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Ranbaxy
undecided on succession plan IBM top vendor in
Asia Pacific, says IDC Reliance, MS pact
on online gaming |
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Pak flights to India in March Amrit
Foods to launch Gagan milk
Academic allowance
is exempted
Pick Tata Tele,
GTB, Tata Chem
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Ranbaxy undecided on succession plan
New Delhi, December 28 Mr Brar, a hard-nosed professional handpicked by the late Dr Parvinder Singh himself to guide the company to greater heights, has caught many analysts by surprise by the decision to step down in July, 2004, once his five-year term comes to an end. In fact, as some experts point out, the decision to induct Malvinder Singh, (elder son of late Parvinder Singh) in the company board is not as surprising as the decision of the Mr Brar to step down. Although there have been murmurs in the corporate world about the emergence of a tension between Mr Brar and the promoters, not many were anticipating such a move within the company, especially when the succession plan is not clearly defined as yet. The term of Mr Brian W. Tempest, Mr Brar’s immediate successor, is not yet defined by the company board. To be sure, Mr Tempest’s actual innings will start only in July next year, when he will be just more than year away from achieving the prescribed superannuation age of 58 in Ranbaxy. Industry sources said Mr Tempest’s elevation from President ( Pharmaceuticals) to CEO designate may be the perfect transitory platform for Malvinder to take charge of the company in a few years time. According to the company, Mr Brar himself did not seek an extension of his term as he felt that he had achieved most of the targets set for the company, which includes expanding its international operations to many country. The question, however, uppermost in the most people’s mind, is that does the decision reflect a boiling tussle between the promoter and professional management in which the promoter eventually had his way. It is, however, highly unlikely that the Ranbaxy story can unfold the Britannia way where the simmering strain between the then CEO Sunil Alagh and the promoters (the Wadias) boiled over to the public domain. Industry analysts said unlike Britannia, the culture in Ranbaxy was different and so were the personalities. Observers are also watching with keen interest the transition period and the affect it could have on the fortunes of the company. Mr Brar, who had unveiled the Garuda’s vision for the company this year envisaging a turnover of $ 5 billion by 2013, had risen virtually from the ranks. He rose the position of a business development manager in 1977 to that of CEO in 1999, in less than a period of 25 years. He is credited with taking the company staggering heights (the company is expected to clock a turnover of $ 950 million by the end of this year) and today it figures in the top 10 generic companies in the world. Moreover, it does 45 per cent of its business in the United States, a typical characteristic of a true multi-national corporation. Under Mr Brar, Ranbaxy entered into an outlicensing deal with Bayer for Ranbaxy’s new drug delivery system (NDDS) drug, Copro OD considered to be major landmark in the domestic pharma industry. Many industry observers are now wondering whether the vision of Late Parvinder Singh stands null and void with the ascendancy of Malvinder Singh. For till the time he was at the helm of affairs, Dr Singh resisted any move to induct any of his sons (Malvinder and Shivinder) into the company board as he believed that they should climb their way up on the basis of merit and merit alone. Not much is known about Mr Brar’s future plans, although it does appear that it will be related to the pharma sector. And many also believe that he will step down from the Ranbaxy board after he steps down as CEO.
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IBM top vendor in Asia Pacific, says IDC
New Delhi, December 28 IBM Global Services which includes IBM Business Consulting Services is the top Asia Pacific services vendor and is the only vendor of the region with double digit market share, leading the nearest competitor by more than $ 400 million in revenue, an IBM statement said quoting International Date Corporation
(IDC) figures. It is four share points ahead of the next nearest services company in the Asia Pacific region, excluding Japan, the statement said. IBM’s strong showing in the services market was due to its success in a number of significant outsourcing deals. IDC believes that IBM’s e-business on-demand strategy, its ability to provide a comprehensive services portfolio and the complete integration of PwC to form the Business Consulting division all contributed to IBM’s continued positive growth in Asia Pacific, it said quoting IDC’s associate Director, Services, Asia Pacific Phil
Hassey. IBM is able to draw on consulting skills and industry expertise gained from PwC Consulting to apply technology to facilitate strategic process change, Hideki
Kurashige, Managing Partners, IBM Business Consulting, A-Pac said. “Our top priority is that our clients continue to put us on the top slot through our end-to-end service offerings,” Tim
Shaughnessy, GM, IBM Global Services A-Pac said. Total IT services in Asia Pacific grew at 7.6 per cent, according to
IDC. — PTI
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Reliance, MS pact on online gaming
Mumbai, December 28 The Rs 2,00,000 — Halo Mutliplayer Championship — free of entry charge to contestants is a live skill-based contest, in which players compete against each other in a series of Free For All (FFA) live game events until winners were determined. “Reliance Web World is proud to have partnered Microsoft Game Studios in successfully ushering in a new era of online gaming in the country. Multiplayer online gaming is one of the key Real Broadband applications at Reliance Web World featuring the best of games and we are very enthused to receive such an overwhelming response from across the country to this new gaming initiative,” said Reliance Web World Sarup Chowdhary here. Speaking to reporters here, Microsoft India Manager (Home & Entertainment division) Mohit Anand said India had got good potential for gaming market and Microsoft India and Reliance would be looking forward for more gaming prospects with their ongoing partnership.
— UNI
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More Pak flights to India in March New Delhi, December 28 Beginning in the first week of January, Pakistan International Airlines (PIA) will operate two flights each on its Karachi-New Delhi, Karachi-Mumbai and Lahore-New Delhi routes, said Parwez Ahmed Khan, manager (India) of PIA. "We will start increasing the number of flights to India in a phased manner over the next few months. Our aim is to boost PIA's total flights to India to 12 by end of March," Khan told IANS. "Currently, we are facing some problems in aircraft availability as quite a few planes have been pressed into Haj pilgrimage services. But I think we will be in a position to boost flights a couple of months after the resumption of service." PIA used to fly 12 flights to India before a ban was imposed due to strained relations between India and Pakistan. Air links between the two neighbouring countries were suspended in December, 2001.
— IANS
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Amrit Foods to launch Gagan milk
New Delhi, December 28 The company, which is a division of the Amrit Banaspati group, is planning to diversify into several UHT milk variants in the coming year, beginning with different kinds of flavoured milk in bottles and tetrapaks, a senior company official said here. “We are eyeing Rs 15 crore sales turnover in 2003-04. This year has seen the UHT milk market grow to 60 million litres and Gagan has become a well-entrenched brand name in this growing market,” Joint Managing Director of Amrit Banaspati company Ashwini Bajaj told PTI here. He said the company was planning to diversify into several UHT milk products next year, beginning with different flavours of milk and had decided to invest in a new tetrapak line which would become operational next month. He also said Amrit was in talks with leading European dairy majors for forging a joint venture to manufacture and sell high-quality milk and milk-based products. Amrit Foods has conducted several rounds of negotiations with international dairy majors for forging a technical alliance for products, including UHT cream, ready-to-eat desserts, puddings and shakes. “We have already developed products like UHT cream, puddings and ready-to-eat desserts and we are exploring the JV route for these and other milk-based products,” he said.
— PTI
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by J.C. Anand Pick Tata Tele, GTB, Tata Chem THE bull is on the run. The Sensex has nearly touched 5700 points and may even touch the next target of 6000 points. The Nifty has hit an all-time high. The vital question now is whether it is time to book profit. It is rather difficult to give a straight answer for at least three reasons. First, the stock market is likely to move higher in January when the third quarter results on January 9th. The second is that this bull market is very different from the previous ones because the P/E ratios are still reasonably low in most of the high-priced scrips. The bank rates are so low, both for deposits and for advances, that an investor has little option to make money except by moving to the stock exchange or by investing in property. The third reason is that with the Lok Sabha elections in the offing. The next budget is likely to be as investor and market-friendly as the previous one. Unless there is some major disturbing news, the market is expected to maintain its upward march. While considering profit booking, the investors should look more to individual scrips than to the indices. Now that shares purchased between March 1, 2003 to March 31, 2004 are not subject to long-term capital gains tax if they are retained for at least one year or more from the date of acquisition, the investors should avoid booking profit if the share are purchased during this period continue to have low P/E ratios and have trustworthy managements and good fundamentals. Even otherwise as far as possible, book profit only in scrips which qualify for long-term capital gains. Booking profit in the scripts of Tea companies appears to be quite opportune and proper. The shares of Tea companies are subject to seasonal variations and have not much prospect of good appreciation. On the other hand, steel industry and its scrips have a further scope of making higher profits. A Reuter’s report indicates that Tisco may be hiking steel prices shortly. Tisco, which at present has a P/E ratio of only 11.1, is likely to move higher. Even the Managing Director of this company has publicly indicated that the company’s third quarter and annual results would be better than those in the previous quarters. Larsen and Toubro’s scrip has now moved up to Rs 526 — an all time high on the report that the company has won Rs 920
crore order from the National Hydro Electric Power Corporation in a project. In my opinion profit-taking in this
scrip is not yet indicated, for the script may even rise higher in the post-merger period. The banking sector is safe and not fit for profit booking. The textile industry scrips have also risen very high. Vardhman Spinning, Mahavir Spinning, Nahar Spinning, Vardhman Poly, GTN and even Arvind Products have moved higher than expected. One major explanation for appreciation in the market prices of these scrips is that in 2005 when the WTO agreements are implemented quota regime would be relaxed in the western countries and there would be tremendous growth in the garment exports. Those textile companies like Vardhman Spinning, Nahar Spinning and others who have substantial garment manufacturing capacity will be the gainers. Those companies which only manufacture yarn may not be substantial gainers. Booking profit in yarn manufacturing companies may be in order. The multi-pharma companies will be the main gainers in the post-2005 period, when patent laws (both product and process patents) get implemented as required by the WTO agreements. During the last one month the market prices of Glaxo, Pfizer, Novartis and other multi-pharma multinational companies have risen quite high but they may even double in the post-2005 period. Investments may be made in these scrips at the opportune time when the market slightly declines due to correction. Tata Tele Services, Global Trust Bank and Tata Chemicals are good scrips for fresh investments. Tata Tele Services is likely to play a big role in the near future and it is expected that Tatas are likely to come out with an IPO in this scrip. GTB is likely to raise its capital from the rights issue and also role out a substantial part of its equity capital to
FIIs.
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