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Saturday,
June 9, 2001, Chandigarh, India  
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Aptech to
hive off training arm Cellular
phones at throw-away prices Air France
interested in Air-India stake
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Ceiling
for wheat export raised Revenue
collections short of 110 cr
Bids for
selling IBP stake to be called in July Markfed
to set up supermarkets Canadian
firm keen on Baspa project Punjab
coop bank cuts interest rate Andhra
Bank opens housing finance cell PSB
nets 13.25 cr NPA
recovery date extended
Opto
Circuit to acquire AMDL
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Aptech to hive off training arm
Mumbai, June 8 "The purpose of the restructuring is to bring focus to both businesses and give more flexibility for acquisitions in each of them," Aptech's Chairman Atul Nishar told a news conference. "We believe it is important for a software company to have large scale to grow better and attract talent and bigger clients," he said. "So we are putting the two software businesses together." Pramod Khera, Chief Executive Officer of Aptech's training division, said the training and software businesses had different profiles, target markets, customers and growth rates and separating the two would help give them more management focus. Getting it right That proposal was opposed by investors and some company personnel who objected to transferring the assets of Aptech's software business to an unlisted company. Instead, Hexaware Technologies will now be merged with Aptech. "Hexaware getting acquired by Aptech is good news. No value has been lost," said Sanjeev Goswami, analyst with SSKI Securities. After the restructuring, Aptech shareholders will get six shares in the training subsidiary and retain four shares in the software company. Shareholders of unlisted Hexaware Technologies will get one Aptech share for every three shares held in Hexaware. "Hexaware has two-to-three big U.S. clients," Goswami said. "It has been in the software business longer than Aptech and has done some good work." Hexaware had revenue of Rs1.5 billion in 2000 and has 750 employees worldwide. Its top five clients are U.K-based insurer Equitable Life, asset manager Alliance Capital, Air Canada, Transamerica Distribution Finance and Princeton University. Priya Rohira, an analyst with Pranav Securities, said Aptech's valuation would improve as it will become a pure software company. "Training companies do not get as high valuations as software companies do and the combination was limiting Aptech's valuation," she said. Training firm to be listed The combined software company will have 1,100 software engineers and 12 key clients. Rusi Brij, Chief Executive Officer of the software business, said the Aptech software company will focus on niche technology areas as well as the finance, insurance and transportation industries.
Reuters
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Cellular phones at throw-away prices
Jerusalem, June 8 It’s an invention being developed by Andrew Shipway, a researcher at the Hebrew University in Jerusalem, who admits that right now, it’s still science fiction. Earlier this week, Shipway was awarded the university’s annual Kaye Prize for Innovations and Inventions for his new circuit board idea. Shipway is working on a process to print electronic circuit boards on tiny pieces of paper. If it works, he said, it could be used for disposable phones, cheaper electronics, “smart cards” for buses and trains, security badges and even football tickets. “The idea is that you could have a mobile phone, download it off the Internet of design your own and print it out,” he said. “It’s in the realm of science fiction at the moment.” Regular circuit boards can take hours to make. Shipway’s would take 10 minutes and requires only a personal computer, paper treated with palladium metal particles and a chemical solution. Another advantage over normal circuit boards is that they can be printed on anything — even a novelty T-shirt on which the copper wires could power tiny tights. More importantly, Shipway said, the technology could make electronics cheaper in general. “For the guy in the street, he may never see it,” Shipway said. “But what he won’t realise is that the electricity he’s using may have been developed using it. Or the guy with the cell-phone is thankful because his phone is half its previous cost.”
AP
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Air France interested in Air-India stake
Mumbai, June 8 Industry sources said Air France Chief Executive Jean-Cyril Spinetta will visit New Delhi next week and is scheduled to meet Indian Disinvestment Secretary Pradeep Baijal and Civil Aviation Minister Sharad Yadav. The report said Spinetta, who will be accompanied by Air France Vice-President Dominique Perit and other senior airline officials, is officially coming to India to attend a reception to bid farewell to the general manager of the French air carrier's local unit. But the other meetings pointed to Air France exploring the possibility of rejoining the competition to acquire a stake, accompanied by management control, in money-losing Air India. Air France had initially declared an intention to bid, in partnership with Atlanta-based Delta Airlines, the third-largest U.S. airline, for the Indian international flag carrier, which has lost money the past seven years. But Air France was forced to abandon the pursuit after failing to attract Calcutta-based ITC, India's largest cigarette maker, to join its bidding consortium. Under bidding terms set by the government, it has offered to sell a 26 per cent stake to a foreign airline, and 14 per cent to a domestic partner.
Reuters
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Ceiling for wheat export raised New Delhi, June 8 The last for wheat export has also been extended upto June 30. Export of Indian wheat has not shown much signs of any uptrend with very few fresh contracts being signed in recent weeks. Iraq has accepted not a single cargo of Indian wheat on grounds of inferior quality and this has
further depressed India’s wheat export prospects in the international market. Exporters, however, feel that the Iraq may have used the quality card to re-negotiate the price with the Indian government. They say that Iraq may have realised that while Indian wheat is selling for $ 103 to 107 per tonne, it (Iraq) is paying almost $ 160 per tonne. A high level India delegation which held discussions with Iraqi officials last fortnight, is believed to have failed in persuading the Iraqi Grain Board to accept up to inorganic matter upto 0.2 per cent. Indian exporters point out that Iraq’s rejection of Indian wheat on grounds of presence of inorganic matter was not within the contracted framework and moreover, inorganic matter upto 0.5 per cent was acceptable in the world market. Meanwhile the government has still not
announced the new export price of wheat. The previous ex-granary price of Rs 4,300 per tonne was valid till May 31. This price is close to the one paid by the below poverty line (BPL) population. If the government plans to continue with the Rs 4,300 per tonne price, which is far lower than economic cost of Rs 8,300 per tonne, then it faces the dilemma of trying to sell subsidised wheat for exports without being dragged into the dispute settlement board of WTO by competitors such as the USA and Australia.
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Revenue collections
short of 110 cr Chandigarh, June 8 Sources say while the stipulated revenue target for 2000-01 was Rs 1,751, central excise revenue generated during the year was Rs 1,641 crore. The revenue generated during the previous year was Rs 1,394 crore. Though the revenue collection is still short of the stipulated target, Central Excise Commissionerate, Chandigarh - II, which has jurisdiction over the state of Jammu and Kashmir and Sangrur, Jalandhar, Amritsar and Pathankot districts, has registered the highest growth in revenue collections in the Delhi zone. The Delhi Zone consists of Delhi, Rajasthan, Punjab, Himachal Pradesh, Haryana and Jammu and Kashmir. According to information, revenue from petroleum products has registered a growth of 25 per cent, while growth in revenue from non-petroleum products is a little over 5 per cent. While Jammu division has registered a 17 per cent growth over last year, there has been a fall in revenue from Srinagar division. Except for Sangrur division, all others districts in Punjab which fall under this commissionerate's jurisdiction have been unable to meet stipulated targets, with shortfalls varying from 7 per cent to 18 per cent. Sources say in a reversal of trend, the Malwa belt is now generating the highest revenue, while Amritsar division is turning out to be the lowest revenue generator. Increasing industrialisation, specially a large number of yarn spinning establishments and increase in the consumption of petroleum products is cited as the reason for the significant growth in revenue from the Malwa belt. |
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Bids for selling
IBP stake to
be called in July New Delhi, June 8 The government has finalised the draft shareholders’ agreement and bidders, who have submitted the initial expression of interest (EoI), have been asked to give their comments on it, official sources said here. The Centre currently holds 59.58 per cent equity in the profit-making IBP which has about 5 per cent share in India’s retail petroleum product marketing with over 1,500 outlets. IOC, Reliance, Royal Dutch Shell, BPCL, Hindustan Petroleum, Nagarjuna Fertilisers, Essar Oil, global oil majors Caltex, Totalfina of France and BHP of Australia are in the fray to take over the
lucrative marketing company. The shareholders’ agreement detailing terms of sale will be signed with the potential strategic bidders by end June, after which financial bids will be called, sources said.
PTI |
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Markfed to set up
supermarkets Chandigarh, June 8 According to Mr D. S. Bains, MD, Markfed, the agency has agreed to arrange for government clearances and necessary infrastructural support and will market its products through the supermarket store chains which would be set up in partnership. "It will help us sell our products and we will also benefit on the marketing aspect which will be taken care of by the other partners", said Mr Bains. Markfed will also export these products. Representatives from the UK will visit the sites here in the state and finalise the structures next week. It is learnt that at least 16 (Markfed) sites are available for setting up of marketing stores or retail outlets. Share of equity participation is yet to be decided. Mr R. P. Chandel, All-India Manager (Business Development), Idma Laboratories, who will also be one of the partners said the plans are to open the retail super market stores in Punjab which would be later extended to other states. |
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Canadian firm keen on Baspa project Baspa (Himachal Pradesh), June 8 “The chief of CDP, Jean-Claude Scraire, has met us and conveyed his company’s interest in the Baspa project. They want to pump in $ 30 million, about Rs 135 crore, into this project,” Jaiprakash Industries Chairman, J.P. Gaur, told PTI. The expression of interest had been received from the Canadian company and further negotiations were continuing. CDP’s interest follows close on the heels of ICICI picking up another 28 per cent stake in this project for a similar consideration. The 300 MW Baspa stage II project, being undertaken by JPI on a build-own-operate (BOO) basis, has total equity component of Rs 487 crore, he said, adding that of this total projected equity requirement, JPI will infuse Rs 352 crore and ICICI another Rs 135 crore. The Baspa project is being undertaken by wholly-owned subsidiary of JPI, Jaiprakash Hydro Power Ltd.
PTI
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Punjab coop bank cuts interest
rate Chandigarh, June 8 The share capital contribution of the bank has also been cut from 5 per cent to 3 per cent to loan amount. Likewise the processing fee, too, stands slashed to 50 per cent, effective April 1 last. The loan procedures have been simplified and disbursement up to Rs 1 lakh made direct to the farmer without involving any third party. Thus simple interest and easy repayment installments have given a reprieve to the financially hard pressed farmers whose dependence on the village ''ahrtiya'' or money lender is intended to be minimised. This was stated by the Registrar, Co-operatives, Mr Suresh Kumar, to TNS, here today. He said there was no truth in the allegations that due to ''coersive'' method of recovering of the outstanding loans farmers were committing ''suicide''. In fact the department had already announced a ''one-time'' settlement scheme for the ''chronic'' defaulters and handsome recovery stood effected. Talking specifically about Mithu Singh of Sandoh village in Talwandi Sabo, who is alleged to have committed suicide, the Registrar said the deceased was not on the ''chronic defaulter'' list of the bank and no action was taken against him, coercive or legal. There was no harassment either.
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Andhra Bank opens
housing finance cell Chandigarh, June 8 Mr Murlidhar said the bank has surpassed the aggregate business target of Rs 26000 crore — deposits Rs 18,340 crore, gross bank credit Rs 7,696 crore as on March 31, 2001 registering a growth rate of 27.82 per cent under deposits and 31 per cent under advances. The recovery of the advances is very good and the NPAs stand at 2.55 per cent of the total advances said Mr Murlidhar. He said the housing finance cell will cater to the housing finance needs of Chandigarh, Panchkula, Mohali and areas around it. Mr Murlidhar said that more than 70 per cent banking business has been computerised during the year 2000-2001. The bank will introduce Lobby Banking and corporate terminals. The net working of branches and ATMs will also be completed before September 30 this year. The bank will broad base the branch network in the current fiscal. It will open at branch at Gurgaon on June 11. More branches will be opened at Panipat, Rohtak, Karnal, Hisar, Alwar and Ajmer soon. PSB nets 13.25
cr New Delhi, June 8 He said the bank has set a total business target of Rs 40,000 crore for the next three years and by the time the bank completes its 100 years of existence in 2008, the bank plans to achieve a business level of plus Rs 75,000 crore. Mr Gujral said the bank plans to focus on retail banking to increase its overall lending business and it will also vigorously focus on education local, housing finance, car loans, consumer finance and come out with other innovative products in the coming days. NPA recovery date extended Chandigarh, June 8 According to a press release, Mr S K Mishra, Deputy General Manager, Haryana Zone, has stated that all the non performing accounts where the due payment is up to Rs5 crore, one- time settlement can be done for which a written proposal has to be submitted. Earlier the date for the settlement was March 31. |
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by Ashok Kumar Opto Circuit to acquire AMDL By now, everybody knows that the equity segment of the primary market is in a sorry state, but those who know the name of the game swear it does not take much for the tide to suddenly turn. While the equity segment is a high-profile one, have you ever wondered about the state of the debt segment of the primary market. Well, surprise, surprise, it is alive and kicking and whats more making rapid strides too. Don’t believe it? Then, take a look at the raw statistics. The share of debt in total public issue mobilisation has risen consistently to 63 per cent in 2000-01 from 25 per cent in 1995-96, 60 per cent in 1996-97, 63 per cent in 1997-98, reached a peak 94 per cent in 1998-99 and 61 per cent in 1999-200. The prime player in this segment, ICICI, topped the list, mopping up Rs 2,783 crore during FY 2000-01, which was Rs 208 crore more than its previous year’s debt mobilisation of Rs 2,575 crore. Interestingly though, the total debt mobilisation, however, fell by 11.79 per cent to Rs 4,144 crore. A closer scrutiny indicates that this was primarily on account of a 44 per cent drop in the mop up by IDBI, which was hitherto another major force in this segment. IDBI could raise only Rs 1,161 crore during FY 2000-01 as against Rs 2,073 crore during FY 1999-2000. Now, ICICI has obviously cornered the centre-stage as far as primary debt fund mopping up is concerned, but do all funds it mops up with such amazing regularity get productively deployed? For a hint, take a closer look at its latest results. Mind you, what ICICI has done is progressive as it was futile to continue carrying the excess baggage it had been doing thus far. But then, what about IDBI? Well, draw your own conclusions here. Moving on to the corporate front, it seems Mr Vinod Ramnani, Managing Director of Opto Circuits has been at it again. A great stickler for performance, Vinod’s enthusiasm when he speaks about his company and business is infectious. Last week he rang me saying that I should check my mail wherein he had forwarded details of the acquisition of AMDL, Hyderabad by Opto Circuits (India) (OCIL). Vinod’s promised mail arrived shortly thereafter and it stressed on the operational synergies that the management team of OCIL had envisaged. AMDL’s strengths in medical marketing would be leveraged to market OCIL’s range of optoelectronic products. OCIL proposes to modify AMDL’s factory to manufacture medical sensors and chip on board assemblies too. Furthermore, AMDL’s network of 5000 plus customers in the healthcare segment will greatly facilitate OCIL’s entry into the potent domestic market. AMDL will also give OCIL a foothold in the IT sector. AMDL’s IT division sells the Dell brand of computers and Microsoft software products. AMDL also services Internet and embedded systems space and were earlier engaged in the manufacture of the Micronic range of PCs. Finally OCILs recently launched Singapore subsidiary will stand to gain substantially from the talent pool on offer at AMDL. I sent Vinod a congratulatory mail and wished him luck with his future endeavours. How I wish I could do the same to our beleaguered bourses! |
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SBP scheme Silverline-CFL Service tax Supercomm Asia Cellnext Nestle dividend |
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