Tata Chem raises Rs 3,400 cr for acquiring US based General Chemical Industrial Products for $1 billion (about Rs 4,000 crore) early this year. The acquisition of General Chemical will make Tata Chemicals the second largest maker of soda ash in the world. Tata Chemicals would raise $850 million (about Rs 3,400 crore) in debt to fund the acquisitions.
After nine months of negotiation, Tata Motors has finally signed a deal to buy luxury brands Jaguar and Land Rover (JLR) from Ford Motor for $2.3 billion in cash, the largest acquisition by an Indian company in the automobile business. The purchase price is less than half what Ford paid ($2.5 billion each) to acquire the two brands. Ford bought Jaguar in 1989 and Land Rover from BMW in 2000.
There are about 16000 employees on rolls of JLR. Hence, Ford will contribute about US$ 600 million towards Jaguar Land Rover pension plans. The definite agreement brings brands, plants and Intellectual property rights of JLR. The agreement provides for Ford to continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components.
Ford will also supply a variety of technologies, such as environmental and platform technologies. It has committed to provide engineering support, including research and development, plus information technology, accounting and other services. As a transition arrangement, Ford Motor Credit Company will continue to provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.
The deal is a fulfillment of Mr Tata’s personal vision and is intended to catapult Tata Motors into the global big league of auto majors. It will also reinforce the global perception of India Inc as a leader in international business, and not just in IT. The acquisition also marks Tata Motor’s leap forward into the global higher end luxury car segment.
Religare Enterprises, a Ranbaxy-promoted group company, is looking at buying yet another London-based broking firm, for around Rs 700 crore. However the name of the firm could not be established at present. This move comes close on the heels of Religare’s 100 per cent acquisition of London-based investment banking firm Hichens, Harrison & Co for about Rs 400 crore through its subsidiary Religare Capital Markets Ltd. According to a company official, Hichens acquisition is the first in the series of several other ventures in the pipeline.
Indian brokerages have been buying assets overseas to acquire technology, learn new business practices and expand their reach. This acquisition will give Religare firm foothold in the extremely competitive international equity capital markets and will increase the scope of its institutional broking business.
Earlier, Kochi-based Geojit Securities had acquired a significant stake in Aloula, a Saudi Arabia-based broking firm, and had also set up a joint venture company in Dubai in which it holds 49 per cent. The acquisitions are expected to gather pace with cheaper available assets overseas and will make it easier to secure private equity funds and offer share placements overseas.
Simplex Infrastructures Ltd. bagged projects worth Rs 653 crore from different segments. The orders include civil and structural construction work of Hotel Ritz Carlton, Bangalore worth Rs 139 crore; cement plant - Chandra Cement Works, Maharashtra worth Rs 116 crore from ACC; sewerage system and allied works worth Rs 175 crore from Indore Municipal Corporation; thermal power plants worth Rs 207 crore and piling works worth Rs 16 crore. The above orders have taken the total order book to around Rs 10,100 crore.
Indian Steel Alliance (ISA), an organization of key primary steel producers in India, has agreed to halt steel exports with immediate effect to ensure domestic supplies. ISA members include Steel Authority of India, Essar Steel, JSW Steel, Ispat Industries and Jindal Steel & Power. Tata Steel is not a member of ISA. Similarly, Cold Rolled Steel Manufacturers Association (CORSMA) is also not a part of the statement made by ISA.
However halting exports may not bring in great supplies in the domestic market, but will, in turn, is an indirect move to reduce domestic prices. As halting exports is a voluntary measure and does not tantamount to a ban, all existing orders will be honored but fresh exports will be restrained. Further, long-term contracts and export commitments against machinery imported under the EPCG scheme will be met.
With brownfield expansions yet to be commissioned and greenfield projects yet to take off, the demand-supply situation has worsened, and India has turned net importer of steel during the recent quarters. The move by ISA will give much needed respite to the domestic steel users. The immediate effect of this move is that steel prices in Gobindgadh Punjab has come down by 1000 -2,000 per metric ton (MT). The prices of ingot have come down to Rs 38,500 per MT from Rs 39,800 per MT within a day. Similarly, the rates of Round (Saria) have fallen down to Rs 43,000 per MT from Rs 45,000 per MT.
Only Stock Market Prediction has predicted Indian Stock Market start recovering after 17th March 2008 on 8th March 2008 in Post When will Stock Market Recover ?
The Bombay Stock Exchange on 25th March 2008, Tuesday rose by 928.09 points, or 6.07 per cent, at 16,217.49 while the Nifty closed above 4850 levels. Both Sensex and Nifty up 6% each. This is the second biggest gain for the barometer this year. It was the second biggest single day point gain for Sensex. Heavy buying was seen in scrips across sectors.
Sensex closed up 928.09 points or 6.07% at 16217.49, and the Nifty up 267.65 points or 5.81% at 4877.50. Top gainers on the Sensex are ICICI Bank at Rs 880.00 up 9.38%, HDFC at Rs 2,586.00 up 8.47% and Infosys at Rs 1,460.05 up 7.25%. Top gainers on the Nifty are HDFC at Rs 2,616.00 up 9.93%, Unitech at Rs 276.35 up 9.16% and Tata Power at Rs 1,191.00 up 8.83%. Most active shares on BSE are Axis Bank, HDFC and GSS America Inf.
The D-day is inching closer for Tata Motors. According to sources close to the development, India’s largest commercial vehicle company is likely to ink the Jaguar-Land Rover deal with Ford on March 26. Ford is scheduled to make the announcement on engines, pensions and other long-term agreements on that day, the sources said, adding that completion of the agreement, however, is scheduled to take two to three months as it is bound by regulatory approvals. However, since Jaguar and Land Rover workers are on an extended Easter holiday, the announcement on the agreement would be made only on Wednesday.
A Tata Motor spokesperson said discussions are still going on and refused to put a date on the announcement. Tata Motors chairman Ratan Tata will lead the Tata delegation and Lewis Booth, executive V-P of Ford, will head the UK team to sign the deal. As part of the agreement, Tata Motors has agreed to retain the two UK manufacturing plants and the 16,000 odd employees. Ford has also entered into a long-term agreement, which will go beyond 2011, to supply Jaguar and Land Rover engines to Tata Motors.
Metal pipe manufacturer Welspun-Gujarat Stahl Rohren (WGSRL) has bagged a Rs 1,075-crore order for the supply of pipes in Northern Africa. The firm's new pipeline order has taken its order book position to over Rs 5,900 crore. Welspun's accreditation's from oil and gas firms across the world has resulted in bagging new orders which has further reinstated its position as one of the largest and premium line pipe company in the world.
The company has recently started a trial production of its Plate-cum-coil mill (backward integration) for producing widest plate of 4.5 meters in Gujarat. The plate mill would have an annual capacity of 1.5 metric tonnes per annum (MTPA) and is likely to commence commercial operations in Q1FY09. Further its 300,000 tonne pipe mill project in US is likely to be commissioned by August 2008.
Leading Indian pharma companies such as Ranbaxy Laboratories, Cipla and Aurobindo Pharmaceuticals are submitting bids for the $200-million South African government tender to supply anti-HIV drugs. The contract will be to supply 10 anti-Aids drugs to the SA government and is expected to be finalised in May. It is not clear if the tender will go to a single company or will be split to more than one company. South Africa has the highest number of HIV patients in the world with as estimated 5.5 million people infected with the virus.
Ranbaxy Laboratories is expected to put the bid through its South African JV Senko Pharmaceutical which presently markets its range of ARV drugs in South Africa and other African countries. Aurobindo Pharmaceutical has the largest basket of ARV drugs and hopes to get the maximum benefit from the tender.
Indian companies are integrated drug makers and can sell drugs at a much lower cost. The quality of the drugs is high and anti-ARV drugs manufactured by Indian companies have WHO and USFDA approvals. Also, as the tender regulations will provide preference points to companies which have local manufacturing capacities, Indian companies such as Ranbaxy Laboratories, Cipla and Matrix which have tie-up with local companies there will get some benefit.
Aptech, the largest information technology training companies in India, is planning to unlock the value of its equal joint venture in China by transferring its share to a holding company and listing it in US. Post listing, Aptech would hold 22% stake in the holding company.
Within seven years of entering China, Aptech has gone a long way, and today its revenues and margins are higher than India operations. It entered China in 2000 through a 50:50 joint venture with a local partner Beijing Jade Bird to set up Beijing Aptech Beida Jade Bird Information Technology Co. The JV has set up 250 centres and has cornered ~33% of the market share. At Rs 170-180 crore of revenues, Chinese operation contributes 40% to Aptech’s consolidated revenues. Operating margins in China is 40% and in India is 20%.
