Monday, November 15, 1999
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B U S I N E S S | Monday, November 15, 1999 |
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State law covers
firm’s all branches: SC
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They work till they drop Pfizer wins case Copter service for Katra soon SBI unveils plan Rs 1,000 notes from January
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International
trade fair opens in Delhi NEW DELHI, Nov 14 —The Union Minister of Commerce and Industry, Mr Murasoli Maran today said that the government was working on a scheme to facilitate faster flow of foreign direct investment (FDI) through the automatic route. Inaugurating the India International Trade Fair (IITF) here, Mr Maran emphasised the need for introducing the next set of reforms by changing the focus from regulation to facilitation. Calling upon the industry to make India the ‘‘most desired destination’’ for foreign investment, Mr Maran said that foreign investors need not worry about delays in implementation. Referring to IITF, Mr Maran said that in the past 18 years it has matured into a “ microcosmic depiction of Indian industry in its diversity”. Union Minister of State for Commerce Omar Abdullah said that IITF was known for its unique character in providing a forum for serious business while retaining some elements of the good old mela. India Trade Promotion Organisation CMD Yogesh Chandra said that IITF, organised annually since 1981, provides vast opportunities for on-the-spot business besides providing a major forum for international business organisations. Over 5,200 enterprises are participating in IITF 99 directly or through State pavilions, central ministries and associations. In terms of space it occupies an area of 1,25,00 square metres. International participation consists of over 70 companies from 14 countries which includes Bangladesh, Bulgaria, Bhutan, China, Czech Republic, Italy, Nepal, Oman, Pakistan, Sri Lanka, South Korea, Thailand, Tunisia and Russia. Haryana Pavilion: Haryana Pavilion at IITF gives a new look this time. Mr G. Prasanna Kumar Chief Administrator of the pavilion, said that the ground floor has been earmarked for electronics, automobiles, packaging, pollution control, handloom and handicraft industries of the State. A fire-fighting system has been made functional on this floor. The first floor projects the State’s policies. The second floor has been named as ‘‘Hamara Karobar’’ depicting electrical motors and pumps, automobile components etc. The third floor presents consumer goods, which included toys, transformers and fridges. The top floor is named
‘‘Apna Ghar’’ showing the modern
amenities of bed rooms and bathrooms. |
State law covers firm’s all branches: SC NEW DELHI, Nov 14 (PTI) — In a significant judgement having bearing on all private and public establishments, the Supreme Court has held that a law of a State applicable to an organisation’s head office will extend to its branches in all other States. The Transport Corporation of India (TCI), having its head office at Secunderabad, had challenged a Mumbai High Court order favouring applicability of the Employees State Insurance (ESI) Act enacted by the Andhra Pradesh Government to its branch office in Mumbai. Dismissing the appeal with a cost of Rs 20,000, a three-Judge Bench headed by Justice s b Majumdar held that “Once the registered office or the principal office of the appellant is covered by the Act, all its branches in any part of the country would be governed by the same Act.” However, the Bench said these branch offices had to be under the supervision and ultimate control of the principal office. The dispute arose when the ESI Corporation in Maharashtra had in July 1986 served a show cause notice to TCI’s Mumbai branch asking why it should not contribute for a period between May 1991 and November 1985 and the latter claimed that it was not covered under the Act of Andhra Pradesh in the absence of similar legislation by Maharashtra during the relevant period. The TCI had moved the Mumbai High Court against an order issued by the ESIC Deputy Regional Director in September 1988 saying if the main office was covered by a notification of Andhra Pradesh, then its branches, wherever they are situated, also stood covered by it. Though a single judge of the high court had quashed the order on the ground that the appellant’s establishments were not covered by the notification of Andhra Pradesh, a Division Bench set aside this decision and upheld the decision of the ESIC and thus an appeal was preferred before the apex court. The Supreme Court said:
“There is no escape from the conclusion that once
the appellant corporation having its registered office at
Andhra Pradesh is governed by the Act, its branch offices
would automatically get covered by the sweep of the Act
by the very same notification”. |
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FRANKFURT, Nov 14 (DPA) — Computer programmer Peter may not live in the lap of luxury, but his work environment comes a close second if you are fond of crackers and chocolate, bananas and bread rolls, plus the services of a hairdresser and a masseur (both female). And they cost him nothing, although they can hardly be described as free, since he has to work for them. Work is the quid pro quo. He seldom gets a full night’s sleep, seldom has a night off and seldom sees his friends. Overtime and tight schedules are normal in multimedia, and “goodies’’ such as these are what employers offer their staff as an extra incentive, especially as the staff they are looking for are worth their weight in gold. Multimedia is a business in which unemployment is unheard of. Nine out of 10 multimedia companies in Germany are desperately seeking skilled staff, according to a survey of 100 firms by the Duesseldorf-based German Multimedia Association and Munich publishers Hightext-Verlag. Programmers, project managers and computer graphics specialists are in particularly short supply. “Really good people are hard to find,’’ says Maurice Morell, Public Relations Manager of Hamburg-based Elephant Seven Multimedia. And once it finds them, the near-infant industry (age: about six) has to struggle to keep them. “Head-hunters bombard us with calls,’’ Morell says. Financially, multimedia jobs are not necessarily lucrative. “In many areas there are no wage agreements,’’ says Frankfurt trade union official Klaus Pickshaus of IG Meiden. And contracts often specify that “overtime is covered by the salary.’’ There is no such thing as a regular working week, he adds. “They work until they drop, and many take work home with them.’’ “Our staff are 80-per-cent single and work very long hours,’’ says Michael Lobscheid, spokesman for Cologne-based Pironet, which has been in multimedia for five years. One of the goodies that it offers staff is a free ironing service for shirts. Staff can hang dirty shirts on a stand. A laundry collects them and returns them washed and ironed a few days later. Pixel Factory in Frankfurt’s twin city, Offenbach, offers its 74 staff plenty too. Founded in 1994, the company lays on a female masseur twice a week, and the staff room contains a full freezer, a TV and a play station. “Sweets and fresh fruit and vegetables daily,’’ adds spokeswoman Katharina Krickow. Pixel Factory, she says, has hired a member of staff who does nothing but cater for the well-being of the others, who often work until late at night. “He buys fresh flowers every day too,’’ she adds. “We find we have to offer staff more than money,’’ says Elephant Seven Multimedia’s Morell. His company’s staff are offered a back massage once a week, can pump iron in a keep-fit studio at the firm’s expense and can attend courses in communication training or managing priorities. At Aperto Multimedia in Berlin, the working day begins with a breakfast buffet. Staff can then help themselves from a box of sweets or take the company’s dog out for a walk, says Aperto’s Anke Sinnigen. Aperto has a payroll of 56, and once a year they all go on holiday together — at the company’s expense. “You have to see how to keep people,’’ she says. Lutz Goertz of the
German Multimedia Association says there are currently
about 55,000 multimedia jobs in German-speaking
countries, with between 6,000 and 7,000 new jobs a year
being created. The “goodies’’ idea is not,
in itself, anything new. “Miners used to get a free
hundredweight of coal every so often,’’ says
Goertz, “and brewery staff can take home a crate of
beer now and then.’’ |
Punwire
needs Rs 20 crore for revival CHANDIGARH, Nov 14 — Once it was a jewel in the crown of the PSIDC. Now it is knocking at the doors of the mother organisation and there the dumb Directors promise something and later refuse to deliver. This is the story of Punwire whose share price once touched Rs 480. Now the price is as low as Rs 70. It has not been able to pay the salaries and what is worse, orders worth Rs 120 crore in its register books are difficult to meet. Bad days befell on this prime public sector concern that had constantly made profits since 1980 when it over-stretched itself and created seven subsidiaries to enter telecom service sector in a big way. Even here, it might have done well, but for the quick shifts in the telecom policy that destroyed much of the equity base of several companies. It had thought of making a quick buck in league with the multinational companies, but reaped losses instead. Punwire was merrily spinning money in the manufacturing of several telecommunication products including strategic equipment for defence and had a high rating. Later it went into paging services in 12 States and 10 cities, radio trunking in 36 cities and vast services. Here some MNCs like Telia of Sweden, IFC of Washington, AIG and CDC of the USA, all backed out. They were to provide some over Rs 1,200 crore to participate. The shift in telecom policy discouraged them and some thought the Punwire proposal was just not worth the effort. While the Government and the PSIDC have asked price waterhouse, a major British financial consultant, to make a detailed study of Punwire, the boards of the PSIDC and Punwire have made a number of suggestions. These are: The period of licence has been increased from 10 years to 20 years, which is further extendable by 10 years. Revenue-sharing arrangement has been allowed instead of fixed annual licence fee. The effective date of all licenses will be extended by six months. The Telecom-99 will significantly improve the profitability of service projects and will result in jump-starting the penetration of service. The telecom projects will once again catch the investor fancy and will be able to provide better cost effective communication to the consumer. The following are direct benefits to Punwire from Telecom P-99. Paging projects will become more viable with the relief in licence fee, which was 40 crore per annum. With the revenue sharing arrangement, which will be of the order of 5-15% maximum the operations will achieve cash break-even by March, 2000 and no further investment will be required from Punwire. Punwire Directors feel that paging is now going to take its rightful place in India with the hike in rentals and call charges to cell phones creating a large differential between cellular and paging. According to Mr Gurpal Singh, Managing Director of Punwire, the company needs Rs 20 crore to get revived. Out of the orders in hand, it could earn a neat Rs 25 crore this year alone. Its real networth can just be doubled. According to Mr Ramesh Inder Singh, Vice-Chairman of the PSIDC, such money is not difficult but the banks are insisting on escrow account so that profits are routed and used through the banks. This may not really help. There is some
disagreement. Some Directors want an outright sale of all
subsidiaries and thus see Punwire out of existence. It
would be killing the goose that could still give golden
eggs. Here some industrial houses too are playing their
role to see that the prime company goes first to dogs and
then is sold cheaper. |
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MOSCOW, Nov 14 — American pharmaceutical giant Pfizer has inflicted a serious blow to one of India’s premier pharma companies in the lucrative Russian market by successfully suing Dr Reddy’s Lab for patent violation. Dr Reddy’s Laboratories has been supplying to Russia its own product “Stamlo”, reportedly similar to Pfizer’s product “Norvask”, used for curing heart ailments. Pfizer went to court in Russia last year against the Indian company. The Russian Federal Arbitration Tribunal has now ruled in favour of the American multinational giant whose case in the trial was fought by the famous legal assistance company Baker and Mckenzie. Dr Reddy’s Lab has
the right to appeal in the Supreme Arbitration Tribunal
of Russia. — IANS |
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JAMMU, Nov 14 (UNI) — Union Minister of State for Civil Aviation Chaman Lal Gupta has said the disinvestment of the Government airlines is under consideration and formal announcement in this regard is expected soon. Talking to reporters here today in the Press Club, Mr Gupta said the airlines were already run in the loss and the Government is not in a position to bear further loss anymore. To make the airlines a profitable endeavour, the disinvestment of the Government airlines will be introduced very soon. He disclosed that Pawan Hans helicopter service will be started from Jammu to Katra soon for the convenience of Mata Vaishno Devi pilgrims. For this purpose a new helipad will be constructed and discussion in this regard with the shrine board is in final round. The government is also considering a direct flight from Srinagar to Jeddah for Haj yatris of Jammu and Kashmir. The Kargil airport will be made operational very soon and the reconstruction work at the airport was going on speedily. He said one more flight of Indian Airlines will be introduced in every week for Leh-Ladakh instead of two flights a week being operated at present from the Jammu airport. The Centre is
considering to boost up its operation to control the
situation and a meeting is going to be held in New Delhi
this week. |
SBI
unveils plan CHANDIGARH, Nov 14 — The SBI today launched a customer service improvement plan at its NRI and Harbans Nagar branches at Jalandhar to compete with private and foreign banks. Launching the scheme, Mr
Prabhakar Sharma, CGM, SBI Chandigarh Circle, said that
the plan envisages courteous and prompt customer service
at the counters, better and congenial environment, quick
processing and collection of cheques/other instruments.
Mr R.K. Khanna, AGM Zonal Office Punjab, Ludhiana, asked
the employees to take a more serious and responsible
attitude in accepting the new challenges. The Branch
managers and the employees promised to participate in the
plan whole-heartedly so that the bank could make tangible
progress in all spheres. |
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NASIK, Nov 14 (PTI) — Currency notes of Rs 1,000 denomination will be available from January next year, a Joint Secretary Navin Kumar, has said. The design of the note
has already been sanctioned. The notes will be printed at
the Nasik Road Currency Note Press and Mysore Government
Press, Navin Kumar, who was on a two-day visit to Nasik
Road, said yesterday. |
AS it had been anticipated in the last fortnight’s column, the market indices have stabilised and any further losses have been cut. But it would take a long time before the Sensitive index touches 5000 points mark again. The market is likely to move within a narrow range in this month as well in December. Only in January 2000, the market may be expected to revive. Even then, the real improvement may be expected only in mid-2000 in case there are no political upheavals. There is no doubt that the economic and industrial recession is on its way out and the industry is now on the path of recovery. According to the latest available data, the industry has recorded an impressive 6.4 per cent growth in the first half of 1999-2000 (April-September), as against 4 per cent in the corresponding period last year. For the month of September, 1999, industrial output has spurted to 7.6 per cent. In spite of this welcome development, the corporate results for the year ended March 31, 2000 are not likely to be much better than the half year results announced recently. The telecommunication and software companies are, of course, expected to report excellent results. The stock market’s behaviour will depend upon a number of factors: the Budget proposals for the financial year 2000-2001, the inflow of FII funds, the extent of drain on the investor’s funds caused by the sale of public sector units. The Budget proposals are likely to raise both the income tax and the corporate tax rates by the imposition of surcharge on these rates. When an investor seeks to make long-term investments, he should keep himself awake to the possibility, that appreciation in the stock would not be immediate or even a short-term one but it would take a relatively long term to come. It is against this background that I am trying to identify some good and promising investment scrips. I have no hesitation in recommending Sterlite Industries around its present market price of Rs 380 per share. The reader may recall that this share had been recommended in this column at Rs 120 per share and later at Rs 244 per share. To my mind, this investment is without much danger of moving down from its present market price but it may jump up to Rs 450 by January 2000 and to Rs 550 or higher in October-November 2000. It has an equity capital of Rs 44.45 crore (which may go up by the allotment of 21.13 lakh shares of Rs 10 each at a premium to the FCCB holders) but its free reserves stand at 1249.33 crore (to which the premium for new shares to be allotted will be added) for the year ended 30.6.1999, its net profit was Rs 160.80 crore. For the quarter ended 30.9.1999, its net profit is Rs 49.37 crore (as against Rs 29.39 crore for the corresponding period last year). The company is the leader in all segments of cable industry and also has a copper smelter plant. It appears to me to be an underpriced share. Another company which may be considered for investment is Coates of India. Along with Hindustan Inks, Coates of India leads the printing inks industry in India. Coates of India has not been doing well for the present, though at one time it was the leader in the industry. But a recent development is expected to make a sea change in its fortunes. Its foreign collaborator, Totalfina had only a marginal interest in printing inks in its international business, but now it has sold its inks business to Dainippon Ink and Chemicals of Japan (that is to Sun Chemicals, which is a subsidiary of Dainippon), which is the leading international company in the inks industry. The Coates of India quoted around Rs 85 six months back, then it spurted to Rs 270 a month back. Now it is quoting around 180 per share. I expect about 30 to 50 per cent rise in its share price within a year. Dainippon which controls about 44 per cent of the world market in inks is likely to raise its equity holding in Coates and raise its manufacturing capacity and diversify its range of products within the industry. Reliance Petro (now around Rs 57 per share) and Vashisti Det (now around Rs 47 per share) are expected to appreciate by 20 to 30 per cent within the next six months. Indian Organic and Herdillia Chemicals should also be kept under watch as these companies are expected to show much better results in the accounting year March 31, 2000. Vikas WSP, Cyber Tech,
Global Tele (all recommended in this column earlier)
should be retained as there is a lot of steam left in
these scrips to drive them upward to greater heights.
These scrips have appreciated by more than 150 to 600 per
cent from the rates at which these had been recommended
in this column in the first half of 1999. |
THE Airport Authority of India (AAI) does not seem to believe in “ services to users”. But it appears to practise in accumulating profits. The more profits it generates, the better rating it gets from Ministry officials. This is not a healthy trend in the Indian aviation industry which has pushed it backward. The landing and parking charges levied on users are indeed lower than those charged at many other airports worldwide. But the charges imposed on users are much more than the facilities offered to them. The survey shows that charges have been revised on at least three occasions during the last decade. But the facilities, unfortunately, have not been trebled. There is a virtual chaos when flights are bunched for one or the other reason. Come December-January, flights are delayed inordinately for hours because of fog. Maybe, such incidence will reduce this winter as ILS III category has been installed at the Delhi airport. But facilities for passengers particularly for airlines, are negligible in relation to landing and parking charges collected from the users. The AAI has again written to the International Air Transport Association (IATA) for the hike of about 9 per cent. The similar proposal was submitted to IATA last year. The toothless IATA agreed the AAI’s proposal in principle but suggested it to defer it until it augmented facilities at several airports. The AAI has renewed its demand for hike. No one knows what facilities have been improved at the international airports. IATA may concede to AAI Chairman D.V. Gupta’s proposal to some extent. According to airline officials, the hike of 9 per cent will be rather “steep”. IATA may recommend the hike for about 5 per cent. This hike, if agreed upon by the airlines, would fetch the AAI about Rs 15 crore revenue annually. A proposal renewed: The proposal to upgrade Amritsar airport has been renewed with all intensity. It is a fact that a lot of traffic to Europe and the USA is generated from Punjab. The Government is keen for its upgradation and so is the Punjab Government. The Punjab Government has already acquired land to construct an ultra-modern airport and sufficiently long runway so that wide-bodied aircraft can land without any problem. The need to have an international airport in Amritsar is genuine and realistic. This is the time for the Punjab Government to translate proposal into reality. First airline: Sri Lankan Airlines took delivery of the first of nine- A-330-200s becoming the first with the aircraft in Southwest Asia. This is reportedly a modern and comprehensive family of aircraft. The aircraft will carry
30 passengers in business class and 251 in economy. |
JCT I invested Rs 5000 as a fixed deposit with JCT Limited, Thapar House, 124, Janpath New Delhi vide FDR No ALK 0073/097406 dated January 5,1996. I was to get the payment in January 1998. In spite of making best efforts I could not get my money back. Subhash Taneja K.G. Denim I hold 100 debentures of K.G. Denim Ltd, Jadayam Palayam, Coimbatore. Its partial redemption fell due on June 9, 1999. Since then I have been requesting for the redemption proceeds but company is not paying any heed to my request. My registered Folio No. is 22777. Tajinder Kumar
Kohli Videocon Intl I sent 200 shares of VNEL with VNEL Folio No M-0055122 for exchange with Videocon International Ltd and also intimated with regard to change of my residential address. Till date shares of Videocon International Ltd have not been received by me so far in spite of many reminders. Meena Mehta
(Mrs) II I sent 200 shares of Videocon Narmada Electronics Ltd with Folio No S0064213 for exchange into Videocon International Ltd but instead of 16 only 12 shares of (VIL) with Folio No S0519671 has been received. Sandeep Gupta Sterlite Ind I sent 200 shares of Sterlite Industries with Folio Nos I-55201, M-56754 for transfer in my name. But till date I do not know the fate of my shares. Asha Jindal |
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| Inflation drops NEW DELHI, Nov 14 (PTI) — After four weeks of steady increase, the inflation rate recorded a 0.17 percentage points fall to 2.78 per cent for the week ended October 30, despite a marginal increase in the overall price index. Caltex
oils Token strike Conference |
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