B U S I N E S S

Zee, SAIL market cap grows higher
Reliance Industries continues to remain on top
New Delhi, August 4
Zee Telefilms and Steel Authority of India edged out seven other corporates, which had reported over Rs 1,000 crore gain in market capitalisation in a month, by their pace in wealth creation, even as Reliance Industries remained atop as the largest wealth accruer during July.

Hyundai chief facing trial commits suicide
Seoul, August 4
A top Hyundai group executive, enmeshed in a payments scandal over a landmark summit between North and South Korea, leapt to his death from a high-rise office building on Monday, the police said.

DaimChrys ties up with CSIR
To produce bio-diesel; may launch costliest car
New Delhi, August 4
DaimlerChrysler today joined hands with the Council for Scientific and Industrial Research (CSIR) to produce bio-diesel in India.

Elections may slacken bull run: Ficci
Sensex to be between 3000 and 4000 within six months
New Delhi, August 4
While BSE Sensex will hover between 3000 and 4000 points in the next three to six months, economic uncertainty likely to be triggered by general elections may prevent it from touching the 5000 mark within a year, says a Ficci-conducted survey.

Two models pose with the newly launched 'Terracan' by Hyundai Motor India, in New Delhi on Monday. The Terracan, which features a 2.9 litre CRDi (common rail direct injection) engine, is aimed at the luxury segment of the Indian car market and will be available at prices above Rs 18 lakh. — AFP

UTI to offer new options in ULIP
Chandigarh, August 4
The UTI is likely to announce some new options for the investors of UTI-ULIP scheme — unit linked insurance-cum-pension scheme— in the next few days. It will enable the investors to opt for 100 per cent investment in the equity, besides raising the investment limit.

No compromise on PTDC price, says Chief Secy
Ropar, August 4
The new Chief Secretary, Punjab, Mr Jai Singh Gill, has assured the workers of the Punjab Tourism Development Corporation (PTDC) that the properties of the corporation will not be sold if the government does not get good price for these.

In Southall, pay in Indian rupee
London, August 4
Southall Broadway in west London is not only dominated by Indians, particularly Punjabis, but even Indian currency is on circulation in at least one of the leading pubs in the area.

Green shoe option for Infosys ADS
New Delhi, August 4
Underwriters to the secondary American depository shares of Infosys Technologies have exercised the green shoe option to purchase up to 782,000 additional ADSs, representing 391,000 equity shares.

ROUND-UP

Ind-Swift Labs net rises 43 pc
Chandigarh, August 4
Ind-Swift Laboratories’ net profit during the first quarter has risen by 43 per cent from Rs 97.24 lakh to Rs 138.40 lakh. The turnover has increased by 34.73 per cent from Rs 28.34 crore to Rs 38.19 crore. The company has registered an overall 72 per cent jump in its export revenue, said Mr V.K. Mehta, Joint Managing Director of the company, in a press statement issued here today.

• Ficci delegation to visit Iraq

• SBI plan for bond investors

• India, Jordan to boost trade

• Balmer Lawrie selloff on course

Video
	Sikkim Chief Minister hails the recent Indo-China trade agreement. (28k, 56k)

Zee, SAIL market cap grows higher
Reliance Industries continues to remain on top

New Delhi, August 4
Zee Telefilms and Steel Authority of India edged out seven other corporates, which had reported over Rs 1,000 crore gain in market capitalisation in a month, by their pace in wealth creation, even as Reliance Industries remained atop as the largest wealth accruer during July.

According to industry sources, only nine companies, including three PSUs, had gained over Rs 1,000 crore in market capitalisation, which is one of the yardsticks to assess wealth creation, and Reliance’s M-cap witnessed an increase of over Rs 4,500 crore during the period.

With a M-cap of Rs 49,886 crore, Reliance Industries cornered 30 per cent of the total M-cap of Rs 1,68,562 crore of the nine corporates, including Infosys, Bharti Tele-ventures, the IndianOil Corporation, the State Bank of India, Tata Iron and Steel Company and Larsen and Toubro.

The growth in M-cap of all nine biggies was about 13 per cent from Rs 1,49,264 crore in June, they said.

However, by growth in M-cap in one month, Zee ticked 37.4 per cent rise to Rs 4,998 crore in July against Rs 3,636 crore in June.

SAIL followed with 32.9 per cent growth to Rs 9,479 crore in July as compared to Rs 7,133 crore in the previous month.

The sources said the growth had to be seen in the context of a mere 5.14 per cent and 4.56 per cent growth in indices of BSE Sensex and S&P CNX Nifty.

Reliance Industries’ M-cap can grow only by 10.1 per cent from Rs 45,326 crore in June. In absolute terms, the IOC, Infosys and the State Bank followed RIL in M-cap. The IOC’s market capitalisation was Rs 33,868 crore in July, up by 6.6 per cent from Rs 31,766 crore in the previous month, the sources said.

Infosys had a M-cap of Rs 23,895 crore in July, up 10.1per cent from Rs 21,629 crore in the previous month and the SBI had Rs 22,202 crore, posting a growth of 9.8 per cent from Rs 20,220 crore in the previous month.

Bharti Tele-ventures had a market capitalisation of Rs 9,369 crore in July, posting a 29.8 per cent growth from Rs 7,219 crore in the previous month.

Considering the other mobile service providers, which had reported a combined net loss, Bharti was the lone entity to have reported net profit.

The M-cap of Tisco stood at Rs 7,680 crore in July, posting an over 23 per cent rise from Rs 6,241 crore in the previous month.

In the case of L&T, the M-cap rose by over 19 per cent to Rs 7,274 crore in July as compared to Rs 6,092 crore in the previous month. —PTI

Hyundai chief facing trial commits suicide

Seoul, August 4
A top Hyundai group executive, enmeshed in a payments scandal over a landmark summit between North and South Korea, leapt to his death from a high-rise office building on Monday, the police said.

Chung Mong-hun, 54, jumped from the 12th floor of the Hyundai building in central Seoul some time after midnight and died around 2 a.m. (1700 GMT, Sunday) on Monday, the police told reporters.

"I ask you all to forgive me for committing this foolish thing," Chung said in one of the suicide notes found in his office from where he is believed to have jumped, domestic media said.

They reported the notes did not say why he committed suicide. "This foolish person has committed a foolish thing," he wrote in another note.

The fifth son of the late Chung Ju-yung, who founded what was once South Korea's largest business conglomerate, Chung was the Chairman of the unlisted Hyundai Asan Co that spearheads South Korean business projects in North Korea.

He had been facing trial on charges of violating foreign currency regulations in connection with the secret transfer of $500 million to the North before the historic June, 2000, summit.

President Roh Moo-hyun, who five months ago took over a country faced with a slowing economy and an escalating crisis over North Korea's nuclear ambitions, praised Chung's work in promoting ties with North Korea.

"Regardless of his death, I will try my best to advance current North-South Korea business projects, which must go forward without interruption," presidential spokesman Yoon Tae-young quoted Roh as saying in a statement. — Reuters

DaimChrys ties up with CSIR
To produce bio-diesel; may launch costliest car 

New Delhi, August 4
DaimlerChrysler today joined hands with the Council for Scientific and Industrial Research (CSIR) to produce bio-diesel in India.

The total cost of the project, scheduled for five years, will be 600,000 euros, out of which the German Government will fund 200,000 euro while the rest will be contributed by DaimlerChrysler AG, CSIR Director General R A Mashelkar told a news conference here.

The project will focus on trial operation with bio-diesel extracted from “Jatropha” plants which are cultivated on eroded soils.

The trial will take place on a C Class Mercedes car in October, DaimlerChrysler Managing Director Hans-Michael Huber said.

The basic idea behind the project is to demonstrate the feasibility of the ‘Jatropha’ bio-diesel in modern vehicles, Mashelkar said.

DaimlerChrysler AG, the CSIR, the Hohenheim University (Germany) and DaimlerChrysler India will be the main stakeholders in the project, he said.

The “Jatropha” plant, growing in many parts of the country, will be cultivated for the purpose mainly in Gujarat and Orissa.

Two tonnes of “Jatropha” seeds per hectare will be cultivated with 25-30 per cent yield which roughly translated into 500-750 kg of bio-diesel per hectare, Central Salt and Marine Chemicals Research Institute Director Pushpito Ghosh said.

“We are looking forward to develop a co-operative model for the sustainance of the project,” Ghosh said adding that for marketing, companies like IndianOil Corporation can be roped in.

The two pilot plantations of the “Jatropha” curcas will be set up on a wasteland of 20 hectare plot in Orissa and a 10 hectare plot in Gujarat, he said.

The Indian unit of DaimlerChrysler said it is exploring the possibility of launching its most expensive car in the Indian market with a price tag close to Rs.3 crore.

"We are studying the issue of launching the Maybach in the Indian market," said Hans-Michael Huber.

"We are currently studying the technical and economic feasibility of the car in the Indian market. We will very much like to have the car here as soon as possible," Huber told reporters here.

"The launch of the Maybach in India will not happen before next year," he said. — PTI

Elections may slacken bull run: Ficci
Sensex to be between 3000 and 4000 within six months

New Delhi, August 4
While BSE Sensex will hover between 3000 and 4000 points in the next three to six months, economic uncertainty likely to be triggered by general elections may prevent it from touching the 5000 mark within a year, says a Ficci-conducted survey.

Only 35 per cent of the 200 respondents said Sensex will go up to 5,000 points in a year, while 94 per cent expected it to be in the range of 3000 or 4000 points in the next three to six months. The Sensex closed up 22.70 points at 3815.31 on Friday. It was the first time since March 1, 2001, that the Sensex crossed 3,800 points.

Releasing the survey’s findings, Ficci Secretary-General Amit Mitra told mediapersons here today that the current phase of the bull run in the capital market does not seem to be temporary and will get further boost as the economy grows.

A majority of respondents are not willing to pin hopes on the IT sector with 56 per cent expecting the prices of IT scrips falling further in the coming year. Fifty per cent expected a decline in the prices of FMCG scrips in the coming year.

While 82 per cent of the respondents expected the stock prices of the banking and steel sectors to rise in future, 68 per cent, 62 per cent and 56 per cent said the share prices of pharma, cement and power sectors will rise in future.

As many as 85 per cent expected the share prices of old economy stock to incresae, while 56 per cent indicated a decline in the stock prices of new economy stocks in future.

The findings of the survey, conducted over a two-month period on July 23, were released two days before a Ficci and SEBI-sponsored seminar on Indian Securities Market-New Benchmarks in Mumbai.

The findings of survey suggested that the government should disinvest public sector units through IPOs, ease investment norms for pension funds and PF to invest in the equity market, SEBI should introduce measures to encourage small investors’ participation in the public issues to further boost the capital markets.

As many as 84 per cent of the respondents said fund managers will increase their allocation in the Indian capital markets in the coming year. The banking sector is expected to attract the maximum investment from international fund managers with 93 per cent respondents endorsing the view.

Sixty-two per cent expected a rise in Nasdaq and Dow Indices in the coming year and 68 per cent felt that the rise will have a positive impact on Sensex.

Seventy-six per cent of the respondents foresee growth potential for mutual funds in the rural market and 96 per cent feel that market is not adapted to the functioning of derivatives.

As per the survey, to restore the investor confidence, SEBI should set up special courts for redressing the investor grievances and complaints and corporates should interact with investing community on a regular basis.

While 15 per cent of the respondents are individuals and corporates each, 26 per cent are broking firms. Merchant bankers/investment bankers, asset management companies and banks constituted 9 per cent each and FIIs represented 3 per cent. Fourteen per cent fell in the “any other” category. — UNI

UTI to offer new options in ULIP
Manoj Kumar
Tribune News Service

Chandigarh, August 4
The UTI is likely to announce some new options for the investors of UTI-ULIP scheme — unit linked insurance-cum-pension scheme— in the next few days. It will enable the investors to opt for 100 per cent investment in the equity, besides raising the investment limit.

According to official sources, the UTI has approached SEBI to introduce new options in the scheme that is attracting good response in the market. It gave a return of 20.91 per cent the last year as against a 11.99 per cent return of Crisil MIP Blended index, a benchmark of the fund.

The UTI has reportedly asked to raise the maximum investment limit in the scheme from Rs 2 lakh, besides offering a 100 per cent equity option to the investors. According to official sources, a decision is expected to be announced by the end of this month.

They said in view of the competitive schemes being launched by the ICICI Pru, Birla Sun Life and Aviva Life Insurance, the company has applied to SEBIfor introduction of these options. It is already offering an accidental policy of Rs 50,000 in the scheme in collaboration with the LIC.

Market analysts say at present UTI ULIP is one of the best schemes in the market that offers income tax and insurance benefits. It offers tax benefits under Section 88 of the Income Tax Act.

Launched in 1971 the scheme has been giving over 13 per cent returns for the past 15 years. The current net asset value (NAV) of ULIP is Rs 12.81. It has already given 3rd bonus in the ratio of 1:10 within a period of one year which is a clear indication of the good performance of the fund. The size of the fund is Rs 3,986.92crore that has been evenly invested in bonds (36.33 per cent), G-Sec (17.07 per cent) and in equity (40.04 per cent).

The analysts admit that with the coming up of new products from the Aviva Life Insurance and ICICI Pru which offer unit-linked insurance products, the returns in the ULIP may not be too attractive. Further, the past performance could not be considered as any indicator for the future performance but it will continue to offer reasonable returns.

Ms Anita Madan, Fund Manager for the scheme, feels that all asset classes are expected to continue to provide ample opportunities for reasonable returns in the near future .

No compromise on PTDC price, says Chief Secy
Our Correspondent

Ropar, August 4
The new Chief Secretary, Punjab, Mr Jai Singh Gill, has assured the workers of the Punjab Tourism Development Corporation (PTDC) that the properties of the corporation will not be sold if the government does not get good price for these.

In a press statement issued here today, the president of the PTDC Karamchari Dal, Mr Surjit Singh Saini, said the Chief Secretary visited the Boat Club complex of the PTDC here yesterday evening The Chief Secretary said the government would not compromise on the price of the PTDC complexes.

The government has kept the reserve price of the Boat Club above Rs 10 crore. Employee unions are hopeful that nobody will pay such an exorbitant price for the PTDC complex.

In Southall, pay in Indian rupee

London, August 4
Southall Broadway in west London is not only dominated by Indians, particularly Punjabis, but even Indian currency is on circulation in at least one of the leading pubs in the area.

At the Glassy Junction a sign above the bar prominently states: “Rupees welcome here.”

The pub staff, in Indian dhotis, pull pints of drinks for the customers — all of them men and most of them Sikh. A map of Punjab hangs on the wall.

Down the road is Southall Broadway, where 88 per cent of residents are non-white.

Thirty years ago Asians were a minority; now more than three quarters of the residents are of the Asian origin, many having emigrated from India, a report in The Times, daily, said.

Spices hang in the air, the Best of Bhangra warbles from car radios; and Woolworths, the leading department store, has become the Himalaya Shopping Centre.

Piara Singh Khabra, a Sikh who came to Britain in the 1950s and is now Labour MP from Ealing Southall, envisages a different future for the area, where many Muslim refugees from Somalia now live.

“People from 20 different countries live side by side here,” he told the daily. “Indians are ambitious people. The people who came here to work in factories saved their money and now own businesses,” he said.

According to the 2001 Census, of the 8,850 electoral wards in England and the Wales, only 72 or 0.8 per cent have no ethnic minorities at all. The all-white areas are mainly in the Wales and the rural South-West and North-East of England. — PTI

Green shoe option for Infosys ADS

New Delhi, August 4
Underwriters to the secondary American depository shares of Infosys Technologies have exercised the green shoe option to purchase up to 782,000 additional ADSs, representing 391,000 equity shares.

Accordingly, the total-sponsored secondary ADR offering will rest at 6,000,000 ADSs, representing 3,000,000 equity shares and the total size of offering goes up to $ 294 million, the company informed the BSE.

The offering initially involved 5.22 million depositary shares, representing 2.61 million domestic equity shares. Each ADS represents two domestic shares.

The underwriters had a seven-day option to purchase up to 782,000 additional ADRs, representing 391,000 equity shares for the sole purpose of covering over-allotments, if any. — UNI

ROUND-UP

Ind-Swift Labs net rises 43 pc

Chandigarh, August 4
Ind-Swift Laboratories’ net profit during the first quarter has risen by 43 per cent from Rs 97.24 lakh to Rs 138.40 lakh. The turnover has increased by 34.73 per cent from Rs 28.34 crore to Rs 38.19 crore. The company has registered an overall 72 per cent jump in its export revenue, said Mr V.K. Mehta, Joint Managing Director of the company, in a press statement issued here today.

He said Dr Gopal Munjal had taken over the reins of the Ind-Swift group that had a turnover of over Rs 300 crore. — TNS

Ficci delegation to visit Iraq

New Delhi: Buoyed by the strategic alliances in Jordan for the supply of electrical equipment, meat and dairy products and consumer electronics, a 30-member Ficci business delegation is visiting Baghdad to meet the newly appointed ministers as also representatives of UN bodies for renegotiating their contracts worth Rs 500 crore.

“We are scheduled to meet ministers of trade, oil, electricity and industry apart from the Collision Provision Authority, UN agencies like the World Food Programme, UNDP, Unicef and WHO,” Anil Agarwal, Chairman of the India-Iraq Joint Business Council, saidhere today. — PTI

SBI plan for bond investors

New Delhi: The State Bank of India (SBI) plans a roadshow in September to woo investors of Resurgent India Bonds to put their money in a special deposit scheme, which is now being examined by the RBI.

“We hope to come up with fixed and floating rate deposit scheme in mid-August or September subject to RBI’s approval,” a senior SBI official said today.

The bank was now watching the movements in London inter-bank offer rate (Libor) and planned to peg the rate of return on its special deposit scheme later this month or next month, he said. — PTI

India, Jordan to boost trade

Dubai: India and Jordan have agreed to promote trade ties by establishing joint ventures and cooperating in the field of chemicals, pharmaceuticals, garments technology and construction, according to a Jordanian Businessmen Association (JBA) report.

A 30-member Indian business delegation concluded two days of meetings in Amman yesterday with Jordanian counterparts that aimed to establish a free trade zone on the Jordanian-Iraqi border to pursue investment and trade opportunities in Iraq and Jordan. — UNI

Balmer Lawrie selloff on course

Kolkata: The government is going ahead with the disinvestment of Balmer Lawrie & Company with asset valuers Dalal Mott McDonalds slated to submit its report to the Disinvestment Ministry in the coming weeks.

Sources said the asset valuers had already completed their job and the next step would be to invite price bids for selling the company’s 61 per cent stake.

The transaction document containing the share purchase agreement had been referred to the Core Group of Secretaries, which was now required to be approved by the Cabinet Committee on Disinvestment (CCD), the sources said. — PTI

BRIEFLY

Trai paper
New Delhi, August 4
The Telecom Regulatory Authority of India (Trai) has received suggestions that the scope of unified licences, for which the regulator had floated a consultation paper, be extended to include national long distance, international long distance and internet services. At present, separate licences are issued for basic telephony and cellular services. — UNI

NIIT tie-up
New Delhi, August 4
NIIT has tied up with Bhopal-based Rajiv Gandhi Technical University to offer a four-year software engineering (B.Tech) degree. The alliance will allow the students of NIIT, enrolled in D-NIIT courses, to pursue the university’s B.Tech programme through e-learning and distance learning, an NIIT statement said today. — PTI

SBP awarded
Patiala, August 4
The Federation of Indian Exports Organisation (FIEO)’s ‘Niryat Bandhu Award’ was presented to the State Bank of Patiala for 2001-2002 by the Vice-President of India, Mr Bhairon Singh Shekhawat, for its role in supporting national policies in export field. The award was received by the Chief General Manager of the bank, Mr B M Jain. — OC

Gujarat Ambuja
Mumbai, August 4
Gujarat Ambuja Cements has registered a 3 per cent decline in cement despatch in July, 2003. The despatch subdued to 7.17 lakh tonnes against 7.37 lakh tonnes in the same month a year ago, according to a company statement here. — UNI

Nominated
Phagwara, August 4
Mr Ashwani Kohli, Managing Director, Bawa Industries, Phagwara, has been nominated as member of the Regional Advisory Committee (Small-Scale Sector), for 2003-2004 by the Commissioner, Central Excise, Jalandhar. — OC

ONGC
New Delhi, August 4
Oil and Natural Gas Corporation has rejected Cairn Energy’s asking price of $ 100 million for selling its stake in two oil and gas blocks in the prime Krishna Godavari Basin. — PTI

Telecom IPO
New Delhi, August 4
Telecommunications Consultants India Ltd (TCIL) today said it would raise Rs 300 crore through an initial public offer to expand its overseas operations. — UNI

Duty on cars
New Delhi, August 4
The government has reduced the excise duty on cars for the disabled from 16 per cent to 8 per cent and waived a national calamity duty of 1 per cent on such cars, an NGO fighting for the cause of the disabled said today. Notifications in this regard have already been issued. — UNI

Human insulin
Mumbai, August 4
Wockhardt today became the first Asian drug manufacturer and the fourth in the world outside the United States and Europe to launch a human recombinant insulin. — UNI