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| Holcim to buy out AIG, GIC stakes in Ambuja Cement India KOLKATA, Mar 22: Swiss cement maker Holcim, which had made an open offer to pick up 36.20 per cent shares of ACC,......more Indian
competition JERUSALEM, Mar 22: Israel’s high-tech industry-_ for years the country’s main engine of growth - is suddenly losing out.....more OIL bags
Libyan GUWAHATI, Mar 22: Oil India Limited (OIL) is all set to explore oil in Libya and a memorandum of understanding was....more Fixed,
mobile phone NEW DELHI, Mar 22: The total subscriber base of fixed and mobile telephone services grew by 7 per cent in the quarter.....more |
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VAT not to be inflationary: Chandra NEW DELHI, Mar 22: Empowered committee of State Finance Ministers on VAT has sought to allay fears of traders that........more Gold,
silver open MUMBAI, Feb 22: Gold and silver prices opened sharply higher at the local bullion market here today as the market........more Skindia
DR, P/E, MUMBAI, Mar 22: The Instanex Skindia Depository Receipts (DRS) index today fell by modest 1.58 per cent to 1,227.00.....more RBI asks
states MUMBAI, Feb 22: The Reserve Bank of India (RBI) has asked the State Governments to make efforts to shore up finances of State Electricity Boards (SEBs)...........more |
| Holcim to buy out AIG, GIC stakes in
Ambuja Cement India KOLKATA, Mar 22: Swiss cement maker Holcim, which had made an open offer to pick up 36.20 per cent shares of ACC, would also buy out the stakeholding of US-based AIG and GIC of Singapore in Ambuja Cement India Limited (ACIL), according to a joint venture formed between Gujarat Ambuja Cement Limited (GACL) and the two foreign investors. Holcim would investment nearly Rs 897 crore in purchasing the AIG/GIC shares in ACIL while the Swiss company would make fresh investments in picking up equity and preference capital in ACIL amounting to Rs 2644 crore. Thus total investments by Holcim would amount to Rs 3541 crore, sources told PTI. Currently, GACL holds 60 per cent of shares in ACIL, while the balance 40 per cent was being held by AIG and GIC. Billed as the largest FDI in the cement sector in India, the structure of ACIL’s shareholding would be GACL at 33 per cent and 67 per cent by Holcim, which in turn would hold 50.01 per cent in ACC and 100 per cent in Ambuja Cement Eastern Limited. At present, ACIL controls 13.80 per cent in ACC and 94.08 per cent in Ambuja Cement Eastern Limited. GACL effective shareholding in ACC would go up to 16.5 per cent from 8.3 per cent, sources said. Asked about the benefits of partnership with Holcim, sources said Gujarat Ambuja would get access to the Swiss cement maker’s best practices in the areas of waste heat recovery, use of alternative fuels, human resources and information technology. Besides, the partnership would also help in opening up of new cement trading opportunities in the Middle East and India Ocean rim. With demand for cement expected to rise and outstrip supply, Gujarat Ambuja plans to hike the capacity to 20 million tonne in the next three years by productivity enhancement and acquisitions. The growth would be funded from free cash flows, sources said. According to the company’s strategy, sources said plans existed to increase presence in the growing markets of north and west. Gujarat Ambuja had been the largest export of cement at 15 per cent of production and was among the least cost cement producer in the country. (PTI) |
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Indian competition poses big challenge to Israeli industry JERUSALEM, Mar 22: Israel’s high-tech industry-_ for years the country’s main engine of growth - is suddenly losing out to competition from India and other cheaper locales. Thousands of jobs have already been lost. But many Israeli companies say they have found a remedy in India itself, setting up shop there to bolster profits and avoid misfortune at home. "It’s ... Our call as Israelis, either to learn to work with these guys or to lose," David Keynan, an Israeli venture capitalist with experience in India, said of the new competitors. "They are going to dominate." The stakes couldn’t be higher. Israel’s technology sector accounts for roughly half the country’s exports and provides some of the best-paying jobs, having an important ripple effect throughout the economy. India, which produces some 300,000 engineers a year, is quickly narrowing the gap with its deep talent pool and labor costs that are generally estimated to be 25 percent lower than in Israel. Instead of fighting this trend, many Israeli technology companies are embracing it. Numerous Israeli venture firms and technology companies have poured into India in recent years, setting up operations like research or quality-control centers. "We can’t control the direction of the wind. We can only adjust the sails," said Raviv Zoller, president and chief executive ness technologies inc., an Israeli computer services company that has embraced India in a big way. Ap rt 03221022 del pri int eco espl com .Jerusal fes28 israel-industry 2 (reopening fgn8) since entering india in mid-2003 through an acquisition, the company has expanded its work force there from 300 to 1,400 people, serving a global client base out of offices in bangalore and mumbai. the increased activity has helped the company add 500 workers to its israeli operations as well, zoller said. "We use our israeli experience in india, and we use our know-how in india to complement local businesses," he said. This is the type of mutually beneficial collaboration that trade minister ehud olmert envisioned when he led a business delegation to india last december. "We need to bring smart guys from india to meet smart guys from israel," he said at the time. Bilateral trade between the two nations rose to us$2.14 billion in 2004, up from us$1.61 billion the previous year, an increase of more than 30 percent. Israel emerged as a global high-tech power in the 1990s thanks to its combination of sophisticated products and an affordable work force. According to the Central Bureau of Statistics, Israeli high-tech exports totaled US$10.95 billion in 2004 just under half of the USd23.64 billion in total manufacturing exports, excluding the diamond industry. Homegrown companies range from computer security leader check point software technologies ltd. And voice mail giant comverse technology inc. Down to dozens of scrappy start-ups. But as India and other countries grow increasingly sophisticated, Israeli business leaders acknowledge it has become more difficult for Israel to compete. Elisha Yanay, who heads motorola inc.’s Israel operations, recently sent a letter to Prime Minister Ariel Sharon urging action to prevent the loss of high-tech jobs to cheaper countries. Yanay, president of the Israel Association of Electronics and Information Industries, said foreign companies operating in Israel have shed several thousand jobs in recent months and could transfer as many as 30,000 high-tech positions _ about 40 percent of the high-tech work force _ to cheaper locations. "We must contend with this most serious problem, and I can bear witness that as Motorola Israel’s Director General, I was forced to deal with it daily over the past year. For now, Israeli technology still is ahead of India in many areas, particularly in business software, semiconductors, communications and life sciences, and local investors believe the industry is nimble enough to continue Bilateral trade between the two nations rose to US$2.14 billion in 2004, up from US$1.61 billion the previous year, an increase of more than 30 percent. In Tel Aviv, Satish Mehta, a diplomat at the Indian embassy who joined Olmert’s delegation, said interest by Israeli companies in his homeland is "thriving," though he said it is difficult to quantify because the nature of the partnerships are so varied _ many of the investments are through foreign subsidiaries or joint ventures with Indian partners. Mehta described the partnerships as "win-win" collaborations that add new jobs in Israel and India alike. "The quality and type of cooperation is very good," he said. (AP) |
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OIL bags Libyan field for exploration GUWAHATI, Mar 22: Oil India Limited (OIL) is all set to explore oil in Libya and a memorandum of understanding was signed yesterday at Libyan capital, Tripoli. Top OIL officials confirmed that this was their first overseas venture and the company is expecting good return from the virgin fields of Africa. The contract of the block no. 86 was signed between the consortium of Oil India Limited, Indian Oil Corporation Limited (IOC) and the National Oil Company (NOC) of Libya, the source said. The signatories of the agreement were NOC’s chairman Abdul Saleen Badri, Oil Chairman S K Srivastava and IOC’s General Manager Aloke Roy. The block is located in the sirte basin of Libya. The joint consortium of OIL and IOC got the prized block outbidding some of the global leaders in the field. The block covers over 7000 square kilometers. As many as 15 blocks were announced for which 56 companies participated and 104 bids were submitted. The OIL-IOC consortium won the block against mega oil companies like occidental, Liwa, Petrocanda, Woodside and CNPC. This is also the first entry into the exploration and production sector by any Indian Oil PSU in Libya. The signing ceremony was attended by first secretary and charge de affairs of Indian embassy at Tripoli Om Prakash, besides, a large number of dignitaries from NOC and the team from OIL. This contract award has opened up the Libyan upstream petroleum sector for the Indian oil PSUs. (UNI) |
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Fixed, mobile phone subscribers base touch 92.88 million NEW DELHI, Mar 22: The total subscriber base of fixed and mobile telephone services grew by 7 per cent in the quarter October-December 2004 to 92.88 million from 86.86 million in September 2004, according to a TRAI quarterly performance indicator. The growth on annual basis of the fixed and mobile telephone subscriber base from December 2003 to December 2004 was more than 31 per cent, said TRAI in a press statement. The subscribers of fixed service line (fixed line and WLL-F) during the quarter increased to 44.87 million from 43.87 million in the previous quarter. Mobile services (GSM and CDMA) subscriber base increased to 48 million in the quarter ended December 2004 from 43 million in the previous quarter, it added. Mobile subscribers showed a growth rate of 11.68 per cent during the quarter, TRAI said adding the annual growth rate (from December 2003 to December 2004) for the segment was 68.82 per cent. The number of VPTs added during the quarter was 13,152 making a cumulative total of 5,37,238 VPTs in the country, it said. PCO numbers registered a 11.64 per cent growth during the quarter bringing the total in the country to 25,31,312. The average per minute charge for mobile service during the quarter declined by 58 per cent to Rs 1.20 in comparison to Rs 1.90 in the previous quarter, it added. The internet subscriber base, however, increased by 6 per cent during the quarter, with the total at 5.45 million. The annual growth (December 2003 to December 2004) in this segment was 31.64 per cent, it added. The number of ‘always on’ high speed net users reached 6.54 lakh, showing a total growth of 108 per cent, the TRAI performance indicator said. Broadband connection of speed more than 256 kbps reached the number of 46,638 by the end of December 2004, it said. During the quarter, internet telephony recorded a usage of 43 million minutes, while the average minutes of use per month for dial up connections was 275, it added. (PTI) |
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VAT not to be inflationary: Chandra NEW DELHI, Mar 22: Empowered committee of State Finance Ministers on VAT has sought to allay fears of traders that the new tax system will lead to increase in prices, stating that the worldwide experience did not support this apprehension. "The worldwide experience is that there are no price increases due to VAT," empowered committee secretary Ramesh Chandra said during a discussion on the new tax system, organised by CNBC-TV18 channel here last night. Chandra said campaign by traders that VAT will lead to 20-25 per cent increase in prices was a ‘misconception’. "Even if one assumes that all commodities attracting sales tax of 8 per cent in northern India are shifted to 12.5 per cent VAT, price hike would not be as steep as 20-25 per cent," chandra said. In many states of south India, taxes will come down from 16-18 per cent under the existing sales tax to 12.5 per cent VAT, he said. White paper on VAT, released by the empowered committee, proposed two tax-slabs of 4 per cent and 12.5 per cent for most items. Chandra emphasised that all price increases after April 1 2005 should not be attributed to VAT. "If on April one, petroleum prices go up, leading to cascading impact on prices all around, VAT should not be held responsible for it," he explained. Chandra said "as per his understanding" the Centre’s commitment to fully compensate states for losses during the first year of VAT implementation applies to the states introducing the new tax system from April one, 2005. "I am not sure if those introducing VAT in between the next fiscal will also be able to get the compensation," he said. Sanjay Dhariwal of ken consulting said states will suffer revenue loss of 15 per cent during the first year of implementing VAT because the tax paid during 2004-05 on the opening stock of 2005-06 will be set off against VAT. He said this aspect was not considered by the empowered committee while releasing the white paper on VAT. Chandra claimed that VAT was much simpler than the existing sales tax system and would not lead to ‘harassment’ as it was entirely based on self-assessment. Sanjay Bhatia of phdcci said the proposed provision under VAT to give credit on tax paid on capital goods at 36 monthly instalments will lead to complexities, particularly regarding the goods sold in the same year. To this, Chandra explained that 36 months is an outer limit. (PTI) |
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Gold, silver open up on bullish global advice MUMBAI, Feb 22: Gold and silver prices opened sharply higher at the local bullion market here today as the market adjusted the bullish overseas advice after the extended weekend holidays, traders said. Silver .999 fineness grade opened higher by Rs 150 at Rs 11,110 per kg, while gold 99.5 and 99.9 purity grades resumed up by Rs 35 and Rs 40 at Rs 6,185 and Rs 6,225 per 10 gm on strong demand from jewellery-makers and local operators on the back of steady rise in precious metal prices in global markets. Bullion markets in Mumbai remained closed on Friday on account of ‘Shivaji Jayanti’ holiday and again on Monday due to the traders’ nationwide strike in protest against the Value Added Tax (VAT) and service tax. In overseas markets, gold and silver prices continued their northward journey, bolstered by weakening US dollar and strong euro. Gold, which is sold in US dollar, has risen 1.5 per cent in the last week as dollar’s fall against euro boosted the precious metal’s appeal as an alternative asset. Following were the opening spot rates of gold and silver provided by traders at the bombay bullion association today: silver (per kg) .999 fineness grade : Rs 11,110 (10,960) gold (per 10 gm) gold 99.5 purity standard mint: : Rs 6,185 (6,150), gold 99.9 purity variety : Rs 6,225 (6,185). (UNI) |
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Skindia DR, P/E, premium indices decline MUMBAI, Mar 22: The Instanex Skindia Depository Receipts (DRS) index today fell by modest 1.58 per cent to 1,227.00 points on March 21 against the previous close of 1,246.73 points as on March 18. According to a daily update provided by the city-based Instanex Capital Consultants Pvt Ltd here, the Skindia DR index P/E was also down by 1.42 per cent to 19.61 points from 19.89. Similarily, the Skindia DR index premium, too, came down steeply by 7.09 per cent to 17.36 per cent from 18.68 per cent during the same period. Of the 15 GDRs/ADRs, three gained, 11 scrips declined and one scrip remained unchanged. Insosys Tech (ADR), Ranbaxy Labs (GDR) and ITC (GDR) were the top gainers, while L T (GDR), Reliance (GDR) and State Bank of India (GDR) were the losers, the release added. (UNI) |
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RBI asks states to improve their finances MUMBAI, Feb 22: The Reserve Bank of India (RBI) has asked the State Governments to make efforts to shore up finances of State Electricity Boards (SEBs) and improve the sluggish non-tax revenues which alarmingly deteriorated their financial health. Besides, lower non-developmental spending and allocation for education, infrastructure and health also led to weakenesses in the states’ finances, the reserve bank said in its latest bulletin. This causes "adverse reaction" from the financial markets as manifested in widening spread and under-subscription to market loans, the Central Bank said, suggesting early implementation of fiscal responsibility laws. It said the states could improve their fiscal health provided the current transfers from the Centre to the States remain "buoyant", as envisaged in the National Common Minimum Programme of the UPA Government. Highlighting the major reasons for the states’ poor financial health, the RBI said, "the direction of fiscal correction saw a reversal during 2003-04 partly on account of one-off factors essentially relating to the settlement of dues of the State Electricity Boards aimed at strengthening power sector." The underlying weaknesses - mainly due to sluggish non-tax revenue, downwardly rigid non-development committed expenditure and inadequate allocations for health, education and infrastructure -in the states’ finances persisted as the magnitude of fiscal imbalances generally remained much higher than the levels prevailing in the mid-1990s, it added. (UNI) |
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Bengal’s karela finds new market in Delhi SILIGURI, Mar 22: Haldibari, famous for growing green vegetablesin West Bengal, has supplied about four tonnes of "karela" (bittergourd) to the cash rich Delhi market with the help of specialarrangements by Northeast Frontier Railway (NFR). NFR’s Chief Commercial Manager (Malaigaon) Koushik Mukhopadhyaand deputy Commercial Manager (freight and marketing) DeepakTalukdar said the NFR made special arrangements to ferry the freshvegetables within 24 hours in the northeast express. The arrangement was made possible after nfr’s assistant commercialmanager tarak nath bhattacharjee visited haldibari and saw thegrowers throwing away their produce owing to non-availability of market. The agriculturists normally sell their products in the wholesalemarket in kolkata but bumper production this season left themhelpless. Following the report by mr bhattacharjee, nfr officials inmaligaon arranged to provide space for the product in delhi-boundnortheast express from guwahati which runs through haldibari injalpaiguri station. Nfr sources said the railways have started getting extra revenueof about rs 9000 daily for ferrying ‘’karla’’ to delhi from march 12. Sources said the nfr is trying to have more space forferrying the vegtables like tomato, green chilly, ladies finger,gourds, papayas and others to delhi in coming seasons. Plans are also there to supply vegetables to guwahati in the nearfuture, sources said.Uni pc tjp sskr nd1242jmu 12 51 |
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Rupee rallies further against US dollar at early trade MUMBAI, Feb 22: The rupee rallied further against the US currency early today on strong FII inflows and a weak dollar overseas, despite rising global oil prices. In moderately active trade at the interbank foreign exchange (forex) market here this morning, the rupee is currently quoted at 43.75/76 per dollar, sharply higher from Monday’s close of 43.82/83 per dollar. The rupee opened distinctly firm at Rs 43.74/76 per dollar due to lingering weak dollar against major global rivals, mainly the euro. Rupee recovered by two paise yesterday, after a decline by nearly ten paise in last two session in the previous week. Healthy foreign institutional investors inflows continued to give the rupee strong underlying support despite sporadic dollar demand from corporates and importers. Rising global crude oil prices, however, weighed on the rupee value, a dealer said. World crude oil prices surged to USD 48.62 a barrel on concerns of a possible cut in production by OPEC. FII injected USD 57.60 million on Monday, taking the current month’s tally to USD 1.62 billion. In cross currency trade, the euro was quoted at Rs 57.51/53, pound sterling at Rs 83.29/31 and the Japanese yen (100) at Rs 41.65/67. (PTI) Saksoft to expand Noida
development NEW DELHI, Mar 22: Software Services Firm Saksoft Ltd will hit the market with its Initial Public Offer (IPO) on March 30 to mop up Rs 7.5 crore for expanding its Noida Development Centre and acquiring companies to fuel growth. The proceeds from the issue of 25 lakh equity shares of Rs 10 each for cash at a premium of Rs 20 will finance about 50 per cent the company’s Rs 14.62 crore expansion programme. "The plan includes expanding the Noida Development Centre in terms of infrastructure and employee strength, making some aquisitions and process certification," Saksoft founder-promoter and managing director Aditya Krishna told a press conference here. The IPO closes on April 7. He said the mid-sized company will list its shares on the nse only. The post-issue share holding shall be 68.01 per cent for the promoter group, 6.99 per cent for employees and 25 per cent for public. Chennai-based Saksoft, which focuses on banking and financial services segment, provides custom development application and third party business application. The company had paid a dividend of 5 per cent, 10 per cent and 15 per cent in 2001-02, 2002-03 and 2003-04 respectively. It had a turnover of Rs 15.80 crore and a net profit of Rs 3.07 crore for the first half of the fiscal year ended September 30, 2004. Mr Krishna said the company’s major customers included Citibank Na of the USA, Morgan Stanley Card Services Ltd of UK, Bank Mandiri of Indonesia, Standard Chartered Bank, ICICI bank and HDFC bank. (UNI) |
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Bank employees in Karnataka protest BANGALORE, Mar 22: Bank employees across the state staged protest against the Government’s move to merge public sector banks and allow foreign investment in Indian banks. Hundreds of bank employees staged a demonstration in front of the State Bank of Mysore headquarters in the city, while banking activity was paralysed. Demonstrations and processions were held by the members of United Forum of Bank Unions (UFBU) at all district and Taluk headquarters and the strike was total in the entire state of Karnataka, a UBFU statement said here. (PTI) |
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