COMPANY NEWS
Some latest, useful news of following prominent companies are briefed below:
Companies : (1) SUN PHARMA (2) MAHINDRAS & MAHINDRA (3) TATA MOTORS (4) ASHOK LAYLAND (5) WIPRO (6) GLENMARK (7) I.O.B (8) OIL MARKETING COMPANIES
04.12.2010: SUN PHARMA has offered to buy out all outstanding shares in its US -based subsidiary, Caraco, in a move towards delisting. Sun at present holds 76 % in the company and is estimated to fork out about $50 million for the transaction, if the proposal gets approved by Caraco's board of directors. At a consideration of $ 4.75 a share in cash, the price is a 5% premium over the most recent closing price of Caraco common stock.
04.12.2010 : MAHINDRAS & MAHINDRA will invest Rs 200 crore to set up a tractor manufacturing plant in South India, the location of which will be decided in the next three months, Dr Pawan Goenka, President, Automotive and Farm Equipment Sector, M&M, said.
The new plant will have a total production capacity of one lakh tractors annually, including 50,000 in the first phase. Production at the new plant, which would have locational advantage to a major market, is expected to commence in next 2 years.
M&M will invest Rs 20 crore to double capacity of the Rajkot plant that manufactures the 15-horse-power Yuvraj-215 brand, a low-cost variant for small farm holders, from the existing 16,000 tractors annually.
M&M has entered into a contract manufacturing agreement with M/s Deepak Diesels Pvt Ltd, Rajkot, to manufacture small tractors under the company's quality standards and processes.
M&M will launch a four-seater Reva NXR next year. It had recently relaunched the existing two-seater Reva car in some states where incentives were available to electric vehicle buyers.
07.12.2010 :WIPRO said it has bagged a contract for providing support services to telecom firm Vodafone Essar's fixed line enterprise business customers for an undisclosed amount.
Under the contract, Wipro will provide a wide range of services, including network design and implementation and integration with existing IT applications, for a period of three years.
In addition, Wipro will set up an Enterprise Network Operation Centre to manage Vodafone Essar's fixed line customers, Wipro said in a statement.
Emami to invest Rs 2k cr for capacity building, new venture.
09.12.2010 : Glenmark is now close to being India's first pharmaceutical company to develop a new chemical entity.
In 2001, Glenmark was a drug manufacturer with some common formulations in domestic and non-regulated markets. Then, its turnover was less than Rs 200 crore. This year, it expects to post revenues of Rs 3,000 crore.
After ten years, Glenmark is close to becoming owner of India’s first new chemical entity (NCE). Glenmark’s NCE candidate, Crofelemer, a first-of-its-kind drug for HIV-associated diarrhea, has passed the final phase of clinical trials and will hit the market in two years. Glenmark will launch the drug in some 140 countries in the next two years and will make its active ingredient. The drug is estimated to have a global potential of $300-400 million a year, say industry analyst reports.
The company now has seven molecules in development, including three biologics, or drugs of biotech origin. The company has invested heavily in four R&D facilities in India and Switzerland, employing close to 600 scientists.
10.12.2010 : TATA MOTORS : Tata Motors, India’s biggest auto maker, is working with banks to provide attractive finance packages, while more than doubling the period of warranty on the NANO SMALL CAR.
The company said its wholly-owned subsidiary, Tata Motors Finance, a non-banking finance company (NBFC), will provide 90 per cent loan on the ex-showroom value of the car at an interest rate lower than those charged on two-wheelers. It has also enhanced the warranty period to 48 months years (or 60,000 km) from 18 months (or 24,000 km). Besides the new deliveries, the extended warranty will cover existing owners, too.
It will also provide new buyers an option to avail a comprehensive maintenance contract at Rs 99 per month, which will help customers take care of running maintenance of the car. The company is in talks with a host of national and regional level banks, and is working with financial institutions at various branches in the remotest part of the states where it has opened sales counter of the Nano.
While major lenders like State Bank of India and HDFC Bank are being approached to simplify the consumer profile of loan seekers (which were regarded as those fit for only two-wheelers), other institutions like co-operative banks and local banks are engaged.
The company has tied up with 26 financiers across NBFCs, public sector banks, co-operative banks and private financiers and more being worked upon, said a spokesperson.
The company has also recruited salespersons to exclusively deal with Tata Nano customers, while special attention is being planned for remote areas.
10.12.2010 : WIPRO Infotech has bagged a 5-year IT outsourcing contract fromn Vasan Eye Care - one of India's largest network of eye care centres, for outsourcing Vasan’s entire IT Infrastructure to Wipro, for monitoring and management for a duration of 5 years. The financial details of the contract were not disclosed by Wipro.Wipro was selected for the engagement from among several domestic and international IT players. The scope of service includes entire IT Infrastructure management encompassing the complete gamut of Datacenter Management and End User Support Services.
11.12.2010 :OIL MARKETING COMPANIES : If oil prices remain high, analysts expect underrecoveries to be 42 per cent higher over last year.
While the reforms on administered (APM) prices and decontrol of petrol brought some respite to underrecoveries of public sector (PSU) oil and gas majors in the first quarter, their hopes were raised on diesel deregulation, too.
The three OMCs, it is estimated, sell diesel at a Rs 4.71 per litre discount to its imported cost. The markets expect the deregulation to happen before government proceeds with the divestment in PSU’s such as ONGC and Oil India. However, this seems distant in a high inflation scenario. Some concerns also remain on the subsidy sharing formulae, which is yet to be clarified by the government.
A rise in crude prices over recent days has also been a cause for concern among OMCs. Brent crude averaged $85.6 a barrel during November, before crossing $90 a barrel in early December, a level not seen since October 2008.
The average price of $85 a barrel in the second half of 2010-11 till now ($77 a dollar in the first half) adds to OMCs’ woes on underrecoveries.
11.12.2010 : ASHOK LEYLAND : Nissan Motor India, and its partner, Ashok Leyland, are planning to exploit the mass people-mover segment dominated by Toyota, with two new vehicles scheduled for launch next year.
This will be the first time Chennai-based Leyland, with presence only in commercial vehicles, would enter the passenger vehicle space. The product, a multi-utility vehicle (MUV), will battle for share with Toyota’s Innova and Mahindra’s Xylo.
The joint development is a result of the joint ventures Nissan and Ashok Leyland are involved in, since 2007-08. Both companies are also engaged in development of light trucks, engines and vehicle parts.
Both Nissan and Ashok Leyland will use the same platform for their individual products, a strategy increasingly gaining significance across the world.
12.12.2010 :INDIAN OVERSEAS BANK (IOB) has firmed up its fund-raising plans. The board of directors of the Chennai-headquartered bank has accorded sanction for raising a total of Rs 4150 crore on a private placement basis. Out of this, Rs 1700 crore will be raised by way of perpetual non-cumulative preference shares (PNCPS) through qualified institutional placements, Rs 250 crore by way of tier I (perpetual) bonds, Rs 1000 crore by way of lower tier II bonds and Rs 1200 crore by way of upper tier II bonds.
As part of its expansion plan, IOB has drawn up a target of Rs 2, 80,000 crore business by March 2011.
Note : readers may check up the full coverage of news in various financial news papers / NSE.
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