B U S I N E S S

80 pc dotcoms are going to fail: Wadhwani
NEW DELHI, April 27 — Eighty per cent of internet companies are going to perish in the near future due to thin profits, an information technology expert said today.

Sinha welcomes RBI credit policy
NEW DELHI, April 27 — Finance Minister Yashwant Sinha today welcomed the monetary and credit policy for 2000-01 announced by RBI.He said it is a well drafted policy and the advice and caution given in the policy is welcome.

The New York Islanders' new owners, software executives Charles Wang, centre, and Sanjay Kumar, right, share a laugh at Garden City, New York, before they announced that they have purchased the Long Island- based hockey team for a reported $175 million from Howard and Edward Milstein and Steven Gluckstern on Wednesday. They will be the fourth owner of the Islanders since 1997, pending league approval. — AP/PTI photo

RBI relaxation for Self Help Groups
CHANDIGARH, April 27 — with the formation of more than 3000 self help groups, Punjab and Haryana, with the involvement of banks, NGOs and NABARD officials, it has become easier for the rural poor especially the poor women to avail the loan facilities to meet their financial needs.

Overdrafts of States increased
MUMBAI, April 27 — The outstanding level of ways and means advances and overdrafts of States from the RBI increased from Rs 4,818 crore as on March 31, 1999, to Rs 7,519 crore in March 31, 2000, which included an overdraft of Rs 4,092 crore.

Hyundai rolls out 1,00,000th car
CHENNAI, April 27 — Hyundai Motor India today claimed to have set a record by rolling out one lakh cars in 19 months. The 1,00,000th car, an Accent, was flagged off at the company plant, near here by Mr A.P. Gandhi, President and Mr Y.S. Kim, Managing Director, at a ceremony.

Plywood makers to have research centre
CHANDIGARH, April 27 — Indian Plywood Industries Research and Training Institute, Bangalore, Northern India Plywood Manufacturer Association and the State Forests Department of Punjab, Haryana and Chandigarh are organising a workshop on ‘Development of plywood and other panel materials from plantation timbers’ tomorrow at ICSSR Hall on Panjab University Campus.

Escotel cuts cell connection's cost
CHANDIGARH, April 27 — Escotel today reduced the cost of Smartfare (post-paid) cellular connection in Haryana. The connection, which used to cost Rs 4,260 earlier, will now cost only 2,260, almost 50 per cent lower than the existing cost.

Wipro net profit rises by 77 per cent
Wipro’s turnover has touched a mark of Rs 23,129 million and its profits after tax rose to Rs 3006 million from Rs 1,702 million for the year ended March, 2000, Chairman Ajim H. Premji said on Wednesday.

80 pc dotcoms are going to fail: Wadhwani

NEW DELHI, April 27 (PTI) — Eighty per cent of internet companies are going to perish in the near future due to thin profits, an information technology (IT) expert said today.“The high rate of failure of early-stage entrepreneurs in India will lead to decline in the number of dotcom companies in India by 80 per cent”, IGATE Capital Chief Executive Officer Sunil Wadhwani said at the CII conference on ‘bricks and Clicks’ here.

There is an overcrowding in the internet segment and thin profits will lead to the downfall of most dotcoms, he said.

Referring to the hardships that IT companies had to undergo in the initial years, Wadhwani said the disciplines which were observed by some of the successful IT companies are missing with most dotcoms.

The real opportunity and threats of IT companies now is in the business-to-business (B2B) arena, he said.

Pointing to the growth of online exchanges for most of the industries in US, Wadhwani said prices of items traded through the net are drastically coming down as compared to the items traded offline.

Indian companies who face problems in setting up marketing and distribution networks can sell their goods through the net more easily.

About the adverse effects of internet, the IGATE chief said there would be large layoffs in sectors like banking, insurance, stock market as buyers are shifting to Internet for intangible items.

“Inefficiencies are going to be squeezed out and companies which would be efficient, able to cut cost and are technology-driven would be able to survive,” he said.

Sinha welcomes RBI credit policy

NEW DELHI, April 27 (PTI) — Finance Minister Yashwant Sinha today welcomed the monetary and credit policy for 2000-01 announced by RBI.He said it is a well drafted policy and the advice and caution given in the policy is welcome.

Expressing concern over fiscal deficit, Sinha said he has been talking about substantial level of fiscal deficit which needs to be under control and he welcomed the advice of RBI in the spirit it has been given.

The Finance Minister said the borrowing programme of the Centre is unlikely to put pressure on the interest rates as the central bank had already brought down the bank interest rates and Cash Reserve Ratio (CRR).

On inflation, Sinha in a statement said the drought situation was already taken into account for calculation for inflation as the sowing season for the winter crop was over.

He said if the monsoon is normal this year, there would be no undue pressure on inflation.

RBI relaxation for Self Help Groups
Tribune News Service

CHANDIGARH, April 27 — with the formation of more than 3000 self help groups (SHGs), Punjab and Haryana, with the involvement of banks, NGOs and NABARD officials, it has become easier for the rural poor especially the poor women to avail the loan facilities to meet their financial needs. The formation of SHGs has started in all districts of the two States while bank finance has been made available in eight districts of Punjab and 13 districts of Haryana.

The Self Help Group concept has been adopted by the Centre as strategy for ameliorating the rural poor, said Sukhbir Singh, General Manager, NABARD. The banks find it convenient to deal with the group financing where utilisation , monitoring and recovery of loans is ensured by the group members. This reduces the transaction and operational costs of the banks, and increases business prospects to the untapped strata of the society.

SHG is a group of 10 to 20 poor women or men who voluntarily join together to start small savings for lending among themselves for their small but emergent financial requirements. After working for about six months, the group is linked with the nearby bank branch for availing loan to augment their own savings.

RBI has given special relaxation to open saving accounts of these groups without registration. Even margin and security for loans have also been waived for these groups while providing bank credit.

Overdrafts of States increased

MUMBAI, April 27 (PTI) — The outstanding level of ways and means advances (WMA) and overdrafts of States from the RBI increased from Rs 4,818 crore as on March 31, 1999, to Rs 7,519 crore in March 31, 2000, which included an overdraft of Rs 4,092 crore.

“Several States faced financial difficulties and they frequently resorted to WMA and overdrafts from RBI despite the recent enhancement in WMA limits to State Governments to Rs 3,685 crore from Rs 2,234.4 crore,” the apex bank said in its Macroeconomic and Monetary Developments in 1999-2000 report released here today.

Hyundai rolls out 1,00,000th car
From Nirmal Sandhu
Tribune News Service

CHENNAI, April 27 — Hyundai Motor India today claimed to have set a record by rolling out one lakh cars in 19 months.

The 1,00,000th car, an Accent, was flagged off at the company plant, near here by Mr A.P. Gandhi, President and Mr Y.S. Kim, Managing Director, at a ceremony.

‘‘We plan to manufacture the next one lakh cars in less than 12 months. Our target is to cross the three-lakh mark by the year 2002”, said Mr Kim, addressing visiting journalists.

The company plant with a capacity to produce 1-2 lakh cars annually, including 40,000 accent cars, is operating at 100 per cent capacity. “We sell whatever we produce said Mr B.V.R. Subbu, Director, Marketing and Sales, replying to newspersons’ questions.

The company proposes to increase production capacity to 2 lakh cars a year by the year 2003, he said. An additional investment of $ 200 million will be made. To match the increased capacity, Hyundai will appoint more dealers in the country, taking their number from the present 93 to 200 by March 2001.

Asked about the Santro market share, Mr Subbu said the car sells maximum in Delhi followed by Maharashtra and Punjab. The northern belt accounts for 40 per cent of the Hyundai sales.

Is there any competition from Wagon-R? Mr Subbu said both are high-technology tall boy cars which will carve out their own market instead of being a threat to each other. “One will not eat into the market of the other,” he said.

Asked about objectionable Hyundai advertisements comparing Santro with Ikon and dealers’ ad on Daewoo, Mr Subbu said “we provided only information to customers. As for dealers’ ad is concerned, we told them to stop it even before others objected.” He blamed dealers’ rivalry for the ad.

Hyundai has invested $ 600 million in the plant. Santro has 85 per cent localisation level, while it is 75 per cent for Accent. The company has made marginal exports of components — 2.5 per cent of the turnover which touched Rs 2,310 crore for 1999-2000.

Is there any new model in offing after the already announced Sonata? Mr Subbu said there is no specific decision on the next model.

Plywood makers to have research centre
Tribune News Service

CHANDIGARH, April 27 — Indian Plywood Industries Research and Training Institute (IPIRTI), Bangalore, Northern India Plywood Manufacturer Association (NIPMA) and the State Forests Department of Punjab, Haryana and Chandigarh are organising a workshop on ‘Development of plywood and other panel materials from plantation timbers’ tomorrow at ICSSR Hall on Panjab University Campus.

Mr Arun K Bansal, Director IPIRTI, said the Punjab Governor, Mr J F R Jacob will inaugurate the workshop. The purpose of the workshop is to create awareness about the potential of plantation timbers and the significance of research therein amongst the wood panel industrialists. More than 150 leading plywood manufacturers are expected to attend the workshop.

Mr Bansal appreciated the interest shown by NIPMA in setting up of IPIRTI centre in or near Chandigarh.

Mr Naresh Tiwari, president NIPMA said that 60 per cent of the plywood produced in Punjab is exported to Maharashtra, Gujarat and other states. Similarly 90 per cent of the Haryana production is also exported.

Mr Vipin Talwar, Vice-President of the northern association said that Haryana and Punjab are rich in the cultivation of poplar and eucalyptus plants which are the main, safe and cheap ingredients for plywood. The association wants a research centre to improve the quality of plywood for international competition. The association has urged the State Governments to provide land for the setting up of the research centre in or near Chandigarh.

Escotel cuts cell connection's cost
Tribune News Service

CHANDIGARH, April 27 — Escotel today reduced the cost of Smartfare (post-paid) cellular connection in Haryana. The connection, which used to cost Rs 4,260 earlier, will now cost only 2,260, almost 50 per cent lower than the existing cost.

Mr Manoj Kohli, Executive Director and Chief Executive Officer of the company said customers can choose any two from the various benefits available.

The options include an additional cellular connection at just Rs 1,260; a waiver of autoroaming membership fee of Rs 1260 along with waiver of monthly fee of Rs 99 for six months; STD facility for just Rs 2,000 against the normal deposit of Rs 3000; Free Caller Line Identity Presentation for six months and Free Voice Mail Service Subscription for six months.

Wipro net profit rises by 77 per cent

Wipro’s turnover has touched a mark of Rs 23,129 million and its profits after tax rose to Rs 3006 million from Rs 1,702 million for the year ended March, 2000, Chairman Ajim H. Premji said on Wednesday.

Addressing a press conference after the board meeting at which the audited accounts for the year was approved, he said the company recorded a 28 per cent growth in sales and other income and profits shot up by 77 per cent.

Union Carbide: Union Carbide Corp said its earnings rose 26 per cent in the first quarter, before the effect of an accounting change.

Goodyear India: Goodyear India has reported a decline of around 88 per cent at Rs 0.46 crore during the first quarter of 2000 against Rs 3.54 crore in 1999. Net sales stood at Rs 163.91 crore against Rs 164.83 crore while total expenditure increased to Rs 158.21 crore from Rs 154.09 crore.

Raymond: Raymond Limited Reported a modest increase in the turnover for the year ended March 31, as total income of the company rose by 3.8 per cent to Rs 1356.59 crore as against Rs 1307.35 crore of the previous year.

Shaw Wallace Gelatines: Shaw Wallace Gelatines on Thursday reported a sharp decline of about 38 per cent in the net profit during the financial year 1999-2000. The net profit during the year came down Rs 3.95 crore from Rs 6.38 crore in 1998-99 consequent to a decline in income from operations to Rs 53.56 crore from Rs 56.50 crore.

ICICI Securities: ICICI Securities and Finance Company posted an excellent performance during the fiscal year ended March 31, 2000, with a record 263 per cent higher net profit of Rs 720.80 million as compared to Rs 198.67 million of the previous year.

Dr Reddy’s Labs: Dr Reddy’s Laboratories has recorded a net profit of Rs 60 crore in 1999-2000, registering a growth of 16 per cent over last year.

The total sales of the company also recorded a 16 per cent growth from Rs 426 crore in 1998-99 to Rs 493 crore this year.

Rolta: Rolta India has posted a 51 per cent growth in the net profit at Rs 21.36 crore during the first quarter ended March 2000, on a total income of Rs 60.67 crore which registered a rise of 50 per cent over that of the previous year.

Reckitt & Coleman: Reckitt and Coleman has posted and impressive growth in the net sales and profit before tax by 24.4. per cent and 30.7 per cent, respectively, in the first quarter ending March 31, 2000. Company sources said in Calcutta on Thursday that the net sales at Rs 13.63 crore was Rs 2.67 crore more than that in corresponding period last year.

Hind Lever Chem: Hind Lever Chemical Industries had reported a sharp jump of about 92.70 per cent in the net profit during the first quarter of 2000. The net profit during the quarter ended March, 2000, increased to Rs 8.19 crore from 4.25 crore in the same quarter of previous year.

Shalimar Paints: Shalimar Paints has reported a sharp decline in the net profit to Rs 0.10 crore during the third quarter ended March, 2000, against Rs 0.42 crore last year. Cumulative net profit during the period also declined to Rs 0.95 crore from Rs 1.21 crore in the same period of previous fiscal.

Nalco: Nalco on Thursday reported a 106.28 per cent increase in the net profit at Rs 512.10 crore during 1999-2000 compared to Rs 248.25 crore in the previous year. Company sales went up by 42.2 per cent to Rs 2,142.35 crore during the year as against Rs 1,506.65 crore in 1998-1999. — agencies

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UTI Bank
NEW DELHI, April 27 (TNS) — UTI Bank today announced the launch of its Internet banking “iConncet” enabling its customers to view, query and download statements of their bank accounts on the Net.

Swadeshi mela
BANGALORE, April 27 (PTI) — A “Swadeshi mela,” showcasing the best in the “Bharatiya” trade and industry, will be inaugurated here on April 29 by Union Finance Minister Yashwant Sinha, to give a boost to “swadeshi” movement.

Award
HYDERABAD, April 27 (PTI) — Dr K. Anji Reddy, Chairman of Dr Reddy’s Laboratories, has been chosen for the Ninth Yudhvir Foundation annual award for 2000 for his noted contributions for the growth of the pharmaceutical industry in the country.