreement has been signed between the Jindal
group
flagship, Jindal Strips Ltd and the Malaysian company.
Genting has business
interests in power, paper, resorts including hotels,
plantations, property
and investment holding and management services.
Hinduja- National power combine reduces proposed power tarif for Visakhapatanam power project
26/06/96 infra-Power , joint venture
In Another comedown, the Hinduja-National Power combine,
developing the
1,040 M W Visakhapatnam power project in Andhra Pradesh,
have slashed their
levelised tarifs to Rs.1.80 per unit from Rs.1.82 per
unit fixed earlier.
This is expected to be the final negotiated tariff for
the project.
However, the company has been forced to raise its first
year's tariffs from
Rs.2.54 per unit to Rs.2.62 per unit.
" This is entirely because the interest burden for
the project has been
for the project has been worked out in such a way that
debt repayment and
taxes would have to be paid upfront on the first year
itself," highly placed
sources in the company explained.
The changes were effected last week and were conveyed to
the Central
Electricity Authority (CEA) during a meeting seeking to
examine the techno
economic clearance for the fast track project.
Compaq launches Pentium Pro processor based server
26/06/96
Compaq Computers on Tuesday launched a Pentium Pro processor-based server designed to deliver mid-range systems performance and capabilities at about half-the-cost of the traditional RISC-based systems.
According to Mr.Abishek Mukherjee, Country Manager, India, Compaq Computer Asia Pvt. Ltd, the launch of Compaq ProLiant 5000 is the first of a series of product launches planned by the company this summer. The ProLiant 5000 is the ideal server for database, data warehousing, transaction processing and to compute intensive applications as well as for Internet and Intranet usage.
The performance, scalability and availability of
the ProLiant 5000 is
on par with and in many cases exceeds, the traditional
mid-range systems.
This product brings innovation to customers who consider
price performance
as a key factor when choosing a server.
The company also launched Compaq Insight Manager Version
3.0 and
SmartStart 3.0, new versions of comprehensive
integration and management
software tools on the ProLiant 5000. With these
management tools , the
ProLiant 5000 gives customers an alternative to the
high-priced, proprietary
mid-range systems offered by other vendors such as HP,
IBM and Digital
Equipment Corporation.
IDBI asks Haldia Petrochemicals promoters to invest more funds
27/06/96
The Industrial Development Bank of India, the main appraiser for the Rs.5170-crore Haldia Petrochemical project, has asked the promoters to flush an additional Rs.212 crore before it can offer the deferred payment guarantee.
The plan of action that will follow after the much awaited deferred payment guarantee is received will be to effectuate the naptha cracker contract signed with the Toyo Engineering Corporation of Japan.