BSNL to float $3.5 bn tender

NEW DELHI: State-owned telecom company, BSNL, plans to float a $3.5-billion tender, a third of which will be reserved for public sector telecom equipment company ITI, an executive aware of the development told. The telco wants to procure equipment for 40 million GSM lines. BSNL is yet to decide if it wants to go in for a single contract or split it into two tenders for 20 million GSM lines over a two-year period, this executive added. This contract will provide the company with sufficient capacity till 2013.

"To take care of the long-term expansion requirements, BSNL has planned to expand its mobile network by a capacity of 20 million lines each in 2011-12 and 2012-13 ," the telco said in its status report sent to the telecoms department earlier this month.

This will be in addition to the 5.5 million GSM lines tender the telco floated recently. BSNL had initially banned Chinese firms from bidding for this 5.5-million line contract to expand its mobile network for its north and eastern zones, but changed the rules later to accommodate firms such as Huawei and ZTE after the Centre allowed participation from Chinese companies.

The $500-million contract for 5.5 million lines was the first tender the PSU floated after it cancelled its 93 million lines contract, the world's largest for telecom equipment, earlier this year. Following the junking of the mega equipment contract, which had run into several controversies including court cases and a probe by the Central Vigilance Commission, BSNL had decided to abolish its tender-based equipment procurement process and adopt the 'managed capacity model' followed by private telcos. But BSNL's plans to move to a managed capacity model have found no takers in the government, forcing the company to opt for the tender model again.

Over the last two years, BSNL has not sourced 30% of its equipment from ITI, despite the policies mandating it to do so. Under pressure from MTNL and BSNL, department of telecom too did not enforce this clause as ITI had not met the delivery schedules for the previous contracts. But earlier this month, the union Cabinet approved the continuation of the 'offset policy', under which 30% of all telecom contracts (for hardware and equipment) awarded by BSNL and MTNL should be sourced and manufactured by ITI.

Android makes Motorola profitable after 4 years

NEW YORK: US mobile phone maker Motorola reported its first revenue growth in nearly four years and better-than-expected sales of Android smartphones.

Motorola reported a net profit of $109 million in the third quarter compared with $12 million a year ago.

Revenue grew 6 per cent to $5.8 billion as the Illinois-based company notched its first quarter of growth since the fourth quarter of 2006.

Mobile phone division revenue increased 20 per cent to $2 billion and the division had an operating loss of $43 millions compared with an operating loss of $216 million a year ago.

Excluding extraordinary items, Motorola's mobile phone division, which is to be spun off from the rest of the company next year, posted an operating profit of $3 million.

Motorola said it shipped 9.1 million handsets during the July to September period including 3.8 million smartphones powered by Google's Android operating system, more than expected by analysts.

"In the third quarter, Motorola Mobility showed positive momentum across the business, with Mobile Devices reaching profitability for the first time in over three years," Motorola co-chief executive Sanjay Jha said.

" Droid X continues to sell extremely well," Jha said. "And we have had several other successful smartphone launches globally, including the Droid 2, the Ming series in China, as well as a well-received introduction of our enterprise-ready Droid Pro," he said.

Motorola plans to split its businesses in the first quarter of next year, separating products for consumers from its professional equipment division. The mobile and home entertainment devices division will operate as Motorola Mobility.

The other company, Motorola Solutions, will consist of its enterprise mobility solutions, which include two-way radios, mobile computers, secure public safety systems and scanners.

Motorola enjoyed success with its popular Razr phone launched in 2005 but has been losing ground since to Apple, Canada's Research in Motion, maker of the Blackberry, and other major cell phone manufacturers.

Jha has been counting on smartphones running Android to help turn around the company's flagging fortunes and Motorola has launched 22 Android-based devices this year.

Read more: Android makes Motorola profitable after 4 years - The Times of India http://timesofindia.indiatimes.com/Tech-News-Telecom/Android-makes-Motorola-profitable-after-4-years/articleshow/6833580.cms#ixzz13kLbGxEs

Intel opens biggest chip plant

HANOI: US-based chip maker Intel opened a billion-dollar assembly and test facility in Vietnam, the company's biggest in the world, saying it would help the country's development.

Intel president and chief executive Paul Otellini and Deputy Prime Minister Hoang Trung Hai officially opened the plant, the size of five-and-a-half football fields, at an industrial park in Ho Chi Minh City.

Hai said the opening "supports our goal of accelerating economic transformation led by technology-intensive industries."

Intel said in a statement, "Production commenced in the middle of this year, starting with production of chipsets for laptops and mobile devices for Intel customers worldwide. Once fully operational, the facility is expected to create several thousand skilled jobs in high-tech manufacturing and generate significant export revenue for the country."

Otellini said at the ceremony that Intel had signed pacts with government agencies to advance e-government, education, personal computer and broadband penetration and digital literacy in Vietnam.

The facility is one of seven operated by Intel worldwide. Intel announced the project four years ago, proclaiming it the largest investment in Vietnam by an American company.

The opening of Vietnam's first semiconductor factory comes despite warnings by analysts that the communist nation risks losing out both to poorer, lower-wage nations and richer ones that are more innovative and have a higher-quality labour force.

The World Bank and Vietnam's Academy of Social Sciences (VASS) said in a joint report in August that the nation depends too much on exploitation of natural resources while its industry, much of it dominated by large state-owned groups, lacks dynamism.

The country is the world's second-largest exporter of rice and coffee, while seafood, footwear and apparel are other key earners. However Vietnam's science and technology standards are low compared with regional rivals, VASS president Do Hoai Nam has said.

He added the country's economic infrastructure is not well-developed, there is a lack of specialisation and competitiveness and a shortage of skilled workers.

But the Intel facility is a sign that Vietnam is "moving up the food chain toward increasingly sophisticated manufacturing," said Adam Sitkoff, executive director of the American Chamber of Commerce Vietnam.

The facility would provide "higher-quality jobs" for Vietnamese people and attract other high-tech firms to the country, Sitkoff said. "Usually when Intel goes somewhere, that's a sign to other technology companies that they can go there also," he said.

Leon Perera, group managing director of Spire Research and Consulting in Singapore, said, "Intel's investment in Vietnam is undoubtedly a vote of confidence" in the country.

Vietnam, he added, was benefiting from multinational companies' need to diversify beyond China. Perera said that Vietnam, with its labour-cost advantage over China, closeness to the Chinese market, and participation in regional free trade pacts, "may be well suited for assembly of IT products."

However, one obstacle could be Vietnam's relatively underdeveloped logistics industry, Perera said. "Another obstacle would be the relative scarcity of English speakers as compared to Malaysia, or even Thailand and China."

TCS Q2 beats estimates, net up 32% at Rs 2,169.21 cr

MUMBAI: Country's largest software firm Tata Consultancy Services today reported 32% jump in consolidated net profit at Rs 2,169.21 crore for the second quarter ended September 30, 2010, driven by rising order wins from its mainstay financial clients.

As per Indian accounting norms, the company had a net profit of Rs 1,642.21 crore in the July-September 2009 quarter, TCS said in a filing to the Bombay Stock Exchange.

"It has been a quarter of superior performance across the board, driven by volume growth of over 11 per cent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery," TCS CEO and MD N Chandrasekaran said.

TCS, part of the Tata Group that spans commodities, autos and services, added 19,293 people during the quarter, the highest ever for the company, taking the total headcount to 1,74,417 at the end of September quarter.

Income from operations rose to Rs 9,286.39 crore in Q2, up from Rs 7,435.23 crore in the year-ago period. It added 30 new clients during the quarter.

Under US accounting standards its net profit rose to Rs 2,106 crore ($475 million) from Rs 1,624 croe reported last year.

TCS said that the macro environment is uncertain and the scenario will continue like this for sometime. The company also said that attrition is of some concern but is manegable.

"It has been a quarter of strong revenue and margin performance all around," TCS CFO S Manhalingam said.

The board has proposed an interim dividend of Rs two per equity share on a face value of Re one each.

Last week, rival Infosys Technologies Ltd beat estimates and raised its annual sales forecast, but warned currency volatility could crimp growth for India's $60 billion outsourcing sector.

A strong rupee is a cause for concern for the sector, which draws more than half its revenue in dollars and has significant rupee expenses, which could squeeze margins.

"With our major operating currencies continuing to be volatile, we remain vigilant on this front," Mahalingam said.

Shares in TCS, valued at about $43.5 billion, have risen over 31 percent percent this year, outpacing a near 17 percent percent gain in the sector index and a 16 percent rise in the broader market.

Bridgestone to set up Rs 2,600 cr new plant in Pune

CHENNAI: Bridgestone India, a leading tyre manufacturer, on Monday said it planned to set up a new production facility at Chakan in Pune at an investment of about Rs 2,600 crore.

The new plant would help the company to produce 10,000 units of passenger vehicle tyres per day and 3,000 units of commercial vehicle tyres per day by 2020, Bridgestone India Managing Director Hiromi Tanigawa said on Monday.

"By 2013 we will launch new production facility at Chakan near Pune at investments of almost USD 26 billion rupees (Rs 2,600 crore)...," he said.

The new plant would come up on 7.60 lakh square meters, nearby treble the size of its Indore plant (2.60 lakh sq m).

The company, which entered India in 1996, commenced production at its Khedhar plant in 1998 for manufacturing of tyres for passenger and sports utility vehicles in India.

The company would also invest around Rs 300 crore at its Khedar plant for increasing its capacity from 14,000 units to 15,000 units, he said.

Asked about plans for overseas operations, he said the company would focus on the domestic market as the demand was increasing.

The tyres manufactured at the proposed plant would have 40 per cent localisation, resulting in savings on import duty incurred on shipments from Japan , he said.

With the setting up new plant the company would also double its headcount in India. "We are having 1,700 employees in India and we will add another 1,800 (for the new facilities)," he said.

He said the company, with 1800 dealers and 200 exclusive 'Bridgestone Select' dealership points, currently enjoyed 26 per cent market share in the replacement market and 20 per cent in the commercial vehicle category.

Mahindra two wheelers sales up 451% in Sept

MUMBAI: Mahindra Two Wheelers reported its best monthly sales of 16,569 scooters in September, a whopping 451% increase year-on-year.

The $76.1-billion Mahindra & Mahindra group-owned company sold 1.5 lakh units in the last 12 months, riding on the back of its ‘powerscooter strategy’ targeting youth with its peppy looks and 125cc power engine. The company now looks to consolidate its position in the two-wheeler segment with its newly- launched motorcycles, said Anoop Mathur, president of the two-wheeler segment and member of group executive board of M&M.

The Mumbai-based auto major recently made its debut in the motorcycle segment with two models, Stallio and Mojo, and roped in film star Aamir Khan as its brand ambassador.

The 300cc Mojo is a lifestyle bike which the company calls the ultimate machine for motorcycle enthusiasts. Having an aspirational high-performance bike with latest global technology is expected to help M&M to make an impact in the highly competitive bike market.

“Mojo is in a sense a showcase of what we are capable of doing,” group vice-chairman and managing director Anand Mahindra told ET NOW in an interview. “It is the fastest Indian bike and it was designed with that goal in mind,” he said.

The 110cc Stallio is more of a volume winner, being competitively priced, fuel efficient and offering some new features. M&M has kick-started an online campaign to create a buzz around its motorcycles. The company has offered to hire 20 bikers to ride its bikes from Ladakh to Nagpur. After the journey, the bikers get to keep the bikes.

M&M entered the two-wheeler space with gearless scooters after acquiring Pune-based Kinetic in July last year. M&M acquired 80% controlling stake for Rs 110 crore.

GM India to come out with electric car next year

JAIPUR: General Motors (GM) India today said that it is strengthening its foothold in the state and will showcase an electric car next year.

It would be an environment-friendly small car, President and Managing Director Karl Slym said, adding that it would be a battery operated car.

He said GM India is rapidly expanding its network in the wake of increasing popularity of Chevrolet in India, which recently completed seven years in the country.

In a joint collaboration with China's SAC (Shanghai Auto Car), GM will bring three "value-package" cars, he said.

It would soon be commissioning the power train facility in Talegaon, making the first flexi-engine plant for GM globally wherein both petrol and diesel engines are going to be manufactured together, he said.

Recently, the company inaugurated a LNG facility at its factory premises at Halol for supplying gas to its car manufacturing plant, and has also ramped up production at its Halol and Talegaon plants, he said.

When asked whether GM is planning any industrial investment in Rajasthan, Slym said its two units are already producing 2,25,000 cars per annum, and this would go up to 4 lakh in next couple of years.

Speaking on the occasion, Vice-President (Sales-marketing-aftersales) Sumit Sawhney said GM has invested over USD 1 billion (Rs 4,500 crore) in India till date, and is deeply committed to this market.

In last six months, GM India grew 79 per cent against the 36 per cent industry growth, Sawhney said, adding that the company's share in the car industry is, however, 4 per cent.

Steel Strips Wheels bags export order worth Rs 15 lakh

NEW DELHI: Auto-component manufacturer Steel Strips Wheels Monday said it has bagged an export order worth Rs15 lakh to supply 400 truck trailer wheel rims to a customer in the Middle East.

"This export order is for the supply of 400 truck wheels rims. The business will generate nearly Rs 15 lakh," the company said in a statement.

The order will be supplied from its new Jamshedpur plant which was inaugurated in July this year.

"SSWL is confident of getting more business in coming months from European and Middle East customers for this particular truck trailer wheel rim and negotiations with them are at an advance stage," the statement said.

Currently, the company has three manufacturing facilities in Dappar (Punjab), Chennai and Jamshedpur with an installed capacity of 11 million wheels per annum and has plans to increase the capacity to 21.5 million wheels by 2012-13.

The company offers a range of wheel rims for passenger cars, multi utility vehicles (MUV), tractors, trucks, off the road (OTR) vehicles as well as two and three wheeleRs

ITC: Leading Multi-business conglomerate turns 100

KOLKATA: Happy 100th birthday, ITC! India’s one of the largest multi-business conglomerates completes a century of existence on Tuesday, August 24, 2010.

To mark the day, company chairman Y C Deveshwar will address its close to 29,000 employees across the country through a webcast from ITC Sonar, Kolkata.

ITC also plans to unveil a special anthem on the occasion, company officials said.

“We are celebrating the inspiring journey of 100 years and renewing our pledge to take the company to even higher orbits of growth in the future, never losing the inspiration to put country before corporation always,” says Nazeeb Arif, vice-president —corporate communications, ITC.

Also, as part of the centenary celebrations, ITC, which has a market capitalisation of nearly Rs 1,14,000 crore, is giving away one free bonus share for each of its shares held.

That’s a long, long way for a company registered as the Imperial Tobacco Company of India on August 24, 1910, with an authorised capital of Rs 1,000 in ten shares of Rs 100 each.

That was not the start of the ITC story in India though. It started four years earlier, when two English gentlemen -- Jellicoe and Page – travelled from London to Calcutta, looking for an agent for Scissors and other W.D & H.O Wills' cigarette brands in India.

They combed the business district of Kolkata, but it was hard to find anybody interested in cigarette at a time when the cult of blends, pipes, pouches with Turkish and Virginia cigarettes was in vogue.

Finally, a small-time agent with little money, Buksh Ellahie, stepped in with borrowed money from a courtesan whom he married later.

And Ellahie, as the first agent of Wills, started the journey of ITC.

A lot has changed since then. The company was run by Britishers till well after the country’s Independence in 1947.

It got its first Indian manager in 1934 in Abdur Sardar Hussain, while its first Indian chairman was Ajit Narain Haskar in 1969.

It was Haskar who took the lead in Indianising the company as well as the management, says Champaka Basu, corporate historian and author of ‘Challenge and Change: The ITC Story 1910-1985’.

“He not only explained the complexities of the Indian social, economic and political environment to the parent company BAT, but also suggested steps ITC should take to ensure its profit and growth,” says Ms Basu.

In fact, ITC started looking beyond tobacco under his leadership, when it entered the hotel business in 1975.

Today, ITC has interests in hotels, apparel, rural retailing, finance, packaged food, personal care, stationery, paperboard, packaging and printing, safety matches and even information technology.

Berger Paints to invest Rs 150 cr in Andhra plant

NEW DELHI: India’s second-largest paint maker Berger Paints India plans to invest Rs 150 crore to set up a new plant in Andhra Pradesh by 2012, top company executive said. “We have identified a 50-acre plot in Hindupur and are waiting for clearances,” said Subir Bose, MD at Berger Paints India.

The proposed unit will have an installed capacity of 1.5 lakh tonne annually and will push up overall capacity around 50%. Berger is also spending Rs 60 crore to expand existing capacity of 2.5 lakh tonne by adding 50,000 tonne for the year ending March 2011.

Berger has seven plants in India besides four facilities overseas, at present.

The company on Thursday introduced Breathe Easy , an eco-friendly decorative paint, and said it is eyeing 20% growth in revenues this year. The domestic paint industry is growing annually at 15-16%.