Cabinet approves changes to SBI Subsidiaries Bank Act

The Cabinet approved changes to the State Bank of India Subsidiaries Bank Act, reports CNBC-TV18.

That will eventually allow the subsidiaries of the bank to implement stock splits and allow demat trading in these shares.

The bill also allows SBI to reduce its holdings in each unit to 51%. Currently, SBI owns stakes ranging from 74% to 100% in the units. The SBI Bill will next be considered in Parliament.

Following the news, shares of SBI subsidiaries like State Bank of Bikaner rose two percent, State Bank of Mysore shares rose 10 percent and State Bank of Travancore shares rose five percent. SBI shares rose 1.7 percent to Rs 1,053.

No service tax on exports: Kamal Nath

Commerce and Industry Minister Kamal Nath has announced the annual supplement to the Foreign Trade Policy. According to the policy, the export target for FY08 stands at USD 160 billion. Nath feels that this policy will help the handloom and handicraft sector.

NK Minda Group to supply auto parts for Rs 1 lakh Tata car

The NK Minda Group will supply auto parts for the Rs 1 lakh small car project of the Tatas even as it looks to shed up to 22 per cent stake to raise around Rs 250 crore.

The Minda Group has also floated a joint venture with a leading European company, Valeo, in which the Indian company has picked up a 37 per cent stake. The rest is with the Valeo Group. The total investment in the company is around Rs 100 crore.

The Minda Group's Managing Director, Mr Nirmal K. Minda, told Business Line that his company has signed a letter of intent with Tata Motors for supply of parts such as switches and horns for the Rs 1 lakh small car. Tata Motors is expected to launch its small car in 2009.

Raising funds

Mr Minda said the company is planning to raise around Rs 250 crore through the private equity route. The total investment over the next few years is expected to be about Rs 600 crore. He said the publicly listed Minda Industries would be willing to shed up to 22 per cent stake to raise funds for expansion of its company. The public holding in Minda Industries is around 27 per cent.

Mr Minda said his group is taking several steps to upgrade its plants in the country to match the quality of international vendors. 'We expect more international vendors to set up their plants in the country, as their customers like Nissan and Renault are setting up huge plants here. Hence, competition among auto parts' suppliers will intensify,' he said.

The group has earmarked about 4 per cent of its annual turnover towards investing in R&D as well as focussing on acquiring companies abroad. 'Such acquisitions will give us access to world class technology, which is extremely important for us to compete globally,' he pointed out.

The N K Minda Group also has a tie up with the Ashok Minda Group for collaborating together in overseas projects. The Minda Group formally split in 1996 with brothers, Nirmal and Ashok forming separate companies.

During the third quarter of 2006-07, MIL posted a 14.25 per cent increase in net profit to Rs 4.11 crore while sales grew 44.76 per cent to Rs 97.55 crore.

BMW to invest 60 mn euro in India

BMW expects to spend 60 million Euros in India over five years

The car maker plans to invest about 20 million euro to set up a Chennai assembly plant.

Sources say that it might reach 80 million euro over the next five years. Around 72 acres of land adjacent to the the car maker's plant has been acquired for the expansion.

Rupee may touch 41-mark: StanChart Bank

Callum Henderson, Head of Currency Strategy of Standard Chartered Bank comments on the rupee's nine-year high.

According to him, the market is surprised by the pace of rupee appreciation. He does not see the rupee rally ending. In his view, it may take a shot at the 41-mark.

When inflation comes down, there may be a correction. He also adds, Indian growth is strong, which is attracting capital flow. High Indian interest rate is attracting carry trade in the rupee.

Courier companies to increase rates?

Ministry of Communications has proposed a minimum rate that courier companies should charge for carrying letters below 150 grams.

The proposed cabinet note has redefined letters, to include all written communication. The note also proposes that parcels up to 150 grams should be sent only via Indian Post and not through courier.

Couriers must charge at least 5 times postal services for parcels over 150 grams. Urgent packages must be delivered at 2.5 times Speed Post rates.

ESPN asked to comply with signal sharing rules

The Telecom Regulatory Authority of India (TRAI) today asked ESPN to immediately restore signals of its sports channel to the Maharashtra-based Shah Cable Network.

The broadcaster has also been asked to comply with TRAI rules and furnish a compliance report within two days.

ESPN had discontinued signals of its sports channel Star Sports, alleging that the cable operator was re-transmitting them to hotels and commercial properties, which was not a part of the contract.

The regulator, however, pointed out that in case of a dispute, the broadcaster would still have to give three- week notice to the cable operator, as well as put out notices, one in a regional language, in two local newspapers.

The same also applies to cable operators, who are not allowed to stop retransmission of any channel without a three-week notice to the broadcaster.

Barclays, ABN AMRO merger plan in 48 hrs

Barclays and ABN AMRO have given themselves 48 hours to agree to a merger after a rival consortium proposed a three-way break-up of the Dutch bank, reports CNBC-TV18.

The Royal Bank of Scotland is keen to talk with ABN about a plan to split the bank between the Royal Bank of Scotland, Spain's Santander and Belgo-Dutch banking and insurance group Fortis. Sources familiar with the matter say ABN will not open its books to the consortium until it has more details on their plans.

Google to buy Doubleclick for USD 3.1bn

Google has agreed to buy Doubleclick for USD 3.1 billion in its biggest-ever acquisition to gain software for creating and measuring internet advertising campaigns.

The acquisition is a windfall for Hellman & Friedman. The San Francisco-based private equity firm had bought Doubleclick for USD 1.1 billion in 2005. Google will pay cash for the acquisition.

The move also extends Google's lead over Microsoft and Yahoo in the USD 29 billion online advertising market.

Major changes in Indo-UAE Tax Treaty

According to sources, there has been a major change in the Indo-UAE Tax Treaty. The tax exemption on capital gains as part of the treaty has been withdrawn. A Limitations of Benefits clause has been introduced in the Indo-UAE Treaty.

India will export mangoes, import motorbikes from US

In an admittedly odd exchange of sorts, India would be exporting its exotic mangoes to the US this season in return for allowing motorcycles from the Milwaukee-based Harley-Davidson Inc's (HOG) of the US to India.

At a meeting on Indo-US Trade Policy Forum here, the Union Commerce and Industry Minister, Mr Kamal Nath, said, "The good news is that our mangoes are going to America and Harley Davidson is coming here."

For Indian fruit growers, the good news has come after 18 years since the US banned mango imports from here on concerns about Indian farmers were using too many pesticides. Instead, the farmers now irradiate the fruit to kill any pests, rendering the mangoes fit for consumption and in keeping up with sanitary standards of US agriculture administration.

Meeting norms

On the motorbike, the Minister's remarks were followed up by the Directorate General of Foreign Trade (DGFT) who issued a notification promptly, permitting import of motorcycles of engine capacity 800 cc or above. The DGFT said the imported motorcycles must meet Euro III emission norms.

BMW Mini in India, by 2009

BMW now comes with a made in India tag and soon they will look at sourcing auto components from India for other markets. There is more good news as BMW plans to drive in its iconic small car - the Mini into India, by 2009.

 

BMW may have been a late entrant into the Indian market, but it is certainly stepping on the gas. The company launched its 3 series last month and expects to sell more than 1,000 vehicles in India this year.

 

Soon, the BMW 5 series, expected to roll out in the next two months.

 

Local assembly of the 3-series has helped BMW price the car at Rs 27 lakh; this even though there is just 10% localisation of the parts.

 

Only the seats for the 3-series and door panels for the 5-series are produced locally. BMW says it is looking at increasing localisation and will look at sourcing auto components for its other plants from India.

 

This 3-series model is expected to constitute bulk of the sales in India. BMW India sold 257 units of completely built cars in 2006. The company will also expand its dealer network to every metro city in the next two years.