B U S I N E S S

PHDCCI demands lower tax rates
NEW DELHI, Jan 2 — The new President of PHDCCI K.S. Mehta has demanded further cut in tax rates in the Budget and launching of deposit insurance scheme to help industrial recovery particularly in the small and medium sectors.

Dabur scouting for ‘Real’ buyers
NEW DELHI, Jan 2 — The Rs 800-crore healthcare giant Dabur India Limited (DIL) is believed to have decided to divest its natural fruit juice venture under brand name ‘Real’ and is scouting for potential buyers.

TOKYO : Mikako Hiramatsu, 8, smiles at a peregrine falcon perching on her palm during a New Year's falconry demonstration at Hamarikyu garden in Tokyo Sunday, Jan. 2, 2000. Nine falconer displayed traditional falconry skills and showed the raptorial birds to some hundred of visitors.— AP/PTI

• Industrial trade fair

AVIATION NOTES

Steps must to check hijacking
by K.R. Wadhwaney
AIRPORTS Authority of India (AAI) officials may be responsible for overlooking the functions of several agencies at airports but there is no official at the Indira Gandhi International Airport in a position to get the work going without hindrances.

INVESTORS' FORUM

INVESTMENT PLANNER

PHDCCI demands lower tax rates

NEW DELHI, Jan 2 (PTI) — The new President of PHDCCI K.S. Mehta has demanded further cut in tax rates in the Budget and launching of deposit insurance scheme to help industrial recovery particularly in the small and medium sectors.

In his first interview after assuming office on Friday last, Mehta told PTI that the maximum direct tax rates for both personal income and corporate should be brought down to 25 per cent as it has been proved beyond doubt that lower tax rates lead to better compliance.

Likewise in excise duty the rate at the top slab should be brought down from the present 24 per cent to 15 per cent, he said adding there should be only four duty slabs of zero, five, 10 and 15 per cent.

Welcoming Finance Minister Yashwant Sinha’s indication at the PHDCCI annual meeting that he would carry forward the indirect tax reforms in the Budget, Mehta said this augurs well for the industry.

But the industry needed “stable tax rates” and long term fiscal plans and hoped the government would address this issue as well in the Budget.

A Chartered Accountant by profession and member of SEBI’s advisory committee on Primary Markets, Mehta’s observations assume significance in the context of pre-Budget meetings scheduled to begin next week.

Stressing that availability of capital was becoming increasingly difficult for small and medium industries, Mehta favoured deposit insurance scheme so that small depositors did not feel threatened in putting their savings in company deposits even though they gave higher interest than banks.

Mehta who is a Director in National Stock Exchange, said an institutional framework of market-makers needed to be created in the country for capital market development in the country.

He also mooted the idea of allowing companies to have non-voting equity for the development of small and medium industries.

High cost of capital has been a major problem of industries in India, he said and warned that domestic industries are threatened with closure as this was eroding their competitiveness particularly in the export sector.

Noting that 40 per cent of the country’s exports came from the small scale sector, Mehta said there was a need to set up a technological upgradation fund on the lines of the modernisation programme for the textile industry.

Listing out his agenda for the development of industries in the northern region, he said he plans to develop a common market for the region and introduction of Uniform Sales Tax was a step in that direction.

Mehta said infrastructure bottleneck was one of the major impediment to the growth of small and medium industries in the northern region.

For this purpose, he said he would promote special purpose vehicle to tackle this problem at local levels.

He cited the problem of power in Okhla Industrial Estate and said an empowered committee comprising PHDCCI, Delhi Vidyut Board and Okhla industrial estate association was formed to deal with it.

Power shortage in the area is not due to inadequate availability but due to distribution problem, he said adding the committee has decided to get digital metres installed in the factories in the area to deal with the issue.

Such Special Purpose Vehicles will facilitate finding localised solutions, he added.

He said the chamber would give topmost priority for the development of agro-based industries and Information Technology in the region as they had tremendous potential.

To encourage food processing industries, the chamber would facilitate setting up of a cold storage chain in the region, he said.

Dabur scouting for ‘Real’ buyers

NEW DELHI, Jan 2 (PTI) — The Rs 800-crore healthcare giant Dabur India Limited (DIL) is believed to have decided to divest its natural fruit juice venture under brand name ‘Real’ and is scouting for potential buyers.

Dabur group, which is still in the process of restructuring as per the recommendations of management consultants McKinsey, had tried to reposition the ‘Real’ brand of juices last year but could not make it a success, company sources said.

The Dabur India spokesman, however, declined to comment on the company’s plans to sell the ‘Real” brand despite repeated attempts to contact him.

In a related move, DIL had exited its confectionery business General de Confetaria last year by selling off its 49 per cent stake to joint venture (JV) partner Agrolimen of Spain as part of plans to exit “unrelated” businesses.

Last month, another JV with Swedish cosmetics company antonion Puij fell through and the ‘Samara’ brand of cosmetics were phased out.

Also, as per McKinsey recommendations, DIL divested stake to become a minority partner in its foods venture with Nestle SA of Switzerland.

Positioned as a natural fruit juices brand, ‘Real’ is produced and marketed by Dabur Foods, a wholly-owned subsidiary of DIL, and has been a major loser last year.

Dabur India spokesman also declined to comment upon the financial performance of Dabur Foods, specially ‘Real’ brand of fruit juices.

Speaking to PTI just before taking over as the Chief Executive Officer of Dabur Foods, Amit Burman had said, “We went far wrong in our calculations for Dabur Foods since its inception in February 1998. We set ourselves a sales target of Rs 15 crore but could not achieve even 50 per cent of that.”

He had admitted that the ‘Real’ brand had been a major loser since the company’s inception and wanted to improve packaging and raw material sourcing, which had been identified as the brand’s weaknesses.

Introduction of ‘Real’ juice marked Dabur India’s foray into high-growth, convenience food products, and this was followed by ‘Hommade’ cooking pastes and table-top sauces besides lemon juice preserve ‘Lemoneez’.

However, Real was withdrawn in less than two months after its initial launch due to shelf-life problems and reintroduced with improved packaging under Burman’s leadership.

Slash import duty on cell phones

NEW DELHI, Jan 2 (PTI) — Import duties on both cellular phones and telecom equipment should be slashed to 10 per cent from the present 25 per cent to boost high-quality telecom equipment manufacturing in India, an apex chamber said here today.

This provision was most essential in the case of cellular and satellite phones, which were not being manufactured in India and smuggling in these was rampant because of abnormally high import duty rates, Assocham said in its pre-Budget memorandum.

“At present, cellular phones are not being manufactured in India due to their high cost and small size,” the chamber said.

“We suggest that import duty on cellular phones as well as parts of telecom equipment should be reduced to 10 per cent to boost telecom equipment manufacturing in India,” it said.

At present, there was negative differential between finished equipment and parts of telecom equipment which was hindering high technology equipment production, the chamber said.

The chamber is of the view that import of telecom equipment is essential in the initial stage to boost quicker technology absorption.

The chamber is of the view that all the major manufacturing projects which have been successful in the country had passed through the phase of encouraging limited equipment import in the early stages.

“This was the case during the seventies and the eighties when Colour Television manufacturing took off in India. Also, manufacturing of telecom switching equipment has seen this phase,” Assocham asserted.

“All these projects are today substantially indigenised besides being major export earners,” the chamber noted.

BHEL power plant for Haryana

NEW DELHI, Jan 2 (ANI) — Bharat Heavy Electricals Limited (BHEL) will set up an energy efficient and environment-friendly co-generation power plant on turnkey basis for meeting the captive power and steam needs of Indian Oil Corporation’s (IOC) Panipat refinery in Haryana.

According to a BHEL release here today, the IOC has put before BHEL a proposal for setting up a 30 MW gas-based co-generation power plant worth about Rs 100 crore.

At present, BHEL is executing an order for a co-generation power plant at IOC’s Gujarat refinery. While the gas turbine at the project has already been commissioned ahead of schedule, the Heat Recovery Steam Generator (HRSG) is in an advanced stage of commissioning and is also likely to be commissioned ahead of schedule. The company is also executing a 20 MW gas turbine based co-generation plant for IOC’s Barauni refinery, the release added.

Earlier, co-generation power plants of 2x30 MW, 3x25 MW, 2x20 MW and 3x8 MW capacities have been supplied and installed by BHEL at IOC,s Gujarat, Panipat, Mathura and Digboi refineries respectively and are meeting the power and steam requirements of these refineries.

The present order envisages manufacture, supply, erection and commissioning of a 30 MW (frame 6) gas turbine generator and a HRSG of 125 tonnes per hour capacity with associated auxiliaries and balance of plant equipment, besides complete civil works.

The gas turbine generator will be manufactured at BHEL’s Hyderabad plant, the HRSG and control systems will be manufactured at the company’s Tiruchirapally unit and electronics division, Bangalore, respectively, the release added.

Oriental Insurance penalised

NEW DELHI, Jan 2 (PTI) — A Delhi consumer court has penalised State-owned Oriental Insurance Company for wrong assessment of insurance claim of a jeweller and directed it to pay a higher amount along with penal interest.

Hauling up the insurance company for deficiency in service, the New Delhi Consumer Disputes Redressal Forum has ordered it to pay Rs 2,78,000 as claim against the damaged parcels instead of Rs 68,000 as assessed earlier.

The court also directed the Oriental Insurance to pay penal interest of 12 per cent on Rs 2,78,000 from the date of booking in December, 1992 till final settlement besides a litigation cost of Rs 2,000.

The complainant, Bal Kishore Khanna had booked four parcels containing gold ornaments from Delhi to Chennai on December 14, 1992. He also got the Jewellers Block Insurance with the company.

However, it was alleged that the parcels reached the destinations in damaged conditions besides its weight being also less.

Subsequently, after repeated reminders, the company approved a claim amount of Rs 48,000 on August 31, 1998 after assessing the loss as “single loss” as all the four parcels were sent to the same address.

“We are of the opinion that loss in respect of each parcel was a separate loss under the terms and conditions of the policy — accordingly we hold that approval of claim of Rs 68,000 — constitutes ‘deficiency in service’ on the part of the company”, the Court President S.P. Saberwal and member Sushma Yadav observed in a recent judgement.

Hotels demand export industry status

NEW DELHI, Jan 2 (PTI) — The Indian hotel industry today demanded status of an export industry with all tax incentives at par with computer software exporters besides withdrawal of expenditure tax on guests making payments in foreign exchange.

In its pre-Budget memorandum, Federation of Hotels and Restaurants Association of India (FHRAI) said although the hospitality industry had been granted the status of export industry last year, in reality it had only got the status of export house as the government had not extended all incentives as available to other exporters.

“Hotels and tourism units earning foreign exchange are not treated as exporters and are not given all the incentives available to other exporters. The Government should now give us the balance of the incentives available to exporters,” FHRAI said.

The industry had last year been given income tax incentives under 80HHD, facilities of EPCG (export promotion capital goods) imports, EEFC (export earner foreign currency) accounts and some other benefits.

Pointing out that exporters are not required to pay any local taxes on their foreign exchange earnings, the association also said the 2000-2001 Budget should exempt foreigners and Non-Resident Indians who paid their bills in foreign exchange from expenditure tax to ensure lower cost of stay for foreign tourists besides providing relief to the recession-hit industry.

FHRAI also called for exempting hotels from minimum alternate income tax (MAT) in line with exporters.

Suggesting reduction of service tax levied on hotel and restaurant industry since 1997, FHRAI said the threshold limit of turnover for service tax should be the same as for exemption of excise duties for small scale units as a large number of restaurants have a very small annual turnover for services on which the tax is levied.

“Hotels should be included in the list of infrastructure facilities as recommended by the Rakesh Mohan Committee on infrastructure,” it said, adding that the sector should be given all benefits accruing to other infrastructure sectors.

The incentives of section 80-IB should be extended to hotels which start operating from April 2001 to March 2006, it added, pointing out that another 1,30,000 hotel rooms were required to meet the target of five million tourist arrivals.

At present, this incentive is available only for hotels which start operating from April 1997 to March 2001.

Pointing out that tourist arrivals have been stagnating for the last three years with only 2.4 million arrivals in 1998-99, FHRAI said both central and State Governments needed to make efforts to lower the tax burden and make India a more attractive tourist destination.

IDBI asked to look into Simco accounts

NEW DELHI, Jan 2 (PTI) — The Board for Industrial and Financial Reconstruction (BIFR) has asked IDBI to enquire into balance sheet of Simco Industries following allegations of accounts manipulations from creditors.

A two-member BIFR Bench reserved its decision on declaring Simco Industries sick and said “serious doubt had been raised by the creditors on the balance sheet of the company”.

The board appointed IDBI as the operating agency to enquire into the accounts of Simco and appointed firm of chartered accountants to conduct a “special investigative audit” of the company.

Board directed Simco’s promoters to fully cooperate with the operating agency and provide them all information, data and documents to facilitate the special investigative audit.

The company in its application to BIFR has claimed that its networth of Rs 11.78 crore had been totally wiped off by accumulated losses of Rs 13.74 crore as on March 31, 1999.

GIC for starting banking business

NEW DELHI, Jan 2 (PTI) — General Insurance Corporation (GIC) has asked the Government to allow it to venture into the banking sector to effectively compete the banks and financial institutions in the wake of the opening up of the insurance sector for private participation.

GIC Chairman and Managing Director D. Sengupta told PTI that the corporation had asked the government to amend the Insurance Act to enable the public sector insurance companies to start banking ventures.

At present the public sector insurance companies are allowed to hold up to 2 per cent stake in a bank, he said adding that GIC and its subsidiaries would want to start banking business with a controlling stake.

“Gic would like to set up a bank to compete with public sector banks which are allowed to enter the insurance sector,” Sengupta said.

Sengupta said, “After the approval of the Government, GIC will take up the issue of entering into the banking business with its board.”

Auto competition hots up

NEW DELHI, Jan 2 (PTI) — The Indian automobile industry continued its commercial race in 1999, and witnessed hotting up of competition with the launch of several new vehicles giving multiple choice to consumers in the new millennium.

After lying dormant for the past few decades, domestic auto majors woke up to the emerging competition from global players who have now well established themselves here after the opening up of the economy.

With the revival of the economy, every segment of the automobile industry, be it scooters, motorcycles, cars or trucks, showed positive signs of growth. The industry also witnessed collaborations and introduction of latest technology and growing concerns about cleaner and greener technologies.

The last year of the millennium has been the year of the Korean invasion in both the four-wheeler and two-wheeler segment, the latest being that of scooter major, Kinetic which with a Korean tie-up recently launched two motorcycles.

The truck market also went on the upswing with global players such as Volvo and Tatra and Indian majors Telco and Ashok Leyland flooding the Medium and Heavy (M&H) commercial vehicles segment with several new and unique products.

The scooter, lifeline of the huge Indian middle class, found itself surrounded and outsmarted by the motorcycle as the consumer mindset took a drastic change. Two-wheeler giant Bajaj found itself in the shadows with its marketshare in the scooter segment declining to 44 per cent during the first 11 months of the current fiscal compared to 47 per cent in the same period last year.

Hero Honda, leading the pack with a record 43 per cent sales for the same period compared to the previous 38 per cent, created a new segment in the motorcycle arena with CBZ — a stylish and powerful 156cc motorcycle in a transition away from speed and economy that the company was previously known for. Four-stroke models also flew in from Bajaj and Escorts Yamaha in the form of ‘Caliber’ and ‘YBX’, respectively.

The passenger car segment witnessed hectic movement during the year as new players continued to challenge Maruti Udyog’s (MUL) 17-year supremacy by cutting its marketshare to a historic low level of 65.4 per cent during April-November 1999 against a high of 82.7 per cent during the same period a year ago.

MUL’s bread and butter model, the small car Maruti-800, saw its dominance gradually diminishing in the current rat race in urban India, though it is still the number one in the car segment with Hyundai, Daewoo and Telco eating into the leader’s market share with price sensitive and technologically upgraded models.

The two Korean giants pumped in innovative technologies in the small-car segment including multi-point fuel injection (MPFI) system, 12 valve engines which the urban Indian consumer gladly lapped up. It forced Maruti to move into smaller towns for retaining its place in the car industry and also introduce similar technologies.

Waiting on the sidelines to zoom into the crowded four-wheeler market, is the multi-utility vehicle (MUV) which is expected to witness a war with the launch of ‘Qualis’ by Japanese auto ‘Godzilla’ Toyota during this month’s Auto Expo to take on Tata and Mahindra & Mahindra (M&M). M&M has been working on a MUV project ‘Scorpio’ on the lines of Mitsubishi’s Pajero and Toyota’s Land Cruiser.

The year also saw the imposition of Euro-I and Euro-II emission norms by the Supreme Court for passenger cars. Although cars of the Korean chaebol Daewoo were Euro-II compliant and its Korean counterpart Hyundai also soon upgraded its vehicles from Euro-I to Euro-II, Maruti initially got a setback as it was not prepared to switch over from ‘old’ carburettor-based engines to advanced fuel injection systems.

Inflation touches 3.13 pc

NEW DELHI, Jan 2 (PTI) — Inflation rate rose past the 3 per cent mark for the week ended December 18 and stood at 3.13 per cent following a sharp increase in prices of non-food articles.

The 0.29 percentage points spurt in the annual rate of inflation to 3.13 per cent (provisional) compared to 2.84 per cent (provisional) in the previous week was mainly on account of a 1.4 per cent rise in prices of non-food articles under the Primary Articles category.

Inflation rate was much higher at 5.91 per cent during the corresponding period last year.

Industrial trade fair
Tribune News Service

FARIDABAD, Jan 2 — Trade enquiries worth crores of rupees were received at the recently concluded sixth Industrial Trade Fair called Faridabad ’99. More than one people including representatives of top industrial houses visited the fair.

As many as 538 industrial units of Faridabad put up their stalls in the industrial fair.

AVIATION NOTES

Steps must to check hijacking
by K.R. Wadhwaney

AIRPORTS Authority of India (AAI) officials may be responsible for overlooking the functions of several agencies at airports but there is no official at the Indira Gandhi International Airport in a position to get the work going without hindrances.

Following a series of mishaps in addition to foggy weather, the IGIA has turned into a “human zoo”. Some are crying, while others are shouting. Some are running to talk to the official, but who matters.

If the escalator death of an eight-year-old girl was owing to sheer call ousness, the prolonged agony of the hijacked Indian Airline aircraft is because of gross miscalculations of the powers that-be. Luck befriended the Government and passengers when the plane, despite protests by hijackers, landed at Amritsar.

Whatever might have been the compulsions, the plane should not have been allowed to get out of the Indian territory. If nothing else the tyres could easily have been deflated at the Amritsar airport. Had it been done, India would have retained the bargaining authority more than the hijackers. But in Kandahar, about half-a-dozen militants are in a friendly zone where authorities could be accused of playing a dubious role.

This is not first instance of hijacking in the history of aviation, nor would it be the last. Despite tightest possible security at the airports, the deadly arms could be provided to the militants on board through any menial who has the access from termac to the aircraft.

Bearing this in mind, the Indian authorities in particular and other aviation outfits worldwide will have to find ways and means to combat the hijacking challenge.

There is another important fact. Any one who is ready to throwaway his life can take any life. There have been instances when human bombs have been engaged to organise assassinations.

Amid these mishaps dense fog has descended in northern India and several flights have been delayed or diverted for save landing elsewhere. The AAI has lot of funds, but it has not been able to install category III of Instruments Landing System. Without this device, the landing in poor visibility is hazardous.

Besides, passengers and visitors have to face many man-made problems to get out of the terminal II of the IGIA.

Its gloomy picture has played havoc with the tourist traffic. This is the most unfortunate aspect of the year that has just ended.

INVESTORS' FORUM

McDowell

I hold FDR no 21790498 of McDowell & Co.. This FDR was to be redeemed on March 31, 1999. In respect of the FDR, the company issued me interest warrants out of its Account No CA224 vide cheques No 006351 dated April 1, 1999 for Rs 150 and cheque No 006352 dated April 29, 1999 for Rs 46. I presented the first cheque to my bank, State Bank of India, Sector 7-C Brach in the month of April, 1999. However, the Bank has returned this cheque with the remarks “Intimation to pay not received from bank ”.

Rosey Sharma
Chandigarh

Padmini Poly

I purchased 300 shares of Padmini Polymer on 22.9. 1998 with Folio No 035183. My son-in-law and his friend too bought their 200 shares each. These shares were sent for transfer under registered cover on November 16, 1998. These were transferred on December 16, 1998 in our names but the shares were not sent to us despite scores of reminders.

Prem K. Chopra
Ambala Cantt

UTI

I lodged on July 16, 1999, certificate No MEP 92-924191391 for 1000 units for redemption, the cheque for which was despatched by the UTI at my earlier address without giving any cognisance to my changed address. If an investigation is conducted regarding this complaint, the higher authorities will be shocked to find the casual approach with which the concerned branch is handling the customer complaints.

K.S. Chhatwal
Chandigarh

Videocon Intl

I sent 200 shares of Videocon Narmada Electronics Ltd with Folio no S0063455 for exchange with 16 shares of Videocon International vide letter dated August 21, 1999. So far I have not received the duly exchanged 16 share certificates.

Sarita Rani
Jalandhar

INVESTMENT PLANNER

NIIT future prospects appear encouraging

Q: Please comment on the long term prospects of NIIT.
— Arjun Dutta, Chandigarh

Leveraging on the synergy between training and software, global presence and a strong focus on the emerging growth areas, NIIT is a company with sound fundamentals. Significantly it happens to be the first Indian company to implement Economic Value Added (EVA), the world renowned performance measure, as a key strategy to ensure enhancement of shareholder’s value. NIIT has seized the vast opportunity of training through Internet by further enhancing its on-line learning facility on the Internet called NetVarsity. The NetVarsity’s interactive courses are also available on Oracle Corporation’s Internet Oracle Learning Architecture (OLA) web site. It has also moved into electronic commerce by setting up the NIIT CBT store on the Internet. With an ambitious target of setting up 100 centres each year, in India and abroad, its performance, on the financial front is absolutely in sync with its goals. And with the company adding more to its value through measures such as like online training, it stands a good chance of achieving the target. To conclude, in view of the above mentioned factors, the future prospects of the company appear encouraging.

Q: Do you recommend a hold or sell for Castrol India ?
— Umesh Bhandarkar, Delhi,
Kaushal Rathod, Sonepat

Incorporated in 1979, Castrol India is the largest player in the lubricants segment and commands an overall market share of 18 per cent in India.The company has seven production centres spread out in the country and has a capacity of three lakh KL. On the financial front, Castrol India has fared well over the years. The company, which recently set up a new facility in Silvassa which is engaged in the manufacture of 150 different types of products, is also undertaking a modernisation of its other plants. It may be noted that the lubes market can be divided into two segments, viz. automotive and industrial. Castrol’s contribution of automotive lubes is 75 per cent and industrial lubes is 25 per cent of its turnover. In all, the company has 300 types of lubricants. Castrol India is a company with a sound track record and bright future prospects and given these factors, it merits a hold recommendation in ones’ portfolio.

Q: Please throw some light on the long term prospects of Bausch & Lomb India .
— S.R. Barnal, Shimla

A subsidiary of Bausch & Lomb, US, Bausch & Lomb India (B&L) is one of the leading manufacturers of branded sunglasses, contact lenses and lens care solutions. Bausch & Lomb, US is a global eye-care company employing nearly about 15,000 people in 35 countries world wide. B&L’s core businesses are in soft and rigid gas-permeable contact lenses, lens care products, premium sunglasses, and ophthalmic, surgical and pharmaceutical products. B&L’s wide range of products include some of the most enviable brands in the world, viz. Ray Ban, Killer Loop, ReNu, SofLens66, etc. As a result, today B&L commands about a 55 percent marketshare in the sunglasses segment and about 70 percent marketshare in the contact lens segment. Moreover, it’s ReNu multi purpose solution (having a marketshare of about 60 percent) and de-proteinising tablets have succeeded in the creation of their own market. Thus,in spite of the fact that B&L,US, has decided to move out of it’s eyewear segment, back home there is very much a possibility of B&L, continuing with it’s eyewear business. This belief is supported by the fact that, as time gone by B&L has become well entrenched in the Indian market and has spent a lot on building brands in the country.

In addition, concentrated efforts have been made by B&L for widening it’s product portfolio to include quality products in medium-price ranges to improve it’s marketshare. Thus, though growth in the segments should have been higher but for the smuggled goods as well as the unorganised sector. Yet, the financial records of the company appear quite satisfactory. An important aspect in terms of the sunglasses sold is the fact that the Indian operations are not only among the top ten markets globally but also one of the largest and fastest growing in the Asia-Pacific region and will continue to grow within the years to come. This factor has had a positive impact on the prospects of B&L. Moreover, the wide distribution network of B&L spanning 800 authorised dealers and sales force have been hard to compete with. Also the factories at Bhiwandi, Rajasthan, manufacture both eyewear and vision care products under one roof, and are reported to be one of the low-cost producers worldwide. The eyewear capacity is running at about 37 per cent utilisation, thus providing ample scope for future improvisations and new product launches. Thus taking all these factors into consideration B&L’s long term prospects appear fairly promising notwithstanding the slump in its share-price.

Q: Please comment on the prospects of Rashtriya Chemicals and Fertilisers. — Shail Chaturvedi, Chandigarh

A prominent player in this industry, Rashtriya Chemicals and Fertilisers Ltd [RCFL] operates from its facilities at Trombay and Thal. The company is at present implementing a Rs 5500 crores modernisation plan. On the financial front, the company has been a modest performer over the years and the same could be attributed to better production and an increase in trading activity. Under its modernisation programme, company plans to modernise both its units and set up a joint venture with Oman Oil Company. The modernisation programme should go a long way in assisting the company to do well in the industry. Thus, the long term prospects of the company appear encouraging.

BIZ BRIEFS

NSE trading

MUMBAI, Jan 2 (PTI)—The second mock trading session at the National Stock Exchange was successfully completed today. About 1,600 users participated in the mock trading session in the capital market segment between 9.30 a.m., and 11.30 a.m. while in the first mock trading session held yesterday, as many as 3,390 users from all over the country participated, NSE said in a release here. Post mock trading activities were progressing smoothly and no problems were encountered on account of Y2K, it said and added that the market would open for live trading as usual from tomorrow.

AI Director

MUMBAI, Jan 2 (PTI) — Air India Commercial Director Shanu Mukherjee has been given a month’s extension till January 31, 2000. Mukherjee, who was to retire on December 31, is given the extension the same day “as a very special case”, according to a letter issued by the Union Civil Aviation Ministry to the airline.

BHEL

NEW DELHI, Jan 2 (PTI) — Bharat Heavy Electricals Ltd (BHEL) today bagged a Rs 100 crore order from Indian Oil Corporation (IOC) to set up a 30 MW gas-based co-generation power plant in Haryana.

SAIL

NEW DELHI, Jan 2 (PTI) — Credit rating agency ICRA has assigned the highest safety ‘LAAA structured obligation (SO)’ rating to public sector major Steel Authority of India.