Daily Excelsior...Business

Cadila receives US FDA approval to market four drugs in US

NTPC to borrow over Rs 105,000 crore in XIth Plan.............

‘Notion that plan panel delaying airport projects incorrect’........

Militants targeting railway men in NE; Railway seeks security....................

Lafarge buys L&T Concrete for Rs 1,480 cr

NEW DELHI, May 15: Lafarge, the world's second biggest cement maker, today said it has agreed to buy Larsen & Toubro's (L&T's) ready-mix concrete (RMC) business for Rs 1,480 crore as part of its expansion plan.

With this acquisition, Lafarge--the third largest cement maker in the country-- will lead the Indian RMC market, capturing a 25 per cent share, a company statement said.

The company will buy 66 concrete plants of L&T located in key markets, including Delhi, Kolkata, Mumbai and Bangalore, with a total estimated capacity of 4.1 million metric cubic. (UNI)

Pepper prices bullish on speculative buying, strong dollar

NEW DELHI, May 15: A rise in dollar value and speculative buying has led to a bullish trend in black pepper prices in the futures market.

Prices continued its rally on NCDEX counter today while some contracts hit the upper circuit of 2.36 per cent during afternoon trade.

At 1300 hours, pepper prices of near-month May contract rose marginally by 0.89 per cent at Rs 14,430 per quintal, June contract went up by 0.96 per cent at 14,765 per quintal and July contract jumped by 0.97 per cent at Rs 15,053 per quintal.

Far-month September contract surged by 2.36 per cent at Rs 15,524 per quintal while October contract shot up by 2.24 per cent at Rs 15,792 per quintal.

Meanwhile, spot prices at Kochi market in Kerala were also ruling firm at Rs 14,400.35 per quintal.

Kochi-based pepper trader Jojan Mallayal told PTI, "Indian prices have become competitive in the last few days due to a rise in dollar value and speculative buying".

Otherwise, currently there is no fresh export demand because pepper prices in Vietnam are cheaper than Indian pepper by 25 dollars at USD 3,575 per tonne, he said, adding that exporters have not been able to sell in overseas market due to low price levels of pepper in Vietnam market. (PTI)

Sugar stocks shine at BSE as industry sees outlook changing

NEW DELHI, May 15: Equity prices of many sugar companies have surged in a range of 17-34 per cent in the past one month at Bombay Stock Exchange, which the industry says is because of a change in the outlook.

The stock prices of Simbhaoli Sugars, Mawana Sugar, Shree Renuka Sugars, Shakthi Sugars, Rana Sugars, Oudh Sugar Mills and Dwarikesh Sugar have increased in the range of 17-34 per cent while scrip of big players like Bajaj Hindustan by 5.56 per cent and that of Balrampur Chinni Mills by 0.36 per cent.

"The outlook about the sugar sector is changing as people have realised that the surplus situation is not going to last forever," Simbhaoli Sugars Director (Finance) Sanjay Tapriya said when asked to comment on the reason for the increase.

Tapriya said share prices have gone up in anticipation that price realisation by the sugar companies would be better in the coming days. "The correction (increase) in the sugar prices has also influenced the market sentiment," he added.

At 1230 hours today, the share price of Simbhaoli Sugars was traded at Rs 39.10 compared to Rs 33.50 on April 15, registering a 16.72 per cent jump while Birla Group’s Oudh Sugar Mills equity have increased by 31.87 per cent to Rs 69.10 from Rs 52.40 in the same period.

Dwarikesh Sugar has increased to Rs 69.80 from Rs 53.70 (29.98 pc), Mawana Sugar to Rs 49.40 from Rs 36.95 (33.69 pc), Rana Sugars to Rs 15.90 from Rs 13.22 (20.59 pc), Shakthi Sugars to Rs 81.40 from Rs 67.50 (20.59 pc), Shree Renuka Sugar to Rs 129.70 from Rs 108.55 (19.48 pc) and Upper Ganges Sugar and Industries to Rs 90.05 from Rs 76.50 (17.71 pc).

Share price of Balarampur Chinni Mills was traded at Rs 97.60 at 1230 hours compared to Rs 97.25 on April 15 and that of Bajaj Hindustan at Rs 228.75, against Rs 216.70.

The industry is expecting the share prices to go up once sugar prices move up in the domestic market. (PTI)

'Inflation up to 5 times more for corporates than common man'

NEW DELHI, May 15: Corporate India could be a much bigger victim to rising prices than the common man with cost of doing business soaring up to 35 per cent or about five times the wholesale price index levels.

It is the inflation faced by businesses in setting up and expanding manufacturing capacities, distribution and franchises, or simply investing in India and the concept becomes meaningful given the country is primarily investment led, according to new report by Citigroup Global Markets.

Citigroup has chosen to term this concept as "business inflation" which loosely represents the rising cost of setting up a business in India. This measure is primarily conceptual and directional and not something that seeks to be particularly robust or consistent in construct or level.

This is another kind of inflation which is not adequately captured in data or headlines, but has a more meaningful impact on corporate profitability, their investing frame-work and over the time in equity markets, the research wing of global financial giant believes.

"Rising costs of setting up business, including asset, capital and services-based over the last three years suggests business inflation could be as high as 10-35 per cent per annum, well ahead of 7-8 per cent headline inflation," the report noted.

The increase in costs to establish new businesses has risen significantly ahead of the headline inflation and it has been sustaining at a high level for past three years, while the surge in headline inflation is being noticed from just about a couple of months rather than for a sustained period, analysts believe. (PTI)

Regional bourses get FMC nod to launch futures in four items

NEW DELHI, May 15: The commodity market regulator Forward Markets Commission has given approval to four regional bourses to start futures trading in gur, mustard seed, coconut oil and copra.

Delhi-based Rajdhani Oil and Oilseeds Exchange (ROOE) as well as Meerut Agro Commodity Exchange (MACE) have been allowed to launch July contract in gur, FMC said in a statement.

The regulator has given permission to Gwalior-based Central India Commercial Exchange (CICE) to start May contract in mustard seed. Meanwhile, Kochi-based First Commodity Exchange (FCE) has been allowed to begin August to November contracts in coconut oil and copra, it said.

According to the FMC data, turnover of ROOE stood at Rs 27.74 crore, FCE at Rs 11.53 crore, MACE at Rs 3.13 crore and CICE at Rs 1.21 crore during the second fortnight of April. (PTI)

Smart recovery in Instanex Skindia GDR Index

MUMBAI, May 15: The Instanex Skindia DR Index recovered smartly by 46.14 points or 1.60 per cent to 2,926.92 on May 14 from 2,880.79 yesterday.

The P/E Ratio moved up to 24.90 from 24.31, an Instanex Capital release said here today.

Following are the GDR and ADR rates for May 14 in US dollars with differences in percentage from the previous level given in brackets.

Dr Reddy'S (ADR) 15.45 (+4.11)

GAIL (GDR) 58.50 (+1.50)

Grasim Ind (GDR) 54.90 (-0.63)

ICICI Bank (ADR) 43.28 (+1.96)

Infosys Tech (ADR) 44.33 (+3.05)

ITC (GDR) 5.40 (-1.82)

L&T (GDR) 68.03 (-0.83)

Mahindra & Mah (GDR) 15.50 (+3.33)

Ranbaxy Labs (GDR) 11.60 (+5.26)

Reliance (GDR) 121.50 (+2.32)

Satyam Comp (ADR) 25.95 (-0.76)

SBI (GDR) 83.64 (-1.60)

Sterlite Ind (ADR) 20.48 (+2.35)

Tata Communi (ADR) 23.79 (+2.10)

Tata Motors (ADR) 16.04 (+0.31)

(PTI)

Bharti Airtel talks shift to full takeover of MTN

NEW DELHI, May 15: India’s number one mobile operator Bharti Airtel’s negotiations with South African telecom major MTN is now headed towards complete take-over by the former, media reports said.

Bharti’s talks with South African mobile operator MTN Group Ltd are now centered on a full takeover by the Indian operator for a combination of cash and stock, The Wall Street Journal said quoting a person familiar with the situation.

"Bharti still wants majority control (a 51 per cent stake) but MTN prefers a full takeover which in South Africa can be portrayed as a merger of equals. Talks this week are focused on this (full takeover) and ways it could be done," WSJ said in a report posted online.

The person said Bharti was considering paying as much as USD 20 billion in cash, said the paper.

Bharti on Tuesday said it was in talks with MTN to "combine the strengths of the two leading players from emerging markets, and is accordingly veering toward possible structures to achieve this objective".

Bharti Group Chairman Sunil Mittal is understood to have held talks with the South African telecom major MTN’s top management in London yesterday to work out a broad scheme of arrangements for a possible merger between the two companies.

Mittal met MTN Chairman M C Ramaphosa, CEO P F Nhleko and single majority stakeholder Azim Mikati to put forward Bharti’s proposals in which the Delhi-based company is said to have insisted on ‘exclusivity agreement’ with MTN.

An exclusivity agreement would bar MTN from sharing any information or arrangements for a merger with any other firm. Bharti management is also believed to have offered 168 rands a share to MTN shareholders, while the South African company wants a higher price.

It is also learnt that Bharti wants to offer 70 per cent stock and 30 per cent cash for a possible merger to the MTN shareholders, whereas the South African telecom firm has asked a higher price. (PTI)

Cadila receives US FDA approval to market four drugs in US

MUMBAI, May 15: Pharma major Zydus Cadila today said it has received approval from the US FDA to market four products, including anti-depressant Escitalopram Oxalate tablets in that country.

The group has received the Food and Drug Administration (FDA) approval to market 10, 20, 40, 80 mg of Pravastatin Sodium tablets in the United States, Cadila Healthcare said in a filing to the Bombay Stock Exchange.

Cadila has also received tentative approval from the regulatory body to market Escitalopram Oxalate tablets (5, 10 and 20 mg), Losartam Potassium and Hydrochlorthiazide tablets (50mg/12.5 mg and 100 mg/25 mg) and Anastrazole tablets (1 mg) in the US, the filing said.

The US market of lipid lowering agent Pravastatin Sodium tablet was estimated at 1.9 million dollar in 2007, while the branded sales of anti-depressant Escitalopram Oxalate tablets was at 3 billion dollars.

In 2007, the sale of anti-hypertensive Losartam Potassium and Hydrochlorthiazide tablets stood at 785 million dollar, while Anastrazole tablets had a market of 813 million dollar, the filling added.

(PTI)_

NTPC to borrow over Rs 105,000 crore in XIth Plan

NEW DELHI, May 15: NTPC Ltd, the nation’s largest power generation company, is looking to borrow over Rs 105,000 crore from domestic and overseas markets in the next 4-5 years to meet its ambitious target of adding 22,430 MW electricity generation capacity by 2012.

"Of the Rs 160,732 crore fund requirement during the 11^{th
Plan, Rs 55,224 crore will come from internal
resources and the rest will be borrowed," a
company official said.}

^{Domestic
borrowings are being pegged at Rs 45,199 crore
while External Commercial Borrowings (ECB) are
being tentatively pegged at Rs 60,309 crore.}

^{The official
said NTPC plans to invest Rs 65,278 crore in coal
and gas based power plants set for commissioning
during the plan period.}

^{Another Rs
7,525 crore is earmarked for hydro-electric foray
and Rs 14,080 crore in coal mining and LNG
ventures. Rs 2,446 crore is the outlay for joint
ventures and Rs 4,897 crore the spillover
investment from the previous plan.}

^{In
preparation for the 12th Plan projects, the
company would invest Rs 61,180 crore by 2012,
including Rs 41,981 crore for thermal plants and
Rs 15,926 crore for hydro units.}

^{NTPC owns 15
coal based and 7 gas/liquid fuel plants with a
total capacity of 27,350 MW. It also has four
joint venture plants with a capacity of 2044 MW.}

^{The company
plans to add 22,430 MW of new electricity
generation units during 2007-12. Of this, 15,180
MW would be through coal-based power generation,
4,550 MW through gas- based generation and the
balance from hydro-electric power.}

^{"Out of
NTPC’s 11th Plan target, 1,990 MW has
already been commissioned. Construction work is
in full swing for another 16,680 MW projects.
Contracts for the balance projects would be
awarded this year," the official said. (PTI)}

‘Notion that plan panel delaying airport projects incorrect’

NEW DELHI, May 15: Under attack from Civil Aviation Minister for causing delays in modernisation of airports, Planning Commission today said it could not be held responsible and such a notion was not correct.

"The notion that we are holding back is perhaps not correct," Planning Commission Deputy Chairman Montek Singh Ahluwalia, whose review of the Delhi airport project has started an acrimonious war of words with the Civil Aviation Ministry, told reporters here.

He said that Civil Aviation Minister Praful Patel had written to him and raised certain issues.

Dismissing the charges that constant objections raised by the plan body was leading to delays in modernisation project of Chennai and Kolkata airports, Ahluwalia said: "There is a whole process through which government projects move."

After Ahluwalia summoned GMR-group company Delhi International Airport Ltd that is revamping the Indira Gandhi International airport on Monday, Patel shot off a letter to Ahluwalia yesterday saying that awarding the projects for Mumbai and Delhi airports was delayed greatly due to the stance of Planning Commission officials.

Besides DIAL, Central Industrial Security Force, immigration authorities and home ministry officials also sat through the review meeting that Ahluwalia had convened after he witnessed congestion-induced delays while seeing off some of his guests.

"The review that I did was a routine review. It is an important part of the management that Planning Commission looks at," Ahluwalia said.

Patel, in his letter, had noted that the proposed modernisation of Kolkata and Chennai airports was being delayed despite the Committee on Infrastructure headed by the Prime Minister approving it.

"There are always definite points of view of the different ministries on how a public sector project is carried on. There is a well defined procedure. It goes through different procedures and goes up to Cabinet for approval," Ahluwalia said, responding to the letter.

On Ahluwalia’s concerns about delays being faced by passengers at the Delhi airport, Patel had said that a large part of the inconvenience currently faced was on account of shortage of staff and under-manning of these areas.

To this, the Planning Commission Deputy Chairman acknowledged: "One of the bottlenecks is number of points at which security clearance becomes necessary. This is not something that airport managers do. This is a function performed by the Bureau of Security that essentially involves Government providing more personnel to manage these things.

"We are taking that up with relevant ministries that is what these reviews are for."

Ahluwalia hoped that by the end of June the throughput capacity of the system would increase very substantially and by the end of the year a temporary additional terminal would become available which would reduce the delays quite a bit. (PTI)

Militants targeting railway men in NE;
Railway seeks security

NEW DELHI, May 15: After a recent spurt in incidents of railway employees being targeted by militants in North East, Railway Ministry has taken up the issue with the Home Ministry seeking adequate security for its recruits.

In a letter written to Home Secretary Madhukar Gupta, the ministry, expressing deep concern over the issue has sought "immediate action to organise adequate security measures to protect the lives of the staff working on the project in the North-East."

The incidents have created a sense of fear among the railway employees engaged in laying tracks and other projects in the region, a senior railway ministry official said.

The ministry has also been prompted into action as the railway works have been hit majorly by the attacks.

The work has come to a standstill at all the sites due to these incidents, he said, adding "that is why we are seeking the Home Ministry’s intervention for protection of workers in these sites to ensure continuation of the work."

Two workers were killed and another injured when the militants opened fire on a labour camp site near Migrandisa railway station in Assam on Monday.

The attack came a day after eight workers employed by a contractor in the Lumding project in Assam were killed by militants on Sunday.

On Saturday last, militants opened fire randomly in Wadrengdisa, also in Assam, killing a railway staff and two civilians.

Earlier, a railway engineer involved in Kumarghat-Agartala new line project in Tripura was kidnapped and a contractor’s staff was killed by militants on April 26.

Work on crucial Lumding-Silchar gauge conversion project in Assam is also being affected due to attack reports, the official said.

Railways has expressed readiness to bear part of the costs for deployment of security personnel for protection of its workers, the official said.

Assam has already made available 800 ex-army men for security of railway personnel and the railways is bearing the costs of their deployment. (PTI)