ACS IMPEX

India Business - News Headlines

July 22 to August 5 2005

Exports | Imports | Human Resource | Economy | Finance

Imports

Indian Firms Making Joint Ventures with International Textile Brands
Indian textile majors like Raymond, Arvind Mills, Madura Garments, Bombay Dyeing and many others are eyeing tie – ups as a route to cutting edge technology, design competency and optimal penetration in the global market.

For now, they are busy roping in global mega labels into India through franchise agreements. Brands like Esprit and Armani are expected to be launched soon through Madura Garments. Arvind Mills has recently introduced Tommy Hilfiger in the Indian market and Welspun has tied up with Hilfiger for home furnishings.

Human Resource

Bharti Group on Hiring Spree
Bharti seems to be on a hiring spree. Soon after hiring 40 people in the senior management level in the last 3 months, the telecom major has roped in a new HR head – Daljit Singh, Singapore based American Express HR Chief of Japan, Asia Pacific, Australia and New Zealand.

Confirming the appointment, Bharti Chairman Sunil Milttal says “In line with our commitment to be a globally admired telecom, this is the next step in our talent management programmed aimed at furthering our HR practices and institutionalizing Bharti. We have hired virtually from every sector- from FMCG to retail to banks – and today the telecom sector can boast of good middle and senior level talent” he adds. As the new HR takes over at Bharti, he will be entering one of the world’s fastest growing telecom markets that have also seen a bigger churn recently.

The company’s net profit zoomed 132% on a top line growth of 61% during the year 2004-05 compared to last year. While revenue crossed Rs 8000 crores market, net profit stood at Rs 1439 crores.

Economy

Sensex at full throttle, tops 7500 mark
Indian Share prices rose sharply as benchmark indices scaled yet another peak fuelled by strong inflows from foreign funds. Accoding to market players, rally will continue all the time foreigners find Indians equities attractive.

The 30-share BSE sensex went past 7500 to touch the peak of 7527 before closing at 7506, gaining 82 points or 1.1% over the previous close. The trading volume was brisk at 419 million shares with 1313 gainers out packing losers at 1218.

Essar buys BPL Communications for Rs. 4,000 crores
BPL Mobile’s cellular assets are set to flow into the Hutch-Essar combine. Mr. Rajeev Chandrasekhar today informed selling his 64% stake in BPL communications to Essar. This is the biggest M&A in the telecom space in India.

VSNL acquiring Teleglobe International for $239m
Videsh Sanchar Nigam Ltd (VSNL) is acquiring Teleglobe provider of wholesale voice, data IP and mobile signaling services, in a $239- million transaction.

Honda to invest Rs. 650 cr in India, launch New Models Including Civic
Japanese car maker Honda Motor is planning to invest Rs. 650 crores in the India car market in the next 3 years. Of this, the company will put Rs, 150 crore this year to up capacity at its Surajpur plant, from 30,000 to 50,000 units. The balance Rs, 500 crore will be spent on producationising new models and doubling capacity further to 100,000 units per annum. The entire investment will be funded by Honda Siel’s internal accruals.

Buoyed by a fast growth in Honda car Company president and CEO Takeo Fukui announced plans to more than triple Honda Siel cars India capacity and introduce a new volume model, the Civic, in the Indian Market.

The new Civic, which will roll out in the US soon and debut at the Tokyo Motor show in October this year, will have a specially-developed Asian variant which will come to India.

Jet Airways
Jet airways has declared an 84% increase in net profit for the first quarter ended June to Rs.95 crores buoyed by a huge increase in other income, which grew to Rs. 34 crore from Rs.9.83 lakh in the same period last year.

Kalyani Brakes to set up Joint Venture with Italy’s Brembo
Auto breaking systems major- Kalyani Brakes (KBX) – has struck a deal with the Italian breaking system major, Brembo SpA, for setting up a 50:50 joint venture(JV). The JV is for manufacturing of hydraulic brakes for two wheelers in India.

AMTEK in 50:50 Joint Venture with a German Company
Amtek auto has now struck a deal with another German auto component maker, newmayer Tek for Gmbh, for setting up a 50: 50 joint venture. The JV is for the manufacture of high precision fractured piston connecting rod assemblies and modules, in India.

Finance

Big Boon for Banking
The India Singapore Comprehensive Economic Cooperation Agreement CECA signed on June 29. ’05 is the mot comprehensive bilateral economic pact signed by India. The pact has been signed to strengthen and enhance economic trade, investment and cooperation between the countries. The governments of both countries have taken a positive step in the area of banking and financial services, which would help free cross border trade of such services to flourish.

The recent cooperation agreement between Singapore and India includes many concession for Singapore’s banking and financial industry player who wish to operate here.

Acknowledgements: The above news headlines have been compiled from various sources such as leading national dailies, business magazines and TV Channels.

Disclaimer: Readers are advised to get further details and cross check the accuracy from the reliable sources. ACS IMPEX is no way responsible for the exactness and details of the information.