THE TRIBUNE SPECIALS
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TERCENTENARY CELEBRATIONS
B U S I N E S S

India’s foreign currency
outlook revised
S&P’s places its rating outlook to stable
New Delhi, December 16
Standard & Poor’s Ratings Services today revised India’s “BB” long-term foreign currency rating outlook to stable from negative to reflect the rising foreign exchange reserves, worth more than 700 per cent of short-term debt.

  • Re gains on rating revision

Parliamentary panel opposes govt
Disinvestment of HPCL, BPCL
New Delhi, December 16
A Parliamentary panel has rapped the government for bypassing Parliament in deciding to privatise HPCL and BPCL saying the judiciary had to step in and remind the executive of the authority of the Parliament.

Money transfer service by Yahoo!
Washington, December 16
Yahoo! has launched an online payment service allowing users to send money to family and friends in 182 countries.



EARLIER STORIES
 

Managing Director of General Motors India Aditya Vij poses with the company's new Chevrolet Optra 1.6 car at a launch ceremony in New Delhi on Tuesday.Optra variant to cost 7.3 lakh
New Delhi, December 16
To build on the success of its luxury sedan Optra, General Motors today launched its new variant with lower engine capacity to push the sales further. General Motors had launched the Optra with a 1.8 litre engine in July, 2003 and has sold 4,000 units till now.

Managing Director of General Motors India Aditya Vij poses with the company's new Chevrolet Optra 1.6 car at a launch ceremony in New Delhi on Tuesday. — PTI photo

WTC design to be unveiled on Friday
New York, December 16
The two architects feuding over the redevelopment of the World Trade Center site reached a compromise on a revised design, just in time to meet a deadline set by Gov. George Pataki.

Ballarpur Industries unit at Yamunanagar has been awarded the certificate of merit for 2003 in energy conservation, pulp and paper sector
Ballarpur Industries unit at Yamunanagar has been awarded the certificate of merit for 2003 in energy conservation, pulp and paper sector by the Ministry of Power. Mr Anant G Geete, Minister of Power, gave away the certificate to Mr S.S. Arora, General Manager of the unit, on Energy Conservation Day at New Delhi on December 14. 
Stop using groundwater,
HC to Coke

Kochi, December 16
In a major blow to Hindustan Coca Cola Beverages Ltd, the Kerala High Court today directed the company to stop drawing groundwater for use in its bottling plant at Plachimedu in Palakaad district in a month from today.

TV Today IPO on Dec 18
Mumbai, December 16
TV Today Network, an India Today group company, has announced a price band of Rs 80-95 per share of Rs 5 each for its initial public offering of 1.45 crore shares through the 100 per cent book-building route.

  • Plan to float Thomson Press IPO

Volvo plans R&D centre in India
New Delhi, December 16
Sweden’s A B Volvo is looking at outsourcing components worth £200 million from India over the next five years and also contemplating establishing a research and development centre in the country to leverage the high-quality engineering prowess.

CORPORATE NEWS

i-flex buys out US company
New Delhi, December 16
i-flex Solutions has acquired a US-based specialised consumer lending software provider SuperSolutions Corporation in an all cash deal.

  • Wipro, Excelergy ink pact

  • Merrill acquires stake in Satnam Overseas

Japanese auto-maker Honda Motor Co's small-business jet takes off during a test-flight Japanese auto-maker Honda Motor Co's small-business jet takes off during a test-flight in North Carolina in this undated photo released by the car maker on Tuesday. Honda said on Tuesday that it had succeeded in test-flying the six-seater HondaJet, the world's first business jet made completely by an auto maker, and powered by a lightweight low-emission turbine engine that the company has been developing since 1999. — Reuters
Ratan Tata, chairman, Indian Hotels Group, addresses the employees at Taj Mahal Hotel, Mumbai, during its centenary celebrations Ratan Tata, chairman, Indian Hotels Group, addresses the employees at Taj Mahal Hotel, Mumbai, during its centenary celebrations on Tuesday. — PTI

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India’s foreign currency outlook revised
S&P’s places its rating outlook to stable

New Delhi, December 16
Standard & Poor’s Ratings Services today revised India’s “BB” long-term foreign currency rating outlook to stable from negative to reflect the rising foreign exchange reserves, worth more than 700 per cent of short-term debt.

However, the outlook on India’s “BB+” long-term local currency rating remains negative because of slow economic reforms and fiscal deficit. Both foreign and local currency short-term ratings on the sovereign were affirmed at “B”.

“Rapidly increasing external liquidity, sustained by growing foreign exchange reserves and modest debt service payments sparked the revision in the foreign currency outlook,” S & P’s Credit Analyst Takahira Ogawa, Director in the Asia-Pacific Sovereign Ratings Group, said in a statement.

India’s stable economic prospects is another factor supporting the sovereign ratings. India is expected to achieve 5-6 per cent GDP growth in the medium term, which should help cushion the impact of its high fiscal deficit.

“The outlook on India’s local currency ratings can be revised to stable if the government manages to reverse its fiscal trajectory by reducing the deficit and accelerating structural reform. This will also improve prospects for the foreign currency rating,” Mr Ogawa said.

The consolidated direct debt of India’s state and Central Government is expected to be 84 per cent of GDP in fiscal, 2003, which is high for the rating category.

Moreover, this level is expected to rise steadily because of the high consolidated general government deficit, which, at more than 9 per cent, is one of the highest of all sovereigns rated by Standard & Poor’s.

The government must also accelerate progress in structural reform. Resistance from vested interests, including bureaucrats and politicians, has hindered government efforts to reduce restrictions such as land ownership and labour markets, he added.

Re gains on rating revision

The rupee closed two-and-half paise stronger against the US Dollar at 45.53/54 today on improved dollar inflows after the fresh weakness in greenback in the global markets and the Standard & Poor’s revised India’s long-term foreign currency rating outlook to stable from negative. — UNI

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Parliamentary panel opposes govt
Disinvestment of HPCL, BPCL

New Delhi, December 16
A Parliamentary panel has rapped the government for bypassing Parliament in deciding to privatise HPCL and BPCL saying the judiciary had to step in and remind the executive of the authority of the Parliament.

The Parliamentary Standing Committee on Petroleum, in its report tabled in Parliament today, said the government ignored its unanimous view which called for sanction of Parliament before going in for disinvestment in HPCL and BPCL.

“This amounts to dilution of the legislature which forced judiciary to step in and remind the executive of the authority of Parliament,” it said.

The Supreme Court had asked the government to seek the Parliamentary approval before privatising the two oil refiners which were nationalised through an act of Parliament.

Noting that the government has again moved the Supreme Court for a review of its judgement, the Committee reiterated its earlier stand that “sanction of Parliament is mandatory before a decision to disinvest HPCL and BPCL is taken.”

The report said the Committee was also not convinced by the reply of the government that ownership of one PSU by another PSU did not serve the purpose of disinvestment.

“If any PSU is allowed to bid for HPCL, it will fulfil the objective of facilitating vertical integration of business and also enhance the capacity of public sector oil companies to compete with the private companies and MNCs,” it said. — PTI

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Money transfer service by Yahoo!

Washington, December 16
Yahoo! has launched an online payment service allowing users to send money to family and friends in 182 countries.

The service, called Yahoo PayDirect International, “revolutionises current Internet person-to-person payment methods,” Dickson Chu, General Manager of Yahoo PayDirect, said yesterday.

“Foreign born nationals living and working in the United States that need to send money home can make their money go even farther, with rates well below many other money transfer methods.”

The new venture puts Yahoo head-to-head with money transfer firms like the Western Union.

The new service will allow users to obtain cash through some 8,00,000 ATMs around the world through the Cirrus network. — AFP

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Optra variant to cost 7.3 lakh

New Delhi, December 16
To build on the success of its luxury sedan Optra, General Motors today launched its new variant with lower engine capacity to push the sales further. General Motors had launched the Optra with a 1.8 litre engine in July, 2003 and has sold 4,000 units till now. It expects Optra sales to touch 30,000 units next year. The base version of the 1.6-litre Optra has been priced at Rs 7.29 lakh , while the luxury “LS” model will cost Rs 7.89 lakh, ex-showroom, Delhi.

GMI Vice-President (marketing) Amit Dutta said the new car is expected to help the company boost its market share in the overall mid-size segment to 30-35 per cent next year from the present 23 per cent in the upper-end mid-size segment.

The 1.6-litre Optra, which has 104 brake horse power, will compete with cars like Honda City and Hyundai Accent Tornado in the segment which accounts for about 1,00,000 units annually.

The 1.8-litre model is positioned against cars like Toyota Corolla and Skoda Octavia in the upper-end of the mid-size segment, which are about 16,000 units annually.

Mr Dutta said GMI plans to introduce a new multi-utility vehicle Isuzu Panther, rechristened as Chevrolet Tavera, by September 2004, which it hopes would double its market share to 2.4 per cent next year in the total Indian automobile industry of over 1.5 million vehicles. — UNI

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WTC design to be unveiled on Friday

New York, December 16
The two architects feuding over the redevelopment of the World Trade Center site reached a compromise on a revised design, just in time to meet a deadline set by Gov. George Pataki.

The Lower Manhattan Development Corp., which oversees the rebuilding, issued a statement yesterday saying the new design would be unveiled on Friday by Pataki and Mayor Michael Bloomberg.

According to the statement, a centerpiece tower will rise 1,776 feet, culminating in a spire and evoking the Statue of Liberty, as Daniel Libeskind, the architect who won the design competition for the 16-acre site’s redevelopment, had proposed.

The Freedom Tower also will incorporate windmill technology that will generate much of the tower’s electricity, a proposal put forth by David Childs, the Skidmore Owings and Merrill architect hired by leaseholder Larry Silverstein.

The design includes 1,100 feet of commercial space topped with a sloping roof, a redevelopment official said. Childs’ energy-generating structure will extend 400 feet from the roof, and Libeskind’s spire will rise another 276 feet.

The compromise seemed to put at least a temporary end to the disagreements between the architects, who have had a stormy relationship that libeskind has likened to a forced marriage. — AP

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Stop using groundwater, HC to Coke

Kochi, December 16
In a major blow to Hindustan Coca Cola Beverages Ltd, the Kerala High Court today directed the company to stop drawing groundwater for use in its bottling plant at Plachimedu in Palakaad district in a month from today.

The court also directed the Perumatty gram panchayat, under the jurisdiction of which the cola plant is located, and the state government to ensure that the plant does not extract groundwater after the specified time limit.

Extraction of the groundwater, even up to the admitted limit by the company, was “illegal”, the court held. The company had no legal right to extract this much natural wealth and the Panchayat and the government were bound to prevent it. — PTI

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TV Today IPO on Dec 18

Mumbai, December 16
TV Today Network, an India Today group company, has announced a price band of Rs 80-95 per share of Rs 5 each for its initial public offering of 1.45 crore shares through the 100 per cent book-building route.

The bidding for shares —one crore fresh shares and 45 lakh shares being disinvested by promoters and private equity investors —will open from December 18 to 27, company Chairman and Managing Director Aroon Purie told newspersons here today.

Explaining the IPO’s rationale, Purie said, “The business of running channels like Aaj Tak and headlines Today were capital intensive which need infusion of funds to upgrade the network”.

Living Media Ltd, promoting entity, the Bharti group and other associates are divesting part of their stake in the company as per exit clause in investment agreement, Chief Financial Officer Anil Mehra said.

ICICI Emerging sectors fund, which holds 10 per cent stake in the company, was not participating in the IPO.

About 50 per cent of the offered shares will be allotted to institutional investors and 25 per cent each to retail and non-institutional investors, Mehra said.

The IPO proceeds will be used for upgrading existing news channel and create infrastructure to exploit subscription revenues (pay channels), Mehra said, adding that the capital expenditure for 2003-04 was pegged at Rs 45 crore and balance in 2004-05. — PTI

Plan to float Thomson Press IPO

The group is considering a public offer of the shares of Thomson Press (India) Ltd, its printing arm, to raise fund for business expansion.

Thomson Press has printing facilities in Fariabad and Chennai; it is a capital intensive manufacturing business and need funds for expansion, Purie said. — PTI

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Volvo plans R&D centre in India

New Delhi, December 16
Sweden’s A B Volvo is looking at outsourcing components worth £200 million from India over the next five years and also contemplating establishing a research and development centre in the country to leverage the high-quality engineering prowess.

Volvo India Managing Director Ulf Nordqvist said India occupied an important position in the Swedish automaker’s overall operations.

“This year we expect the sourcing to be in the region of £ 15 million and with quality manufacturing here on the increase, it is expected to grow exponentially,’’ the Volvo India chief said in an interview. — UNI
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CORPORATE NEWS

i-flex buys out US company

New Delhi, December 16
i-flex Solutions has acquired a US-based specialised consumer lending software provider SuperSolutions Corporation in an all cash deal.

i-flex will pay $ 11.5 million to acquire the 100 per cent stake in SuperSolutions. The approval for the deal came through at the board meeting of i-flex held in New York late last night.

‘’This (the acquisition) is the first step in the execution of our inorganic growth strategy,’’ Mr Rajesh Hukku, Chairman and Managing Director, i-flex Solutions said.

SuperSolutions’s flagship product, Daybreak Lending Suite, is a universal lending platform that enables financial institutions to manage the lending process from origination through servicing and collections.

i-flex will sell DayBreak as a stand alone product and with its flagship product, Flexcube. Later DayBreak will be completely integrated with Flexcube.

The SuperSolutions’s revenues will be merged in i-flex balance sheet from the fourth quarter ending March 31, 2004.

‘’This acquisition strengthens our product portfolio and will help accelerate our penetration of the US market. We are also excited by the opportunity to tap the global market in this space by leveraging our global sales and partner network,’’ Mr R. Ravishankar, CEO International Operations and Technology, i-flex Solutions said.

The existing management team of SuperSolutions will continue with the company to run the business.

Consumer lending firms are moving from point product applications to a more universal lending platform. According to industry research reports, only 56 per cent of all banks in the US have some type of loan origination system representing approximately 5,000 banks and the penetration is likely to reach 70 per cent by 2005. — UNI

Wipro, Excelergy ink pact

Bangalore: Wipro Technologies and Excelergy Corporation have signed a partnership agreement to jointly market, deploy and integrate the complete line of Excelergy platforms, including the CustomerPoint CIS/CRM solution.

The alliance, which spans North America, Asia Pacific, Europe and the Middle East, will combine the solution integration and support expertise of Wipro with the product-based software technology expertise of Excelergy, a joint statement said.

Wipro Technologies is the global IT services division of Wipro Limited, while Excelergy is a world leader in high performance software platforms for critical business processes in the energy and utility industry and other complex value chains.

As part of the alliance, Wipro will provide technical helpdesk support to joint Excelergy-Wipro clients as well as development support for Excelergy’s expanding software product lines. Wipro also plans to resell Excelergy products in select Asia-Pacific markets.

The CustomerPoint platform provides the “most versatile,” end-to-end customer relationship management, revenue management and billing system in the energy/utility industry, the statement said. — PTI

Merrill acquires stake in Satnam Overseas

Merrill Lynch has acquired a 5.10 per cent stake in Satnam Overseas by purchasing 10 lakh equity share.

Merrill Lynch acquired the stake in the food company through the market on December 10, Satnam Overseas Ltd said in a statement here. Prior to the transaction, Merrill Lynch did not own or control any non-voting shares.

Satnam Overseas Kohinoor brand enjoys the market share of 32 per cent in the domestic branded Basmati rice industry and is leading exporter. — UNI 
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BRIEFLY

Jet Air offers special fares
New Delhi, December 16
Jet Airways today offered special fares for passengers travelling point-to-point in the economy class for six sectors. These are Chandigarh to Chennai, Hyderabad or Kolkata via Delhi and back and also to Vadodara from Hyderabad, Kochi or Kolkata via Mumbai. The fare on the Chandigarh-Chennai route via Delhi is Rs 12,910, Chandigarh-Hyderabad (Rs 11,000) and Chandigarh- Kolkata is Rs 10,530. — PTI

Auto Summit
New Delhi, December 16
The biggest automobile dealers’ event in India, Auto Summit 2004, will be held here in January coinciding with the Auto Expo which will be held from January 15-22. The Federation of Automobile Dealers Association which will organise this event said here this year the theme would be “Consolidating Partnerships: The Road Ahead”. The Auto Summit would be held on January 16 and 17. — TNS

ICICI Lombard
Chandigarh, December 16
ICICI Lombard General Insurance Company Limited has tied up with International Tractors (ITL) to sell its tractor insurance product among rural customers. ITL has made ICICI Lombard its partner in Punjab, and farmers buying a Sonalika tractor can easily get the ICICI Lombard tractor insurance at the dealer outlet itself. — TNS

Debt-swapping
New Delhi, December 16
The Centre has set a target of Rs 1,14,000 crore for debt-swapping with states in three years. Replying to supplementaries in the Rajya Sabha, Jaswant Singh said Rs 50,000 crore had been swapped so far. The minister said all the states were participating in the debt-swapping scheme. — TNS

Hind Sanitary
Mumbai, December 16
Hindustan Sanitaryware and Industries today announced that it has entered into a strategic alliance with $1.5-billion Sanitec group of Finland. Under the agreement the firm will exclusively market premium product offering from Sanitec’s flagship brand “Keramag” using its extensive pan-India sales & distribution network. — UNI

Fund for HP
Shimla, December 16
Nabard has sanctioned Rs 370.77 lakh to the Himachal Pradesh Government for two rural roads and one bridge under rural infrastructure development fund (RIDF)-IX, raising the cumulative sanction to the government to Rs 83,536.63 lakh. — UNI

Oil unions strike
Mumbai, December 16
Oil sector workers unions today resorted to a day-long strike to protest against the Centre’s move to privatise public sector oil companies, but company officials claimed that the agitation did not affect business. — PTI

Return rate cut
New Delhi, December 16
The Rajya Sabha today passed the Taxation Laws (Amendment) Bill, 2003, that lowers the rate of interest paid on income tax refunds to 6 per cent. — PTI
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