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| Tuesday, January 9, 2001, Chandigarh, India   
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Hughes Software & Sterlite Optical double net profits
‘Impose curbs on farm imports’ Sachs India again knocks doors of BIFR Applitech plans Rs 145 cr expansion UK backs India’s stand on labour |
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| NY Times to slash 17 pc of online jobs
Woollen sales pick up in the Ludhiana hosiery market following a persisting cold wave in this region. — Photo Rajesh Bhambi Police protection for Wipro chief States intend to pursue Microsoft PNB Gilts to start retailing G-Secs Norms for Antodya scheme
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| Hughes Software & Sterlite Optical double Hughes Software Systems (HSS) today reported doubling of net profits to Rs 18.40 crore during the quarter ended December 31, 2000, as against a net profit of Rs 9.17 crore recorded in the same period the previous year. Sales grew 85.8 per cent to Rs 56.33 crore during October-December 2000 as compared to Rs 30.31 crore in the corresponding period last year, Arun Kumar, President and Managing Director of HSS told reporters here. Net profit rose 98.5 per cent to Rs 40.82 crore in the first nine months of the current financial year as against Rs 20.56 crore profits in April-December 1999. Sales rose 84.4 per cent to Rs 136.53 crore in the first three quarters of 2000-01 when compared to Rs 74.01 crore sales posted in the same period the previous year. The new order input for the quarter was 102 per cent higher over the corresponding quarter last year. The company has obtained significant orders for both products and services from accounts like Italtel, Ericsson Aheadcom, Motorola, Nokia and NEC during the quarter. Sterlite Optical Sterlite Optical Technologies Ltd (SOTL) has recorded a 101 per cent increase in its net profit in the second quarter ending December 31, 2000 at Rs 89.46 crore compared to Rs 44.52 crore in the corresponding period last year. Sales grew by 40.48 per cent during this period at Rs 322.22 crore compared to Rs 229.36 crore in the corresponding quarter of the previous year, a release said here today. Exports aggregating Rs 123 crore in Q2 represented 61 per cent of total optical fibre and cable sales of Rs 200.3 crore. For the half year ended December 31, the net profit was Rs 146.61 crore (Rs 72.72 crore), net sales Rs 526.77 crore (Rs 360.81 crore) and exports Rs 189.95 crore (Rs 2.09 crore). SOTL chairman Anil Agarwal said it was heartening that “we have established a presence in the global optical technology space”. The company CEO and Director Ashok Panjwani said expansion plans were progressing as scheduled and by 2001 end SOTL would have an installed optical fibre capacity of five million fibre kms. Pentasoft Tech Pentasoft Technologies registered an increase of 53.05 per cent in its operating profit at Rs 57.07 crore for the third quarter ended December 31 against Rs 30.69 crore during the corresponding period last year. Its turnover went up to Rs 153.07 crore during the period against Rs 100.01 crore the previous year. Other income during the period was Rs 3.76 crore. During this period, the enterprise division accounted for 67.75 per cent, engineering services accounted for 18.44 per cent and education and training for 13.81 per cent of the total revenue generated. |
| ‘Impose curbs on farm imports’ NEW DELHI, Jan 8 — The government should impose quantitative restrictions on the import of agricultural commodities as it threatens to destabilise the livelihood of the farming community, the Indian Science Congress has recommended. The Congress has suggested that efforts be made to create a “Livelihood Box” while renegotiating at the World Trade Organisation for allowing developing countries to impose quantitative restrictions. The Indian Science Congress, after five days of deliberations on food, nutrition and environmental security which concluded yesterday, said that to cope with the new WTO regime, there was a need to improve efficiency of domestic production, processing and marketing. It called among other things for an institutional mechanism for international market intelligence, quick action on tariffs and dumping as well as aggressive negotiation on subsidies in developed agriculture and incorporation of social clauses in the forthcoming trade talks. It suggested launching of a three-pronged innovative strategy aimed at managing food surplus, utilising the food surplus for augmenting infrastructure and employment generation for the rural poor. The Congress also urged the government to formulate rural oriented policies with focus on land reforms, institutional credit, public capital formation and a safety net for the poor. For orchestrating interactive rural development process it suggested the formation of a “Consortium” involving government bodies, NGOs, farmer organisations, Panchayati Raj institution and private sector. Another recommendation relates to extension of gains to the areas by-passed by the Green Revolution like vast dry farming areas through watershed management, hybrid technology and selective farm mechanisation. For tackling problems related to nutrition, the Congress demanded promotion of nutritious, traditional and alternate foods, including designer crops. It said that the problem of micro nutrient deficiency could potentially be alleviated through backyard nutritional gardening. There is also a need to sensitise and educate women regarding nutrition management of the family units especially the vulnerable like elderly, nursing mothers and children. On the shortcomings in the implementation of programmes, the Congress urged the government to unshackle governance of research and higher educational set-ups from bureaucratic controls. There should be a synergy between science and technology, institution, organisation and public policy for enhancing competitiveness in the newly emerging global scenario. On environmental security, the Congress suggested evolving of appropriate research strategies to harness bio-diversity for sustainable development without depleting the natural resource base. The Congress expressed the confidence that the “Rainbow Revolution” which is in the offing would make India free of poverty, hunger and malnutrition and an environmentally safe country by 2020. |
| Sachs India again knocks doors of BIFR CHANDIGARH, Jan 8 — The Parwanoo-based Sachs India, which has accumulated losses of Rs 36 crore and which owes about Rs 8 crore to small creditors, has sought BIFR protection for the third time to try rehabilitation and defer payments. BIFR has called a review hearing on January 17, 2001, at 11.30 a.m. at its office to consider a rehabilitation scheme and also look into the failure of the previous schemes sanctioned in 1993 and 1997. Mr Ashish Dasgupta took the charge of the company as Managing Director on November 24, 1999 when German auto component maker Mannessman Sachs decided to exit from the joint venture by transferring its entire shareholding to Mr Dasgupta without any cash transaction. The nominee Director of BIFR, Mr P.G. Lele, had objected to this because of charges against Mr Dasgupta. According to Mr Satvinder Singh, one of the original promoters and ex-Deputy Managing Director of the company, Mannessmann Sachs left the company with a shortfall of Rs 19 crore which they were bound to contribute as per the BIFR scheme and handed over the company to Mr Dasgupta. The company’s working has gone down by 70 per cent and is now on the verge of closure leaving all shareholders, creditors, workers and employees of the company in the lurch, he adds. According to Mr V.K. Bansal, ex-Director Finance, who has also been on the Board of Directors with the Mannessmann nominees for two years and represented the Indian promoter group, the viability of the company is not possible. The German management had increased the overheads to such an extent that this sick company cannot be revived at any cost. The current Managing Director is drawing a salary of Rs 12,10,000 a year plus perks. The accumulated losses of the company increased from Rs 3 crore in March, 1996, to Rs 36 crore in December, 1999. Mr Sanjiv Garg, President of the Creditors Association of Sachs India, a small scale entrepreneur who was supplying the material to this company and who has received a telegram from BIFR to attend the review hearing meeting, said that the creditors of the company had not been paid for so many years. The two BIFR schemes had failed due to the non-induction of the promoter contribution and shortfall in the cash flow committed at BIFR by Mr Ashish Dasgupta and others. The company owes Rs 7 to 8 crore to small scale creditors who are crying for payment. The company has approached BIFR with a new proposal so that these creditors can be made long-term creditors, adds Mr Bansal. Sachs India Limited, originally known as Sirmour Sudbury Auto Limited, was incorporated in 1985 for the manufacture of shock absorbers and was promoted by Mr Ashish Dasgupta, Mr Pravin Kant and Mr R.K. Garg. From the very beginning the company started making losses. As a result, the company came under the preview of BIFR in 1993. The company was sanctioned a rehabilitation scheme in December, 1993. In spite of various concessions and waivers by the banks and financial institutions, the company could not turn around. Since the promoters were not in a position to induct more money, they entered into a joint venture agreement with Mannessmann Sachs of Germany. The German company invested Rs 16.05 crore in June, 1997, as per the fresh scheme sanctioned by the BIFR. The company used these funds for paying the dues of financial institutions and banks and terminated the services of the Managing Director, Mr Ashish Dasgupta, on the charges of illegal withdrawal of company funds and misrepresentation to the German company and banks. During its two years of stay, the German company incurred a loss of Rs 36 crore. In November, 1999, the German company transferred its 45 lakh shares in the name of Mr Ashish Dasgupta for zero consideration and left the country in November, 1999. Mr Dasgupta was not available either at his home or office for his comments. |
| Applitech plans Rs 145 cr expansion NEW DELHI, Jan 8 — Applitech Solutions Limited, the Ahmedabad-based software solutions provider, has embarked on a Rs 145 crore expansion programme over the next two years. The expansion will include setting up its new international corporate headquarters in Ahmedabad, setting up new software development centres in Ahmedabad, Pune and Singapore, and open marketing offices in London, Austin and California. According to Mr Ankil C. Patel, MD and one of the promoters of Applitech Solutions, the company was also on a massive drive to recruit software professionals. The Ahmedabad development centre would double its manpower from the present 400, while the Pune centre with focus on internet technologies would have at least 150 new professionals, he said. The expansion project has been appraised by ICICI which has also sanctioned a term loan of Rs 16 crore. Cabletron Inc., the US-based leading internet infrastructure and solution provider, has forged a strategic relationship with Applitech by taking a 2 per cent equity and investing up to Rs 6.5 crore in the proposed expansion. According to Mr Patel, under the tie-up with Cabletron, Applitech would develop specific network solutions on the former’s infrastructure for the Indian market. He said that currently Applitech provided software solutions to Nirma, Ranbaxy and the Indian Space Research Organisation’s Satellite Application Centre in Ahmedabad. In fact, Applitech was the first private IT company to which ISRO had given an outsourcing work in the area of oceanography and materials, he said. In the internet sector, the company had made a strategic investment in freshlimesoda.com, a joint ventre between Applitech, Sony Entertainment Television and Mr Paramesh Sahani. Freshlime-soda.com plans to open cafes in different cities as part of its growth strategy, Mr Patel added. |
| UK backs India’s stand on labour NEW DELHI, Jan 8 — The UK Minister for Trade and Industry, Mr Stephen Byers, today endorsed India’s stand on labour at the World Trade Organisation. At a meeting with the Union Minister for Commerce and Industry, Mr Byers said the UK had agreed with India that core labour standards should not be part of the WTO. The British Government is firmly opposed to the use of trade sanctions to enforce labour standards, he added. On Basmati rice, Mr Byers said that he fully shared India’s concern about possible challenges to the present regime. He said that the UK would continue to be active within the European Union in its support of the Indian position. The current policy on tariff limitation should be maintained and the UK would resist any attempts to change it, he added. Indo-British trade has hit record levels, growing by 45 per cent since the Indo-British partnership started in 1993. UK-India bilateral trade for January to October, 2000 was up by 32 per cent over the same period in 1999. |
| NY Times to slash 17 pc of online jobs NEW YORK, Jan 8 — Media company New York Times Co has said it will cut 69 jobs, or 17 per cent of the work force, at its money-losing Internet unit. The across-the-board job cuts come as the unit, New York Times Digital, faces slowing growth in online advertising. “The growth in Internet advertising spending... is not happening as quickly as we like,” Times Co spokeswoman Catherine Mathis told Reuters. The reductions in the 400-strong work force will hit employees at all levels in Times Digital’s four offices, in Boston; Cambridge, Mass.; Santa Rosa, Calif.; and New York. The job cuts are aimed at making Times Digital profitable in cash-flow terms in 2002. The unit posted a cash-flow loss of $18 million in the third quarter as revenues almost doubled from the year before, to $12.1 million. The Times Co., publisher of such newspapers as The New York Times and the Boston Globe, becomes the second big old-media group in four days to outline major job cuts among online workers. Media tycoon Rupert Murdoch’s News Corp said on Thursday it would merge its U.S. digital media unit with Fox television as a cost-cutting move. A source told Reuters about half the 400 workers at News Digital Media would lose their jobs. Times Co. In October put on hold plans to launch Times Digital in a public stock offering, citing market conditions. Internet stocks have been pounded in recent months amid uncertainty about the sector. Spokeswoman Mathis said despite the job cuts, Times Digital was still benefiting from strong brand names at the larger company. |
| Cheers after shivers ! LUDHIANA, Jan 8 — With the persisting cold wave, the woollen industry here has started breathing easy. Only a week ago, hosiery manufacturers were looking ashen faced. Many of them had stopped the production of hosiery goods. However, the chilling weather in the past one week or so has made all the difference for them. The stocks lying with them have been by and large cleared. If the sun continues to dodge for some more days in this part of the country, the entire stocks of hosiery goods would be cleared, said a local manufacturer. The local hosiery industry, by and large, depends on weather conditions. Delay in the cold wave make things hot for them. This year, the arrival of chilly weather was delayed by about two weeks. Change of fortune for manufacturers started with the new year day when it rained almost in the entire northern belt. Immediately after the rain, the sale of wollen material picked up. Mr Vinod Thapar, President of the Ludhiana Knit Wear Club, said though most of the manufacturers had to close their production units a week or two early because of delay in the arrival of chilly weather, but in the past one week lot of stocks lying with the manufacturers had been cleared. He said that normally manufacturers expected a 10 to 12 per cent growth in their business every year. But this year there would be slight decline in growth. Local manufacturers produce hosiery goods worth Rs 8,000 crore for the Indian and external markets. Even the response from the importers of Indian hosiery goods was not bright this year. Already the Russian market, which used to be a big importer of Indian hosiery material, is no more accepting Indian material. Mr Thapar said: “We are trying to find new markets, especially in Europe and Middle East. Our surveyors are out on this job and they would make presentations before the manufacturers sometime in February. Then we would be able to tell that where local manufacturers would be able to set their foothold. Because of the uncertain winter weather and shortening of its duration, local hosiery manufacturers have started focusing on the manufacturing of summer wear like T-shirts and other formal and casual summer wear, etc. “We are trying to shift to the summer wear because of uncertainty gripping the hosiery trade. It is bedeviled with lot of ups and downs. Mr Harish Chander, President of the Lalu Mal Street Shopkeepers Association, which keeps watch on the retail hosiery business, says though this year has proved worst year for hosiery trade in the past one decade, but cold conditions in the past one week have given some relief to retail shopkeepers. They had put up huge stock of hosiery items on their shelfs before the beginning of the winter months. As even the entire November and December remained warmer, the sale was not picking up. Panic overtaken some of the shopkeepers and they started disposing the material offering heavy discount. He said that small manufacturers, numbering about 4,000, depend on retailers for selling their material. The sale of hosiery items of the entire industry in this part of the country is around Rs 40 to 50 crore in good wintry conditions. But this year it will be around Rs 20 to 25 crore, according to Mr Harish Chander. The big units, whose number is around 110, either export the material or supply in bulk to the military, paramilitary and the police force. He said that if the cold wave continued for some more days, retailers would be relieved of the stock lying on their shelfs. He said that as the hosiery industry mainly small manufacturers were facing uncertain future, the Government should come to their rescue. |
| Police protection for Wipro chief BANGALORE, (Reuters) — Karnataka has offered police protection to two of the country’s leading information technology (IT) chiefs because of fears of militant attacks, a State Minister said on Saturday. N.R. Narayana Murthy, Chairman, Infosys Technologies, and Azim Premji, Chairman Wipro were offered police protection after film star Rajkumar was kidnapped last year, State Home (Interior) Minister Mallikharjuna Kharge said. He said both Murthy and Premji turned the offer down. “We have now received information that Kashmiri militants may target Premji”, Kharge told Reuters. “The Chief Minister has personally briefed both of them (Murthy and Premji) on the need for security cover. “I have had discussions with the city police and we have told both of them not to leave the city without informing us”, he said. Nearly a dozen militant groups are fighting New Delhi’s rule in Jammu and Kashmir, India’s only Muslim-majority state. For a brief time last year, Premji became the richest Indian in the world, following a sharp rise in Wipro’s stock price. Murthy is one of the co-founders of Infosys. On Friday, Wipro’s shares closed at Rs 2,800.20 while Infosys’ stock ended at Rs 6,381.50 at the Bombay Stock Exchange. |
| States intend to pursue Microsoft WASHINGTON, Jan 8 — State Attorneys General say they are determined to pursue the anti-trust case against Microsoft Corp, even if the Justice Department, under incoming President George W. Bush, tries to back away. Microsoft is appealing a trial court ruling that it abused its monopoly power and should be split in two to prevent further anti-trust violations. The US Court of Appeals will hear oral arguments in February after top posts in the Justice Department are filled by Republican appointees. A top economic adviser to Bush has criticised anti-trust enforcement under President Bill Clinton, but opposition to dropping the case from the states and some in Congress would make it difficult to reverse course. “We hope and assume that the Bush administration would fully pursue the microsoft case through all stages, including the Supreme Court, if that’s necessary,’’ said Iowa Attorney General Tom Miller, leader of the 19 states that are co-plaintiffs in the case with the federal government. “However, if for some reason they don’t, we have made a commitment to pursue this case to the end.’’ The Clinton administration’s last hurrah will come on Friday, when it files a 150-page brief with the appeals court ahead of oral arguments on February 27 and 28. Until now, lawyer David Boies has argued the case for the Justice Department. He is unlikely to continue in that role. Boies argued for Vice President Al Gore before the US Supreme Court and lost a 5-4 decision that propelled Bush to the Presidency. Even before that, the Bush camp had few kind things to say about Justice Department anti-trust policy. — Reuters |
| PNB Gilts to start retailing G-Secs NEW DELHI, Jan 8 — PNB Gilts, dealer in the government securities market, has started the marketing of government securities in retail lots through the select branches of Punjab National Bank in association with PNB and NSDL. This was announced by Mr S.S. Kohli, CMD , PNB at a press conference here today. PNB Gilts has been retailing government securities to individuals through its corporate and branch offices. However, it now proposes to offer this investment option to a large number of individuals across the country. Being a subsidiary of Punjab National Bank with a large network, it proposes to leverage on the reach of the bank to market the scheme for retails sale/purchase of the government securities. The scheme would be operated through ten select branches of PNB (Delhi, Mumbai, Calcutta, Chennai, Ahmedabad, Bangalore, Lucknow, Chandigarh, Hyderabad and Jaipur) with assistance of NSDL, which will offer depository services for the sale/purchase of government securities in demat form. The investment in government securities is highly safe and liquid and carries zero default risk for principal and interest payment, investor can have regular income in the form of half yearly interest payments. |
| Norms for Antodya scheme NEW DELHI, Jan 8 — The Union Food Ministry has issued policy guidelines to all States for effective implementation of the Antodya Anna Yojna. The Union Consumer Affairs, Food and Public Distribution Minister, Mr Shanta Kumar, has said that the correct and honest identification of Antodya families will be the key to success of the Antodya Anna Yojna which has been conceived to serve the poorest of the poor in the rural and urban areas of the country. It is estimated that 5 per cent of country’s population is unable to get two square meals a day on a sustained basis through the year. The Antodya scheme contemplates identification of one crore families from the total number of below poverty line families who would be provided foodgrains at the rate of 25 kg per family per month. |
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