Clutch Auto buys Pioneer’s clutch assets
New Delhi, January 19
Clutch Auto Ltd said today it had acquired the clutch-related assets of US-based Pioneer Inc Automotive Products through its subsidiary there.

Watches on display at Samay Bharati, 2006, the 13th India International Watch and Clock Fair in New Delhi on Thursday. The exhibition, which ends on Sunday. will feature Indian and international brands and display over 50,000 models of clocks and watches, ranging from jewel-encrusted luxury to affordable stylish models. — AFP

Siemens buys 10 pc stake in GE
Frankfurt, January 19
German conglomerate Siemens has acquired a 10 per cent stake in a subsidiary of US rival General Electric that makes security devices for international container shipments, it said on Wednesday.

No move to hike LPG,
kerosene prices
New Delhi, January 19
The LPG and kerosene prices will not be raised in the immediate future, with Petroleum Minister Mani Shankar Aiyar today denying having presented to the Cabinet a proposal to raise their prices.

Panipat may have plastic engg park
Amritsar, January 19
The Director General of Central Institute of Plastic Engineering and Technology, Dr Sushil K. Verma, today announced the setting up of three state-of-the-art institutes in the country during the current year to meet the growing demand of highly trained technical manpower in the country.

Corporate Results
L&T net up 95.89 pc
Mumbai, January 19
Larsen & Toubro Ltd has posted a 95.89 per cent increase in its net profit for the third quarter ended December 31, 2005 at Rs 259.27 crore as compared to Rs 132.35 crore in the corresponding quarter previous fiscal.

• SEBI censures 13 brokers

• Hutch offer

• Issue referred to GoM
  
  
  
  

Mumbai, January 19
Capping speculation of nearly a fortnight, Jet Airways today finally announced acquisition of Air Sahara for $500 million or Rs 2,450 crore. Jet’s Board of Directors (BoD) today met at the residence of Chairman Naresh Goyal here this morning to approve the deal.

Jet’s valuation of Air Sahara is far lower than the $1 billion value set by appraisers Ernst and Young (E&Y). Jet’s move may garner 45 per cent domestic market share. On the source of funding the takeover deal, Mr Goyal said all cash would come from internal accruals.

Later in a joint statement, Mr Goyal and Sahara Group Chief Subrata Roy said the all-inclusive cash deal was executed last night. However, the deal is subject to approval by regulatory agencies, including the Director General of Civil Aviation.

“Jet Airways India Ltd and Sahara Airlines Ltd are pleased to announce the execution of a share purchase agreement for acquisition by Jet AI of the entire capital of the Sahara Airlines Ltd subject to regulatory approvals,” the joint statement said.

Later in a statement, Mr Goyal said the deal would make the combine the country’s largest airline. “The deal has been done after doing thorough due diligence. The acquisition will give us economies of scale and will help improve revenues,” Mr Goyal added. He noted that the cash for the takeover would come from internal accruals.

According to him Jet Airways will get parking slots, infrastructure and all other facilities that Air Sahara has in the country. Air Sahara’s pilots, technical staff, cabin crew will also be a part of Jet Airways now, added Mr Goyal.

In all 22 parking bays belonging to Air Sahara would be transferred to Jet Airways. Analysts say, the infrastructure would help Jet in the face of increased competition from new entrants into the aviation sector.

The Air Sahara brand will only continue till regulatory approvals come through.

After hectic bargaining, Jet agreed to take Air Sahara’s liabilities to the tune of Rs 150 crore. Apart from taking over Air Sahara’s 27 leased aircraft, Jet will also get parking slots at all major airports in the country and the former airline’s international flying rights.

Mr Goyal assured shareholders that the merger would result in lower operational costs and improve economies of scale thereby resulting in increased profitability. He also refuted media reports that Air Sahara would be turned into a low-cost carrier. “We are not planning to make it (Sahara Airlines) low-cost carrier,” he said.

The merger already had its impact on Air Sahara when 10 pilots reportedly put in their papers. Media outlets quoted them as saying that the pilots were afraid of a raw deal from Jet Airways.

In the joint statement however Sahara India stated that workers would not lose their jobs and cadres and gross emoluments would be unaffected.

“Upon closure of the transaction, based on requirements and performance, Jet Airways shall absorb suitable employees,” the statement said.

The joint statement was signed by, Chairman and Managing Worker of Sahara Group Subrata Roy and Chairman of Jet Airways Naresh Goyal.

Immediately after the joint statement, Mr Goyal said the absorption of staff from Sahara would be only on a ‘merit basis’. This led the Sahara group chief to say that full job protection would be provided to the staff of over 4,400 along with emoluments and perks, specially those who do not find a place in the new airlines.

“If the employees find it difficult to work under the new management, Sahara India Parivar, in the spirit of true Pariwar (family) shall be responsive to any of their genuine difficulties and would take all steps... to mitigate their difficulties,” Mr Roy said in an internal communication to Air Sahara employees today.

Sahara Group’s sponsorship of the Indian cricket team will not be affected due to the takeover of the Sahara airline by competitor Jet Airways, Sahara group officials said today.

The four-year deal, which Sahara clinched last month, would remain intact and be transferred to some other entity of the group, a Sahara group official said, but declined to be identified.

New Delhi, January 19
The ONGC and Royal Dutch Shell Plc today signed an agreement for joint exploration and production of hydrocarbons in the country and abroad.

Mr Subir Raha, Chairman of the ONGC, said: “To succeed swiftly on a global scale, the ONGC needs to exploit operational and strategic synergies between ONGC and Shell.” The company has earlier signed an agreement with the Steel giant Mittal group to explore oilfields in other countries.

He did not give financial details but said the pact with Shell Exploration Co. B.V. would cover joint exploration, production, refining, petrochemicals and in natural gas in India and abroad.

The ONGC also indicated that a joint project for building coal gasification facilities in India was also on the cards.

The MoU was signed by Mr Raha with Shell in India Chairman Vikram Mehta.

Mr Raha said the ONGC would also explore the possibility to participate in Shell’s exploration projects abroad, and jointly bid for oil blocks in India. “We shall investigate setting up a joint venture for bitumen business in India and evaluate joint business opportunities in marine fuels and lubricants,” Mr Raha told reporters.

The agreement assumes importance as public sector oil companies are increasingly signing agreements with global oil majors to expand their business and to ensure long-term supply of crude and gas. Industry experts said while big oil companies wanted access to fast-growing consumer markets in India or vast production reserves, national oil companies were seeking more expertise.

Last week the ONGC and the China National Petroleum Corporation signed wide-ranging cooperation agreements in Beijing.

Shell inked a preliminary deal with the Gujarat State Petroleum Corp. only yesterday to supply liquefied natural gas for 20 years.

New Delhi, January 19
India’s largest business process outsourcer Genpact, formerly GE Capital International Services, has signed a $60 million multi-year contract with German-based technology group Linde to provide finance and accounting services.

The contract is one of the largest F&A deals signed in Continental Europe during the past year.

The deal comes close on the heels of Genpact bagging a major contract with Wachovia Corp, the fourth largest bank in the US.

As part of the contract, Genpact will deliver a range of finance and accounting processes in a Global Service Delivery model from its Bucharest and New Delhi operations centers.

This is the second major contract win for Genpact in as many months. Last month, Wachovia Corporation, the fourth largest bank holding company in the United States (based on assets), signed a seven-year agreement with Genpact to establish an offshore operation to support Wachovia’s business process outsourcing efforts.

“We are seeking to grow aggressively in Continental Europe and this win will give us momentum to invest in this key growth market for Genpact,” Genpact President and CEO Pramod Bhasin said.

Genpact serves clients in a variety of industries including banking and finance, insurance, manufacturing, transportation, and business services. — UNI

New Delhi, January 19
The ONGC has suggested a new corporate structure. “We have suggested to the Ministry of Petroleum and Natural Gas appointment of two Vice-Chairmen to manage domestic and overseas business,” ONGC Chairman and Managing Director Subir Raha 
said here.

Under the plan, the ONGC Chairman will have a Vice-Chairman and Managing Director responsible for the firm’s core exploration and production business and a similar set for its overseas businesses (ONGC Videsh Ltd).

Both the Vice-Chairman and the MD will have a host of Presidents or Directors responsible for finance, exploration, projects and human resources reporting to them, he said.

The ONGC has ambitious plans to venture into oil refining with plans to build new refineries at Kakinada in Andhra Pradesh, Barmer in Rajasthan and Mangalore in Karnataka; petrochemical business with a mega complex in Mangalore and Dahej in Gujarat.

It also plans LNG import and shipping through a terminal at Mangalore and power generation by building plants at Mangalore and Tripura.

Under the new corporate structure, ONGC subsidiary Mangalore Refinery and Petrochemicals Ltd would continue to have a Managing Director directly reporting to the Chairman.

The ONGC suggested the new corporate structure to shed some workload of the Chairman. Currently, the Chairman presides over all domestic exploration and production, overseas as well as new area projects. — PTI

Amritsar, January 19
The Director General of Central Institute of Plastic Engineering and Technology (CIPET), Dr Sushil K. Verma, today announced the setting up of three state-of-the-art institutes in the country during the current year to meet the growing demand of highly trained technical manpower in the country.

Addressing a press conference, Dr Verma said the consumption of plastic in the country was around 4.5 million tonnes annually, which is expected to increase 12.5 million tonnes by 2010. According to vision paper produced by the plastic industry in the country, there was a tremendous growth potential with large number of automobile giants putting up manufacturing units in the country, which would propel higher growth rate for the plastic segment in the coming years.

The CIPET have sought the permission of the Centre for the grant of deemed university status, besides sought its approval for declaring it as the national institute of importance.

The Haryana government has prepared an ambitious growth plan for the plastic as it had envisaged with the setting up of industrial plastic park on a plot of 600 acres to give boost to the plastic industry in the vicinity of IOC refinery at Panipat.

He said that the IOC was going ahead with the establishment of petrochemical complex for producing different variety of polymers and other range of plastic raw material to meet the growing demand in the north India. He said the CIPET too has plans to add highly-prestigious institute with latest infrastructure at Panipat. The Centre would also cater to neighbouring states of Delhi and Himachal Pradesh.

He informed that states of Rajasthan and Maharashtra governments have given a go-ahead to establish similar plastic institutes in these respective states. He added that the Rajasthan government already allotted a land at Jaipur and the construction would start shortly.

New Delhi, January 19
The Union Cabinet today referred the proposal for allowing people of Indian origin (PIO)to invest in domestic airlines on a par with NRIs to a Group of Ministers.

“The GoM on FDI will review the entire issue of PIO investment in domestic airlines and come back to the Cabinet with its recommendations,” Civil Aviation Minister Praful Patel said after the Cabinet meeting here. — PTI