Guess, what gift Lata gets on her birthday
MUMBAI, Oct 31 —Melody queen Lata Mangeshkar received a unique gift on her 70th birthday with the launch of an international perfume “Lata Eau Deparfum’’ at a glittering function here last night.

Getting used to Indian work culture
CHANDIGARH: “I hate three things in India: weather, employees’ work habits and journalists,” says Byung-soh Min, a top Daewoo Motors India official. He was in Chandigarh on Friday to attend the auto show at the CII consumer fair.

Punjab Tractors lifts net by 20 per cent CHANDIGARH, Oct 31 — Punjab Tractors Ltd has reported a 20 per cent rise in net profit at Rs 70.50 crore for the first six months of the current fiscal ending September 30 on a 13 per cent jump in the sales turnover to Rs 513.30 crore.

Company notes

There’s money in millennium sun

NEW DELHI, Oct 31 — India’s Tourism Ministry sees riches in the dawn of the new millennium as it expects to draw eager tourists from across the globe to an archipelago off the south-eastern coast to bask in the first sun rays of the new century.

“We are going to draw tourists from all parts of the world because the first rays of the sun would fall on Kachal, a small island in the Andaman and Nicobar beach islands,” says Tourism Minister Uma Bharati.

The Ministry is planning a big bash to mark the occasion so that tourists remember their rendezvous with the millennium sun for a long time to come.

“I am planning a big celebration there on behalf of the government”, gushes Bharati. She has called a meeting of all State Tourism Ministers of November 22 to finalise the programme for the celebrations. — IANS

Guess, what gift Lata gets on her birthday

MUMBAI, Oct 31 (PTI) —Melody queen Lata Mangeshkar received a unique gift on her 70th birthday with the launch of an international perfume “Lata Eau Deparfum’’ at a glittering function here last night.

Lata, who told guests about her love for perfumes, said though she was not very comfortable with the idea of a perfume being launched in her name, she could not ignore the persistent requests of the people.

Thespian Dilip Kumar along with his actress wife Saira Bano, a popular heroine of yesteryear and former MP Vaijyantimala Bali, film actresses Hema Malini, Sridevi, Preity Zinta, stage and TV actor Tom Alter and Shehnaz Hussain paid rich tributes to the melody queen whose songs have mesmerised generations.

Later at an auction for the perfume, the highest bid of Rs 3.05 lakh was made by film producer Bharat Shah. The proceeds of the auction will go to Shraddhanand Dayanand Ashram for Children here.

Launched by Gandh Sugandh, the beauty care division of Vishuddha Rasayanee Pvt Ltd, the perfume has been exclusively developed by Charles Caruso, a renowned French perfumer and evaluator, based in Grasse in south of France.

The brand will be available in the domestic market through select boutiques, showrooms and music shops and across the globe in duty-free shops.

Getting used to Indian work culture
By Nirmal Sandhu
Tribune News Service

CHANDIGARH: “I hate three things in India: weather, employees’ work habits and journalists,” says Byung-soh Min, a top Daewoo Motors India official. He was in Chandigarh on Friday to attend the auto show at the CII consumer fair.

Min, who is Daewoo’s Deputy Managing Director, Corporate Affairs and Communications, hastens to clarify “I don’t hate all journalists,” perhaps realising that he is talking to one of the tribe.

Min is actually angry with some reporters of financial dailies for spreading rumours about the Cielo, which he believes have been inspired by rival manufacturers of mid-size cars.

Launched in July 1995, the Cielo became an instant hit and its sales touched a new high in March, ‘96, leaving Maruti Udyog’s Esteem behind.

Then the rivals, says Min in an interview with Business Tribune, started putting up roadblocks by spreading misinformation about the car. Rumour-based reports appeared in newspapers that the Cielo was not fuel efficient (“Its average actually comes to 12.5 km per litre,” claims Min), that the multi-point fuel injection (MPFI) system won’t work in India, that there were problems relating to spare parts and after-sales service and , still worse, the Cielo was being phased out.

All this upset officials at Daewoo, which has invested Rs 4,000 crore in setting up a manufacturing plant and R & D facilities in India.

However, Matiz (a Spanish word meaning “very beautiful”) , which has evoked a positive response, has lifted officials’ spirits and put Daewoo in the top gear. The latest JD Power survey has showered praise on the Matiz. In the “Lease Plan Fuel Average Test”, conducted on July 24,’99, Matiz beat its nearest rivals by giving an average of 13.7 km per litre compared to Santro’s 13.2 km and Zen’s 11.8 km

The sleek Italian design combined with the launch of cheaper models has pushed Matiz sales to 17,500 cars since its launch in November ‘98. The company has started exporting Matiz to Egypt and Sri Lanka.

Widely travelled 55-year-old Min is not as much upset with Indian heat as he is with Indians’ work habits. To illustrate, he gives an example.

“When I give an employee an assignment, I usually ask: ‘is there any problem?’ ‘No’, he says. Yet he fails to carry out the assignment and doesn’t report to me. When I get back, then he starts telling problems he faces. If he tells me these problems beforehand, I could have helped him solve them.”

Min, who puts in 12 hours of work daily, is getting used to Indian ways of doing things — or rather not doing things — as he has been in India for three years and six months.

Punjab Tractors lifts net by 20 per cent
Tribune News Service

CHANDIGARH, Oct 31 — Punjab Tractors Ltd (PTL) has reported a 20 per cent rise in net profit at Rs 70.50 crore for the first six months of the current fiscal ending September 30 on a 13 per cent jump in the sales turnover to Rs 513.30 crore.

The company had recorded a net profit of Rs 58.70 crore and a turnover of Rs 454.50 crore during the corresponding period last year.

A manufacturer of popular ‘‘Swaraj’’ tractors, Punjab Tractors has also declared an interim dividend of 65 per cent, taking the total dividend for the first half to 130 per cent, a company release said here.

The company had declared a dividend of 250 per cent during 1998-99, the highest ever in Indian corporate history.

During the first half of the current fiscal, the company has also managed to clock a 12.6 per cent increase in tractor sales at 25,367 units compared to 22,522 units sold during the same period last year.

Commenting on the performance, Mr Yash Mahajan, the company’s Vice-Chairman and Managing Director, said: “Continuing emphasis on process excellence and maintenance of cost discipline has kept the company on a rising, profitable course”. As a result, the margin at the PBT level for the half year (without dividend income) has risen to 17.9 per cent (last year same period 16.8 per cent).

Swaraj Engines: Swaraj Engines has announced a rise of 28 per cent in its net profit in the first half of the year ending September 30, 99, and a second interim dividend of 55 per cent.

The growth in engine and component production has raised total revenues for the first half to Rs 67.5 crore an increase of 20 per cent over April-September ’98.

Improved productivity and gains of backward integration have raised pre-tax profit by 36 per cent to Rs 12.5 crore for the half year — a margin of 18.4 per cent (last year 16.2 per cent).

Profit after tax of Rs 8.7 crore represents an EPS Rs 41.8 per share (H1 of last year Rs 32.6).

ITC Bhadrachalam: ITC Bhadrachalam Paper Boards reported a 69 per cent decline in the net loss for the second quarter at Rs 7.5 crore as against Rs 24.3 crore for the same period last year, adds UNI.

For the first half of 1999-2000, the net loss fell by 37 per cent at Rs 20.6 crore as against Rs 46.3 crore a year back.

The net sales went up 35 per cent at Rs 107 crore from Rs 79 crore while total expenditure increased by 18.4 per cent at Rs 93 crore compared to Rs 78.5 crore during the second quarter under review.

Gujarat Ind Power Co: Gujarat Industries Power Company has reported a 61.44 per cent increase in its net profit to Rs 11.22 crore during the quarter ended September 30 last, adds PTI.

The company’s net profit during the six months of the current fiscal was higher at Rs 25.24 crore, against the net profit of Rs 20.10 crore for the same period in the previous year.

The company had a net turnover of Rs 111.51 crore during the second quarter, 37.07 per cent higher than the Rs 81.35 crore during the corresponding period last year.

SRF Ltd: SRF Limited on Sunday reported a 144 per cent jump in profit before tax (PBT) at Rs 10.85 crore for the second quarter ending September 30 on a 6 per cent rise in sales at Rs 155.73 crore over the same period last year.

The company had reported PBT of Rs 4.45 crore and net sales of Rs 146.95 crore during the corresponding period last year.

SRF Ltd’s net sales during the April-September 1999 period rose to Rs 313.15 crore as against Rs 275.72 crore recorded during the corresponding period last year.

BHEL

WHILE the power and capital goods segments witnessed negative growth, Bharat Heavy Electricals Ltd (BHEL) has consistently outperformed its contemporaries. With depreciated plants and a phenomenal cash generation of Rs 950 crore per annum, BHEL is in a position to meet its recurring capital investment of Rs 100 crore per annum over the next few years, meet annual debt repayments of Rs 140 crore and even provide suppliers credit. BHEL-built sets now account for 65 per cent of the installed generating capacity in the country. In addition, 12 units equivalent to 249 mw industrial sets were also commissioned during the year. It expects to add 300mw industrial sets during the current financial year.

Notably, BHEL bagged all power projects awarded during the previous year under international competitive bidding. The more prestigious orders bagged include NTPC’s 430 mw project, MSEB’s two 210 mw projects, Maharashtra Government’s two 125 mw projects and three 50 mw power plants in Tamil Nadu. It has bagged a major share of prestigious orders for centrifugal compressors and heat exchangers for various refineries. Watch the share price of this company closely and pouch it at declines.

Chicago Pneumatic

A 51 per cent subsidiary of Chicago Pneumatic Tools, US (a part of the Atlas Copco group, Sweden), Chicago Pneumatic India (CPI) has been a steady performer over the years. One of the prime reasons for its better performance could be that it has been a sourcing base for the parent company and hence, the effect of the industrial slowdown in the economy is offset to a certain extent. Engaged in the manufacture of compressors and pneumatic tools. the company has created a niche for itself in pneumatic tools.

Its products find application in a number of industries construction, mining, water well development and automobiles. Though all these industries are facing a recessionary trend, their revival should benefit companies like CPI tremendously. Furthermore, the expected infrastructure boom will further boost CPI’s prospects. In view of the company’s potential and FERA status, investors with a medium to long-term perspective could consider investing in this scrip.

Gestetner (India)

A 51 per cent subsidiary of Gestetner, UK, Gestetner (India) Ltd (GIL) is atop the ladder in the duplicators segment, boasting of a market share of 70 per cent. The parent has the distinction of being a leader in the global market. Prior to 1994-95, the company’s performance was far from satisfactory. However, fortunes took a turn for the better after an increase in the equity stake by the parent and the launch of new and upgraded products. Since then, the company has started performing exceptionally well. Financially, the company has been registering satisfactory results. The acquisition of the parent company by the Japanese giant, Ricoh (a Fortune-500 company), could prove beneficial to GIL, as Ricoh is a larger and more profitable group. In February 1997, the company launched new models of copy printers.

Now that the parent is Ricoh, GIL can take advantage of the former’s technology expertise and can introduce models of superior quality. All signs point toward excellent growth in the future. Thus, discerning investors could consider investing in this scrip.

Bajaj Auto

Bajaj Auto Ltd (BAL) is a leading player in the two wheeler segment. After losing ground to its competitors over the past couple of years, Bajaj Auto is now slowly but steadily regaining its market share. The company also plans to invest Rs 700 crore in expansion over the next five years. It is planning to launch seven new models. At present, Bajaj Auto has 64 per cent market share in the scooters segment, 44 per cent in Scooterettes, 22 per cent in Mopeds, and 14 per cent in motorcycles. It is now focussing on the motorcycles segment and plans to project itself as a motorcycles manufacturer.

On the financial front the company can boast of a good track record. For the year that ended in March 1999, the company posted sales and net profit at Rs 2962 crore and Rs 540.5 crore, respectively. The EPS therefrom worked out to Rs 44.4. And though not much of a slowdown in growth has been faced by the two wheelers segment compared to that experienced by other segments of the automotives industry, the company needs to be careful in driving home its advantage of economies of scale and zero-debt. This scrip thus merits the attention of discerning long term investors.

Reckitt & Coleman

A 51 per cent subsidiary of the British giant, Reckitt & Coleman, Reckitt & Coleman of India has diversified interests in toiletries, household products, pharmaceuticals, etc. Household products contribute the maximum to the sales which amounts to nearly 34 per cent.

The company has now set its sights on the rural market and to tap the same it plans to resort to aggressive brand marketing. Recently, the company introduced a myriad range of products which include, Dettol Shaving Cream, Lizol, Woolite, etc. The company plans to resort to rapid indigenisation of raw materials, which could prove beneficial for its future prospects. It should also benefit considerably from the reduction in corporate taxes in the last budget.

Being a zero-debt company, Reckitt & Coleman (India) has a greater scope to raise funds for further expansion or modernisation. Backed by strong parental support, it now appears poised for excellent growth in the future. The same render its medium to long term prospects encouraging and investors with a long term perspective could consider investing in this scrip.

Hind Petro

The second largest refining company in the country, Hindustan Petroleum Corporation Ltd (HPCL) operates with a refining capacity of 10 mmtpa which is spread over two units, one at Mumbai and the other at Vishakapatnam.

On the financial front, the company’s performance over the past two years has been impressive. For the year that ended in March 1999, the company posted sales and net profit of Rs 23,910.3 crore and Rs 901.3 crore, respectively, thus resulting in an EPS of Rs 38.7.

Hence, notwithstanding the setback suffered on account of the fire mishap at its Vizag plant, the prospects of the company appear bright.

— Ashok Kumar

by J.C. Anand
Sensex may stabilise as the worst is over

DURING two trading sessions last week, the stock market went down by 312 points on the BSF Sensitive Index. Surprisingly, this decline came at a time when there was a plenty of good news. The USA had announced the lifting of some economic sanctions against India and the truckers’ strike had been called off. A large number of traders riding the bull were severely mauled by the beer. It, however, appears that the worst is over and the market is likely is stabilise, if not stage a mild recovery, this week. But it would take a pretty long time before the market touches 5000 points on the Sensitive Index once again.

Many explanations have been advanced for this sharp and rather unexpected decline in the stock market. The badla rates were very high and the traders had to unload themselves. The market was heavily overbought. In many cases, quite a number of blue-chip equities were quoting much above their fundamentals and earning capacity. These explanations are alright but the real explanation is that the market was deserted by the FIIs and the mutual funds were unwilling to stabilise the market.

It is now a well-known fact that the FIIs usually sell and book profits on their investments in November-December every year, for the FIIs have to present their annual accounts for the year ending December 31. This year, the FIIs started their profit-booking in October itself. What they sold was not picked up by the financial institutions and the mutual funds; and the small investors did not have resources to fill in the breach.

The FIIs started profit-booking earlier this year for they recognised that the stock market could not sustain itself at the P/E ratios prevailing at present and the best strategy was to book profits. The market had taken flight largely on the expectation that the BJP-led coalition would now be able provide political stability for the next couple of years and it would also usher in an era or reforms.

This expectation was not misplaced but the market failed to realise that while the stock market was booming, the economy was in bad shape. The country was in the danger of falling into a domestic debt trap. The new government has made it amply clear that it would have to take hard decisions to place economy on a relatively sound footing. The decision to raise the diesel prices and refusal to change the new rates in spite of the truckers’ strike shows that the government means business.

The second quarter results are a mixed lot. While on the average, the corporate sector has done well, some of the top companies have shown poor results. A leading financial daily has in a recent analysis based on the second quarter results of 800 companies stated that while the sales have gone up by 16.3 per cent and the net profit has moved by by 15 per cent, some of the blue-chip giants have suffered rather heavily. Even in the same sector some top companies have done well, others have performed poorly. While Ambuja Cement has done well, ACC has suffered a sharp decline in its net profits. Again while Glaxo has performed poorly, Novartis has performed very well. Some of the blue chip giants like Larsen & Toubro and Tata Tea declared poor results. Broadly speaking, the automobile and software sectors, have been doing well.

Another surprise is that even in some scrips, the market rates have gone down even though the companies have done well. Take the case Hindustan Lever as an instance. The corporate sector scrips can be subdivided into two sections: first, where the results are bad and the second where the results are good but the market has dragged them down in terms of the market prices. The first category would take considerable time to come up but the second category scrips would recover relatively earlier.

What should the long-term investors do in this situation. It is no time to liquidate holdings in blue-chips equities. Sit on them and the market is bound to improve in January. Is this the time to make fresh investments? A proper assessment can be made only at the close of this week. The Divali is not likely to be a sun-shine affair for the corporate sector this year.

I expect some harsh decisions to be taken by the government in economic affairs. A surcharge of 10 to 15 per cent is likely to be imposed on the current income tax rates in the category of 20 per cent and 30 per cent rates in the next budget. The corporate tax would also move up in terms of some surcharge placed on it. The consumers, including the corporate sector, are likely to suffer from increases in electricity and petro-products rates. “What to buy” and “what to sell” will discussed in the column next fortnight.

by K.R. Wadhwaney
Sahar airport to be modernised

Sahar International Airport (Mumbai) will soon have category III instruments landing system (ILS). The ultra-modern system will increase safety of aircraft and double aircraft movements to 40 per hour. The automation of the air traffic control functions will save fuel substantially.

The similar system is functioning smoothly at Delhi airport. The initial problems, that existed between Airports Authority of India (AAI) and Raytheon Company of the USA, have been sorted out and there is now rapport between buyer and manufacturer.

The Raytheon system provides electronic guidance to aircraft approaching for landing. It is a precise guidance to pilots who can land even when visibility is poor. The system helps pilots undertake landings which looked ‘risky’ in the past.

Though belated by more than five years, the cabinet is said to have cleared the proposal for expansion of the Delhi Airport. The detailed proposal along with requisite drawings are awaiting clearance of the project approval board (PAB).

Apart from about half-a-dozen international airports, the AAI is also engaged in developing and modernising several other airports and air-fields. The task of modernisation is difficult but it can be achieved without much problem if the AAI lays more emphasis on the development than looking at the balance-sheet.

The AAI’s main functions are progress and safety of passengers and aircraft than displaying huge profits to satisfy politicians.

Corridors for arrival and departure have been widened to avoid mid-air collisions.

In 1997 the functioning of instruments was erratic causing concern to pilots approaching for landing. There is now far greater understanding between pilots and air traffic controllers. Several other gadgets, including VOR (Very high frequency Omni Range) is functioning in a proper manner.

The efficiency of air traffic controllers has increased substantially with the installation of new gadgets and systems, but there are some ATCs who still give preference to foreign airlines to two national carriers. As a result pilots of Air India and Indian Airlines have to hover around the airport and thereby consume more fuel than it is necessary under normal conditions. The Directorate-General of Civil Aviation and the AAI should probe into this affair.

Inflation up
NEW DELHI, Oct 31 (PTI) — The inflation rate continued its upward movement and rose to 2.84 per cent for the week ended October 16 mainly on account of indirect impact of recent 35 per cent hike in the diesel prices. The annual rate of inflation, based on WPI, recorded an increase of a 0.33 percentage points during the week to 2.84 per cent (provisional) from 2.51 per cent (P) in the previous week and 8.10 per cent during the corresponding week last year. The sharp rise in the inflation rate is mainly due to a 1.7 per cent jump in fuel, power, light and lubricants’ index.

Meena Bazaar
CHANDIGARH, Oct 31 (TNS) — Meena Bazaar, Sector 17, Chandigarh today opened its new outlet at Manimajra. The store, which was inaugurated by Mr Pawan Kumar Bansal, M.P. offers an inaugural “cash hunt” scheme.