Wednesday, August 12, 1998
today's calendar
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B U S I N E S S | Wednesday, August 12, 1998 |
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spotlight today's calendar |
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UT industry plan on anvil CII
to set up IT centre |
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Agro-industry policy soon:
Badal Hegde
rules out rupee devaluation |
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J&K to set up
‘textile city’ AGM
sans shareholders Delhi
plans common zone Sebi mulls over rolling settlement Reliance for 5-fold rise in exports DoT to accept credit cards for phone bills
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UT industry plan on anvil CHANDIGARH, Aug 11 — An action plan for monitoring the growth of industry in Chandigarh is on the anvil. Headed by Managing Director of (CITCO), Mr Satish Chandra, a seven-member sub-committee has been asked to finalise the action plan in six weeks. The thrust of the action plan says Mrs Anuradha Gupta, Secretary, Industries, will be two-fold. First, the sub-committee will examine whether new industry should be encouraged, considering the a problem of migration and pressure on existing infrastructure. Secondly, how to make the existing industry more competitive through amendments or change of existing policies relating to the transfer of industrial plots, change of trade and sub-letting of portion of industrial sheds or plots to other industrial units, and upgradation of existing infrastructure. The other members of the sub-committee are representative each by the Phdcci, the CII and the Small Scale Industries Federation of Chandigarh, the Estate Officer, the Director of Industries and the Chief Architect of Chandigarh.Problems faced by industrial units here are more on account of industrial belts and focal points being developed by Punjab, Haryana and Himachal Pradesh in the immediate periphery of the Union Territory. New industrial townships have come up at Parwanoo, Dera Bassi, Baddi, SAS Nagar and Panchkula. Most of these industrial houses have their corporate offices in Chandigarh. This industrial growth in and around Chandigarh has made the city highly attractive to banks and other financial institutions. The UT administration does not have an industrial policy of its own. Its need was not felt mainly because of the absence of a plan to further develop industry in the city in the light of the master plan. The only policy the administration drafted in 1990 was mainly to deal with the allotment of existing industrial plots or sheds. At a meeting of the Chandigarh Industrial Advisory Committee last week, members were asked to raise specific issues to be included in the industrial policy or industrial action plan. They raised
demands and problems of transfer of industrial plots and
sheds, permission for change of trade, permission to rent
out premises, creation of independent Chandigarh
industrial development centre, creation of Chandigarh
Financial Corporation, quota in Chandigarh Housing Board
dwelling units for industrial workers, construction of
first floor, first point sales tax, night shelter for
workmen, modernisation and testing facility, development
of roads and parks in industrial zones, dry port, housing
colony for workers, tool room, software technology park,
vertical expansion, pollution control measure and
electricity connection without any delay. |
Agro-industry policy soon:
Badal NEW DELHI, Aug 11 — Punjab Chief Minister Parkash Singh Badal today said his government has formulated a new policy framework for enhanced private participation in all sectors and urged the industrial community to lead the development process in the state. Regretting that fact that a large quantity of agricultural produce is marketed without any value addition, Mr Badal said that the government was determined to establish a strong linkage between industry and agriculture.For this purpose a new agro-industry policy with a special package of incentives is being formulated. Speaking at an interactive session organised by the Phdcci here today, Mr Badal said that a special package of incentives for units to be located in rural focus points have been provided. an institute of information technology to meet the human resource requirements of the software park in Mohali on a continuing basis is being proposed to be set up. In addition, the state government is creating a venture capital fund to assist the software exporting units coming up in this area, he said.To check procedural delays and bureaucratic bottlenecks, the government has introduced a single-window clearance system for industrial projects. Time schedule for clearances has been notified and Udyog Sahayak will follow up the cases for timely clearance, Mr Badal said adding that a committee of administrative secretaries has been set up under the chairmanship of the Chief Secretary for effective monitoring of this system. Referring to the infrastructure sector, Mr Badal said that projects worth Rs 261 crore for four-laning of highways are open to private sector collaboration.The government has already amended the legal framework to build highways, roads and bridges on a “build, operate and transfer basis. ”PSEB will now purchase surplus power to be produced by captive power units on mutually agreed terms.Wheeling of power through the PSEB grid has also been allowed to the captive power producers. The Punjab Government was also seriously considering to set up an independent power tariff regulatory authority to ensure supply of quality power at reasonable rates, he said adding that a standing committee with industry representatives has been constituted to sort out day-to-day problems. Earlier, Principal
Secretary R.I. Singh said that a Punjab infrastructure
initiative fund of Rs 50 crore has been constituted to
help smoothen the process of implementing projects. |
CII to set up IT centre in
city CHANDIGARH, Aug 11 — The CII plans to set up an “IT (information technology) centre of excellence” in the city within six months.This was announced by Mr Arun Bharat Ram, Chairman, CII (Northern Region), at a press conference here today. Elaborating, Mr I.S. Paul, CII Chandigarh Council Chairman, said with agriculture income flattening out and rice productivity declining, the northern region can grow only by turning to the services sector, including tourism, financial services, information technology and software. Quality of life and availability of educated manpower — the city alone annually produces 5,000 professional graduates and postgraduates — are suitable for the growth of information industry in the area, he added. The CII, Mr Bharat Ram said, would press the northern states to set up state electricity regulatory commissions if they want to attract more industrial units and if they don’t want to lag behind western and southern states. A CII delegation will meet the Punjab CM tomorrow to take up the issue.A minimum economic agenda, including the opening up of the insurance sector and PSU disinvestment — agreed to by all — should be immediately implemented. Populist schemes must get
replaced by economically viable policies and the northern
states must move towards a common market. Bloated work
force and loss-making state public sector undertakings
were playing havoc with state finances, he added.Mr R.
Srinivasan, Deputy Chairman, CII, stressing the need for
discipline, said China has developed fast through a
disciplinary approach. |
Hegde rules out rupee devaluation NEW DELHI, Aug 11 (PTI) — Commerce Minister Ramakrishna Hegde today said that he did not favour any “drastic action” including devaluation of Indian currency as “the rupee has stabilised in the last three or four weeks”. “The rupee is almost stable. I don’t think there is any drastic action needed”, he said when asked whether a weakening yen and South East Asian meltdown are making Indian exports uncompetitive. Speaking to newsmen after
a meeting with Tata Group representatives, which is part
of the series of interactions with top corporates to
boost exports, Hegde clarified that “there was no
demand from domestic industries to devalue Indian
currency”. |
J&K to set up
‘textile city’ LUDHIANA, Aug 11 — Mr Bodh Raj Bali, Industry Minister, Jammu and Kashmir, has said that the state’s new industrial policy offers attractive incentives and facilities to attract industry. Addressing a meeting organised by the Phdcci, J and K chapter, and the Citizen Council here last night, he said the state government had decided to give land on lease for 90 years. He exhorted industrialists to visit Jammu and Kashmir and examine the incentives given under the new industrial policy, including allotment of industrial plots/sheds, pre-investment studies, power tariff, price preference earnest money/security deposit, toll tax, investment and interest subsidies. The centre has cleared seven projects amounting to Rs 151 crore for the states. The government was setting up a “textile city” at Kartholi near Kathua where the industry would be given attractive facilities. The tourism industry was back on the rails as the number of tourists had enhanced many fold. Mr Amrik
Singh Aliwal, MP, said he would take a delegation to J
and K shortly to get first hand information about the
situation. Among others who spoke were Mr Aggyapal Singh,
President, Citizen Council, Mr Ram Sahey, president,
Phdcci chapter, Mr D.S. Katru, Director, Industries, J
and K, Mr Saleem Beg, MD Citco (J and K), Mr Mahesh
Munjal and Mr P.D. Sharma. |
AGM sans shareholders NEW DELHI, Aug 11 (UNI) — It was a normal annual general meeting (AGM) of course, except that the shareholders were missing.With just 70 to 80 odd shareholders representing the general public present at the 13th AGM of Shriram Honda Power Equipment Limited, the Board of Directors had a whale of a time and all the resolutions were passed unanimously within no time. However, the meeting had its share of sparks as well with shareholders complaining about non-receipt of the balance sheet and the annual report.The shareholders also protested against the non-receipt of dividend cheques and lack of efforts by the company in tracking down shareholders. Company Chairman Siddharth Shriram pacified the shareholders stating that Shriram Honda has been “taking pains” to locate the shareholders. Some shareholders also urged the management to announce bonus shares and a rights issue. “Our company has been performing well in spite of the recession in the market. Our market share has also been on the upswing. Now the company should consider a bonus issue at the earliest or even a rights issue,’’ Mr Jagjit Singh, a shareholder stated. However, Mr Shriram said: “Bonus is a matter of policy. Though we have not thought about it as yet, we will definitely think about it in due course.’’The shareholders also asked if the company is planning a buyback. Mr Shriram brushed aside
the issue stating that there are no plans towards this
end. “We have not considered it as yet and are also
not going to consider it.’’ |
Delhi plans common zone NEW DELHI, Aug 11 — The National Capital Region (NCR) is being structured as a common economic zone with the objective of having a uniform tax and tariff structure for commodities and services. The measure is aimed at facilitating the envisaged balanced growth of the region, an official release said today.The member states have agreed to this step, which is a follow-up of the decision taken at the 23rd meeting of the NCR planning board in June. The
development process of the core infrastructure
components, which are crucial for the accelerated
development of the region, has been set in motion as a
sequel to the June meeting. |
Honda to hike stake NEW DELHI, Aug 11 (PTI) — Honda Motor Company (HMC) of Japan has decided to increase its holding to over 66 per cent in its Indian joint venture Shriram Honda Power Equipment. HMC which has a 56.66 per cent stake in the venture, has entered into an MoU with Indian partner Siel Ltd. To transfer 10 per cent of the joint venture’s Rs 10.14 crore equity. The decision to transfer the 10 per cent shares was approved by the AGM here today as a change in the company’s name to “Honda Siel Power Products Ltd”. Siddharth Shriram said at the AGM under the MoU Siel will have the option to buy back the 10 per cent share from the Japanese partner within two years. With the proposed change in the equity structure, Siel’s shareholding will drop to zero per cent with the balance 33 per cent being held by the public and financial institutions. Shriram Honda announced a
dividend of 40 per cent for the year 1997-98. The net
profit during the period increased marginally to Rs 19.45
crore compared to Rs 18.88 crore in the previous year.
Sales increased to Rs 154 crore to Rs 150 crore in
1996-97. |
Sebi mulls over rolling settlement NEW DELHI, Aug 11 (PTI) — SEBI is mulling a proposal to extend the rolling settlement pattern to physical transactions at stock exchanges in a bid to increase volumes of delivery-based deals. Currently, rolling settlement is restricted to paperless transactions or share transactions through depository, where trades are settled on the fifth day of entering the deals instead of a specified weekly settlement. Once introduced, share certificates will also have to be delivered on the fifth day of entering the deal.SEBI sources here said they have called a meeting of stock exchanges on August 19 in Mumbai to discuss the issues related to transformation from a weekly settlement system to rolling settlements in physical share transactions. Representatives of all major stock exchanges, including BSE, NSE, Calcutta Stock Exchange and DSE are likely to participate in the meeting, they said.By introducing rolling settlements in physical segment, shares will change hands on every trading day replacing the existing form of deliveries at the end of the settlement period. Under the existing system, brokers are required to complete the deals on the last day of the settlement — Friday at the BSE and Tuesday at the NSE.Right now, pressure on clearing houses at bourses comes on the last day of settlement period, besides, there is huge squaring off of trades on that day. This would be taken care
of once rolling system comes into place, the sources
said.Currently, an investor gets his money for sale of
shares only on the 15th day after the deal while shares
get delivered on the 13th day.With rolling settlements,
this period would be reduced to half. |
Reliance for 5-fold rise in exports NEW DELHI, Aug 11 (PTI) —Reliance group of companies plans to increase its exports five-fold and achieve a super star trading house status in the next three to four years, the conglomerate’s top representatives led by Anil Ambani told Commerce Minister Ramakrishna Hegde yesterday. Reliance officials told Hegde in an on-going interaction between the Commerce Ministry and top corporate houses that they would step up exports to around Rs 2800 crore by the end of the current plan in 2001-2 from the present Rs 525 crore. Reliance was responding to the minister’s statement that large industries made up only 8 per cent of the country’s exports against a 40 per cent contribution by the small scale sector. Mr Hegde also sought to
know the reasons for the poor export performance so as to
enable the government to formulate suitable strategies
and help large industries to achieve higher export
growth.Giving an overview of the company’s
performance, Ambani said it should be viewed in the light
of foreign exchange saved through import substitutes
produced by Reliance. |
DoT to accept credit cards for phone bills NEW DELHI, Aug 11 (PTI) — Credit cards will soon be accepted for payment of telephone bills across the country while mobile cash collection centres will be introduced in rural areas, a top official in Department of Telecommunication (DoT) said today. Mobile collection vans would be introduced to solve the biggest problem of payment collection in rural areas, where there is no proper mechanism for real time bill realisation, member (services) in the DoT, P.S. Saran told a conference on telecom billing organised by the (CII) here. DoT was also looking at the possibility of accepting credit cards for making payment of telephone bills in the near future, he said. DoT has opened more than 1,200 single window customs counters to deal with complaints in the last few months and planned to open another 300 counters in the near future, Saran said, adding that number of complaints had come down drastically in the last few months. MTNL will soon appoint a
consultant agency to frame an information technology (IT)
policy for the company, its Chairman and Managing
Director, S. Rajagopalan said. |
THE lubricants industry in India is one of the few sub-sectors of the petroleum industry which has been opened up completely to private and foreign companies. Steadily falling margins and a major shakeout have marked the industry over the last few years. Lubricants are classified into automobile lubricants and industrial lubricants. The share of the two stands at 55:45.In the automobile sector, lubricants are further segmented into diesel and petrol. The diesel segment forms a major chunk of the auto segment, whereas the petrol segment constitutes the balance. Hence, increasing their sales in the diesel segment is very crucial for manufacturers. In the industrial segment, lubes are generally used as grease to improve the life of the machinery and also as fine oil for maintenance. Since effort, time and investment required to establish the brand are high, most companies have entered the auto lube sector.However, Indian lube manufacturers are now vying with one another to wrest a larger proportion of the market share in the lucrative lubricant, business by seeking the endorsement of leading automobile manufacturers who would recommend one particular lubricant brand as being best suited for the vehicle. Thus, the lubricant industry’s marketing is typically similar to other Fast Moving Consumer Goods (FMCG) where brands, brand building, brand recall, sustained advertising and other such factors are crucial. Consequently lubricants manufacturers are major spenders in the advertisements markets. The PSUs have a major advantage of selling through petrol pumps. The most common trend noticeable among vehicle owners is to change the lube at the petrol station. This made PSUs casual in the belief that they had a sole right to sell the lube through petrol pumps. Secure in the comfort of their monopolistic position, they did not bother to create a brand awareness. But as the market opened up and MNC’s flocked in and thus, the share of the PSUs fell. As selling lubes becomes a money game, those with the backing of international players will manage to sail through, though at a higher cost. How far can this be sustained is a tough question. But, in the long run, companies with lower capacities will find it difficult to operate. In future, only those with a market share of more than 5 per cent market share will be able to survive and companies with sound R&D, infrastructure facilities, skilled manpower and adequate marketing network will survive. IOC Incidentally, it is one of the three companies, which has a refining capacity for the lube oil base, an input in the manufacture of lubricants. In order to increase its presence IOC has aimed at improving the image of the retail outlets. Despite making a loss with superior industry network and superior backing of infrastructure the company sees no problem in maintaining its status as the leader in the lubricant industry. Lubrizol The company develops, manufactures and markets additive systems for automotive and industrial lubricants and for treatment of fuels. This company is one of the few companies out side US having technology for development, manufacture and performance evaluation of automotive lubricating oil and fuels. The company’s manufacturing unit, situated at the Thane-Belapur industrial complex, Navi Mumbai, has been certified under ISO 9002 standards by BVQI since January, 95. Forte Lub The company provides cost economical treatment which solves the contamination problems of fuel, oil and cooling systems. The company’s product range includes fuel system cleaners, diesel fuel conditioners, motor flushes, gas treatment, automatic transmission treatment, CV greases, cooling system conditioners, etc. Apart from pollution control and fuel saving products such as auto polish, wash and wax, lustre, carpet and upholstery cleaner, rust penetration etc. Castrol The company has seven plants in the country with a capacity to three lakh KL and on the financial front too the company’s performance has been impressive. During the year that ended in December 1997, the company posted sales and net-profit of Rs 1005.83 crore and Rs 147.36 crore respectively. Thus, the EPS therefrom
stood at Rs 23.9. The company has set up a new unit in
Silvassa which manufacturers 150 different types of
products. The company is also modernising its other
plants. The lubes market has two segments: automotive and
industrial. Castrols contribution of automotive lubes is
75 per cent and industrial lubes is 25 percent of its
turnover. |
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