They create & share wealth
WASHINGTON, Sept 28 — Two Indian software giants — Azim Premji of Wipro and N.R. Narayana Murthy of Infosys — have been lauded by the Wall Street Journal as representatives of the new India determined to make good in the era of globalisation.

SRF to take over Dupont Fibres
NEW DELHI: Bharat Ram group company SRF Ltd entered into a strategic deal with Dupont on Tuesday to take over the US multinational’s Indian subsidiary Dupont, Fibres Ltd (DFL).

Rahon bridge by Dec, 2001
CHANDIGARH, Sept 28 — The Punjab Infrastructure Development Board today decided to complete the four-laning of the Chandigarh-Ludhiana-Moga expressway by December, 2001.

Morgan bullish on Reliance
NEW DELHI, Sept 28 — Morgan Stanley Dean Witter on Tuesday reiterated its bullish stance on Reliance Industries.

Gold prices at new high despite shraads

NEW DELHI, Sept 28 (PTI) — Gold prices made another spectacular rise on the bullion market today and touched a recent record high at Rs 4525 per 10 gram on stockists buying encouraged by global firmness.

Gold recorded another rise of Rs 100 at Rs. 4525 per 10 gram mainly influenced by higher international advices where it maintained its firm trend by rising another US $ 5.25 at US $ 288.25 an ounce.

Silver and its coins also gained fresh ground on hectic buying by local traders.

Marketmen said this was despite off marriage and festival season and ongoing shraads, when people do not make any fresh purchases considered to be inauspicious days in Hindu mythology.

They said European commercial banks decision to put limit on official gold sale at 400 tonnes annually over the next five years, influenced the market sentiment.

The firm trend, which had emerged after the second sale by the Bank of England, got strengthened with this news and made persistent rise in day-to-day trading.

However, market leaders feel that a reversal in the rising trend was around the corner and gold prices might retreat in next few days.

All India Sarafa Bazar President Sheel Chand Jain said gold prices which had scaled remarkable rise in last two sessions were bound to retreat and shed some of the recent gains.

Gold recorded a hefty rise of Rs. 325 per 10 gram in the last two days after a smart rally on the international markets where it climbed from Saturday’s close of $ 265.50 to $ 288.25 an ounce today.

He said a sudden rise in gold prices was mainly on reports of the International Monetary Fund that it would sell the yellow metal to some central banks and not in the open market.

Standard gold and ornaments shot up by another Rs.100 each at Rs. 4525 and Rs. 4375 per 10 gram respectively. Sovereign also hiked by Rs. 50 at Rs. 3800 per piece of 8 gram.

Silver .999 (ready) gained another Rs. 100 at Rs. 8130 per kilo and weekly delivery by Rs. 60 at Rs. 8110 per kilo. Silver coins also shot up by another Rs. 100 at Rs.11,100/11,200 per 100 pieces.

The following were today’s quotations: silver .999 (ready) 8130 and delivery 8110. Silver coins buyer 11,100 and seller 11,200. Standard gold 4525, ornaments 4375 and sovereign 3800.

Half of car price goes to govt

NEW DELHI, Sept 28 (PTI) — Cars in India would cost half the market price if it were not for the hefty dose of taxes and duties, which act as a speed-breaker to the demand growth.

The high cost of acquiring a car can be gauged from the fact that it takes 42 months of average salary in India for purchasing a car as against just nine months of pay in the USA, a study by the Society of Indian Automobile Manufacturers (SIAM) has revealed.

One of the key determinants of demand for cars is the acquisition cost of a vehicle which is primarily based on the sale price and current income levels. The cost in terms of average salary to purchase the most popular car in India is one of the highest in the world, the society says.

In a paper on “Auto policy recommendations”, SIAM says over 50 per cent of the acquisition cost of a car is due to taxes, including excise duty (40 per cent), import duty (10-15 per cent), sales tax (4-10 per cent), insurance (3-4 per cent) and road and registration tax (1-2 per cent).

Moreover, as passenger cars are considered luxury items, the relative tax is much higher than commercial vehicles or two-wheelers or even other durable goods, the paper says.

They create & share wealth

WASHINGTON, Sept 28 (PTI) — Two Indian software giants — Azim Premji of Wipro and N.R. Narayana Murthy of Infosys — have been lauded by the Wall Street Journal as representatives of the new India determined to make good in the era of globalisation.

The paper notes that Premji (54), despite owning $ 5.5 billion in Wipro stock, which makes him the richest Indian, does not demand a reserved parking space at work.

The other Bangalore-based software leader, Murthy (53), presides over Infosys Technologies Ltd, which is listed on the US stock exchange for technology companies, Nasdaq.

Murthy, said the journal, “spreads wealth. His salary is only 36,000 dollars — to preserve profits for the benefit of all shareholders. Murthy’s stake is 7.7 per cent and its founders together own 31 per cent. Infosys has allotted 20 per cent of its shares to employees, creating loyalty and 100 dollar millionaires.”

The journal noted Premji’s “contrarian way,” instead of hiring those in the business as he founded his software company, he hired one man from a truck company and another from a refrigeration company. Wipro soon became a leading computer brand.

Software and information technology services like those developed by Premji and Murthy, the journal said, are adding “vital horsepower” to the economy — an extra percentage point of growth in the gross domestic product (GDP). It could push GDP above the 7 per cent level needed to reduce India’s poverty.

Wipro and Infosys, said the journal, “account for 10 per cent of India’s software exports. But their impact is greater at a time when Indian politicians are vying in elections to give the new nuclear nation global stature. By embracing free market reforms and winning blue-chip US customers such as General Electric, Cisco Systems Inc., Goldman Sachs Group and Amazon.Com Inc., Messrs Premji and Murthy are earning respect for India in the world market.”

Twenty years ago, said the paper, long before Bangalore became “a software Mecca,” Premji and Murthy had discussed working together in high-tech products to “galvanize the country’s sleepy economy.” Fortunately for India,” it said, “they did not hit off” and founded separate companies, each putting his own stamp.

SRF to take over Dupont Fibres

NEW DELHI: Bharat Ram group company SRF Ltd entered into a strategic deal with Dupont on Tuesday to take over the US multinational’s Indian subsidiary Dupont, Fibres Ltd (DFL).

In turn Dupont was likely to acquire about 5 per cent equity in SRF, a leading nylon yarn and tyre cord fabric manufacturer, the two companies said in a separate statements.

SRF will acquire the entire holding of EI Dupont India in Dupont Fibres Ltd as per the agreement between the two companies. Financial details would be worked out later, a SRF spokesman said.

Shriram Bearings

SRF Ltd is selling its stake in Shriram Bearings as part of its strategy to exit from the ball-bearing business.

The company, which announced a strategic alliance with chemical multinational Dupont this morning for production of nylon cord, will sell its shares to technocrat PC Sen at a nominal price.

The decision was taken at the company’s board of Directors meeting here.

Ashok Leyland

The Project Approval Board (PAB) under the Industry Ministry has permitted Ashok Leyland Limited to join hands with AVL of Austria for upgrading its current range of commercial vehicle engines. The tie-up will be purely technical and will not amount to any foreign equity infusion, sources in the Industry Ministry told UNI.

Rally lifts US-64 spirits

Thanks to improvement in the stock market, the Unit Trust of India will be able to return Rs 3,300 crore it received from the Government for salvaging the flagship US 64 scheme in 36 months, Trust Chairman P.S. Subramanyam said here.

“While the Government has given us five years to return this money, we will be able to pay it back in three years”, he told UNI.

Under the SUS 99 plan, the Government had issued public sector bonds equivalent to Rs 3,300 crore as per recommendations of the Deepak Parikh Committee which was appointed in October, 1998, after a public outcry over the reserves of US 64 turning negative.

ITI to pay dividend

BANGALORE: Wriggling out of substantial losses it suffered for three years. State-owned Indian Telephone Industries on Tuesday announced a 6.16 per cent dividend registering a 27.10 crore profit after tax for the year 1998-99.

Addressing the 49th annual general meeting here, ITI Chairman and Managing Director Air Cmde S.S. Motial said the company was poised to record a turnover of Rs 2,000 crore during the current year.

Shaw Wallace Gelatines

CALCUTTA: Shaw Wallace Gelatines Ltd on Tuesday announced a 55 per cent dividend, including interim dividend of 30 per cent on the 14 per cent rise in profit after tax (PAT) in 1998-99.

The company has registered an 1.9 per cent increase in sales turnover at Rs 56.50 crore while the PAT stood at a record Rs 6.38 crore in 1998-99, up from the Rs 5.5 crore during the previous year.

Addressing the 38th AGM of the company, Chairman S.P. Choudhary said here the company had overtaken its dividend projection by 5 per cent despite a lower than projected profit level.

Orchid Chemicals

CHENNAI: Orchid Chemicals Pharmaceuticals has announced an equity issue of 1.06 crore shares of Rs 10 each on a premium to mop up Rs 175 crore on a private placement basis. The issue will be placed with investment funds belonging to the Shroder ventures group. — PTI/UNI

Rahon bridge by Dec, 2001
Tribune News Service

CHANDIGARH, Sept 28 — The Punjab Infrastructure Development Board today decided to complete the four-laning of the Chandigarh-Ludhiana-Moga expressway by December, 2001.

At a meeting presided over by Mr Parkash Singh Badal it was also decided to complete the Rahon-Machhiwara bridge along with the upgradation of the road from Samrala to Nawanshahr and the railway overbridge on the Khanna-Samrala road by December, 2001.

Another significant decision was taken to create “special purpose vehicles” for expeditious completion of projects like the railway overbridge over National Highway No 21 at Ropar, the Machhiwara-Rahon river bridge, the southern bye-pass at Ludhiana.

The Board decided to invite private operators for innovative tourism infrastructure in the State. The properties of Amaltas at Ludhiana, Pinckasia at Ropar and Amritsar International are being offered to the private sector.

Capt Kanwaljit Singh, Finance Minister, the Chief Secretary, the Principal Secretary, Finance, the Principal Secretary to the CM and the Financial Commissioner (Revenue) were also present at the meeting.

Morgan bullish on Reliance

NEW DELHI, Sept 28 (UNI) — Morgan Stanley Dean Witter on Tuesday reiterated its bullish stance on Reliance Industries.

“Reliance valuations are attractive. The stock is trading at 6.34 times one-year forward EV/EBITDA, 13 per cent below its five-year average and at 63 per cent of the market’s one-year forward multiple. We expect the stock’s valuations to re-rate over the next two to three years”, the investment advisory service said.

“The possibility of an ADR listing would also add more visibility to the RIL story and aid the re-rating process”, it said after reiterating its bullish stance on Reliance Industries Ltd.

Ujala Supreme
NEW DELHI, Sept 28 (PTI) — Reckitt and Coleman India Ltd’s complaint charging Jyothi Laboratories Ltd, makers of “Ujala Supreme” with unfair trade practices has been dismissed by the MRTPC. Upholding Jyothi Laboratories’ claim that Ujala Supreme was a whitening agent invented by it, the MRTPC said claiming credit for a formulation did not amount to misrepresentation of facts.

Escotel
Tribune News Service
CHANDIGARH, Sept 28 — Escotel Mobile Communications has announced free incoming calls for all its new customers. While TRAI has notified November 1, 1999, as the date of implementation for free incoming calls, Escotel has implemented it for all its new customers with immediate effect.