New Delhi, May 10
Amid sharp differences arising between the Ministry of Finance and Commerce over the revenue loss due to the policy of special economic zones (SEZs), the government has indicated to relook at the whole issue.

Talking to the reporters today, Secretary, Department of Industrial Policy & Promotion (DIPP), Dr Ajay Dua, said, “The government is addressing all issues like revenue losses and proper utilisation of land, relating to the SEZs and shortly a consensus would emerge for a firm policy decision on these issues.”

The Empowered Group of Ministers (EGoM), headed by Defence Minister Pranab Mukherjee also discussed the issue of minimum area required for setting up the SEZs.

While the Finance Ministry feels that the minimum area should be 25 hectares to check revenue leakage, the Commerce Ministry has pointed out that this cannot prevent revenue leakage.

Releasing the Assocham's study on special economic zones — new growth propellers’ here, Dr Ajay Dua admitted that revenue losses on account of tax incentives on the SEZs that the government would accrue was certainly an issue before Commerce and Finance Ministries and inter-ministerial discussions are on the conclusive stages on this.

Dr Dua also stated that another issue which was being relooked was that of proper utilisation of land on the SEZs to the allottees to ensure that the real estate business does not flourish on them.

Commenting on the study, Assocham president, Mr Anil K. Agarwal, said, “With more and more SEZs coming up at a hectic pace, India’s exports from the SEZs are likely to double up to $25 billion in the next four years”. 

New Delhi, May 10
The Board for Reconstruction of Public Enterprises (BRPSE) has given its approval for the sale of Tide Water Oil and two other associate companies of Andrew Yule and Company to raise funds for restructuring of the parent.

“Andrew Yule owns 27.71 per cent in Tide Water Oil and ONGC will take over lubricant maker for Rs 37 crore,” sources said.

Apart from Tide Water Oil, which is under its management control, Andrew Yule will sell its stake in Phoenix Yule and Dishergarh Power Supply Company.

The revival plan cleared by the BRPSE, will require the nod of the Cabinet before it is implemented.

In Phoenix Yule, which makes conveyer belts, Andrew Yule has 26 per cent stake while the management control is with a German Company Phoenix BV, which is a part of the Continental Group.

“The German company has agreed to buy the stake held by Andrew Yule in the company,” sources added.

The company is also planning to sell its 7.50 per cent stake in DPSC Ltd.

The disinvestment of stake in the three companies is likely to fetch Rs 46.21 crore for the revival of Andrew Yule, which will cost around Rs 213.27 crore.

The company will raise around Rs 20 crore through bonds while the government will have to chip in with Rs 147 crore. — PTI

New Delhi, May 10
The proposed merger of Air-India (A-I) and the Indian was put on the fast track today with the former inviting Expression of Interests (EoIs) for appointing a consultant.

The last date for submission of bids is May 31.

Last week, the A-I Board had agreed to appoint a consultant to prepare a roadmap for the merger of the two national carriers within 2006-07 without any hiccups.

Civil Aviation Minister Praful Patel recently said the proposed merger of two carriers is required to meet the challenges of the global aviation environment, which has witnessed a series of mergers and acquisitions, including the Rs 2,300-crore deal by Jet Airways to acquire Air Sahara.

The consultant will provide the roadmap for the AI-Indian merger and also advise the government as to whether the valuation of initial public offer (IPO) will be better for a combined entity or not.

It is also likely to decide on the fate of the wholly-owned A-I’s subsidiary, A-I Express, as well as Indian’s Alliance Air.

The minister has set a deadline for completing the merger process within the current fiscal.

Aviation experts say the government will succeed in creating an internationally competitive carrier by merging AI and Indian if it can overcome the challenges that lie ahead.

Both airlines are sure to face increasing competition in an environment of rising costs. So it is better for the government to promote India overseas with one airline and one voice.

Meanwhile, the guidelines for mergers and acquisitions in the aviation industry have been prepared by the aircraft acquisition committee of the civil aviation ministry.

However, it is yet to get the official nod. The guidelines are expected to decide on whether the assets of one entity, which is being acquired or merged, would automatically be transferred to the one acquiring it.

Besides aircraft, these assets include parking bays, flight time-slots, airport infrastructure and other facilities. — UNI

New Delhi, May 10
The Ambani brothers’ split is proving to be a blessing in disguise for the investors as they have seen nearly doubling of their wealth in less than four months since Reliance Industries began trading on a post-demerger split basis.

The total investor wealth from both Mukesh and Anil Ambani groups has nearly doubled since January 18 this year, when the erstwhile RIL began trading on a split basis following the implementation of the scheme of arrangement reached between the two brothers. Since then shareholders have emerged clear winner from the whole affair of the split in the Ambani family that marked one of the biggest family and business splits in corporate India.

The cumulative market capitalisation of all listed entities from the Mukesh and Anil Ambani groups of companies surged nearly 99.2 per cent to Rs 2,48,490.29 crore as on May 9 from Rs 1,24,724.73 crore on January 18.

RIL’s market cap alone has surged nearly 66.5 per cent to Rs 1,60,943.21 crore as on May 9 from Rs 96,688.69 crore on January 18.

The latest figure comprises the market caps of RIL, Indian Petrochemicals Ltd (IPCL) and Reliance Industries Infrastructure from the Mukesh Ambani group and Reliance Communications Ventures Ltd (RCoVL), Reliance Capital, Reliance Energy (REL), Reliance Natural Resources Ltd (RNRL), Reliance Capital Ventures Ltd (RCVL) and Reliance Energy Ventures Ltd (REVL) from the Anil Ambani group companies.

The retail investors have been among the biggest gainers from the whole exercise as their holdings in the combined market cap of the two groups of companies has seen a bigger jump than the increase in the total market cap figures.

The share of retail investors surged ahead nearly 122 per cent, or Rs 19,789.30 crore, to Rs 36,012.66 crore as on May 9 from Rs 16,223.36 crore on January 18. The overall retail investor stake in the listed companies from the the two groups jumped nearly 75 per cent from Rs 20,650.11 crore as on January 17.

The retail investor data is based on the latest shareholding patterns filed by the companies to the BSE for the March 2005-06 quarter. The average retail investor stake in the five pre-split Reliance group companies stood at 15.9 per cent while it rose to 17.7 per cent in the nine currently listed entities as on March 31.

The combined market cap of the four Anil Dhirubhai Ambani Group companies - RCoVL, REVL, RCVL and RNRL - the four demerged entities that were largely carved out of the erstwhile RIL and were subsequently listed on the bourses as per the scheme of demerger reached between the two brothers, stood at Rs 54,264.18 crore on May 9, as per the data available on the BSE.

In comparison, the combined market cap of the three Mukesh Ambani group companies - RIL, IPCL and Reliance Industrial Infrastructure- was Rs 1,69,147.41 crore on May 9, representing a gain of 65,657.79 crore or nearly 63.4 per cent over 1,03,489.72 crore on January 18 this year.

The two groups have added Rs 1,23,765.56 crore to their combined investor wealth since January 18 and Rs 91,230.25 crore since January 17 as on May 9. — PTI

New Delhi, May 10
The ‘dual’ dispute between BSNL and MTNL over carriage charges and STD traffic dues is nearing a solution, a senior Department of Telecom official said here.

“Department of Telecom has asked both BSNL and MTNL to resolve all their current dispute of carriage charge and dues payment by Friday and latest by Saturday. They are nearing a solution and they should be able to resolve it at the earliest,” the official said.

Even as it could not be ascertained what could be the middle-path, the DoT was mediating the resolution between the PSUs, sources said, adding the issue of a lower carriage charge acceptable to both MTNL and BSNL was being worked out.

MTNL, which has been using BSNL’s STD network to carry its national long distance tariffs, is paying a carriage cost of 65 paise per minute and is asking for a lower carriage fee of 30-40 paise. This was opposed by BSNL saying it cannot carry STD traffic at such a lower rate. This had forced MTNL to look for other options like private players such as Reliance, VSNL and Bharti.

It is not known what carriage cost both have settled for but DoT offcials expressed the hope that BSNL would match the lower rates asked by MTNL. If given a chance, private players are expected to offer very competitive rate to carry the lucrative traffic between Delhi and Mumbai. — PTI

New Delhi, May 10
In a clear shift from being a competitor in the mass market motor cycle segment, Japanese two-wheeler major Yamaha Motors said today it would be focussing on niche products for future growth, even as its mulls setting up a new plant in south India by 2010.

"Since February this year, we have been going on a path which involves a complete change in business and marketing strategies from what we have been doing earlier," Yamaha Motors India CEO and Managing Director Tomotaka Ishikawa told reporters here.

He said, henceforth, the company would be following a focussed effort towards brand building and enhancing its equity and new products would follow a youth-centric approach.

Mr Ishikawa said the company, which has a 5 per cent market share in India, would like to see it in double figures in two years time.

"Our target is to sell about 1 million bikes by 2010 for which we would need a new production unit," he added.

He said considering the distribution network the company would prefer to have its plant somewhere in south India.

Meanwhile, the company today launched a new 125 cc Gladiator in two versions, which are priced at Rs 41,990 and Rs 44,990 (ex-showroom Delhi).

Mr Ishikawa said the company expected to sell about a total of 4,00,000 units this year.

"For the domestic market we are targeting 3,00,000 units and from exports we see a shipment of about 1,00,000 units," he added. — PTI

Chandigarh, May 10 
Malwa Industries Ltd, a Ludhiana-based vertically integrated denim solutions provider, has made two overseas acquisitions in Jordan and Italy, involving a total consideration of $10 million.

Malwa Industries Chief Executive Officer and Managing Director Rishi Oswal said the company had acquired 100 per cent equity of Third Dimension Apparels in Jordan, which has duty free access to the US and Europe for a consideration of $6 million.

He said the company has also acquired a majority stake (80 per cent) in Emmetre Tintolavanderie Industriali S.R.L of Italy for $3.2 million with a proposal to buy out the remaining 20 per cent equity later for another $0.8 million.

Mr Oswal said it would be done through a combination of debt and equity.

Third Dimension Apparels has been involved in the manufacture of denim garments for leading international brands, while the Italian company has been involved in dyeing and finishing of garments, including denim garments for fashion labels in Europe, he elaborated.

“Our acquisition of Third Dimension, an entity that has been servicing orders from leading denim brands, has given us a strategic foothold in a garment manufacturing location with duty-free access to the US and European markets,” he said.
The company has also filed its draft red herring prospectus with Securities and Exchange Board of India (SEBI) to enter the capital market with a proposed initial public offering of 20 million equity shares of Rs 10 each for cash at a premium to be decided through a book-building process. Post-IPO, the promoters stake in the company would come down to 60 per cent from the existing 95 per cent. 

Mumbai, May 10 
Asian Paints Ltd today posted a decline of 50.65 per cent in profit (after prior period items) at Rs 20.28 crore for the quarter ended March 31 as compared to Rs 41.10 crore for the same quarter last year.

However, total income (net of discounts and excise duty) increased 25.81 per cent at Rs 578.93 crore for the fourth quarter of 2005-06 from Rs 460.13 crore in the corresponding quarter in 2004-05, the company informed the BSE.

The Board of Directors has recommended a final dividend of Rs 5.50 on equity share of Rs 10 each (55 per cent) for the financial year ended March 31.

In addition, the Board has recommended a one-time special dividend of Rs 2.50 per equity share of Rs 10 each (25 per cent) on the occasion of 60th year of incorporation of the company.

Along with the interim dividend of Rs 4.50 on equity share of Rs 10 each (45 per cent) the total dividend aggregates to Rs 12.50 on equity share of Rs 10 each (125 per cent) for the financial year ended March 31.

JB Chemicals

JB Chemicals and Pharmaceuticals Ltd has posted a profit after tax at Rs 15.45 crore for the quarter ended March 31 this year as compared to Rs 11.44 crore for the quarter ended March 31 last year, an increase of 35.05 per cent.
Announcing the results, the company said its total income (net of excise) has increased from Rs 85.55 crore in Q4 FY 04-05 to Rs 117.07 crore for Q4 FY 05-06.

It has posted a profit after tax of Rs 70.92 crore for the year ended March 31 (FY 05-06) as compared to Rs 59.14 crore for the similar period a year ago (FY 04-05).