India Business Briefs
Wednesday, March 15 7:53 PM SGT
Larsen Consortium Gets FCC Contract
BOMBAY (Dow Jones)--Larsen & Toubro Ltd. (P.LTB), as part of a consortium with U.K.-based Ledwood Construction, Lastra Breda of the Netherlands, and Jumbo Land in Curacao was awarded a contract to revamp Esso's fluid catalytic cracker unit near Southampton, U.K. The contract is valued at about $16 million, and Larsen's share in the contract is above $5 million.
Morepen Laboratories Ltd. received an order worth $20 million for supply of loratadine, a non-sedative antihistamine drug, from Europe, where the patent has expired, Press Trust of India reported. Morepen sees more orders from Canadian and European markets this year as patents for various drugs expire, the report said.
Bharat Heavy Electricals Ltd. (P.BHE) received an order from Walchandnagar Industries for the manufacture of pollution control equipment for agro-fuel based power projects, the Press Trust of India said Wednesday.
Italian auto major Piaggio wants to buy a 74% stake in state-owned Scooters India Ltd. to manufacture its range of products, including the famed Vespa and Gillera two-wheelers, said a senior company executive, the Press Trust of India reported Wednesday.
Sweden's Electrolux to Restructure Appliance Brands in India
NEW DELHI, March 15 Asia Pulse - Swedish home appliances major AB Electrolux will launch a Rs 600 million (US$13.8 million) mega marketing exercise to retain its premier position in the refrigerator market, even as it will shortly sell the well-known Voltas brand to India's Tatas.
As part of the massive operational restructuring, the company would phase out Voltas refrigerators, promote the Kelvinator brand, besides reviving the languishing Allywn brand, a senior company official said here today.
When contacted vice-president, marketing, of Electrolux Kelvinator Limited (EKL), Anand Bhardwaj said "we need to get our act together. Allwyn and Kelvinator will be our refrigerator brands, catering to the lower and premium price segments respectively".
Adding that there was no point in retaining refrigerators under the Voltas brand name, he said "why have a third refrigerator?".
The company has 30 per cent of the country's refrigerator market share at present, and the ongoing restructuring is aimed at consolidation of this premier position, he said.
Simultaneously, the Swedish major would promote washing machines under the `Maxclean' and `Electrolux' brand names, with top and front-loading specialities respectively.
Again, in an attempt to provide each of these brands a distinct identity, Maxclean would be the slightly lower priced top loading variant while Electrolux would be pegged as the premium priced machine, he said.
Castrol Up On BP Amoco Buying Burmah
BOMBAY (Dow Jones)--Shares of Castrol India Ltd. (P.CTL) are up on the Bombay Stock Exchange early Wednesday on news that BP Amoco PLC (BPA) has agreed to pay GBP3 billion to buy Burmah Castrol PLC (BURMY).
Burmah Castrol owns 50% of Castrol India, a major lubricant supplier in the country.
At 0505 GMT (12:05 a.m. EST), Castrol shares were up 23.75 rupees, or 7.1%, at INR358.50 ($1=INR43.54). Intraday volumes were 31,624 shares on the BSE and 61,666 shares on the National Stock Exchange.
India Shrs Recover Midday;Buying In Software Shrs Resumes
BOMBAY (Dow Jones)--The Bombay Stock Exchange Sensitive Index, or Sensex, reversed its losses at midday Wednesday, and was up 0.4% at 5193.59 points at 0715 GMT (2:15 a.m. EST) as buying resumed in software stocks, dealers said.
The Sensex had opened 2.3% lower on selling in technology shares following a 4.1% plunge in the Nasdaq Composite Index Tuesday.
Dealers said the buying was expected as the market was coming around to the realization that it wasn't software stocks, but biotechnology ones that had pulled Nasdaq down.
Also, several brokers said the exaggerated rally in software stocks seen the past few weeks has been adequately corrected the past days, with some second-line software stocks falling over 50% from recent highs.
Dealers said foreign funds have begun making inquiries about software stocks. A dealer at Mafatlal Securities also said several domestic mutual fund companies who had recently floated technology funds are flush with cash, and have now begun investing.
Among gainers are secondline software stocks such as Polaris Software, HCL Technologies and Hughes Software. Polaris shares were limit up 8% at 1,980 rupees ($1=INR43.58), those of Hughes Software were also limit up at INR2,664.50, while those of HCL were up 6.7% at INR1,882.0.
Selling has stopped in heavyweights like Satyam Computers and Infosys Technologies, dealers said. Shares of Infosys, which were limit down 8%, are now 6.9% lower at INR9,220, while those of Satyam, which had touched a low of INR4938.50, have recovered to INR5,290.0, still down 1.3%.
Cyclical stocks like Reliance Industries, which had been termed bargain buys, continue to trade higher. Reliance shares were at INR237.25, up 8%, while those of Hindustan Lever were up 6.4% at INR2,895.
India Hot Stk: Reliance, Hindustan Up On Bargain Hunting
BOMBAY (Dow Jones)--Shares of Reliance Industries Ltd. (P.REL) and Hindustan Lever Ltd. (P.HLV) are up Wednesday as investors take profit in software and technology shares and buy back cyclical and consumer stocks after a long period of decline.
At 0545 GMT (12:45 a.m. EST) on the BSE, shares of Reliance Industries were up 17.10 rupees, or 7.9%, at INR236.80, and Hindustan Lever up INR128.45, or 4.7%, at INR2,850 ($1=INR43.54).
After Nasdaq's fall overnight, local investors are selling software shares to buy traditional blue chips, an analyst at Kisan Ratilal Choksey & Co said. In New York overnight, the Nasdaq Composite Index fell 4.1% to 4,706.63.
Dealers said that after the long declines in cyclical and consumer product stocks, blue chips in these sectors are seen as bargain buys.
Reliance has over 7% weighting in the BSE Sensitive Index, while Hindustan Lever has over 20%. |
