Category Archives: Business & Economy

Murugappa group-3M battle over Wendt India enters new phase

Chennai:

The battle between the Murugappa group and 3M for control of  Webdt India has entered a new phase, with the American conglomerate indicating that it is willing to sell its holding in the abrasives maker.

But a dispute over the price it is seeking to exit the joint venture with the Murugappa group company, Carborundum Universal (Cumi), could hamper a solution to an issue that is being adjudicated by the Company Law Board.

3M, whose products include the Scotch-Brite homecleaning range and Post-it notes, has told the Company Law Board that it is “not averse” to selling its 40% stake in Wendt to Carborundum, an executive of the Murugappa group told ET. But the valuation demanded by 3M, which is based on the market value of Wendt, is not acceptable to Murugappa group, Carborundum managing director K Srinivasan said.

Instead, 3M should settle for the valuation that was determined by KPMG, he added. 3M declined to comment. In 2010, by virtue of its nearly $500 million (Rs 2,500 crore) purchase of  Winterthur Technologies, 3M became an equal joint venture partner of Carborundum in Wendt India. Both hold almost a 40% stake each. But Carborundum objected to the deal, saying it had the first right of refusal to buy out shares of  Wendt GmbH (a German arm of Winterthur, which held the stake). Carborundum then moved the Company Law Board.

“They are expecting it to be at market and market plus premium, which is completely unacceptable because they bought it at a price of 12.8 million (Rs 85 crore) for their 40%,” Srinivasan told analysts in a conference call recently. Carborundum has now asked a court to appoint a valuer.

Another way of resolving it, he said, will be if 3M agrees to sell Wendt to Carborundum as per the fair valuation report of KPMG, based on which it acquired the Winterthur stakes.

“This is a fair way forward and in line with their argument that they did not violate the law of the land at the time of transaction, and that it was only a consequential event and not the intended target,” he wrote in an email. Wendt India posted a standalone net profit of Rs 3.5 crore in the third quarter, down from Rs 4.4 crore in the year-ago period. Revenue increased to Rs 24 crore, from Rs 22 crore.

Its shares have risen over 32% so far this year. If and when 3M’s exit comes, it will be the first time Wendt India will be without a foreign partner in the 32 years of its existence. It started in 1980 as a JV between Wendt GmbH and the House of Khataus. In 1991, Cumi replaced the Khataus. But the Murugappa group isn’t worried about this.

“There have been three ownership changes in five years at the Wendt GmbH that end with all its attendant uncertainty, disruption and changes. Wendt India has in the process learnt to live without the support of foreign JV partner. The eventual sellout of the 40% stake by 3M will only complete the process running for five years now,” said Srinivasan.

He added: “The old Wendt GmbH team with which Wendt India worked well for 27 years is all but gone in the repeated ownership changes. Today, it’s lawyers who are talking, not engineers and technocrats who worked with the joint venture all these years. Carborundum has all along ensured that Wendt (India) is well managed and well run.”

source: http://www.EconomicTimes.IndiaTimes.com / News> News by Industry> Cons. Products / ET Bureau / March 09th, 2012

Agriculture terminal market to have 1500 tonne capacity per day

Tamil Nadu chief minister Jayalalithaa lays foundation stone at Perundurai, Erode

Chief minister J Jayalalithaa has laid the foundation for the agriculture terminal market complex (TMC) at Perundurai State Industries Promotion Corporation of Tamil Nadu (Sipcot), Erode district. The complex will be set up at a cost of Rs 120.62 crore under the public-private partnership model.

According to the state government, nearly 100,000 farmers across seven districts would benefit from this. It is expected to create jobs for 200 people directly and 800 indirectly. Further, the TMC would reduce the post-harvest loss of farm goods from 30 per cent to 10 per cent.

The complex has a capacity to handle an average 1,500 tonne farm goods per day and each collection centre 75 tonnes per day.

Agriculture Department officials said the facility was the first-of-its-kind in the country being promoted in public-private partnership, and would spread across 47.9 acre land.

Of the total cost, the National Horticulture Mission would give Rs 28 crore and the agriculture marketing department Rs 1 crore. The share of ryots would be Rs 3 crore.

The main aim of the TMC was to mobilise flowers, vegetables and fruits from 20 collection centres, to be set up under the new initiative, in Erode, Salem, the Nilgiris, Namakkal, Karur, Coimbatore and Tirupur.

Of the total collection, 70 per cent would be perishable and the rest non-perishable commodities, officials said. It will also have cold storage units.

Apart from selling the goods on the spot, it will also sell through e-business.

A minimum commission of three per cent would be charged on the goods being sold. This would be the revenue for the TMC. Those goods that could not be sold through the collection centres could be brought to the cold storage unit of the TMC. According to the price quoted by traders, the goods would be sold later. The TMC would also store the farm goods in the unit. Similar markets would come up soon at Chennai and Madurai, they added.

source: http://www.Business-Standard.com / Home> Economy & Policy / by BS Reporter / Chennai, March 06th, 2012

Madurai Meena’ to showcase city to the world

Dressed in a colourful ‘pattu pavadai’ (silk skirt), jasmine flowers on her hair, bangles and earrings, ‘Madurai Meena’ is all set to be the temple city’s brand ambassador for culture and heritage throughout the globe and will start her journey on February 27.

Gaurie Gupta, in charge of the programme, which is a part of ‘Madurai Vizha’ hosted by the Confederation of Indian Industry (CII) says that they plan to reach out to the world with the doll. Twenty replicas have been made of this hand-painted, two feet tall wooden doll and will be sent to people of different countries with some information on Madurai. Organisers hope that people who receive the package will not merely retain her as a souvenir but send her on a chain of journeys, taking the message of Madurai and its culture.

The three-day second edition of ‘Madurai Vizha’, which was inaugurated on Friday, is being hosted by the CII. It is an initiative of the tourism wing of CII to showcase the rich culture and heritage of Madurai to the outside world.

At the venue, visitors could witness sculptors making stone sculptures and garland makers stringing the famous ‘Madurai jasmine’. There were cultural programmes showcasing the various art forms such as ‘poikal kudirai’ and ‘karakattam’, local cuisine to suit the taste buds and even the ‘ilavattakal, the round stone that young men had to carry over their shoulder and prove their might to win the hand of the girl of his choice.

The receivers of Madurai Meena have just one duty to perform, that is, to take a photograph of themselves with the doll in front of a famous landmark in his or her city or town and upload it on the special webpage, which is linked to the website | Madurai Tourism.

CII hopes that Meena would be photographed in front of the Buckingham palace, Statue of Liberty, Sydney Opera House, Vatican and even the Alps and Amazon. The objective is to create a chain of the doll across various countries, without age barriers, who will become aware of Madurai’s ancient history, culture and heritage while keeping track of the doll on her webpage. When a person uploads a photograph of himself with Meena on her webpage he or she will promptly receive a postcard from the organisers.

The doll will begin its journey on February 27 and people can start tracking her journey from the second week of March 2012. It is hoped that this doll will form a social network of people, interested in the culture and heritage of Madurai and visit this ancient city.

source: http://www.penmai.com / February 27th, 2012

Aavin to have 16 bulk milk chilling plants as part of modernisation

As many as 16 Bulk Milk Chilling (BMC) plants with a capacity of 5,000 litres and costing Rs 20 lakh each are being set up in Coimbatore District to ensure quality and flavour in the milk as part of the modernisation exercise, said C. Siraj, General Manager of Coimbatore District Milk Producers Union (CDCMPU).

Talking to “The Hindu”, Mr.Siraj said that the installation works in respect of 11 plants were almost nearing completion and the rest would also be completed shortly. These plants are coming up in major villages catering to the needs of the dairy farmers in the nearby ten villages for each chilling plant. At present, CDCMPU has procurement facility and chilling plants at Sultanpet, Shanmugapuram, Annur and Tirupur. It takes nearly three hours for the milk to reach the chilling plant and by then the milk develops bacterial growth and it had to be once again children to regain the quality and flavour. Now, the milk would reach the BMCs within half-an-hour enabling the retention of quality and flavour of the milk avoiding bacterial growth.

Mr.Siraj also said that CDCMPU which earns a profit of nearly Rs 2 crore per month is all set to embark on a massive modernisation and expansion plan at Rs 27.27 crores utilising its own funds. The exercise would take the existing milk handling capacity from 2 lakh litres to 5 lakh litres. At present, the union with a capacity of 2 lakh litres was handling closer to 2.34 lakh litres. It was registering an average sale of 1.53 lakh litres per day and it would soon go up to 1.74 lakh litres. There is enough procurement and marketing potential and the CDCMPU was just waiting for capacity augmentation and modernisation drive to be completed so as to tap the full potential. At present CDCMPU was meeting the shortfall in milk faced by Chennai City, Udhagamandalam, Tirunelveli and Kanyakumari.

With regard to dairy farmers’ welfare, Mr.Siraj said that CDCMPU was at present giving 0.50 paise as incentive to the farmers for every litre of milk procured and had written to the Government for enhancing it to Rs 1. Similarly, efforts are on to get milch cows to 3,500 dairy farmers through loans from banks at 10 per cent interest and 25 per cent back ended assistance from NABARD.

 

Parlours and by-products:

CDCMPU is also planning to set up hi-tech parlours to provide milk and by products round the clock and these hi-tech parlours with buildings at Rs 15 lakhs and Rs 10 lakh of interiors and accessories would come up at the Pachapalayam Dairy Unit of CDCMPU and its marketing office at R.S. Puram besides one at Tirupur near Veerapandi Pirivu, Mr.Siraj said. In addition, the CDCMPU is also planning to open up outlets through franchisees in 20 places across the city.

On market presence, Mr.Siraj said that the issue was not overn opening outlets or offering franchisees and CDCMPU was just waiting for modernisation and capacity augmentation so that the market needs could be met in full without hitches.

Once modernisation drive is completed, the CDCMPU will focus on producing by products of milk such flavoured ice cream in candy and cups, paneer, badam milk and mixture, curd in cups. All these products are expected to hit the market very shortly.

source: http://www.TheHindu.com / News> Cities> Coimbatore / by V.S. Palaniappan / Coimbatore, February 29th, 2012

Ooty Fountain gets facelift for summer

Ooty:

Adam’s Fountain at Charring Cross, a landmark in the Queen of Hills, has been spruced up before summer and its attendant tourist season hits Ooty.

The Ooty municipality has handed over the maintenance of Adam’s Fountain to a Coimbatore-based private advertising company and work has been completed. The new look of the fountain under floodlights in the night is sure to be a tourist attraction. Built in 1886 as a memorial to Governor Adam of Madras Presidency, it remains a public display fountain. The Governor died in Ooty in 1881. The fountain was established at a cost of `13,000 then, from public subscriptions. Since maintaining the fountain is expensive, the municipal administration has invited private participation for several years now, rejecting councillors’ demands not to hand maintenance over to private companies.

sources: http://www.ExpressBuzz.com / Home> States> TamilNadu / Express News Service / February 27th, 2012

Kovai Gets First Woman Dy Mayor

Coimbatore:

Coimbatore got its first woman Deputy Mayor, S Leelavathi Unni, in a ‘hurry’ on Monday thanks to a classic case of slip between the cup and lip for the AIADMK’s originally intended nominee K B Balraj. The post of Deputy Mayor had fallen vacant following the resignation N Chinnadurai on December 30 last year.

Just hours before the Coimbatore Corporation Council was to meet to elect the new Deputy Mayor on Monday, it became apparent that Balraj would be the ruling party nominee for the post. Immediately, senior AIADMK functionary M Manimaran sought to preempt Balraj. He pointed out that since the latter had got a contract to operate a Corporation abattoir in Uppilipalayam, electing him would lead to conflict on interest in civic administration.

Balraj had recently written to the Corporation seeking to annul his contract with an eye on bagging the post. His request to surrender his contract was on the agendas for Monday’s council meeting.

With Manimaran and a few other councillors objecting to Balraj’s candidature confusion prevailed

Amid the drama, Corporation Commissioner consulted Mayor S M Velusamy and adjourned the council meeting by an hour. Subsequently, after backroom confabulations with Chennai, first time councillor Leelavathi Unni was asked to file her nominations.

A brief while later the Commissioner declared that she was unanimously elected Deputy Mayor.

source: http://www/ibnlive.in.com /  Express News Service / Tamilnadu / February 28th,2012

Sinclairs Hotels reopens Sinclairs Retreat Ooty

Kolkata:

Sinclairs Hotels Limited on Tuesday announced the grand reopening of Sinclairs Retreat Ooty – the 72-room 7-suite hill resort located 2240m above sea level in the panoramic Nilgiri Hills.

The resort, close to the Coimbatore airport, has been extensively refur-bished and has opened in time to leverage the peak summer season which typically sees a spike in tourist arrivals in the region.

Apart from Ooty, Sinclairs’ properties in Siliguri, Darjeeling, Dooars and Port Blair recorded strong year-on-year performance with a 10% increase in topline and 5% increase in profit from the previous year.

Sinclairs’ portfolio will stand enhanced to around 600 keys across 9 desti-nations following completion of three new projects including a luxury hill resort in Kalimpong, a tourist resort with a hotel, club and banquet com-plex in Burdwan, near Kolkata and a 106 room premier business hotel in Kolkata.

It may be mentioned the group recently acquired majority ownership of Savannah Sarovar Premiere – a 104 room upscale operational hotel in Whitefield, the IT hub of Bengaluru. With this acquisition, Sinclairs is firmly positioned to cultivate the traditionally strong business and leisure segments in Bengaluru and its adjoining metropolitan region.

source: http://www.economictimes.indiatimes.com / Home> News> News by Industry> Services / by Anuradha Himatsingka, ET Bureau / February 28th,2012

BrahMos Aerospace ropes in NIT-Tiruchi for R&D news

Indo-Russian joint venture BrahMos Aerospace has tied up research with plans to take up collaborative research work with the National Institute of Technology (NIT) at Thiruchirapally in Tamil Nadu as part of its programme of participative research with educational institutions for development of hypersonic version of Brahmos missiles.

BrahMos is initiating research collaboration with a number of academic and industrial institutions across the country for development of robotics, sensitive materials etc required for hypersonic missiles, its CEO and MD Dr Sivathanu Pillai said.

He was addressing a gathering at the eighth edition of ‘Pragyan-2012’, the annual techno-management festival at the National Institute of Technology-Trichy.

The Pragyan fest has, meanwhile, received the ISO 9001 (2008 edition) certification for conducting seven memorable editions, giving it the stature of an international festival, last year. Pragyan is now among the top five student technical festivals in the country.

BrahMos is in the process of venturing into development, design and production of hypersonic missiles, which can travel at seven to eight times the speed of sound (7-8 Mach), Shivatanu Pillai said.

He said BrahMos is on the look out for new materials that could withstand high speed and heavy vibration in the development of hypersonic missiles.

NIT-T, which has courses in disciplines like robotics, material management, metallurgy, was among the institutions being roped in for the collaboration, Pillai, who made a presentation at Pragyan, the annual Techno-Management festival of the institute, said.

NIT- Trichy director Dr Srinivasan Sundararajan said discussions with BrahMos had already been initiated and the collaboration agreement would be finalized soon.

source: http://www.domain-b.com / Defence> Arms & Munitions / February 25th, 2012

India: Rinac launch banana ripening chamber

Rinac India ltd has launched a new energy efficient pressurised banana ripening chamber, known as the Bana Barn, at Trichy last weekend.

The chamber uses rack type refrigeration that reduces energy use and eliminates wastage. The uniform cooling and ripening process will eliminate possible weight loss and the consequent financial loss to users, according to Mr R. Krishnan, CEO of Rinac.

To raise awareness about the ripening process, challenges faced by farmers in Trichy and the solutions available, the company is also conducting a program called Rinac Connect.

Source: www.thehindubusinessline.com / Publication date: 2/23/2012

via http://www.Freshplaza.com

Central scheme to benefit 4 lakh handloom weavers in State

About 1,000 primary weavers cooperative societies and four lakh handloom weavers in Tamil Nadu are likely to benefit from the new Centrally-sponsored scheme launched in association with National Bank for Agriculture and Rural Development (NABARD). The move will directly impact the Indian handloom sector, the second largest employer in the country after agriculture.

According to Lalitha Venkatesan, Chief General Manager, NABARD, Chennai region, the “Revival, Reform and Restructuring Package for Handloom Sector” will be implemented from the current financial year with a total outlay of Rs.3,884 crore.

The scheme was mooted by Union Finance Minister Pranab Mukherjee in his 2011-12 Budget speech. To be implemented through NABARD, it is likely to benefit 15,000 cooperative societies and three lakh weavers across the country. Funds will be provided for repayment of 100 per cent of principal and 25 per cent interest as on date of loan becoming non-performing asset (NPA), which is overdue as on March 31, 2010 in respect of viable and potentially viable Primary Weavers’ Co-operative Societies and Apex Societies.

Also covered are individual handloom weavers, master weavers, self-help groups and joint liability groups who have taken such loans for handloom weaving purposes, provided the banks agree for sanctioning fresh loans.

There would be an overall ceiling of Rs.50,000 per individual beneficiary as far as funding under this scheme is concerned in respect of waiver of overdues of individual handloom weavers.

The Government has further approved an interest subvention of three per cent for three years to be extended from the date of disbursal of the fresh loan extended by banks to the eligible handloom co-operative societies and individual handloom weavers covered under the scheme. Out of the total amount of Rs. 3,884 crore, the share of the Government of India will be Rs. 3,137 crore and that of the States Rs.747 crore.

With specific reference to Tamil Nadu, she said 1,187 primary weavers cooperative societies were in existence in the State as on March 31, 2011. More than six lakh weavers were employed through 4.13 lakh handlooms in the State. Of that 2.28 lakh looms were under the cooperative fold. In total, the scheme would benefit about four lakh weavers in the State.

source: http://www.TheHindu.com  / News> States> TamilNadu / by G. SathyaMurthy / Chennai, February 24th, 2012