B U S I N E S S

Controversial Monsanto cotton cleared for cultivation
NEW DELHI, May 7 — The Indian Government, in a precedent setting move, has given “biosafety clearance” to the controversial genetically engineered variety of cotton developed by US multinational Monsanto.

A model shows off new wristwatch-typed digital audio player ‘SVSD70’ Matsushita Electric Industrial which can download digital music content through the Internet and store it on a stamp-sized IC memory SD card. — AFP

Chicken legs have few takers NEW DELHI, May 9 — Poultry producers are desperate to dispose of chicken legs at any price and dumping the products on developing countries, which are opening their markets, is an easy option. BILT to appoint 3 more Directors NEW DELHI, May 9 — Ballarpur Industries Ltd has decided to broadbase its board and adopt US GAAP accounting norms from the next financial year (July-June), a top official of the company has said.

IFFCO to enter insurance sector
NEW DELHI, May 9 — IFFCO has entered into insurance business by signing a memorandum of understanding with a Japanese company “Tokio Marine” to form a joint venture for undertaking general insurance business in India.

The production line at the Rover Company’s plant in Birmingham. BMW said in Munich on Tuesday it had signed an agreement to sell the troubled Rover car brand to the Phoenix consortium, saving thousands of British jobs, for a symbolic $ 15. —

Metro to make 2-wheeler tyres
NEW DELHI, May 9 — Metro Tyres Limited manufacturers of cycle tyres and tubes, plans to enter the automobile tyre segment, especially two-wheeler tyres, in a big way.

B & B opens branch at Nawanshahr
CHANDIGARH, May 9 — “An ever increasing number of professionals are now choosing Australia as their new home,” said Mr Raj Bhandari, Managing Director of B&B Worldwide Immigration & Education Services Pvt Ltd. based at Manimajra here today.

Controversial Monsanto cotton cleared for cultivation
From K.S. Jayaraman

NEW DELHI, May 7 — The Indian Government, in a precedent setting move, has given “biosafety clearance” to the controversial genetically engineered variety of cotton developed by US multinational Monsanto.

The clearance given by the Department of Biotechnology (DBT) last week paves the way for large-scale cultivation and marketing of transgenic cotton in the country.

The decision is historic in that it is the first time in India that a genetically modified (GM) agricultural crop has been recommended for large-scale cultivation and marketing, opening the doors for the entry of more GM crops.

A genetically modified variety of mustard, developed by using a propriety gene of another multinational company, Plant Genetics Systems of Belgium, is next in the list.

The Monsanto cotton variety contains a foreign gene obtained from an organism called Bacillus thuringiensis (Bt). The bacterial gene, introduced into cotton, protects the plants from A. lepidoptora, a major pest of cotton, and it is argued by Monsanto that growing Bt cotton would help farmers save money they currently spend on chemical pesticides.

But critics claim that Bt cotton will become vulnerable to pest attack in the long run and that the Bt genes escaping from pollen grains might harm other crops in the neighbourhood and the environment.

Limited field trials of this “transgenic” cotton had been carried out since 1998 by the Maharashtra Hybrid Corporation (MAHYCO) which is partly owned by Monsanto. These trials created a controversy last year and a petition filed in the Supreme Court by Vandana Shiva, President of the New Delhi-based Research Foundation for Science Technology and Ecology, challenged the legality of the field trials and sought a ban on introduction of Bt cotton in India. The case is coming up for hearing in July.

The DBT’s clearance of the Bt cotton, incidentally, ignores objections from environmental groups and was given without waiting for the outcome of the petition pending in the court.

The clearance was given by the Review Committee for Genetic Manipulation (RCGM), a statutory body under the DBT chaired by Asis Datta, a renowned molecular biologist and Vice-Chancellor of Jawaharlal Nehru University in New Delhi.

DBT officials, on condition of anonymity, said the clearance was given for Bt cotton following MAHYCO’s presentation on April 4 of data collected from field trials it had conducted in 60 farmers plots.

However, Vandana Shiva says what the DBT has done is illegal because her petition to the Supreme Court has demanded that the DBT should submit all results of the field trial to the court before taking any action. “Our case against the DBT is that it is not the right agency to approve field trials or evaluate the results,” she told IANS. “It is the job of the Environment Ministry.”

The clearance by the RCGM means that Monsanto has crossed a major hurdle in commercialising its patented variety in India. The RCGM has informed MAHYCO that it is satisfied with the trial results and that the company is now free to approach the Genetic Engineering Approval Committee (GEAC) under the Ministry of Environment and Forests for large-scale trial prior to marketing.

GEAC permission is only a formality as the DBT has already cleared the transgenic cotton from technical and biosafety angles and has given a strong recommendation that Bt cotton should be introduced in the country in the interest of the cotton farmers.

Company sources said it planned to grow Bt cotton in at least 10,000 hectares in different States during this year. Thousands of tonnes of Bt cotton seeds will become available to the farmers from 2001 for growing. — IANS

Chicken legs have few takers
Tribune News Service

NEW DELHI, May 9 — Poultry producers are desperate to dispose of chicken legs at any price and dumping the products on developing countries, which are opening their markets, is an easy option. But, in the process the indigenous poultry industry in these developing countries is destroyed and million of people lose their livelihood, said Ms Anuradha J. Desai, Chairperson of NECC.

“There is little demand for chicken legs in the USA and other developed markets because chicken legs is considered to be dark meat as opposed to chicken breast which is classified as white meat,” she said.

India is currently one of the largest producers of poultry meat and eggs in the world and over five million people depend on this industry for their livelihood. However, in recent years, India’s poultry industry has been in crisis following sharp increases in input costs which it has been able to pass on the consumers.

The imminent phasing out of quantitative restrictions under the WTO agreement would have opened Indian markets to low priced imports and pushed the already crisis bound industry into destruction if tariff protection is not introduced. “The problem is not that Indian poultry products are uncompetitive. The problem is dumping,” Ms Desai said.

“Without this tariff protection, the Indian poultry industry would have been decimated once quantitative import restrictions go under the proposed WTO regime, which will come into effect in 2001,” said Ms Anuradha J Desai,

“Sri Lanka’s poultry industry once robust and thriving has been destroyed by dumping of underpriced chicken meat imported from US. The same thing will happen in India if tariffs are not raised,” she said.

BILT to appoint 3 more Directors

NEW DELHI, May 9 (PTI) — Ballarpur Industries Ltd (BILT) has decided to broadbase its board and adopt US GAAP accounting norms from the next financial year (July-June), a top official of the company has said.

“In BILT, after the completion of the restructuring, the next focus is on corporate governance and as part of the plan the number of Directors in the company would be increased from 12 to 15,” BILT MD Gautam Thapar told PTI.

Thapar said the company has also decided to adopt the US Generally Accepted Accounting Principles (GAAP) to improve transparency in the accounts.

IFFCO to enter insurance sector

NEW DELHI, May 9 (PTI) — IFFCO has entered into insurance business by signing a memorandum of understanding (MoU) with a Japanese company “Tokio Marine” to form a joint venture for undertaking general insurance business in India.

The initial paid-up capital of the joint venture will be Rs 100 crore of which IFFCO will contribute Rs 74 crore and the rest would be brought in by Tokio Marine.

The scope of the proposed insurance venture “IFFCO-TOKIO General Insurance Ltd” includes fire, marine, rural and social insurance, IFFCO Managing Director Uday Shankar Awasthi said here yesterday at the MoU signing ceremony.

The insurance products offered would be a mix of existing and new products such as a special package for the fertiliser industry and a farmers package policy.

Tokio Marine Fire and Insurance Co Ltd has over 120 years experience in general insurance business and is the largest and oldest general insurance company in Japan, Awasthi said.

Tokio Marine’s premium income for 1999 was around Rs 45,000 crore and it is ranked the world’s fifth general insurance company based on net premium.

The joint venture company would expand its marketing territory in a phased manner and would endeavour to sell business in the targets area from all variety of customers such as cooperatives, public, Government and private sectors including multi-national companies (MNCs) and individuals.

Metro to make 2-wheeler tyres
From R. Suryamurthy
Tribune News Service

NEW DELHI, May 9 — Metro Tyres Limited manufacturers of cycle tyres and tubes, plans to enter the automobile tyre segment, especially two-wheeler tyres, in a big way.

“The company plans to enter the two-wheeler tyre segment in big way and the land for setting up the unit has already been purchased in Ludhiana,” the Managing Director of the firm, Mr Rummy Chabbra, told The Tribune.

The manufacturing unit would be set up with an initial investment of about Rs 50 crore, he added.

Metro Tyres has four plants in Ludhiana with the total capacity to produce 2.25 crore tyres and tubes. It controls over 20 per cent of the bicycle tyre market and 50 per cent of the rickshaw nylon tyre market in the country.

However, much of the company’s new plans depend on the success of the tie up with Continental AG of Germany.

The global tyre manufacturers have tied up with Metro Tyres for sourcing four million cycle tyres and tubes in the next four year period.

The tie up would increase the company’s export turnover from the present Rs 15 crore to around Rs 60 crore during the four year period.

On the group’s core competence area, Mr Chabbra said “the company has projected an increase in the market share of 27 per cent from the current level of 22 per cent in the next few years.”

The company, which diversified and launched Ortem range of fans about a decade ago, has introduced designer fans for niche sector.

B & B opens branch at Nawanshahr
Tribune News Service

CHANDIGARH, May 9 — “An ever increasing number of professionals are now choosing Australia as their new home,” said Mr Raj Bhandari, Managing Director of B&B Worldwide Immigration & Education Services Pvt Ltd. based at Manimajra here today. This is mainly due to the reduction of the visa processing time for immigrants.

Talking to The Tribune, Mr Neeraj Mishra, Director of B&B Worldwide, said the changed immigration laws of Australia have made the entry procedures quick and cost effective for professionals and traders.

B&B, headed by an Australian citizen, opened branches in Nawanshahr and Delhi to cater to the high demand in the northern region

AUTO SCENE

Hyundai launches new models of Santro

In an attempt to accelerate the sales of its premium small car Santro, Hyundai Motor India has introduced two new versions of the car at nominal additional cost.

The new “Santro zipDrive LS”, an upgraded model of the existing “Santro GLS I” model with power steering and a new radiator grille, will be costlier by Rs 882 at Rs 3,56,500, a company release said here today.

Another new version “Santro zipDrive GS” has been priced at Rs 3,79,499 over the “Santro GLS II” price of Rs 3,75,248. It sports a new rear spoiler and all other features of the “LS” variant.

The two versions will replace the existing variants of the Santro. The company will, however, continue to sell the base model of the car, albeit rechristened as “Santro LE” with a new radiator grille and other standard features.

The “LE” has been priced at Rs 3,15,500 against the earlier price of Rs 3,12,551.

Hyundai’s Managing Director Y.S. Kim said the new versions are a result of the company’s aim to give more value to the consumers over the feedback received over the last 19 months.

During the fiscal ended March 31, 2000, Hyundai sold 75,661 cars compared to 17,647 units in 1998-99. — PTI

Daewoo camps at hill stations

Daewoo Motors India Limited today decided to provide special service facilities at key holiday destinations manned by trained technical personnel with ‘‘Helpline’’ cars for Daewoo customers driving out to hill stations.

From May 15 to June 15, Daewoo will hold summer holiday camps at Mussoorie, Nainital, Shimla, Kulu, Manali, Katra, Dharamshala and Dalhousie in the North, a company release said here today.

To ensure easy accessibility, Daewoo has installed banners en route and within the cities with details of the camp’s location and the Helpline number. Besides, DMIL is sending direct mailers to all its customers.

A photography contest is being organised. Customers can click pictures with their Daewoo vehicle and send them to the company. The best 300 photographs will get special gifts. A panel of judges will select the winning photographs. — TNS

Car demand to grow

Indian passenger car demand is likely to grow by 11-15 per cent per annum in the long run following turnaround signs of the economy and availability of cheap auto-financing schemes, says rating agency, ICRA.

With the passenger car sales having increased by over 40 per cent in the first half of 1999-2000, the demand in the long run is likely to at about 11-15 per cent per annum, ICRA said in its latest report on “Indian automotive components industry” released on Tuesday.

The small car segment was likely to witness intense competition following the launch of three new cars produced by Telco, Daewoo and Hyundai, ICRA said. With the introduction of Hyundai Accent, Ford Ikon and GM Corsa, competition is expected to increase in the mid-sized segment as well. — PTI

CORPORATE NEWS

Escorts launches e-commerce firm
NEW DELHI, May 9 (UNI) — Escorts Limited today launched a major initiative in Internet and e-commerce with the formation of Esconet Services Limited. This company is a 100 per cent subsidiary of Escorts Limited. As part of its strategic vision, the group has now established synergies through an ideal combination of ‘bricks and clicks’ Mr Rajan Nanda, Chairman, Escorts Group, said. “Our businesses are competitive and this new venture would consolidate our leadership position in the industry. Esconet is being mandated to initiate specific Internet-related services, which will enable our businesses to benefit from e-commerce and create a significant market value through attractive revenue model.”

Indo-Rama reduces net loss
NEW DELHI, May 9 (PTI) — Indo Rama Synthetics Ltd has reported a drastic cut in net loss to Rs 7.75 crore during 1999-2000 against Rs 159.55 crore in the previous year. Net sales of the company, however, increased by 27.35 per cent to Rs 1751 crore during the fiscal ended March 31, 2000 compared to Rs 1375.19 crore recorded in the previous year. Cash profit during the fiscal was Rs 95.90 crore compared to Rs 55.95 crore cash loss in 1998-99, a company said.

R.S. Software offers ESOP
CALCUTTA, May 9 (PTI) — R.S. Software Limited, the city-based off shore service provider, has offered five lakh equity shares under a new Employees Stock Option Plans (ESOP) to attract and retain talents, a top company official said. The new ESOP, to succeed the one offered in 1996-1997, would account for 10 per cent of total equity shares of 50 lakh and be spread over three years from 2000-2001 to 2003-2004, company Vice- President (Finance) Kunal Sen said here today.

Forbes Gokak ties up with TCS
NEW DELHI, May 9 (PTI) —Tata Consultancy Services (tcs) and Forbes Gokak Ltd (FGL) today announced a strategic partnership under which tcs would support FGL in its it initiatives. The two companies would also study the possibility of entering into a five-year outsourcing arrangement and would simultaneously consider the feasibility of developing it solutions for the textile industry, a company statement said here.

Svam Software turnover up 19 pc
NEW DELHI, May 9 (PTI) — Svam Software posted 19 per cent turnover growth at Rs 14.14 crore for the year ending March 31, 2000 against Rs 11.93 crore in the corresponding period the previous year. The company also generated higher net profit at Rs 101 lakh in the period under review against Rs 1.23 lakh in 1998-99, a company statement said here today.

Systems America acquires IT firm
NEW DELHI, May 9 (PTI) — Systems America (India) today announced takeover of an unnamed company in Canada for an undisclosed amount in an all-cash deal, as part of its ongoing global restructuring. The Canadian company is engaged in providing high-end solutions, and this takeover would “give Systems America a fast entry into the growing Canadian market,” a Systems America (India) statement said here today.

THAT'S IT

Portal for school leaving students

For students in the subcontinent about to step out of school and into the world of competition, an exhaustive community site to cater to their needs and aspirations was formally launched here today.The buckleyourshoe.com, the brainchild of four undergraduate students of the Delhi School of Engineering, not only guides students in making informed choices about what and where to study, but also helps them in their complete personality development.

Company Chief Executive Officer Krishan Mohta told newspersons here that the site will have the first “finishing school” in the subcontinent and provide the students huge searchable data bases of educational institutions and vocational training organisations, hostel accommodation, private tutors and coaching institutes. — PTI

Indian channels on Net for NRIs

Pentamedia Graphics, the entertainment graphics major, plans to commercially launch www.numtv.com in June.

It is mainly targeted at the NRIs living in the USA, to UK, Europe, West Asia, Africa, Australia and Singapore, who are unable to enjoy the best of entertainment from India, said Dr V Chandrasekaran, Chairman and CEO of Pentamedia Graphics Limited.

The company plans to bring Sony Entertainment TV, Sony MAX, CNBC India, Sun TV, Gemini TV, Udaya TV, Surya TV, Raj TV, Raj Digital Plus and other popular channels live on the Net.

Numtv.com offers users in different time zones the facility of viewing their favourite programmes at their convenience and even repeatedly if they so desire. Numtv.com is the first portal to offer its users Live as well as archived programmes in various languages round the clock.

A minimum of 56 kbps Internet connection, Windows Media Player 6.4, along with a hardware configuration of Pentium MMX and 32 MB RAM are the basic pre-requisites. The larger the bandwidth, the better would be the vividness of the video. — TNS

Accident site map software

An accident site map (ASM) software has been developed for the Delhi Traffic Police to analyse accidents within Delhi and mitigate the number of accidents within the Capital.

The ASM software developed by R.M. Software Limited would help the Delhi Traffic Police to take appropriate measures to prevent accidents, Additional Commissioner of Police, Traffic, Ms Kanwaljeet Deol, said.

She said by using this software the traffic police would be able to take preventive measures like deployment of traffic personnel at sensitive and vulnerable sites, information dissemination for media/public briefings and for enhanced reporting to senior officials.

ASM is a Microsoft Windows based desktop Geographical Information System (GIS) application developed for accident analysis and querying.

The software permits the user to view the accident data on a map, through the conventional tabular form, as well as through graphs. The user can thematically pinpoint the locations of accident prone sites in the city. — TNS

BIZ BRIEFS

Banks’ CMDs
NEW DELHI, May 9 (PTI) — The posts of Chairmen and Managing Directors in eight nationalised banks, including Bank of Baroda and Bank of India are lying vacant, Minister of State for Finance Balasaheb Vikhe Patil told the Rajya Sabha today. Other banks where chief executives posts are lying vacant are Canara Bank, UCO Bank, Dena Bank, Punjab and Sind Bank, Vijaya Bank and Indian Bank.

Hometrust
CHANDIGARH, May 9 (TNS) — Hometrust Housing Finance Company Ltd., a subsidiary of Gujarat Ambuja Cements Ltd, has reduced its interest rates and front-end charges on housing loans with effect from May 1, 2000. The prime lending rate for loans upto Rs 10 lakh is 13 per cent for a 5-year term, 13.25 per cent for 6-8 year term and 13.5 per cent for 9-15 year term. The revised rate for loans in the range of Rs 10-25 lakh is 13.25 per cent, 13.5 per cent and 14 per cent respectively.

IEC
CHANDIGARH, May 9 (TNS) — The Board of Directors of IEC Software has announced a 7.5 per cent interm dividend (not 75 pc as published in the issue April 21, 2000) according to a company release.

Office-bearers
CHANDIGARH, May 9 (TNS) — Col Jatinder Singh, Mr J.P. Singh and Mr Ravinder Singh have been elected President, Vice-President and General Secretary of the Chanalon Industries Association for the year 2000-2001. Other office-bearers are Mr Bant Singh — Treasurer and Mr T.P. Singh — Secretary.

IT course
NEW DELHI, May 9 (TNS) — A computer training programme for the employees of the Delhi Government has been inaugurated by the state Chief Minister, Mrs Sheila Dikshit. About 1800 employees of the state government will be trained by experts from Aptech Computer Education.

Royalty
NEW DELHI, May 9 (PTI) — The Government today increased provisional rate of royalty on crude oil by Rs 50 per metric tonne to Rs 800 per metric tonne with effect from January 1, 2000. The royalty amount would be subject to a limit of 20 per cent of the well-head value of crude oil, an official statement said here.