India Business Insight articles from March 2002, page 8

India Business Insight archives from March 2002

MIDAS TO SELL ONLY 5 LAKH corDECT LINES IN INDIA (focuses on overseas markets).
March 28, 2002... Midas Communication Technologies (MCT) of Chennai, a telecommunication R and D company, which launched corDECT wireless local-loop telephony in the country, proposes to sell only 5,00,000 lines in India. It is aiming at a turnover of Rs100...

FOREIGN AIRLINES CEASE OPERATIONS, SAY INDIA UNVIABLE (flights to Indian destinations to cease from 1 Apr 2002).
March 28, 2002... Air France, Quantas and Scandinavian Airlines are stopping their flights to Indian destinations from 1 Apr 2002 because of insufficient income and unfeasible routes. Scandinavian Airlines operates flights from Copenhagen to New Delhi,...

WIPRO CLOSE TO ACQUIRING DKB'S INFORMATION TECHNOLOGY SUBSIDIARY (Webtech of Bangalore, which makes an income of Rs35 crore a year and employs 150 skilled persons, for an unknown sum).
March 28, 2002... Wipro Ltd of Bangalore in Karnataka is about to purchase Webtech, also of Bangalore, for an untold amount. Dresdner Kleinwort Benson (DKB) fully owns Webtech that earns an income of Rs35 crore a year and employs 150 experts. Webtech...

HLL WILL USE GERM WARFARE TO CLEAN MORE TEETH (Hindustan Lever Ltd launching Pepsodent Germistick toothpaste, with 2 germ-indicator buds free, that reduces plaque).
March 28, 2002... Hindustan Lever Ltd (HLL) is introducing Pepsodent Germistick toothpaste that is claimed to reduce dental plaque. It is to provide 2 germ-indicator buds free for some time with Pepsodent Germistick toothpaste. HLL says that there...

LOCTITE TO SET UP R and D CENTRE IN BANGALORE (Loctite manufactures engineering adhesives).
March 28, 2002... Loctite Corp, a part of the German-based Henkel group of companies, proposes to set up a technical and an R and D centre in Bangalore. The company, which spends around EUR 25-30 M/y on its R and D, has a wholly owned subsidiary in...

NEW PRODUCTS: SINUSAL CAPSULE FROM NIAMATH LABORATORIES (the new product is available at Rs92/pack of 20 capsules).
March 28, 2002... Niamath Laboratories has introduced Sinusal capsule containing Unani herbal formulation for chronic sinusitis. The new product is available at Rs92/pack of 20 capsules.

WIPRO BAGS Rs3 CRORE ORDER FROM ANDHRA PRADESH (to provide professional services to the State's Registration and Stamp Department).
March 28, 2002... Wipro Infotech has bagged a contract worth Rs3 crore from the Government of Andhra Pradesh to provide professional services to the State's Registration and Stamp Department. The contract includes maintenance of hardware, networking devices,...

CRUDE OIL IMPORT TO BE MAJOR THRUST AREA: SCI (the Shipping Corporation of India likely to be made nodal agency for crude oil transport).
March 28, 2002... The Shipping Corporation of India (SCI) has identified transportation of crude oil as a major thrust area during the Tenth Five-year Plan period-2002-2007. Transportation of crude oil is likely to be the main activity in the Indian...

SCI BIDDER TO FLOAT HOLDING COMPANY (plans to raise funds for acquiring the stake).
March 28, 2002... Videocon Ltd, one of the bidders for Shipping Corporation of India (SCI), plans to set up a holding company. The company also plans to raise funds for acquiring the stake. The company also plans to bid for the State Trading Corporation (STC).

SIGNALLING, TELECOMMUNICATION NOT GIVEN IMPORTANCE BY RAILWAYS:CAG (only 2.55% of total allocation spent on S and T).
March 28, 2002... The Comptroller and Auditor General (CAG) of India has criticised the Ministry of Railways, Government of India, for not giving necessary importance to the modernisation of signalling and telecommunication (S and T) systems. According...

SCHWING STETTER TARGETS SALES OF Rs75 CRORE BY DECEMBER (plans to sell 400 transit mixers in 2002).
March 28, 2002... Schwing Stetter India Pvt Ltd (SSI), a 100 percent subsidiary of the Schwing group of companies, Germany, has targeted sales of Rs75 crore for its financial year ending 31 Dec 2002 as against Rs46.6 crore in 2001. The company...

BANKS SEEK INCREASE IN FLUCTUATION RESERVE LIMIT (to more than 10% to help them avoid raising their Tier-1 capital through equity).
March 28, 2002... Some financially weak public sector banks (PSBs) have urged the Reserve Bank of India (RBI) to raise the investment fluctuation reserve (IFR) to more than 10 percent. RBI had advised the banks to at least reach 5 percent of their IFR in...

PEERLESS TARGETS Rs650 CRORE IN DEPOSITS IN 2001-2002 (as against Rs450 crore in 2000-2001).
March 28, 2002... Peerless General Finance and Investment Company Ltd of Kolkata in West Bengal hopes to net Rs650 crore through deposits in 2001- 2002. It has got Rs450 crore of deposits in 2000-2001. It is targeting deposits of Rs1,050 crore in 2002-2003....

RBI TO GET LICENCE FOR DIGITAL SIGNATURE IN A MONTH (the Institute of Development and Research in Banking Technology will be the second authorised CA in India).
March 28, 2002... The Institute of Development and Research in Banking Technology (IDRBT) of the Reserve Bank of India (RBI) is likely to get in a month a certifying authority (CA) licence for issuing digital signatures. It would then become the second...

ORIENTAL BANK TO BOOST PRESENCE IN KARNATAKA (by opening a fully computerised branch in Mangalore).
March 28, 2002... The Oriental Bank of Commerce is to open a fully computerised branch in Mangalore, Karnataka. It has more than 960 branches/extension counters all over the country.

NEW RBI NORMS FOR SETTLING FARMERS' LOANS (the scheme covers loans up to Rs50,000 principal outstanding as on 31 Mar 1998).
March 28, 2002... The Reserve Bank of India (RBI) has made public the guidelines for public sector banks for the one-time settlement (OTS) scheme for small and marginal agriculturists. They cover loans not more than Rs50,000 principal due and considered...

KPCL INKS LOAN PACT FOR RTPS UNIT 7 (Federal Bank will provide Rs250 crore loan).
March 28, 2002... Karnataka Power Corporation Limited (KPCL) and Federal Bank signed a loan agreement on 27 Mar 2002. According to the agreement, the Federal Bank will provide Rs250 crore loan to KPCL for setting up of seventh unit of the Raichur Thermal...

SCRAP METAL FROM SEA PROJECT: HOUSE PANEL (to avoid loss to the national exchequer).
March 28, 2002... The Indian Government, through the Department of Ocean Development, had embarked on poly-metallic nodules programme in 1987. The programme was intended to collect zinc, manganese and other metals from nodules found on seabed. A Remotely...

INDIA TO ACQUIRE NEW MIRAGE FIGHTERS (acquisition is to enhance IAF's strike and nuclear- deterrence capabilities).
March 28, 2002... Jane's Defence Weekly has reported that Indian Air Force (IAF) is holding talks with Dassault Aviation of France to acquire 126 Mirage 2000-5 multi-role fighter aircraft. The proposed acquisition is to enhance IAF's strike and...

GOVT TO RAISE Rs68,000 CRORE (from the market during Apr-Sept 2002 period).
March 28, 2002... The Reserve Bank of India has announced that the Government of India will borrow Rs68,000 crore from the market during Apr-Sept 2002 period. The borrowal will include Rs10,000-crore bonds of less than 10-year period in first half of...

ANDERSON INDIA IN MERGER TALKS WITH KPMG (the move is to disaffiliate from its parent, which is now facing criminal charges in US).
March 28, 2002... Anderson India (AI), an affiliate of Arthur Anderson (AA) of US, is holding talks with KPMG India for merger. AI move is to disaffiliate from its parent, which is now facing criminal charges for its role in the collapse of Enron Corp, energy...

NIIT BUYS US FIRM FOR UNDISCLOSED AMOUNT (acquisition will provide NIIT an entry into lucrative SAP- solutions based segment in the US).
March 28, 2002... NIIT, an information technology solution provider, has acquired Osprey Systems (Osprey) of the US for an undisclosed sum. Osprey, a SAP solution provider, specialises in SAP implementation, enterprise application integration and technology...

NASSCOM SIGNS PACT WITH GERMAN IT SOLUTIONS (pact will enable formation of Nasscom wing in Germany to help increase business between the two countries).
March 28, 2002... The National Association of Software and Service Companies (Nasscom) and Aachen City of Germany and the Association of Innovations and Technology of Aachen have signed an agreement for Indo-German co-operation in information technology (IT)....

OBEROIS PLAN REVAMP TO NARROW FOCUS (a 3-member committee set up for the purpose).
March 28, 2002... In view of the sluggish hospitality market, the Oberoi Group has set up a three-member committee to consider a restructure, for which DSP Merrill Lynch has been appointed the adviser. Oberois have three units: East India Hotels Ltd, EIH...

CENTURION CUTS EQUITY EXPOSURE (from Rs150 crore to Rs57 crore).
March 28, 2002... Centurion Bank in the private sector has reduced its exposure to equity market from Rs150 crore to Rs57 crore. In May 2001, Reserve Bank of India had asked all banks to reduce this exposure to less than five percent. Centurion had an...

ABOLISH ENTRY FEE FOR PAGING: TARIFF PANEL (revenue sharing should not be more than five percent).
March 28, 2002... The Tariff Commission has recommended to the Department of Telecom of the Government of India the abolition of entry fee for the paging industry; the Commission also suggests a ceiling of five percent for revenue sharing between the industry...

GOODRICKE DIPS INTO FREE RESERVES TO PAY DIVIDEND (its net profit is only Rs86.6 lakh).
March 28, 2002... Goodricke Group Ltd has earned a net profit of only Rs86.6 lakh in financial year 2001. It had paid a dividend of five percent for financial year 2000. It wants to maintain the dividend at five percent for financial year 2001 also. For...

GOM FOR SCRAPPING VINTAGE ALLOWANCE TO UREA PLANTS (it is five percent).
March 28, 2002... The Group of Ministers (GoM) of the Government of India set up to formulate policy parameters and norms for determining retention prices of individual urea units has suggested withdrawal of 5- percent vintage allowance given to urea units...

TOTALFINA RECALLS TOP OFFICIAL; CITES SLACK OIL REFORMS (no replacement for him now).
March 28, 2002... French oil leader TotalFinaElf (TotalFina) has decided to shift focus of its Indian operations to chemicals, LPG and lubes from oil and gas. The company has also recalled its Chief Representative in India, Jean Claude Breton, and has decided...

KNOLL PHARMA Q1 NET AT Rs14.08 CR (on sales of Rs80.18 crore).
March 28, 2002... Knoll Pharmaceuticals Ltd has recorded a net profit of Rs14.08 crore on net sales of Rs80.18 crore for the quarter to Feb 2002. For three months to Mar 2001, the company had recorded a net profit of Rs9.18 crore. With the company changing its...

ORCHID LAUNCHES 3 NEW DRUGS (one of them is Cepirom).
March 28, 2002... Orchid Healthcare, the formulations division of Orchid Chemicals and Pharmaceuticals, will introduce three broad-spectrum anti- infectives to cure a large number of infections in India. These include Cepirom (Cefpirome injectible), Cebanex...

TN BUDGET PROPOSAL TAKE CEMENT MAKERS BY SURPRISE (sales growth is flat in Tamil Nadu).
March 28, 2002... The Government of Tamil Nadu (TN) has decided to levy a sales tax of 24 percent on OPC cement if its selling price, inclusive of sales tax, exceeds Rs145 a bag. A similar tax of 24 percent will also be levied on PPC cement if its selling...

NO 'TAKE-OR-PAY' DEAL WITH MRPL, SAYS HPCL (Oil Coordination Committee will be out on 1 Apr 2002).
March 28, 2002... Hindustan Petroleum Corporation Ltd (HPCL) has decided not to enter into any 'take-or-pay' contract for marketing products of Mangalore Refineries and Petrochemicals Ltd (MRPL). HPCL will lift products from MRPL purely on demand-supply...

KVAERNER TO PROVIDE ENGINEERING SERVICES TO RELIANCE PLANT (Reliance capacity to go up to 1.2 million tonnes).
March 28, 2002... Reliance Industries Ltd (Reliance) has selected Kvaerner Powergas India (Kvaerner) to provide design engineering services to set up its 2,20,000 tonnes a year polyester resin plant at Hazira. The plant, which is being built under a technical...

TRADE PERTURBED OVER PROPOSED CURBS ON SOYA OIL INFLOW (of genetically modified soyabean).
March 28, 2002... The recent statement of the Minister for Agriculture in the Government of India about imposition of restrictions on import of oil produced from genetically modified (GM) soyabean has upset soyabean oil importers. As per the recent...

HALDIA PETRO WILL SELL 26% STAKE TO IOC (IOC also to become the sole supplier of naphtha to HPL's plant).
March 27, 2002... Haldia Petrochemicals Ltd (HPL) is selling 26 percent of stake with management control of its $1.2-billion plant to the Indian Oil Corporation (IOC) for $94.35 million. IOC will also become the sole supplier of naphtha to the plant....

MTNL'S DOLPHIN GETS A MOVE ON (manages to increase its subscriber base to over a lakh in Mumbai alone).
March 27, 2002... The Mahanagar Telephone Nigam Ltd (MTNL), which offers cellular services under the brand name Dolphin in Mumbai, has managed to increase its subscriber base to over a lakh in Mumbai alone. The customer base for its prepaid Trump cards has...

GARUDA HAMPERED BY HANDSET SHORTAGE (only 5,600 subscribers of the total 16,000 Garuda subscribers have been provided handsets).
March 27, 2002... The Mahanagar Telephone Nigam Ltd (MTNL), which launched wireless in local loop (WLL) services under the brand name Garuda, is facing a shortfall in handsets and is yet to clear the backlog of applications received during Jan 2002. Of the...

TAC PLANS TO LOWER HIKE IN MOTOR PREMIUM (committee increases premiums for commercial vehicles to 1.75% from 1.5% in New Delhi and Chennai).
March 27, 2002... The Tariff Advisory Committee (TAC) plans to reduce the quantum of the proposed increase in the motor premium that was to be effective from 1 Apr 2002. It is the constitutional price fixing body for the Indian non-life insurance...

KINETIC ESCALATOR OFFERS CAR PARKING SYSTEMS (launches K-Park mechanised multi-layer parking system where 50 cars can be parked in the space for two).
March 27, 2002... Kinetic Escalator and Elevator (P) Ltd has unveiled multi-layered mechanised car parking systems. This is part of its strategy to explore a new business opportunity. The K-Park mechanised multi- layer parking solutions comprise of elevator...

QUALIS TO SPORT NEW LOOK (refurbished Qualis to be launched by Oct 2002).
March 27, 2002... Toyota Kirloskar Motors Ltd (TKML), a joint venture between Kirloskar Motors and Toyota Motor Corp of Japan, will change the look of its multi-utility vehicle, Toyota Qualis. The refurbished Qualis will be launched by Oct 2002. The 571N...

SUBEX BAGS AFRICAN ORDER (worth $5,00,000, for two products that are part of Subex's RevMax suite of products and services).
March 27, 2002... Subex Systems Ltd of Bangalore has announced that it has bagged an order worth $5,00,000 from a GSM (global system for mobile communication) operator in Africa. The order is for two products that are part of Subex's RevMax suite of...

SQL STAR Q4 NET SLIPS (to Rs0.83 lakh).
March 27, 2002... SQL Star International Ltd has announced a net profit of Rs0.83 lakh for the quarter ended Dec 2001 (Rs79 lakh for the quarter ended Dec 2000). Total income was also lower at Rs10.77 crore (Rs13.29 crore). For the year ended 31 Dec 2001, the...

SGI INDIA SEES SILVER LINING ON THE HORIZON (as the US withdraws sanctions imposed against Indian companies in May 1998).
March 27, 2002... SGI India, a subsidiary of Silicon Graphics Inc (SGI), has said that it expects its business operations to return to normal in early 2003. The company's operations had been severely hit by the US Government's decision to impose sanctions...

COMSAT GETS SUN MICRO CERTIFICATION (has received Sun Microsystems' SunTone certification for its suite of managed services).
March 27, 2002... Comsat Max has received Sun Microsystems' SunTone certification for its suite of managed services. Comsat Max's suite of services comprises VSAT services, Internet, VPN services, security services, co-location and hosting services. The...

`ACQUISITION TO BOOST KEANE INDIA BIZ' (Keane Inc has acquired SignalTree Solutions Holding for $62 million in cash).
March 27, 2002... Keane Inc has acquired SignalTree Solutions Holding for $62 million in cash and subsequently renamed it Keane India Ltd. The acquisition is expected to result in more software outsourcing jobs for the Indian company. Keane India has said that...

BodhTree APPLICATION PLATFORM FOR US CO (BodhTree implements SoDAP for DevelopmentSpace of the US).
March 27, 2002... BodhTree Consulting Ltd of Hyderabad has implemented SoDAP (Social Development Application Platform) for DevelopmentSpace of the US. SoDAP is an Internet-enabled software application that helps manage individual, collaborative and...

OpenTide TO SET UP CENTRE WITH PROTOCOL (centre will provide OpenTide-Samsung SDS integrated ERM solutions to clients in the call centre space).
March 27, 2002... OpenTide, a Samsung SDS Company, has tied up with Protocol Telecom Solutions (India) Pvt Ltd of Bangalore to set up a concept centre in Bangalore. The centre will offer OpenTide- Samsung SDS integrated enterprise relationship management...

ZENSAR EXPECTS 40 PC RISE IN PROFITS IN 2 YEARS (following new orders bagged from clients including Cisco).
March 27, 2002... Zensar Technologies Ltd of Pune has said that it expects to report a 40 percent increase in profits in two years. The company, which expects to record a profit before tax of Rs20 crore ($4.1 million) for 2001-2002, is also projecting revenues...

ROLTA INDIA TO PAY 30 PC (for the year ended 31 Dec 2001).
March 27, 2002... Rolta India has announced a 16.1 percent rise in net profit at Rs105.46 crore for the year ended Dec 2001 (Rs90.86 crore for the year ended Dec 2000). Total income grew by 18 percent to Rs301.46 crore (Rs254.87 crore), while profit...

INFOSYS TIES UP WITH NORTHWESTERN MUTUAL (to develop and launch an online facility to enable fund transfers by the latter's policyholders).
March 27, 2002... Infosys Technologies Ltd has collaborated with Northwestern Mutual to develop and launch an online facility to provide an online fund transfer option to the latter's variable life and annuity policyholders. The facility is available through...

`LAAA' REAFFIRMED FOR TVS ISSUE (indicating highest safety of the instrument).
March 27, 2002... ICRA Ltd has reaffirmed the LAAA rating for the non-convertible debenture (NCD) programme of T V Sundaram Iyengar and Sons Ltd (TVS Ltd). It has also assigned the MAAA rating to the company's fixed deposit programme and the A1+ rating...

INDIA WANTS PERRIER MINUS THE FIZZ (Nestle's Perrier fails to meet new standards of Prevention of Food Adulteration Department).
March 27, 2002... The Ministry of Health, Government of India, has disallowed the sale of Perrier, the premium brand of bottled mineral water from Nestle, as it does not meet the new standards of the Prevention of Food Adulteration Department, notified in Mar...

OIL PSUs GEARING UP FOR COMPETITION WITH NEW SERVICES (HPCL launches branded new retail service called Club HP offering distinct and value added services).
March 27, 2002... Public sector oil companies have revamped their marketing networks by offering a host of other services such as Internet browsing, payphones, ATMs, rest rooms and vehicle servicing at their retail outlets. This is aimed at increasing their...

HIKE IN OIL PRICES MUST: IOC (petrol and diesel price rise imperative due to surge in international crude oil prices).
March 27, 2002... Indian Oil Corporation (IOC) has said that a hike in the prices of petrol and diesel has become imperative, owing to the surge in international oil prices. Crude oil prices, which has increased by about $4 per barrel since Feb 2002, will...

CRISIL AWARDS HIGHEST SAFETY RATING TO NTC (rating reflects highest certainty regarding timely payment of financial obligations on the instrument).
March 27, 2002... The Credit Rating Information Services of India Ltd (Crisil) has given the highest rating of AAA to the Rs500-crore non- convertible bond issue of the National Textile Corporation, a public sector undertaking. The rating indicates highest...

STEM CELL RESEARCH IN CITY SOON (Narayana Hrudayalaya to set up stem cell research unit in association with Thrombosis Research Institute of UK).
March 27, 2002... The Narayana Hrudayalaya of Bangalore, a speciality hospital for cardiac care, is setting up a stem cell research facility in association with the Thrombosis Research Institute of England. The stem cell facility will conduct research to find...

SOPS FOR IT FIRMS ENJOYING TAX BREAKS (companies can restructure salaries to limit tax liability of employees to cash component).
March 27, 2002... The Finance Bill 2002-2003 proposes to amend the Income Tax Act to enable employers to pay tax on non-monetary perquisites of employees with retrospective effect from 2001-2002. It further proposes to introduce a new provision under...

HIND COPPER TO LEASE OUT PART OF HQ (move to improve cash position).
March 27, 2002... Hindustan Copper Ltd (HCL) will lease out 15,000 square feet of floor area in its new headquarters at Kolkata to commercial organisations, to improve its cash position. HCL will undergo financial restructuring ahead of divesting 98.5...

HALLMARK MAY TELECAST HINDI MOVIES (plans to increase audience and revenue).
March 27, 2002... Hallmark, an English movie television channel, may telecast Hindi movies to increase audience and revenue. It is looking at family-oriented movies and English movies produced in India. It is also considering movie production in India. ...

SILVERLINK HOLDINGS TO PUMP Rs150 CRORE INTO ITDC PICK (upgrading Lodhi Hotel in New Delhi to international standards).
March 27, 2002... Silverlink Holdings of Singapore has acquired Lodhi Hotel property in New Delhi from India Tourism Development Corporation (ITDC) for Rs76.25 crore. It will bring in additional investment of Rs150 crore, rebuild the property to...

INDUSTRY EXPECTS IOC TO BRING ARMS UNDER ONE FOLD (aims at a rank among the top 100 companies in the world).
March 27, 2002... Indian Oil Corporation Ltd (IOC) may merge all its units with itself to achieve a rank among the top 100 companies in the world. IOC currently is 209th in the Fortune 500 list. The merger of IBP Ltd with itself will push the rank up to 186th...

SAIL CHALKS OUT PLANS TO CUT RAW MATERIAL COSTS (three-pronged plan covering increased iron ore despatches, quality improvement and streamlining).
March 27, 2002... Steel Authority of India Ltd (SAIL) will implement a three- pronged plan to reduce production costs. It will increase iron ore despatches to plants by 10 percent in 2002-2003 over 2001- 2002. This will reduce raw material costs that...

IOC FUNDS TO BE PUMPED INTO HALDIA (promoters seek to raise Rs460 crore to fund revival of Haldia Petrochemicals Ltd).
March 27, 2002... The promoters of Haldia Petrochemicals Ltd (HPL) will infuse Rs460 crore that they seek to raise from Indian Oil Corporation Ltd (IOC) into HPL for its revival. IOC will make a strategic investment and take over management control of...

GSFMC UNVEILS ONLINE FUEL TRADE MARKETPLACE (electronic exchange for trading in industrial fuels).
March 27, 2002... Gujarat State Fuel Management Company (GSFMC) has launched an electronic fuel exchange, www.fuelxs.com, for buyers and sellers of industrial fuels. The Exchange facilitates transparent and cost-effective transactions through spot and...

DHAMPUR SUGAR ALLOTS 10 MILLION SHARES ON PREFERENCE BASIS (raises Rs10 crore to bolster liquidity).
March 27, 2002... Dhampur Sugar Mills Ltd (DSM) has allotted 10 million shares on preferential basis at par to raise Rs10 crore to bolster liquidity of the company. The investors are friends and associates of the promoters. The Goel family, promoters of DSM,...

GOLDMAN TO STEER INDIA BUSINESS FROM HONG KONG (transferring management control from Singapore to Hong Kong).
March 27, 2002... Goldman Sachs is centralising its ASEAN banking operations in Hong Kong and downsizing its Singapore office. It will transfer the management control of its Indian business from Singapore to Hong Kong. Its core business of mergers and...

EASIER EXPORT NORMS IN HARDWARE PARKS (recommendations of Expert Committee await clearance from Ministry of Finance).
March 27, 2002... The expert committee on 2002-2007 export-import (Exim) policy of the Government of India has recommended that units in electronic hardware technology parks be exempt from the criterion of net foreign exchange earning as a percentage of...

VISESH PLANS TO BUY BACK SHARES (earmarks Rs7.5 crore to buy back 15 percent equity).
March 27, 2002... Visesh Infosystems has earmarked Rs7.5 crore to buy back 15 percent of equity. It will offer a premium of Rs40 on the face value of Rs10 per share. The post-buyback stake of the promoters in the company will rise to 60 percent. ...

CENTRAL BANK LAUNCHES LAGHU UDHYAMI CARD (credit card for artisans, traders and small borrowers to avail of borrowings).
March 27, 2002... Central Bank of India has introduced its Laghu Udhyami Credit Card in Mumbai for artisans, traders, and small borrowers. Cardholders can avail of borrowings up to 20 percent of annual turnover. The limit is 50 percent of gross annual income...

SBI CAPS BAGS OBC, BHARAT OVERSEAS DEALS (mandates to explore diversification options and review current operations).
March 27, 2002... SBI Capital Markets Ltd has received a mandate to explore business diversification options for Oriental Bank of Commerce (OBC) in banking and non-banking segments. It has also received a mandate to review the current operations of Bharat...

ICICI BANK TO FLOAT RS4,000 CRORE BONDS AFTER MERGER WITH PARENT (planning issues in tranches in 2002-2003).
March 27, 2002... ICICI Bank plans to raise Rs4,000 crore through issue of bonds in three or four tranches in 2002-2003, after its reverse merger with ICICI Ltd. It is considering the options of tax saving infrastructure bonds with maturity of three to...

IRDA CLEARS AIR ON COMMISSION RATES (clarification of commission structure stipulated in the directive on agency commission).
March 27, 2002... The Insurance Regulatory and Development Authority (IRDA) has clarified the commission structure in its directive on agency commissions. Insurance companies are free to fix commissions on individual risk businesses, subject to a limit of 15...

HDFC LIFE'S SLASHING OF TERM COVER PREMIA MAY SPOOK RIVALS (other private insurers to soon start revising their rates).
March 27, 2002... HDFC Standard Life Insurance has reduced premium rates on its term insurance cover by 40 percent, making its term cover among the cheapest in the sector. According to the revised rates, a 20- year policy with a sum assured of Rs5 lakh will be...

INDIAN OIL BAGS CONTROL, 26% STAKE IN HALDIA (the Tata group intends to sell its entire stake and exit HPL).
March 27, 2002... The promoters of Haldia Petrochemicals Ltd (HPL), along with consortium of financial lenders, have agreed to offer a 26 percent stake and hand over management control to Indian Oil Corporation (IOC). IOC has accepted the offer on the...

JFM MAGIC FAILS TO WORK ITS CHARM FOR IT COS THIS YEAR (a 20 percent decline in orders placed during the fourth quarter of 2001-2002).
March 27, 2002... The fourth quarter (Jan-Feb-Mar) of 2001-2002 has failed to improve the balance sheets of Indian IT companies. The fourth quarter is the most preferred by IT vendors since most large orders are placed during this period by customers in order...

NOD FOR MAHYCO'S BT COTTON PLACES INDIA IN GM ORBIT (GEAC has given approval to Mahyco for a period of three years).
March 27, 2002... The Genetic Engineering Approval Committee (GEAC), Government of India, has permitted seed company Mahyco to commercially release three of the four genetically modified hybrid cottonseeds developed by the company. The three approved varieties...

HI-TECH TROUSERS POCKET INDIAN MALE VANITY (the Mobile Pants brand of Dockers has become successful in the Indian market).
March 27, 2002... The Mobile Pants brand of Dockers, which has nine hidden pockets, has become successful in the Indian market and has become a category by itself in just two months after launch. Dockers says that Mobile Pants would account for 35 percent of...

GOLDEN QUADRILATERAL PROJECT GETS OFF THE GROUND FINALLY (the Tada-Nellore section of the project has achieved financial closure).
March 27, 2002... The Golden Quadrilateral project, which proposes to link the four major metros of Chennai, Mumbai, Delhi and Kolkata by a four-way track over a period of two years, has finally got off the ground. The 110.8 km Tada-Nellore section of the...

INDIVIDUAL TARGETS LIKELY FOR COFFEE EXPORTERS (the top three coffee exporters may each be asked to export 30,000 tonnes).
March 27, 2002... The Ministry of Commerce, Government of India, is evolving a strategy that envisages asking the top nine coffee exporters to meet individual targets for 2002-2003. These top nine exporters could be classified into three groups for meeting...

FEW TAKERS FOR GSPL's DEADLINE (British Gas and Gaz de France have each been offered a 11 percent stake in the gas grid project).
March 27, 2002... Gujarat State Petronet Ltd, the nodal agency for setting up the Rs2,345 crore, 1,507-km gas grid in Gujarat, has set a deadline of 31 Mar 2002 for private sector players to pick up a portion of the $100 million equity in the project. But it...

GOVT PLANS TO RESTRUCTURE EPCs, COMMODITY BOARDS (the objective is to improve the functioning of the EPCs and render them more effective).
March 27, 2002... The Government of India is planning to reorganise export promotion councils (EPCs) and commodity boards in line with the changing international trade environment. The restructuring would cover the 10 EPCs under the Ministry of Commerce,...

RIL APPOINTS KVAERNER CO TO EXPAND PET CAPACITY (the plant will be designed to produce high molecular weight PET resin).
March 27, 2002... Reliance Industries Ltd (RIL) has contracted Kvaerner Powergas India (KPGI) to provide design engineering services for building its 2,20,000 tonnes per annum polyester resin plant at Hazira. This plant will help RIL expand its existing Relpet...

BIFR THWARTS MARDIA BID TO REGISTER AS SICK CO AGAIN (the company would not have turned sick if funds had not been diverted).
March 27, 2002... The Board for Industrial and Financial Reconstruction has rejected the third attempt of Mardia Chemicals to register as a sick company. This will benefit institutional lenders who have extended Rs800 crore to the company for its project to...