India Business Insight articles from January 2008

India Business Insight archives from January 2008

ETHIOPIAN TO ADD B747F FREQUENCY TO MUMBAI (by introducing a once a week B747 freighter service).
January 31, 2008... Ethiopian Airlines was one of the first to launch scheduled flight services between India and Africa. It flies three weekly scheduled B757F flights with 35 tonnes on each flight. It now proposes to increase the frequency and capacity per...

EMIRATES TO ADD CAPACITY IN INDIA (to arrange for adhoc charters for the benefit of forwarders).
January 31, 2008... Currently Emirates SkyCargo operates four weekly freighter services to India with cargo carrying capacity of 10,000 tonnes per direction per month. Besides regular frequencies to Mumbai, Kochi, Chennai and Hyderabad, Emirates started...

AIR INDIA STRENGTHENS FREIGHTER OPERATIONS THROUGH JVs (with GATI).
January 31, 2008... Air India consolidated its presence in the freighter operations by forming joint ventures (JVs). It commenced freighter operations for the Department of Posts & Telegraph, Government of India and a JV service with GATI. Both services are...

KINGFISHER CARGO EMBARKS ON MAJOR EXPANSION (launches its dedicated air cargo warehouse in Goa).
January 31, 2008... Kingfisher Cargo, a division of Kingfisher Airlines recently launched its dedicated air cargo warehouse in Goa. It went in for a major expansion of its cargo network and provides safe, on-time and efficient airfreight transportation supported...

QATAR AIRWAYS LAUNCHES AHMEDABAD SERVICE (on 13 Dec 2007).
January 31, 2008... Qatar Airways launched its daily non-stop scheduled flights to Ahmedabad directly from Doha on 13 Dec 2007. This is the third new Indian destination touched upon by Qatar Airways in 2007. Chennai and Nagpur are the other two. The Airways now...

DTDC OPENS HUB OFFICE IN AGARTALA (to serve the north-east India better).
January 31, 2008... DTDC is a leading air express and cargo company in India. It recently launched three new hub offices in Agartala in Tripura state to serve north-east India better. These hub offices will enable it to consolidate its position in the...

CONCOR NR-REDUCING DWELL TIME TO TAKE ON CHALLENGES (introduces new equipment and innovative services to save time by almost 60% to benefit importers and exporters).
January 31, 2008... The container services of CONCOR NR cover ICDs in Punjab, Rajasthan, Gurgaon and Chandigarh. CONCOR's ICD at Tughlakabad is centrally located and is an ISO 9001:2000 certified terminal. It has introduced new equipment like trailers,...

GANDHI ENTRANCE INAUGURATES NEW CORPORATE OFFICE (in Mumbai).
January 31, 2008... Gandhi Entrance Automations is a major name in the field of entrance automation, warehousing and loading bay equipment in India. It recently opened its new corporate office in Mumbai. It operates branch offices at Chennai, Ahmedabad, Pune...

TATA MOTORS UNVIELS EXCLUSIVE VEHICLES FOR SEA CONTAINER TRANSPORT, LOGISTICS (in Dec 2007).
January 31, 2008... In Dec 2007, Tata Motors launched six medium and heavy commercial road vehicles for exclusive applications including sea container transport, logistics and general cargo transport and reefer trucks for temperature sensitive commodities. The...

ANG AUTO: MORE FOCUS ON LOGISTICS INDUSTRY (to manufacture 3,600 trailers per annum).
January 31, 2008... ANG Auto is a leading manufacturer of trailers and it has now ventured into branded trailer business to focus on the logistics industry. It has set up a large and modern plant at Sitarganj, which has a capacity to manufacture 3,600...

IDEV LAUNCHES NEW ICD AT IRUNGATTUKOTTAI (the main focus of the new ICD will be air cargo).
January 31, 2008... Idev Logistics, part of the Idev group recently launched its internal container depot (ICD) at Irungattukottai near Chennai. The ICD can soon accommodate 200x100 twenty tonnes equivalent units. This is besides six other ICDs the company...

PRUDENTIAL SHIPPING TEAMS UP WITH SWS AIR & SEA (to boost the growth of the Indian logistics industry).
January 31, 2008... The international logistics division of Prudential Shipping has inked a deal with SWS Air & Sea of Germany. Prudential is a major shipping agent in India and is now IATA certified and has begun airfreight operations. The tie-up is expected to...

SAMSARA REPRESENTS HOYER IN INDIA (Samsara appointed as general agent in India by Hoyer Global Transport of Netherlands).
January 31, 2008... Samsara is a comprehensive shipping and ocean logistics group. Hoyer Global Transport of Netherlands has appointed Samsara as general agent in India. The tie-up between the two will enable accelerated expansion of Hoyer in India.

JAIPRAKASH ASSOCIATES TO ACQUIRE HOTEL, CEMENT UNITS (with effect from 1 Apr 2008).
January 31, 2008... Jaiprakash Associates is poised to acquire Jaypee Hotels, Jaypee Cement, Gujarat Anjan Cement and group firm Jaiprakash Enterprises. The shareholders of Jaypee Hotels, the listed entity, will get one share in Jaiprakash Associates for...

MORGAN STANLEY PICKS STAKE IN BIOTOR INDUSTRIES (for Rs182 crore).
January 31, 2008... Morgan Stanley Private Equity Asia (MSPEA) has picked up minority stake in castor oil maker Biotor Industries Ltd of Mumbai for Rs182 crore. This is MSPEA's first deal in India.

WIPRO TO BUY CITI TECHNOLOGY SERVICES FOR $127 MILLION (and Wipro will get $500 million worth of assured business in software services and infrastructure management).
January 31, 2008... Wipro Ltd has decided to buy Citi Technology Services Ltd (Citos), the technology arm of Citigroup Inc, for $127 million. The deal enables Wipro to get $500 million worth of assured business in software services and infrastructure management...

SIEMENS LTD (touches business volume of Rs11,000 crore).
January 31, 2008... Siemens Ltd is a major name in providing industry and infrastructure solutions and touched business volume of Rs11,000 crore. The company operates six business segments including energy, healthcare, industry, information & communications,...

RBI CUTS KEY RATES FURTHER (the bank has reduced the CRR by 50 basis points).
January 3, 2008... The Reserve Bank of India (RBI) has reduced the key rates on 2 Jan 2008 to boost the economy. The bank has reduced the repo rate from 6.5 percent to 5.5 percent. The RBI has reduced the reverse repo rate from five percent to four percent. The...

UPA'S FINAL BOOSTER DOSE FOR ECONOMY (public sector banks will provide a line of credit to NBFCs).
January 3, 2008... The UPA Government has announced a number of measures to boost the economy of India. The Government has allowed foreign institutional investors (FIIs) to invest up to $15 billion in corporate bonds. The Government has removed the...

TATA MOTORS COMMERCIAL VEHICLE SALES DIP 51% IN DECEMBER (passenger car sales have declined by 31 percent).
January 3, 2008... Tata Motors Ltd has announced a decline of 51 percent in sales of commercial vehicles at 14,056 units for Dec 2009 (28,661 units for Dec 2007). Truck sales have declined from 21,968 units in Sep 2008 to 12,619 units in Nov 2008. The company...

MOTHERSON SUMI TO BUY EUROPE'S VISIOCORP (the company intends to set up a special purpose vehicle).
January 3, 2008... Motherson Sumi Systems Ltd (MSSL) is planning to acquire Visiocorp of Europe for an unspecified amount. Visiocorp has 17 manufacturing locations and had announced revenue of over 700 million euro for 2008. MSSL intends to set up a special...

GOVERNMENT WAIVES DIVESTMENT CONDITION FOR PEPSICO (the CCEA has deleted the condition of divestment of 49 percent stake).
January 3, 2008... The Government of India has waived the divestment condition for PepsiCo India Holdings. The Government has also approved the proposal of the company to invest additional $50 million. The Cabinet Committee on Economic Affairs (CCEA) has...

IOC TO COMMISSION MAJOR PROJECTS THIS YEAR (the company has achieved capacity utilisation of 104 percent at its refineries).
January 3, 2008... Indian Oil Corporation (IOC) is planning to expand its refinery at Panipat by three million tonnes to 15 million tonnes in 2009. The company intends to commission a naphtha cracker complex at Panipat in 2009. IOC is also planning to...

ERA INFRA BAGS BHEL CONTRACT (for Ukai TPS extension unit in Gujarat).
January 3, 2008... Era Infra Engineering Ltd has bagged a contract of Rs49.51 crore from Bharat Heavy Electricals Ltd (BHEL). The company will carry out civil, architectural and structural works for Ukai TPS extension unit in Gujarat. Era Infra had bagged four...

L&T KNOWLEDGE CITY INAUGURATED (the facility is expected to generate revenue of Rs2,000 crore in five years).
January 3, 2008... Larsen & Toubro Ltd (L&T) has inaugurated the L&T knowledge city at Vadodara on 2 Jan 2009. The facility is expected to employ nearly 5,000 technical professionals and generate revenue of Rs2,000 crore in five years. The facility will help...

SUZLON ENERGY SELLS 10% STAKE IN HANSEN (to buy the stake of Martifer in REPower).
January 3, 2008... Suzlon Energy Ltd has decided to sell a stake of 10 percent in Hansen Transmission International to Ecofin Ltd. The company intends to use the funds to buy the stake of Mortifer of Portugal in REPower of Germany. Suzlon will retain voting...

ROYAL ENFIELD FINISHES YEAR ON A HIGH NOTE (the company has produced 4,300 motorcycles in Dec 2008).
January 3, 2008... Royal Enfield Motors Ltd has produced 4,300 motorcycles at its facility in Chennai in Dec 2008. The company has added 30 dealers and 10 brand stores in 2008. Royal Enfield expects to produce 45,000 motorcycles in 2008-2009. The company has...

HYUNDAI, HONDA BUCK THE TREND (Tata Motors has announced a decline of 41 percent in sales for Dec 2008).
January 3, 2008... Hyundai Motor India Ltd has announced a growth of 56 percent in sales at 38,402 units for Dec 2008 (24,664 units for Dec 2007). Honda Siel Cars India has announced a growth of nine percent in sales at 3,667 units (3,363 units). Tata Motors...

ELECON ENGINEERING BAGS ANOTHER ADANI ORDER (to set up material handling system at Mundra).
January 3, 2008... Elecon Engineering Company Ltd has bagged another order of Rs22 crore from Adani Power Ltd. The company will design, engineer, supply, erect and commission a material handling system at Mundra port. Elecon had bagged an order of Rs120 crore...

WHIFF OF GAS DRIVES CORPORATE ACTIVITY IN BENGAL (CC&L has entered into a preliminary agreement with ONGC).
January 3, 2008... Everest Kanto Cylinder is planning to acquire a controlling stake in Compression and Liquefaction Engineering Ltd (CC&L). CC&L has entered into a preliminary agreement with Oil and Natural Gas Corporation (ONGC) to source coal bed methane...

GOVERNMENT BRINGS 2 PHARMA COMPANIES UNDER DIRECT CONTROL (the Government has acquired the stake of HAL and IDPL in KAPL and RDPL).
January 3, 2008... The Government of India has brought Karnataka Antibiotics & Pharmaceuticals Ltd (KAPL) and Rajasthan Drugs & Pharmaceuticals Ltd (RDPL) under its direct control. KAPL is a joint venture between Hindustan Antibiotics Ltd (HAL) and the...

NO JOB CUT AT TATA STEEL (the company is facing delays in the proposed project in Jharkhand).
January 3, 2008... Tata Steel is not planning to cut any jobs at its plants. The company intends to depend upon its strong internal structure to overcome the slowdown. Tata Steel is facing delays in the proposed greenfield project in Jharkhand.

STRIDES DRUG GETS USFDA NOD (the company intends to launch the products in the US by Jun 2009).
January 3, 2008... Strides Arcolab Lab has obtained the approval of the US Food and Drug Administration (FDA) for two antibiotic products. The USFDA has approved Vancomycin HCL USP 500mg and 1g per vial and sterile Vancomycin HCL USP 5g per vial. The company...

NEW ROYALTY RATES FOR URANIUM MINING IN STATES (the Government of India intends to revise the royalty rates for all minerals).
January 3, 2008... The Government of India has revised the royalty rates to be paid to the State Governments for mining uranium. Uranium Corporation of India Ltd will pay a royalty of two percent of the compensation to the States. The Government is also...

MIXED RESPONSE FROM AUTO SECTOR (the measures are not likely to help dealers).
January 3, 2008... The automobile sector in India has offered mixed response for the decision of the Government of India to boost the economy. The Government has decided to increase the depreciation of commercial vehicles purchased in Jan-Mar 2009 to 50...

TMT BARS COMES UNDER COUNTERVAILING DUTY (TMT bars and structurals will attract a CVD of 10 percent).
January 3, 2008... The Government of India has withdrawn the exemption from countervailing duty (CVD) on TMT bars and structurals on 2 Jan 2008. TMT bars and structurals will attract a CVD of 10 percent. Non-TMT bars and structurals will continue to be...

IDS SOFTWARE'S NEW INTERFACE (to provide viable alternative to MS Office).
January 3, 2008... IDS Software Pvt Ltd has launched a new interface for the hospitality sector. The new interface is expected to provide a viable alternative to MS Office. The hospitality sector can generate daily reports using Open Office applications. Hotels...

BSNL TO INVEST Rs1,600 CRORE ON BROADBAND EQUIPMENT (the company intends to add eight million broadband connections).
January 3, 2008... Bharat Sanchar Nigam Ltd (BSNL) is planning to invest Rs1,600 crore to buy broadband equipment in the next two years. The company intends to add eight million broadband connections. BSNL has nearly 30,000 exchanges in rural areas and...

FINO SEES BREAK-EVEN NEXT YEAR (the company provides an interface between banks and customers).
January 3, 2008... Financial Information Network and Operations (FINO) expects to break even in 2009-2010. The company provides an interface between banks and customers. FINO provides biometric smart cards to customers to save above Rs50 in their bank...

SATYAM PROMOTERS' STAKE DOWN TO 5.13 PERCENT (the company has convened the board meeting on 10 Jan 2009).
January 3, 2008... The holding of the promoters of Satyam Computers Services has declined from 8.65 percent in Sep 2008 to 5.13 percent. The holding of SRSR Holdings has declined by 3.14 percent. Financial institutions have sold 2.11 crore shares of Satyam...

BSNL FOR EARLY REVIEW OF CALL TERMINATION CHARGE (the Government of India is losing Rs4,000-5,000 crore a year).
January 3, 2008... Bharat Sanchar Nigam Ltd (BSNL) has asked the Government of India to review the call termination charge at the earliest. The Government is losing Rs4,000-5,000 crore a year by allowing foreign telecom companies to terminate incoming...

ASIAN STAR TO OPEN MORE STORES IN SOUTH (the company intends to invest Rs30 crore to expand its operations).
January 3, 2008... Asian Star Company Ltd is planning to open nearly 10 stores in southern and western India in the next three years. The company intends to invest Rs30 crore to expand its operations. Asian Star has opened its first jewellery retail store,...