Advertising on Internet NEW DELHI, May 29 — National advertising bodies and leading international companies are building support for new on-line advertising guidelines by the International Chamber of Commerce, the world’s foremost developer of voluntary business codes, according to ICC headquarter in Paris.

Radico Khaitan has bottling tie-ups
NEW DELHI, May 30 — Leading alcoholic beverage maker Radico Khaitan Ltd has chalked out ambitious expansion plans, including capacity augmentation and slew of new products over the next few months.

Bausch to sell stake in arm
NEW DELHI, May 30 — Italy’s premier Eyewear company Luxottica group S.P.A. is considering purchase of Bausch and Lomb Inc.’s stake in its Indian subsidiary Bausch and Lomb India Limited.

‘Consult industry on VAT’
CHANDIGARH, May 30 — The Haryana Chamber of Commerce and Industry has demanded that before implementing the value added tax scheme in the State, the Government should invite suggestions from the industry and trade.

Growtech develops hybrid pearl millet
HISAR, May 30 — Growtech Seeds India Pvt Ltd has developed a new hybrid variety of pearl millet (bajra) which is high yielding and more diseases resistant.

Come 26th, virus strikes computers
MUMBAI, May 30 — The 26th of every month can be aptly termed as the “Hackers’ Day” with fears of computer virus “Win95.CIH” or its variants striking computers across the world.

Bhartiya Intl net up
NEW DELHI, May 30 — Bhartiya International, a leading leather garment manufacturer and exporter, has recorded a 60.54 per cent jump in its net profit to Rs 8.30 crore during fiscal 1998-99 as against Rs 5.17 crore in the previous fiscal.

Bajaj Auto skids, others race ahead

NEW DELHI, May 30 (PTI) — Bajaj Auto Ltd started the first month of the current fiscal with a negative sales growth while Kinetic Motors, Hero Honda and TVS Suzuki witnessed impressive sales performance in the two-wheelers segment.

Two-wheelers sales of Bajaj Auto declined by 7 per cent in April to 72,475 units as compared to 77,953 units recorded in the same month of the previous year, according to the latest data compiled by the Society of Indian Automotive Manufacturers (SIAM).

On the other hand, Kinetic Motors’ sales jumped sharply by 262 per cent to 7860 units in April 1999 as against 2167 units in the same month last year.

TVS Suzuki, Hero Honda and Royal Enfield Motors also followed the same track as their sales grew by 36 per cent, 34 and 13 per cent, respectively, in the reference month.

TVS Suzuki sold 65,008 two-wheelers including 26,374 motorcycles and 8595 scooters in April, 1999, as against a total sales of 47,782 in the same month last year.

Total sales of two-wheelers increased by 9 per cent to 2,75,574 units in the first month of the current financial year as against 2,52,811 in April, 1998.

LML Ltd witnessed a 6 per cent drop in sales during April this year as the company could sell 25,299 scooters as against 27,006 units in the same month last year.

Another scooter producer Maharashtra Scooters Ltd reported a 28 per cent decline in sales in the first month of the current financial year to 12,914 scooters from 17,903 units sold in the same month last year.

Total scooters sales dipped by 4 per cent to 96,367 units in the reference month as compared to 100,317 scooters sold in April, 1998.

However, motorcycles segment performed better as total motorcycles sales was up by 18 per cent. All motorcycle manufacturers put together sold 127,241 units in April this year as against 107,692 in April last year.

Among the mopeds segment, the sales performance of Kinetic Engineering Ltd was quite impressive as its sales grew by 36 per cent to 10,300 units in April this fiscal from 7547 units in the same month last year.

Majestic Auto Ltd drives out of red

NEW DELHI, May 30 (UNI) — Majestic Auto Limited, a part of the Hero group, has recorded a major turnaround in the 1998-99 fiscal to close the year with a net profit of Rs 2.51 crore as against a net loss of Rs 10.04 crore a year earlier.

Its cash profit for the year stood at Rs 12.48 crore, a statement issued here today said.

This turnaround, despite the recessionary conditions of the economy, has been due to the close attention paid by the company to decrease costs and to focus more on quality. With this, Majestic Auto is all set for the challenges of the next millennium.

Hero Motors has also decided to roll out three new products soon for the rural market, the semi-urban market and the international market. These products — the Super Shakti, SL and SLX — will be priced at Rs 20,000, Rs 25,000 and Rs 35,000 respectively. They are a product of Hero Motors’ in-house research and development facility.

Hero Motors is also planning to produce premium scooters for both domestic and international markets, using the new Briggs and Stratton engines.

Hero Motors — unit II of Majestic Auto — has tied up Briggs and Stratton of the United States, to produce high quality four-stroke engines.

It feels that the new millennium will bring new challenges and the company is geared up to meet them. “All our systems are now Y2K compliant. Our four-stroke engine project with Briggs and Stratton is on schedule and the new emission norms will be met by our new engines, which are currently being developed”.

Reliance net to grow by 26 pc:
Morgan Stanley

NEW DELHI, May 30 (PTI) — Reliance Industries Ltd (RIL) net profit is expected to grow at an annual rate of 26.5 per cent in the next two years, investment bank Morgan Stanley has said.

In an analysis of the company’s performance, Morgan Stanley said the net income of RIL was expected to increase from Rs 1,844.7 crore in 1998-99 to Rs 2,208.3 crore in 1999-2000 and Rs 2,938 crore by the end of March, 2001.

The company’s gross profit will grow at an annual rate of 29 per cent over the next two years.

Morgan Stanley said the growth would be fuelled by rising operating efficiencies, leaner cost structure consequent to a quantum shift in scale and strong volume growth.

“Reliance also benefits from its dominant position in the local market where demand growth remains strong,” it said.

Higher revenue growth has been estimated on back of higher volumes due to the early commissioning of RIL’s new project at Jamnagar, polyester capacity acquisitions and stronger cash flows.

The share of exports is also estimated to rise from 6 per cent of total revenues to around 14 per cent in the next two years.

The analysis says that the RIL operating margins should remain relatively higher than those of its peers even if import tariffs were reduced to average Asian levels.

RIL has competitive cost structure in the regional context, which is evident in its high profit margin.

How not to go about ISO 9000
Tribune News Service

CHANDIGARH, May 30 — “ISO 9000 systems do not exist,” says Mr Dave Evans, Managing Director of a New Zealand company, International Certification Ltd, which has opened an office in Panchkula.

Talking to The Tribune here today, Mr Dave Evans said companies often go in for ISO 9000 certification for the wrong reasons: to increase their market share, to demonstrate a commitment to quality, to do trading or to do things better.

A company aspiring for ISO 9000 usually seeks a consultant, who organises numerous meetings with the ISO team. An audit is arranged. Lengthy procedures and manuals are written.

“The company ends up with the certificate on the wall at the reception, but it does not understand the true meaning of ISO 9000 compliance. That’s why Mr Dave Evans emphasises that the ISO 9000 systems do not exist.”

This is unfortunate. There should be greater emphasis on training the client in the pursuit of ISO 9000, he added.

Mr Raj Bhandari, Vice-President, ICL, said the company will open another office in Jammu in three-four weeks. The company has come to this region in response to market demand. It has got clients like Lalru-based Alpha Drugs, Rubicon Steels of Mohali, International Tractors of Hoshiarpur and Sadem Industries of Ludhiana.

Advertising on Internet

NEW DELHI, May 29 (UNI) — National advertising bodies and leading international companies are building support for new on-line advertising guidelines by the International Chamber of Commerce (ICC), the world’s foremost developer of voluntary business codes, according to ICC headquarter in Paris.

Leading companies backing the ICC guidelines on advertising and marketing on the Internet include: Dun and Broadstreet, Eastman Chemical, Leo Burnett, Nestle UK, Readers Digest and Shell International, an ICC release said.

Endorsements for the guidelines have already come in from advertising and other business associations in Belgium, the Netherlands, Sweden, Switzerland, and the United States. Banks, Chamber of Commerce and other representative business associations have also given their support.

The April 1998 updated guidelines on Internet advertising provide solid self-regulatory rules for ethical advertising on the Internet and aim to increase government and consumer trust. Other ICC codes cover advertising practice, marketing and social research environmental advertising, direct marketing, sales promotion and sponsorship. They are used by professional, advertising associations as the basis for national codes of conduct.

The Internet advertising guidelines cover a range of ethical issues, including protection of users’ personal data, messages directed at children, and the varied sensitivities of global audiences.

The guidelines urge marketers to have an open and transparent On-line presence by disclosing their identity clearly when posting a message, so that users can contact them without difficulty. Marketers should alert users to any access costs additional to basic telecommunications rates, and allow them a reasonable amount of time to disconnect from the service without incurring the extra charge.

A guideline entitled ‘users rights’ states that advertisers and marketers should disclose the reason for collecting personal information on users, and confine their use of the information to their stated purpose. The guidelines also may that marketers should take reasonable precautions to safeguard the security of their data files.

Marketers are advised to respect On-line public groups by posting messages only on commercial sites and those with a related them or which have given implicit of explicit permission.

The ICC guidelines stipulate that On-line advertising direct at children should not be exploitative or harmful. Marketers should ensure that parental consent is given before children provide information On-line. They should give parents information on ways to protect children’s On-line privacy.

Radico Khaitan has bottling tie-ups

NEW DELHI, May 30 (PTI) — Leading alcoholic beverage maker Radico Khaitan Ltd (RKL) has chalked out ambitious expansion plans, including capacity augmentation and slew of new products over the next few months.

The company has embarked on capacity expansion drive by entering into tie-ups for bottling its products with six partners, including three in Andhra Pradesh, two in Punjab and one in Rajasthan, RKL Executive Director Abhishek Khaitan told PTI.

RKL, which has a tie-up with Whyte and Mackay, is also speaking to bottlers in Uttar Pradesh, Kerala and Maharshtra to enter into bottling arrangements, he said.

Besides, the capacity of RKL-owned Rampur Distillery is being expanded to 600 lakh litres from the present 459 lakh litres annually, he said.

Rampur Distillery is the largest distillery in the country and supplies alcohol to leading manufacturers in the country, including Shaw Wallace, UB and Mohan Meakins, Khaitan said.

Bausch to sell stake in arm

NEW DELHI, May 30 (UNI) — Italy’s premier Eyewear company Luxottica group S.P.A. is considering purchase of Bausch and Lomb Inc.’s stake in its Indian subsidiary Bausch and Lomb India Limited (BLIL).

The sell-off will be effected provided necessary governmental regulatory approvals in the USA and India are satisfactorily obtained and vision care business of BLIL is divested, a statement issued here today said.

This is a fall-out of Bausch and Lomb’s decision in April to sell the assets and liabilities of its global sunglass business including its Ray-Ban and Killer Loop sunglass brands, to Luxottica.

The Chairman and Chief Executive Officer of Bausch and Lomb Inc said: Luxottica is eminently positioned to manage the profitable sunglass business in India.

The vision care business is not in Luxottica’s line of business, whereas it is a core business for Bausch and Lomb worldwide.

Consistent losses have been incurred by BLIL’s vision care business since its inception, given the level of eye care in India. It is expected that the vision care business will require much effort and investment to grow and yield returns.

Bhartiya Intl net up

NEW DELHI, May 30 (PTI) — Bhartiya International, a leading leather garment manufacturer and exporter, has recorded a 60.54 per cent jump in its net profit to Rs 8.30 crore during fiscal 1998-99 as against Rs 5.17 crore in the previous fiscal.

The company’s turnover registered an increase of 45.95 per cent to Rs 65.43 crore during 1998-99 as against Rs 44.83 crore last year, company’s Managing Director Snehdep Aggarwal told PTI. The Board has decided to pay an increased dividend of 25 per cent as against 20 per cent paid last year.

Foreign tourists get stranded in Srinagar


by K.R. Wadhwaney

FOLLOWING the tension prevailing in Jammu and Kashmir, Srinagar airport has been closed. With the sudden closure of the airport, hundreds of tourists have been stranded.

Travelling by surface transport has been hazardous and irksome. Many foreigners, holidaying in Kashmir, have missed connecting flights from New Delhi. There is virtual chaos in Srinagar, according to travel agents and airline officials. Tourists are willing to pay any amount to get any mode of transport to return. Airline operators are unable to confirm when will the operations resume. The national carrier will have to begin ‘chartered flights’ to help tourists return to Delhi.

The Indian Airline officials say it is a government decision and they are obliged to abide by it. When asked whether the national carrier will evacuate parsons stranded in the valley, they say they can not confirm but Indian Airlines will always rise to the occasion to evacuate the passengers. “We have done this exercise often and will again do so”, they asserted.

A new hub

Colombo will be a vibrant hub soon as Air Lanka, has embarked upon a new 10-year business plan which promotes the passenger traffic as much as it lays emphasis on the cargo movement. “Situated as we are, we are now working effectively to link East with West”, said Dr Dharamaratha Heath, Air Lanka’s Regional manager (West Asia).

Air Lanka has already taken measures to augment its fleet, which will be put into operation before the year is out. It has also entered into the partnership with Emirates which is reportedly flying high.

Although Air Lanka has 28 flights a week to India and back, it wants to increase its flights as there is a demand for seats.

The airline provides equal emphasis to cargo upliftment. “We are fully aware that the cargo is important in earning revenue as passenger traffic,” said the Air Lanka official.

Promotional fares

Jet Airways has begun special promotional fares for travel between Mumbai and Lucknow and also from Lucknow to important cities in the country. The Passengers travelling between six metro cities may undertake check-in exercise at the point of origin for the same day return flight. This facility helps the passengers more time to handle their assignment.

The airways which has been growing fast, has tie-up with several hotels, which offer sizeable discount to the passengers. The airways operators express cargo counters for the convenience of corporate clients.

Continental Carriers

Continental Carriers, a pioneer in Indian freight forwarding industry, received the ISO-9002 award for maintaining high quality of standards.

“We at Continental have always cared for high standards of quality and the ISO 9002 award is only a formalisation of our dedication to quality”, said T.N.Vohra, Chairman of the Carriers.

2000th aircraft

Airbus Industries recently delivered its 2000th aircraft. The aircraft, A-340-300 has been delivered to Lufthansa. The manufacturers’ goal is to maintain half of the market for commercial airlines in terms of value.

Novartis India

NOVARTIS India Ltd (NIL) is a prominent player in the Indian pharmaceuticals industry. The company is the fourth largest player in this segment in Europe and seventh largest player in the world. Novartis is also involved in the agricultural segment. On the financial front, the company’s financial performance has been good. During the year that ended in March 1998, the company posted sales and net-profits of Rs 663 crore and Rs 37.02 crore respectively. The company is part of the 31.2 billion Swiss Franc giant, the Novartis group, which was formed subsequent to a world wide merger and a complicated business restructuring of the two entities, Sandoz and Hindustan Ciba Geigy. This company has planned a unmber of OTC launches during this year and later. It is likely that these launches will enhance its business. Lately, it has launched three products in the pharma segment, which has been readily accepted in the market.

Bata India

A SUBSIDIARY of the Canadian multinational by the same name, Bata India is the largest footwear manufacturer in the country. The company enjoys a dominant market share of 24 per cent in the leather footwear segment and 52 per cent in the non-leather footwear segment along with a strong brand equity in the market. On the financial front, the company’s performance has been improving. The company has a well established and a wide distribution network all over India with around 1,000 retail shops. The parent company of Bata India is planning to hike it’s investment in India operations, and the company itself plans to manufacture its own polythane soles to meet its in-house demand Overall, the company’s prospects seem encouraging, although it would be prudent to note that the company recently faced labour problems.

Wockhardt

FORSEEING that the Indian pharmaceuticals industry will undergo a consolidation phase over the next seven-eight years, Wockhardt has worked out a strategy in order to survive in a scenario where intense competition is expected and MNCs are sure to play a major role. The three-pronged strategy includes expanding domestic business in formulations, developing bulk drug active substances for the international market, and sourcing formulations in USA and Europe in two-three years time. The business is divided into formulations, bulk infusions, food and dietetics, and biological products. Wockhardt thus enjoys a diverse product profile and its focus on the export of Captopril, whose generics market in the USA is huge and which went off patents in February 1996, will help reap high returns. The company being export driven will now look at enhancing its domestic strengths and a company that will strengthen its position in the domestic market. Thus, Wockhardt would be one of the few Indian companies to do well once IPR comes into effect.

‘Consult industry on VAT’
Tribune News Service

CHANDIGARH, May 30 — The Haryana Chamber of Commerce and Industry has demanded that before implementing the value added tax (VAT) scheme in the State, the Government should invite suggestions from the industry and trade.

The Senior Vice-President of the Chamber, Mr N.C. Jain, said though the VAT scheme was a welcome step, the Government should make efforts to bring the rate of the sales tax in the State at par with the adjoining states before implementing the scheme. He said this would avoid unhealthy competition and provide a level field to all.

Mr Jain also demanded that the State Government should give 2 to 5 per cent cash incentive on FOB value of exports to save the scientific instruments industry of Ambala which was facing a financial crisis because of the competition in the international market.

The Chamber urged the State Government to approach the Punjab and Haryana High Court with a request that powers to hear the anti-pollution cases should be delegated to the District and Sessions Judges of all districts. In case this was not possible, more Environment Courts should be opened in the State. At present, these are functioned in Faridabad and Hisar.

by Ashok Kumar

Q: Do you recommend holding on to or selling the shares of BASF India?

— Amarpreet Bagga, Ambala

Ans: BASF India, which is a 50 per cent subsidiary of BASF Aktiengesellschaft of Germany, is a diversified company producing a wide range of chemicals that find application in various user industries. It is a leading producer of leather chemicals and auxiliaries which contribute nearly one-third of the company’s turnover. Though the product profile is wide, the backing of parental technology has been a major boon. The foreign major is one of the largest chemical companies in the world focussing on leather chemicals, plastics, dyestuffs and agrochemicals. The company has not lined up any major expansions in the immediate future, but the expansion undertaken thus far can be expected to bear fruit this year. Hence, one could consider holding on to the shares of this company.

Q: I am considering an investment in the shares of Krebbs Biochem. Would you kindly comment on the advisability of making an investment at the current price level?

—Parin Bhatia, Chandigarh

Ans: With a virtual monopoly in the anti-asthmatic products segment viz. ephedrine and pseudoephedrine, Krebbs biochem is riding the ongoing boom in its segment. This company initially started off as a 100 per cent EOU, before starting to cater to the domestic market. The company is also working toward achieving the US FDA approval standards in the manufacturing segment, and once it achieves this goal, not only with the demand for its products increase, but they would also be able to improve upon its margins, as it can command a premium over non-FDA products. This is all the more important, as more than 90 per cent of its exports reach the US market, with the rest going to Canada, Hong Kong, Thailand Ghana, Japan etc. Although this company will be adversely affected by the 4 per cent surcharge on imports levied in the latest union Budget, and the non-utilisability of the 5 per cent modvat credit, its high level of exports should compensate for the same, especially in the light of the recent depreciation of the value of the rupee. Finally, one must also note that this company is engaged in a highly competitive segment, where margins are getting thinner by the day. Hence, though an investment in this scrip is not inadvisable, it should ideally be done at price declines.

Q: Please advise me about the prospects of Smithkline Beecham Pharmaceutical?

—Tatinder Singh, Patiala

Ans: Smithkline Beecham Pharmaceuticals limited (SBPL) is a subsidiary of Smithkline Plc of UK, one of the leading companies worldwide in the pharma segment. With the foreign parent having a stake of over 40 per cent, this Indian subsidiary has a considerable advantage over most of its competitors in terms of technology and financial backing. Owing primarily to the runaway success of its Hepatitis B viccine, (SMPL) had declared December ‘97. Along with this came the announcement of a liberal bonus offer in the ratio of one share for every share held by the shareholders. The company had previously announced a bonus in 1994 in the ratio of 2:5. The company’s extensive marketing network and brand building exercise has yielded good returns. Now in the year 98 the company is implementing its plan to launch two more of its vaccines in the country viz. one for hepatitis A Havrix and another one for chicken pox. Yet overall, the prospects of this company seem quite satisfactory.

Q: Should I hold or sell the shares of Vikrant Tyres?

—Karan Rai, Chandigarh

Ans: Vikrant Tyres (VTL) has been a beneficiary of its management control changing hands being vested on JK Industries, with effect May 97 . Following the same, this hitherto loss-making company posted a turnaround, notwithstanding the fact that the auto industry was and in fact still is reeling, under recessionary pressure. Currently, JK Tyres and VTL have a joint market share of more than 20 per cent . The company has now drawn up a modernisation plan that would involve an outlay of Rs. 273 crore. The company is also entering into a tie-up with Continental AG of Germany, the fourth largest tyre manufacturer in the world, for steel radials for trucks and buses. The facility for this is scheduled to be ready by October this year. The long term prospects of this company thus seem to be quite satisfactory and hence its shares can be held on to.

Growtech develops hybrid pearl millet
From Our Correspondent

HISAR, May 30 — Growtech Seeds India Pvt Ltd has developed a new hybrid variety of pearl millet (bajra) which is high yielding and more diseases resistant.

Listing the qualities of the seed, the Director Research of the company, Dr K R Garg, said, the stem of the plant is more juicy and has less fibres which makes it more palatable for domestic animals.

Besides, the time taken by the crop in ripening is comparatively less, as compared to the traditional varieties, he said, adding that farmers get extra time for growing gram and oilseed.

The Head of Department of the seed technology in Haryana Agricultural University, Dr Bhim Singh Dahiya, described it as a major breakthrough in the seed production by the private sector.

Come 26th, virus strikes computers

MUMBAI, May 30 (PTI) — The 26th of every month can be aptly termed as the “Hackers’ Day” with fears of computer virus “Win95.CIH” or its variants striking computers across the world.

“The CIH series of viruses, which infect Windows 95 and 98 executables, have an activising date of 26th of the month. And when infected, it overwrites first MB (megabyte) of hard disk drive (HDD) in all and overwrites flash BIOSes on certain machines”, I.T. Secure Software Managing Director Peter Theobald told PTI here today.

While Melissa viruses hitting microsoft mail servers are known for their notoriety in the USA, CIH viruses have widespread impact in India, Theobald, a computer security expert, said.

Altos India

I despatched share certificates 200 No 141402, 220260, 145408 and 220274 50 shares each with Regd folio No AIL 017787R, AIL 017805 to M/s Altos India Ltd, Agarsaha Chowk, Narnaul (Haryana) on 15.6.1998 for transfer.

Over one year has passed but I have not received the same duly transferred in my name in spite of repeated reminders.

M.K Soni
Mohali

Rly Fin Corpn

I have not received the Tax-free bond certificates amounting to Rs 30,000 of Indian Railway Finance Corporation Ltd (IRFC) in lieu of allotment letter No 259 dated 8.3.97 bearing Folio No K110259 sent to Karuy Consultants, N. Delhi, for exchange with certificate on 27.1.99 under IRFC Ltd instructions.

Arun Kanwar
SAS Nagar

Reliance Cap

I sent 100 shares (one certificate, one transfer deed duly signed and stamped to Reliance Consultancy Services Limited for transfer on 21.12.94. Certificate No. 139814, Master Folio No. 09136152, Distinctive Nos, 1578750I to 15787600, in my name. I have not received the share certificate so far.

Kanchan Jain
Ludhiana

Punwire

I hold two number FDR Nos 1655 and 1656 each for Rs 15,000 in Punjab Wireless Systems owned by Government of Punjab. The quarterly interest @ 14 per cent was due on 15.4.99. Till date the company has not paid the interest although several reminders have been sent to the Company Secretary and the Managing Director.

K.K Chaudhry
New Delhi

The current jump in the inflation rate was mainly due to the hike in prices of tea, gram eggs, pork, condiments and spices.

Graintec India
Tribune News Service
CHANDIGARH, May 30 — Agro Tech India Ltd, a company of the Manimajra-based Dhillon group, has changed its name to Graintec India Ltd. As per an order of the BIFR for the rehabilitation of the company the paid-up share capital stands reduced by 90 per cent from Rs 27.04 crore to Rs 2.704 crore and one equity share is being given in lieu of 10 equity shares held by shareholders. At the last annual general meeting of the company, the shareholders had approved the reduction in the share capital.

New drug
Tribune News Service
CHANDIGARH, May 30 — Karnataka Antibiotics & Pharmaceuticals Limited, a Government of India Enterprise, has launched the sale of the new drug, “Grenil”, a unique combination for treatment of migraine and tension headache.