19th October - BUSINESS LINE

Lalit Mohan Singh Rawat
Kitboklang Siyem
Kumar Shivanand
(Section - F)

Biocon, Pfizer in $350-million insulin marketing deal.
Bangalore- based biocon Ltd. Signed a mega marketing deal with the world largest drug-maker Pfizer on Monday to globally commercialise four of its insulin biosimilar product initially.
In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights. Mr Rakesh Bamzai, President (Marketing), Biocon, called the deal a world game changer in which these products would be challenging brands that have dominated the insulin world for years. Products would be introduced with some discounts. Biocon will remain responsible for the clinical development, manufacture and supply of these biosimilar insulin products, as well as for regulatory activities to secure approval for these products in various geographies.
Panel majority for scrapping eco nod to Posco's Orissa project.
The four-member panel appointed by the Ministry of Environment and Forest (MoEF) has submitted its report to the Environment Ministry on Posco's proposed steel Project. There has been no final decision on the project yet. The panel has submitted two separate reports where three members are suggesting cancellation of the existing environment laws. Headed by former environment secretary Meena Gupta, the central team probing alleged irregularities in the implementation of environment laws and forest rights acts in the Rs 51,000 corer project was initially scheduled to submit its report on October 12.
3. Apex court stays Sterlite's TN plant closure till mid-Dec.

The Supreme Court on Monday extended till the second week of December its earlier stay on closure of the company's copper smelter at Tuticorin in southern Tamil Nadu. The apex court also issued notices to the Centre, the Tamil Nadu Government and the State Pollution Control Board (PCB) directing them to file replies within two weeks.
IT/BPO, auto sectors lead hiring surge in April-June
Led by strong employment trends in the information technology and business process outsourcing (IT/BPO) and the automobile sectors, overall employment across eight manufacturing sectors perked up by an incremental 1.62 lakh during the quarter.
On comparing the cumulative results of the last four quarterly surveys period — June 2010 over June 2009 — the overall employment has increased by 13.58 lakh for the 12-month period, with highest increase seen in the IT/BPO segment at 8.54 lakh jobs, followed by 1.52 lakh in textiles, 1.37 lakh in metals, 1.10 lakh in automobiles and 0.93 lakh in gems and jewellery during the period
5. Coal India public issue subscribed 34%
HDFC Ltd posted a net profit of Rs 808 corer for the quarter ended September 30, 2010, up 22 per cent from Rs 664 corer in the corresponding quarter last year. The increase in profits was on account of strong loan growth and higher interest income. As on September 30, the outstanding loan book was Rs 1,06,287 corer, against Rs 89,519 corer in the same period last year, a growth of 19 percent.
Loan approvals grew by 29 per cent and disbursements rose 27 per cent. In individual loans, approvals grew by 49 per cent and disbursements by 42 per cent. Retail loan growth has been strong net interest income grew to Rs 1,189 corer (Rs 947 corer), an increase of 26 per cent.
Bharat Forge eyes coal mines overseas
Pune-based Bharat Forge is currently evaluating a few coal mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use, reports suggest. The company, already a maker of power equipment, hopes to enter the power generation business shortly, reports suggest.
Bharat Forge plans to set up around 10,000 megawatt (MW) of power generation capacity over the next 10 years. The company expects nearly 40% of its sales to come from the non-automotive business by the year ending March 2012 (FY 2012), reports added.
The company's net profit rose 6090.6% to Rs. 59.43 corer on 73.1% rise in sales to Rs.608.50 corer.

7. L&T profit surges 32% in Q2 on strong order book.
Larsen & Toubro has recorded a 32 per cent increase in net profit for the second quarter of this fiscal.
In infrastructure projects, there were structural delays such as finalisation of tendering documents, internal issues in companies assigning contracts, environmental issues and high commodity prices. Except for cement, prices of all commodities such as copper, aluminium and steel have gone up substantially forcing companies to delay their projects.
Revenue from the electrical and electronics segment was down five per cent to Rs 672 corer (Rs 708 corer) due to stiff competition in the domestic sector coupled with a slowdown in international markets. Margins in the segment fell by two percentage points. On the Vedanta project in Orissa, L&T has already finished 60 per cent of the Rs 550-corer order and has to recover Rs 20 corer from the company
Reliance Ind eyes Kerala-Konkan basin.
Reliance Industries may participate in the ninth round of the New Exploration Licensing Policy auctions, hinted Mr Mukesh Ambani, Chairman and Managing Director.
The Kerala-Konkan basin off the western coast, which is also included in the NELP-IX blocks, has sparked interest in RIL. Mr Ravi Bastia, Senior Vice-President, said in his presentation that the basin looks promising and needs more exploration to fully analyse its potential.
SBI Retail Bonds — Interest rate remains a major attraction.
Unlike infrastructure bonds from designated institutions such as IDFC and L&T Finance, the bonds issued by SBI will not be eligible for tax benefits. Therefore, it will be appropriate to compare the bonds with fixed deposits for investment purposes.
There is no tax deduction at source (TDS) on SBI bonds irrespective of the interest amount. This is because these bonds are offered in dematerialised form and listed on the stock exchange. The bonds allow investors to capitalise on future interest rate increases, if the bank does not exercise its call option, by offering a 0.5 per cent increase in interest rates at the end of fifth and tenth years.
The major attraction of the bonds is the interest rate offered on a fairly safe investment. Compared to the annual interest rate of 7.75 per cent prevailing on 8-10 year fixed deposits with SBI, the bond offers 9.25 per cent for a five-year term.
NIIT Techonologies posts 35.6% rise in Q2 profit
. Due to increasing demand for tech. after the global downturn
. Will help in salary hike
. consolidated revenue rise 43.5 per cent during the quarter
. operating margins were depressed (18.3 per cent versus 20.3 per cent)


Hewlett-Packard launches ePrint-enabled printers
. Hewlett-Packard's launched first ePrint-enabled and Web-connected printers” for business use
. “With an email address assigned to the printer, ePrint will work from any mobile device, including smartphones, laptops, and even the iPad
Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years
. leading diamond and jewellery export companies
. Mr Jatin R. Mehta, Chairman and Managing Director
. for long-term growth of value-added gem and jewellery industry
. The company intends to multiply its space in Kochi for future programme by 2-3 times at an investment close to Rs 40 corer.
. turnover of Rs 3,000 corer last year, which is expected to touch Rs 3,900 corer in the current fiscal.
. It had achieved a turnover of Rs 1,000 corer from domestic sales last year and the figure is expected to touch Rs 1,800 corer this year
HDFC Q2 profit rises 22% on higher interest income

. The increase in profits was on account of strong loan growth and higher interest income
. sold loans worth Rs 4,858 corer.
. Loan approvals grew by 29 per cent and disbursements rose 27 per cent.
. at September 30, deposits stood at Rs 26,881 corer, against Rs 20,530 corer in the corresponding date last year, registering a growth of 31 per cent.
Bharat Forge eyes coal mines overseas

Bharat Forge Ltd, a Kalyani Group company with diverse business interests, is now aiming to get into coal mining and, subsequently, the power generation business.
Industry sources said the Pune-based company is currently evaluating a few such mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use.
. The company official added that Bharat Forge plans to set up around 10,000 MW of power generation capacity over the next 10 years.
Bharat Forge, whose core business is manufacturing engine, transmission and chassis components for automotive use, has about 11 plants globally. It is also makes parts for marine, aerospace, construction equipment and railway applications.
The company expects nearly 40 per cent of its sales to come from the non-automotive business by 2011-12.
Bharat Forge has said that it is setting up a TG manufacturing capacity for about 5,000 MW a year, translating to potential annual revenues of about Rs 6,000-7,000 corer. This capacity will also include turbine generators required for nuclear power plants.
Airbus Military's arm in pact with Mahindra for IAF contract
Airbus Military's subsidiary in Poland, PZL, has entered into an initial memorandum of understanding with Mahindra and some other Indian companies to meet the offset obligations of an Indian Air Force contract.
The tender for 75 aircraft with the first 12 being assembled in the facility of the country that wins the contract while the rest will be assembled in India.
PZL manufacturers said the Orlik aircraft is expected at Jamnagar at the end of the month to participate in the IAF competition.
Airbus Military, a sister concern of Airbus, is also “assessing and evaluating” options in India, senior company officials said.
Ms Barbara Kracht, Vice-President, Media Relations, told that India is a potential market for Airbus Military, which is a young organisation based on long experience of design and manufacture of military transport aircraft.
Biocon, Pfizer in $350-million insulin marketing deal
. In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights
. Both companies sell their products in India, Malaysia and Germany separately.
Bharti eyes land in S. America, Africa to produce pulses, oil for India
. Bharti Enterprises, has expressed interest in taking over land in Africa and South America to engage in agro- and food-processing.
. Airtel, recently acquired Kuwait-based Zain's Africa assets for $10.7 billion and is now operating in 15 African countries.