Following are the important business news carried by leading financial dailies on Monday Nov. 12, 2012:
Ranbaxy to get guidance soon for remedial steps on Dewas unit
Drug maker Ranbaxy Laboratories is expecting the consultant assessment of its Dewas manufacturing facility, which is under scanner of the US Food and Drugs Administration (US FDA) since 2008, to be over by December. The move is significant because the assessment report will provide a definite guidance to the company towards the corrective measures to meet the regulator`s requirements.
Cairn JV to invest USD 100 mn to drill deeper well in KG basin
Cairn India and its joint venture partners of Ravva fields are planning to invest about USD 100 million to drill a deeper well in the Krishna-Godavari basin. The JV plans to drill the exploration well to 4,000 meters deep, and estimates that the deepwater prospect in the Ravva Oil Fields may hold about 350-billion cubic feet of `recoverable gas`, sources told PTI.
Aditya Birla group exits race to acquire Northern Iron
Aditya Birla group has pulled out of the race to acquire Australia`s Northern Iron, citing variability in production at Sydvaranger iron project of the firm and its impact on costs. ``On November 3, 2012, Essel Mining advised NFE that following its stage two detailed due diligence investigations, it was not in a position to submit a stage two proposal at this time,`` Northern Iron (NFE) has said in a filing to the Australian Securities Exchange.
SAIL stops mining at Bolani as clearance expire
Steel Authority of India (SAIL) has stopped production at Bolani iron ore mine, one of its major mines, in Joda mining circle following expiry of the working permit for this mine. The PSU steel major had received working permit for the maximum allowable period of two years after the grant of stage-I forest clearance. The company now has to wait for the stage-II forest clearance before restart of operation at the mine.
Orchid Pharma to exit from Chinese joint venture, posts net loss of Rs 240 mn
Chennai-based Orchid Chemicals and Pharmaceuticals has announced that it was exiting from its 50:50 manufacturing joint venture in China. The exit is part of Orchid`s strategy to consolidate manufacturing operations in India. The company would transfer its 50% stake in its JV firm, NCPC-Orchid Pharmaceuticals, to NCPC for a total cash consideration of USD 13.9 million (RMB 87.5 million), which is around Rs 761.9 million at on Sunday’s currency rate.
Tata Steel to assess cost overrun for Odisha project
Tata Steel is evaluating the impact of cost overrun on the ongoing six million ton greenfield steel project at Kalinga Nagar in Odisha`s Jajpur district. ``We are trying to assess the cost overrun caused due to delays in the project,`` Tata Steel Kalinganagar project in-charge Anand Sen said. He said areas which had hit the company included forex impact, taxes and social cost.
CESC bags USD 2.5 mn Nigerian deal in power distribution
CESC, the flagship company of the RP-Sanjiv Goenka Group, said it has bagged a consultancy contract of USD 2.5 million (Rs 1,370 million at current exchange rates) a year in power distribution sector in Nigeria. The five-year contract is renewable after the term-end. CESC was a part of the consortium that bid for the Port Harcourt Distribution Company Plc. The annual turnover for the distribution company will be USD 180 million.
Monitoring mechanism by NTPC to check erring contractors
Power producer NTPC has put in place a strong monitoring mechanism to check erring contractors and suspended entities will be screened again before allowing them to participate in future projects. NTPC, which has an installed capacity of 39,674 MW, plans to increase its generation to 1,28,000 MW by ‘32.
Natco Pharma acquires 51% in sister firm
Natco Pharma has announced that it acquired 51% of the paid-up equity capital of Natco Organics. Natco Organics is a joint venture between Natco Pharma and TIDCO. In a notice to the stock exchanges, the company also said the board of directors has allotted over two lakh equity shares of Rs 10 each under ESOP. It has also reported a net profit of Rs 210 million for the quarter ended September 30, a rise of 31% over the comparative quarter`s net of Rs 159.4 million. The total income stood at Rs 1,803 million, up from Rs 1,266 million in the year-ago period. The bulk of the revenues came from exports of Rs 850 million, which constituted just over 50% of the revenues for the quarter under review.
Pantaloon to demerge fashions business, list new entity
Pantaloon Retail and Future Ventures India will demerge their fashion businesses into a new listed unit that will simplify the businesses into three main segments, the two companies said late on Friday. Under the restructuring, all fashion brands, currently held by Pantaloon Retail and group firm Future Ventures will be transferred to Future Fashion, along with debt of Rs 12.26 billion.
Bharti Airtel shuts network to SMSes from subscribers of Aircel & Reliance Communications
Sparks are flying ahead of Diwali in India's telecom market after the country's largest mobile phone company, Bharti Airtel, closed its network to incoming text messages from subscribers of two other operators, Aircel and Reliance Communications. Bharti Airtel executives said the company was forced to do this after the two companies started flooding its network with what they described as "free spam messages", a charge that has been vehemently denied by RCOM and Aircel. "They (Aircel and RCOM) are sending free SMS to our networks, which, in turn, is impacting the quality of service on our network and, therefore, the quality of service to our own customers," an Airtel spokesperson said.
TTK Healthcare to invest Rs 400 mn to set up new units
TTK Healthcare plans to invest about Rs 400 million in the next couple of years in the region to set up new facilities to expand its food business. ``The company is bringing into focus branded pellets (Papads). With the (food) division now earning profits, the company will be making further investments in the region of Rs 400 million in next couple of years in setting up new facilities,`` Chennai-based TTK Healthcare said in a filing to the BSE.