 |
|
|
ONGC gets nod for petrochem business
i-flex acquires US firm for $122.6 m
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Economic Advisory Council projects 7.9 pc growth rate
Aircel to get DoT letter for 8 circles
SpiceJet to sell and lease back aircraft
Floods, blasts hit diamond trade
Securities Bill passed in Rajya Sabha
Corporate News
|
|
ONGC gets nod for petrochem business
Dehra Dun, August 14 Petroleum Secretary M.S. Srinivasan said the company has been permitted to set up units to manufacture petrochemicals from residue from its refineries and using natural gas. “Worldwide, refineries are being converted into refinery-cum-petrochemical complexes to gain from the high margins on petrochemicals. Naturally, ONGC would also be encouraged to set up petrochemical complexes wherever they have refineries or have a natural gas source,” he said. The Rs 4,900-crore aromatic complex and olefin complex that ONGC has planned to set up adjacent to its subsidiary, Mangalore Refinery and Petrochemicals Ltd (MRPL) and the Dahej petrochemical complex in Gujarat are the natural extensions to get the maximum value out of refinery produce and natural gas respectively, he said. On fuel retailing, he said, selling petrol and diesel was a losing proposition and compensation in the form of oil bonds for selling fuel below the cost of production was only available to public sector oil retailers — IOC, HPCL, BPCL and IBP. “No such compensation mechanism is available to new players in this business, including ONGC,” he said, adding that the company board will take appropriate decision keeping the economics of the business in view. Petroleum Minister Murli Deora had earlier this month told Parliament that ONGC had deferred its plan for development of petrol stations. ONGC had been granted license to sell petrol and diesel and the company had envisaged setting up 1,100 petrol pumps but now the government was keen that it focused on exploration and production and not enter into a losing business.
— PTI OVL, Mittal may bid jointly for Kazakh block
ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC, may rope in Mittal group for buying stake in Satpayev block in Kazakhastan, a top company official said Monday. “Instead of going alone for buying the stake in Satapyev oil block we are looking at various options including bidding through ONGC-Mittal Energy Ltd (OMEL),” the official said on the sidelines of the ONGC golden jubilee celebration here. ONGC and Mittal Group are partners in OMEL formed last year. The new company has identified Kazakhstan among countries that they would be looking at. After months of studying the matter, OVL had in April indicated its preference for Satapayev out of two offshore blocks in Caspian Sea where Kazakhstan had offered India 50 per cent stake. Satpayev block is owned by Kazakhstan’s national oil and gas company KazMunaiGaz.
— IANS |
|
i-flex acquires US firm for $122.6 m
Mumbai, August 14 The acquisition will be funded by preferential allotment of i-flex shares to the majority share holder Oracle at Rs 1307.50 per share. After the conclusion of the deal, Oracle’s share holding will go up by 2.6 per cent to more than 55 per cent from the current 52.50 per cent, i-flex CMD Rajesh Hukku told reporters here today. The deal is likely to be concluded in 60 days time. Mantas, which is a leading provider of anti-money laundering and compliance software employs 150 persons and has a presence in more than 100 countries. The company’s revenue stood at $35 million during the last fiscal and the company has grown 25 per cent as against the year ago period during the first quarter of 2006. “With Mantas we are completing the whole footprint of risk and compliance as it complements and strengthens i-flex’s Reveleus’s risk and compliance portfolio,” said Mr Hukku. Mantas is likely to add to i-flex’s bottomline from the third quarter of the financial year 2006-07. The deal is expected to provide i-flex an added advantage in the $20 billion anti-money laundering software market as Mantas is already an established player in the space. The leading clients of Mantas include top banks and financial institutions like ABN Amro, Barclays, Citigroup, Merrill Lynch and Bear Streans.
— PTI |
|
Economic Advisory Council projects 7.9 pc growth rate
New Delhi, August 14 In an upbeat assessment of the economy’s performance last year and prospects for the next year, the EAC to PM has called for better infrastructure, more public and private investment in infrastructure, as a necessary condition for sustaining these high rates of growth. The EAC has also drawn the government’s attention to the need for “reasonable rates of interest”, and for lower fiscal deficit, particularly revenue deficit. Forecasting a 7.9 per cent rate of growth in 2006-07, the EAC says this will come from 1.5 per cent growth of output in agriculture, 9.7 per cent in industry and 9.5 per cent in the services sector. The sub-sectors driving growth in fiscal 2003-06 were manufacturing, construction, communication and financial and business services. Despite rising oil prices, due to which inflation at home has gone up from 4.1 per cent last year to 5.5 per cent this year, the EAC believes global growth will be sustained and that there are no significant external constraints for the expansion of the Indian economy. Industrial output has expanded at a rate of 10.1 per cent in April-June 2006, while export and import volume growth are indicative of reasonably strong external demand for Indian manufactures and domestic demand for raw materials and intermediates. Reflecting this outlook, the EAC projected a higher growth in industry this year (9.7 per cent) than in the previous year (8.7 per cent). In the service sector, the trade, hotels, transport, storage and communication sub-sectors are expected to decelerate from 11.5 per cent growth last year to 10.5 per cent this year. Consequently, the non-agriculture sector (industry and services) is projected to grow at 9.6 per cent, the same as the last year. Agriculture remains a major area of concern, partly because of its continued dependence on rainfall and partly because of stagnation of yields. The EAC says there is need for a vigorous push for new technologies, particularly for rain-fed crops, their active dissemination through extension supported by inputs, credit and rural infrastructure. Energy and other infrastructure pose the main constraint on acceleration of growth of manufacturing. |
|
Nooyi to be Pepsi CEO
New Delhi, August 14 Ms Nooyi, who had been named the 28th Most Powerful Woman globally by Forbes in 2005, will succeed Mr Steve Reinemund, who retires next May. Mr Reinemund, will serve the company as Executive Chairman and Director until his retirement. In her position as President and Chief Financial Officer she was responsible for all of PepsiCo’s corporate functions, including finance, strategy, business process optimisation and information technology. Prior to assuming her current position in May 2001, Ms Nooyi was the Senior Vice-President and CFO, and SVP of Corporate Strategy and Development. She has played key roles in the Tricon spin-off, the purchase of Tropicana, the public offering of Pepsi Cola bottling group and the merger with Quaker Foods. In a separate development, undeterred by the pesticide-in-cola controversy, the two soft drinks majors PepsiCo and Coca Cola today said their long-term investment plans for India were intact and would not be scaled down. All this, a day after the US Government said foreign investment inflows could be hit due to the controversy. PepsiCo India chief Rajiv Bakshi told mediapersons that the company’s investment plans would not be affected in any way though short-term plans could be reviewed. Echoing similar sentiments, a Coca Cola spokesperson said that in the past 13 years, the company had invested $1 billion in India. “We are committed to our plans,” he added.
— UNI, TNS |
|
Aircel to get DoT letter for 8 circles
New Delhi, August 14 The mobile operator, in which Malaysian major Maxis holds a majority stake, can enter anytime into the lucrative Delhi circle with DoT clearing its application for LoI, which is a pre-requisite for a licence. Aircel had applied for licences in 11 circles to create a pan-India telecom footprint. The company would be the seventh operator to foray into the Delhi circle, which has more than six million cellular subscribers. Meanwhile, TRAI Chairman Nripendra Misra has sought an extension of the tenure of chairperson and the members of the Authority from three years to five years besides seeking more powers for the regulator.
— PTI |
|
SpiceJet to sell and lease back aircraft
Mumbai, August 14 The aircraft will be delivered over approximately 22 months beginning in January 2007, the company said in a notice to the BSE here today. Earlier in the year, the company completed a similar financing with BBAM for its first four B737-800 aircraft deliveries. Together with today’s announcement, the company has now completed the financing of its first 20 aircraft orders for Boeing 737-800/-900ER aircraft. Airlines typically book a profit of between $2 million and $4 million by sale and lease back of each plane, aviation industry players said. Domestic air carriers, buffeted by rising oil prices amid increased competition, have resorted to sale and lease back of planes to fund expansion in a fast-growing market. For instance, another low-cost air carrier Deccan Aviation has closed deals for four Airbus A-320 planes, while top domestic carrier Jet Airways sold and leased back five aircraft in April this year.
— UNI |
|
Floods, blasts hit diamond trade
Mumbai, August 14 “Thousands of small units which are the backbone of trade have been thrown out of business by the floods,” says Mr Navin Mehta, President, Mumbai Diamond Merchants’ Association. Heavy flooding in the past week has resulted in more than 8,000 units, employing nearly a lakh of persons, shutting shop. “It will be very difficult for us to meet the Christmas orders from big clients in the West,” Mr Mehta said. The small diamond-cutting and polishing units collectively form India’s diamond export trade valued at Rs 54,000 crore in 2004-05. According to the office-bearers of the Gem & Jewellery Export Promotion Council, attempts are being made to shift some of the processing work to units in other parts of the country. However, the council expects exports to be hit this year. Surat is a major diamond-processing centre, accounting for nearly half the country’s export trade and employs more than 2,00,000 workers. The offices of big traders and exporters are located around Opera House in downtown Mumbai. When the bombs went off in Mumbai’s local trains last month, 12 of the victims were employees of these companies who were returning home from work. |
|
Andhra Bank scouts for acquisition
Chandigarh, August 14 This was stated by the Chairman and Managing Director of Andhra Bank, Mr K Ramakrishnan, during a brief visit to Panchkula, to introduce seven days banking in the branch. Talking to TNS, he said though they were planning to open 110 new branches across the country this fiscal, the bank was looking at acquisition of a bank with about 300 branches across western and northern India. “Opening new branches is a very expensive proposition. We are thus scouting ground for acquisition of a smaller bank. Though we are in talks with some banks, but it may take a while before the acquisition deal starts rolling,” he said, while refusing to give more details. “Besides, we will also introduce mobile banking, where a “bank on wheels” will reach out to customers, and offsite ATMs will be set up,” he said. Mr Rama K. Ramakrishnankrishnan also said that the bank was also looking for an income of over Rs 60 crore through insurance and mutual funds businesses. |
|
Securities Bill passed in Rajya Sabha
New Delhi, August 14 The Government Securities Bill, 2006, was passed in the Rajya Sabha today by a voice vote. The Lok Sabha has already passed the Bill. Earlier, members belonging to Samajwadi Party, TDP, and AIADMK walked out from House saying they wanted full discussion on the Bill. Replying to a brief discussion on the Bill, Finance Minister P. Chidambaram said the introduction of securities in demat form would remove the possibilities of losing, misuse or possible faking of securities. He said it would remove rigidities by allowing banks and financial institutions to open accounts in their own name as well as in name of clients for trading. |
|||||||
|
Corporate News
Mumbai, August 14 Fortis Financial has entered into a share-purchase and subscription agreement with ACERC Information Technology for acquiring 23.52 lakh equity shares of Rs 5 each at the prevailing market price, the company informed the Bombay Stock Exchange. Under the agreement, Fortis Financial would issue up to 10.71 lakh equity shares of Rs 10 each to Sanjay Padode for Rs 70 per share or the price determined as per SEBI Guidelines on preferential allotment basis, subject to shareholders approval. GMR ferro alloys arm
In a major restructuring move, GMR Industries Ltd, the flagship company of the GMR group, has said it will demerge its ferro alloys division to form a separate company — GMR Ferro Alloys & Industries Ltd. The Board approved the proposal to demerge the company’s ferro alloys division at a recently-held meeting and under this scheme of arrangement 38 equity shares of GMR Ferro Alloys would be allotted to every shareholder holding 100 equity shares in GMR Industries. GMR Industries added that it had also received the Board’s nod to merge its subsidiary Bharat Sugar Mills Ltd (BSML) with itself. BHEL bags Rs 1,224 cr order
Bharat Heavy Electricals Ltd has bagged an order worth Rs 1,224 crore from Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd for setting up a thermal power plant in the state. The order entails setting up a 500 MW power plant, with two units of 250 MW each (units 5 and 6) at Parichha TPS Extension, UP. The project would be commissioned in 2009-10, the engineering and manufacturing company said in a statement. Under the secured order BHEL would manufacture, supply, test and commission the main plant package along with associated auxiliaries and civil works. Bharat Alloys & Energy
VBC Industries Ltd today said it would merge Bharat Alloys & Energy Ltd with itself. The Board of Directors, at its meeting held recently, approved the draft scheme of merger with a swap ratio of 2:1, the company engaged in the food processing industry informed the Bombay Stock Exchange. Under the draft scheme of merger, two equity shares of Rs 10 each of the company would be allotted for every one equity share of Rs 10 each of Bharat Alloys & Energy Ltd, it added.
— Agencies |
|||||||
bb
Blue Dart delisting Strides Arcolab Titan outlets Apollo Tyres Clutch Auto Allahabad Bank Ranbaxy Lab
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
