5ovember 2007

Thanks : NDTV
Videocon to buy Planet M
You know Venugopal Dhoot for his consumer durables empire. But he now wants to be the retail rajah.

Dhoot's first consumer durables retail venture Next is already a hit and now NDTV has learnt that Videocon is getting into music retail by picking up majority stake in Planet M.

Planet M stores were owned by Bennett Coleman and Co Ltd which was set up in 1999. It has 150 stores across the country and has been planning to open 500 stores in the next four years across metros, mini metros and Tier II cities.

Planet M has been growing at 40 per cent over the last four years. Even though no official announcement has been made yet sources say that the deal was sealed last weekend.

Strategic fit

What is interesting is that BCCL itself is a strategic investor in Videocon. But with Dhoot looking at the retail space aggressively, it makes a strategic fit. According to the sources, the deal could be worth around Rs 125 crore-Rs150 crore.

While Planet M's turnover is a little over Rs 100 crore BCCL is unlikely to sell the real estate that Planet M owns. Videocon may use either Videocon Appliances or subsidiary E-Mart India Private Limited as the vehicle for the deal. E Mart houses the Next chain of stores.

While BCCL officials could not be reached, the Videocon management refused to give details. When contacted, Videocon's boss Venugopal N Dhoot told NDTV "Nothing has been finalised yet. We will let you know when we are in the position to inform the media."

But investors saw good value in the deal with Videocon Appliances closing more than 16 per cent higher after the story broke.

Specialty retail

"As a group they have been making lot of acquisitions. They are in backend, this will help them to get into front end," said Anil Advani, Head-Research, SBI Capital.

Planet M has been diversifying on its own. It is getting into digital downloads with CD sales taking a hit, next in line was DVD rentals. Videocon, a hardware company, also wants to enter the specialty retail space in a big way and Planet M offers them yet another vertical.

Retail analysts say both Next and Planet M can grow and diversify further in future as separate entities or Dhoot may even try to synergise Planet M's operations with that of Next to create a retail giant.

Thanks: IBS LIVE
ICICI fined Rs 55 lakh for using goons on customer
New Delhi: Days after the Reserve Bank of India sent out a strict warning to banks to stop using recovery agents with strong arm tactics to recover loans, the State Consumer Disputes Redressal Commission of Delhi has fined the ICICI Bank a whopping Rs 55 lakh for employing 'goons' to recover loan from a customer.


Deploring the practice of the banks intimidating consumers to pay the installments, the consumer court held ICICI Bank guilty of using goons to harass a consumer, Tapan Bose, and his friend's son Vinod Chowdhary.

Vinod had to be admitted to hospital after the recovery agents mercilessly beat him up while they snatched a loaned car from him in January this year. The incident occurred when Vinod was driving Bose's car, which was bought on a car loan from the ICICI Bank.

While passing the order, the court warned all banks against using musclemen for loan recovery and asked the Delhi police commissioner to instruct all SHOs to register FIRs against such complaints.

The commission deprecated the 'audacity and impunity' with which the banks have been effecting forcible possession of vehicles. "No civilised society governed by rule of law can brook such kind of conduct," the Commission's President Justice JD Kapoor said.

He also described the violent methods adopted by the recovery agents as a serious violation of 'human rights'. Holding the ICICI Bank guilty of 'unfair trade practice', the commission termed such miscreants as 'yahoos' and said they are boorish and a brutal lout, who care a fig for legal and judicial authorities, including the Supreme Court.

While taking to task the leading bank, it vented its anger on the ICICI for flouting the apex court's direction that restrained all the financial institutions from employing musclemen to recover a loan amount or possession of a vehicle.

Thanks : Mondycontrol.com
Land Rover-Jaguar bid race: Will Tata Motors win?
Mumbai: According to CNBC analysis, Tata Motors has the edge in the Land Rover-Jaguar race primarily because it’s the only automaker to submit a bid and so many analysts are saying that could give it the edge.

The other reason is it could offer a higher price as well because Tata’s have the economies of scale right now with its current production facilities to offset the cost and more importantly the third reason could be that the jobs of 13,000 Jaguar and Land Rover workers could be in line and Tata in its mood for expansion may offer better terms in terms of job security.

Ford has told labour leaders to prepare for a meeting with potential buyers, which indicates that sale could in the final stages.

Ford paid over $5 billion for both and is hoping for a good price but analysts are doubtful whether or not Ford can fetch that sort of price and they sight factors like exchange rate, high operating costs in UK, and also potentially expensive new environmental regulations and all of which impact the final sale price.

Merrill Lynch had estimated before that the sale of both could fetch anywhere between $1.3 to 1.5 billion and that is well below what Ford has paid; not forgetting that its invested about $10 billion in Jaguar and Land Rover.

In the meantime Tata Motors have been on a buying spree and for the past three years it has bought in South Korea, Brazil, Thailand, Argentina and has most recently said that it intends to keep growing organically and outside of India as well.

Thanks: The Hindu
Land bank for industrial parks soon
CHENNAI: The Tamil Nadu government will develop a land bank of 10,000 acres with quality infrastructure over the next five years to provide space for industrial parks, according to the new industrial policy released by Chief Minister M. Karunanidhi on Monday.

“The land bank will be mostly developed in dry and barren lands. Prime agricultural lands will be avoided,” the policy said. The government will also take steps to amend relevant laws to enable automatic conversion of dry agricultural lands for industrial use.

Private industrial parks must directly purchase land, which should be barren, non-irrigated and dry, as far as possible. Proposals with more than 10 per cent wet land or double crop land will be rejected, according to the new criteria for an approved industrial park. Parks should be located at least 50 km away from the Chennai city limits and should not include more than 5 per cent of government land.

At least 10 per cent of the area in industrial parks developed by SIPCOT and TIDCO will be set apart for social infrastructure, such as skill development centres, financial services, housing, schools and hospitals. Another 20 per cent of allottable area will be reserved for small and medium entrepreneurs.

Special economic zones and industrial parks promoted by SIPCOT, TIDCO or private developers will all be given equal incentives and facilities. Parks located 50 km away from the Chennai city limits will be granted a back-ended Industrial Park Infrastructure Grant of Rs. 2 crore or 25 per cent of the investment in eligible fixed assets, whichever is lower. Such parks must attract at least 20 new manufacturing units with a minimum total direct employment of 2,000 persons.

A back-ended state capital subsidy and tax exemption on power bought from the TNEB or from captive sources will be sanctioned for all manufacturing units, including raw-material based manufacturers. New manufacturing facilities and expansion projects located in Chennai, Tiruvallur and Kancheepuram districts, investing Rs. 350 crore over three years can avail themselves of a structured package of incentives, while the minimum investment for those outside those districts will be Rs. 250 crore. The minimum investment levels will be reduced by Rs. 100 crore in the case of electronic hardware units. Units which invest more than Rs. 1500 crore or which have been in the State for over ten years will receive extra benefits. In a press release, the government also promised extra concessions for firms which gave priority to local workers and followed its reservation policy.

Industrial corridors of excellence will be developed, first in the Chennai-Manali-Ennore and the Chengalpattu-Sriperumbudur-Ranipet corridors, and later in the Madurai-Tuticorin and Coimbatore-Salem corridors.

Developers investing Rs. 300 crore over three years in specific industrial infrastructure projects, including desalination plants, rail, road, port and water recycling infrastructure for SEZs and industrial parks, can avail themselves of a Rs. 2 crore subsidy.

All incentives for manufacturing industries under the new policy will also be applicable to agro-industries and agri-machinery and micro-irrigation equipment manufacturers. Special Agro Economic Zones will be promoted. A wine manufacturing policy will be announced soon and mega orchards of 50 hectares and above will be exempted from the Land Reforms Act for the cultivation of high value crops.

With the growing importance of the biotechnology sector, the government will announce an updated Life Sciences Policy and TIDCO will create a Life Sciences Innovation Fund. SIPCOT will develop a 2,000-acre Nanotechnology Park. To encourage clean and efficient energy technology, a Tamil Nadu Technology and Efficiency Upgradation Initiative will be launched through a TIIC-administered fund, which will offer soft loans to SMEs.

A number of skill development initiatives will be launched, including cluster-based, grass-root level and collaborative industry-institute schemes. The government is considering a Business Facilitation Act to formally empower and regulate single window clearance committees.