Universal Cables, part of the M P Birla group, has informed that it has signed a JV pact with Japan-based Furukawa Electric Co. Ltd.
Under the arrangement, Universal Cables, in technical and financial collaboration with The Furukawa Electric Co. Ltd, Japan, would incorporate, establish operation of a Joint Venture Company, for manufacture of Optical Fibre and allied businesses in the country.
According to an official release, the company will be incorporated with an authorized capital of Rs 200 million.
Universal Cables Limited engages in the manufacture and sale of power cables, capacitors, and optical fiber in India and internationally.
The scrip of the company today closed at Rs 41, up 3 per cent compared to previous close of Rs 40.
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Scam-hit IT major Satyam has informed that its board of directors has selected Venturbay Consultants Pvt. Ltd., a subsidiary controlled by Tech Mahindra Ltd. as the highest bidder to acquire the controlling stake in the company.
However, the decision is yet subject to the approval of the Company Law Board (CLB).
Tech Mahindra, which is a joint venture between British Telecom and the Indian conglomerate Mahindra & Mahindra, today emerged as bid winner by bidding at Rs 58 per share, defeating bids of rivals viz. engineering firm Larsen & Toubro (Rs 45.90/share) and billionaire investor Wilbur Ross (Rs 20/share).
Just after declaration of result, Tech Mahindra has executed a share subscription agreement with the company, under which the company has agreed to subscribe to 30.28 crore shares of the company, representing 31% of the share capital of the company.
The company will infuse Rs 1757 crore into the company through equity shares, to acquire controlling stake at quoted price.
Reacting to latest development, market analysts said that latest acquisition deal will definitely help the company, to diversify into new areas instead of just depending on the telecom sector.
During intraday session, shares of Tech Mahindra today surged as much as 25 per cent on the BSE after the software firm emerged as the highest bidder. The scrip of the company finally settled the day at Rs 359, up 12% compared to previous close.
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Two years after it ended joint venture talks with the Bharti group, the UK’s largest retailer Tesco today announced it was going solo in the Rs 1,500-crore cash-and-carry sector in the country. The firm would invest nearly Rs 485 crore in the next two years. Tesco is also simultaneously signing an exclusive franchise agreement with Trent, the retailing arm of the Tatas. The agreement will give Trent’s hypermarket chain, Star Bazaar, access to Tesco’s supply chain, computer systems and inventory and infrastructure management. Trent will pay a “nominal fee” to Tesco for using its services.
Tesco unveiled its plan a year after Wal-Mart, the world’s biggest retailer, signed on Bharti for a wholesale joint venture. Wal-Mart and Bharti aim to have their first outlet in business by the end of this year to meet a goal of opening 10 to 15 wholesale stores in seven years. Tesco will set up its wholesale stores first in Mumbai and then in cities such as Delhi and Bangalore and use a “hub-and-spoke” model to expand its distribution network. However, Tesco will not supply to other hypermarkets apart from Trent.
Trent currently has four hypermarkets — larger version of supermarkets — with plans to grow to 50 stores over the next five years. In September 2007, Trent inked a deal with Benetton of Italy, under which Trent would be the exclusive franchisee for one of Benetton’s premium brands Sisley. Sisley has seven stores in the country. For Trent, which also runs Westside, an apparel chain, and Landmark Books and Music, the tie-up is expected to boost the expansion plans of Star Bazaar. For Tesco, the entry is expected to add to its existing sourcing capabilities in the country. Tesco already sources over £170 million worth of Indian products each year, with sourcing offices in Delhi, Bangalore and Tirupur. It also employs nearly 3,000 Indian staff at its Hindustan Service centre in Bangalore, providing IT, financial and business services to the entire Tesco group.
The UK company has shops in emerging markets from Turkey to Malaysia and generates more than 25 percent of sales outside Britain. Trent surged Rs 41.95, or 8.4 per cent, to Rs 541.20 on the Bombay Stock Exchange today. The gain was the biggest in more than seven months. Tesco shares also rose in London. Germany’s retail giant Metro has opened its wholesale store in Bangalore and Mumbai and announced other stores in the north and eastern parts of the country. Carrefour, the world’s second-largest retailer based in France, is also planning its Indian foray in 2009 from metros such as New Delhi, Mumbai, Bangalore and Chennai.
Carrefour is said to be talking to many Indian companies, including Delhi-based Parsvnath, and is expected to announce a tie-up soon. The sector has seen the entry of domestic retailers such as Future Group, Reliance, Wadhawan Group among others, in recent times.
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