London: The Swedish maker of the Gripen fighter plane, Saab AB, intends to establish an aerospace development centre in India with Tata Consultancy Services Ltd (TCS) as it markets the plane to the Asian country. “This cooperation will also allow Saab to set a footprint in India together with TCS to capture the opportunities emerging in the aerospace and defense sector,” Saab and TCS said on Wednesday in a Cision newswire statement.
Saab, based in Linkoeping, signed a letter of intent with TCS, a Mumbai-based unit of Tata Group, to establish the Aeronautical Design and Development Centre, the companies said. The centre will “address market opportunities in areas such as aero structures, aero systems, avionics and aftermarket support.”
Infrastructure growth rises to 4.3% in July
New Delhi: Production at six key industries, which account for a quarter of the nation’s industrial production, rose 4.3% in July from a year earlier, the government said.
The index for the six key industries rose to 240.1 in July from 230.3 a year earlier, the ministry of commerce and industry said in a release in New Delhi on Wednesday.
Production in the four months ended 31 July rose 3.7%, compared with a 6.6% gain a year earlier.
Citi downgrades RPL to sell; target cut
New Delhi:Reliance Petroleum Ltd, a unit of India’s most valuable company, had its shares downgraded and target price cut by Citigroup Global Markets Inc. because of a weak outlook for refining margins.
The company, which plans to complete its refinery in Jamnagar before the December deadline, was cut to “sell” from “buy” and the share price was revised to Rs155 from Rs204, analysts Rahul Singh, Saurabh Handa and Garima Mishra wrote in a report to clients.
Sterlite falls as ratings cut by brokerages
Mumbai:Sterlite Industries (India) Ltd fell the most in more than two years after Macquarie Group Ltd. and other brokerages cut their price targets on concern its plan to absorb assets from units will boost capital and cut earnings.
Shares of the nation’s biggest copper and zinc producer fell 12% to Rs508.10 on the Bombay Stock Exchange. The shares have slumped 20% this week, the most since 19 July 2006.
Sterlite, owned by the UK-based Vedanta Resource Plc, will sell its aluminium and power businesses to Madras Aluminium Co. Ltd, another unit. Sterlite will get Vedanta’s Zambian copper assets and pay for it by issuing 363 million shares, leading to a 51% dilution, Macquarie said.
Macquarie in a client note cut the stock-price target 28% to Rs974. It lowered the earnings per share forecast for year ending March 2010 by 34% and March 2011 by 24%. Kotak Securities Ltd. re-initiated coverage of the Mumbai- based company with a “sell” recommendation and a price target of Rs460, while Lehman Brothers lowered its price target to Rs654 from Rs703.
Temasek keen on part of Suuti stake in Axis bank
Mumbai: Temasek Holdings Pte, the Singapore government’s investment arm, has expressed interested in acquiring part of state-run Special Undertaking of UTI’s (Suuti) 21% stake sale in Axis Bank Ltd, said an ‘NDTV Profit’ report on Wednesday.
Both Suuti and Axis Bank executives declined to confirm the development. An email query sent to Temasek remained unanswered. “The process (of stake sale) has begun. Now it’s between Suuti and the investment bankers. It will take some time,” said a senior official from Axis Bank, requesting anonymity. “There is no hurry to sell the stake. We have till March 2009 for that,” a Suuti executive said.
Suuti intends to sell 21% out of the 27% stake it holds in Axis Bank, and has to retain the remaining 6% because of a lock-in clause. Mint reported on 30 August that Suuti had mandated JP Morgan Chase and Co., Citibank NA and ICICI Securities Ltd to find buyers for the stake sale. Suuti was created in 2002 to take over the assured return schemes of Unit Trust of India (UTI) after the government bailed out the then ailing mutual fund, the country’s oldest. UTI’s stake in Axis Bank, formerly UTI Bank Ltd, was transferred to Suuti.
Shares of Axis Bank remained nearly flat on Bombay Stock Exchange at Rs710.95 on Wednesday.
— Anita Bhoir
ArcelorMittal’s project costs in India ‘may rise’
Mumbai: ArcelorMittal expects the cost to build two steel complexes in eastern India to increase to $30 billion (Rs1.35 trillion), CNBC-TV 18 reported, citing chairman Lakshmi Mittal.
The company earlier planned to invest $20 billion to set up the complexes in the states of Jharkhand and Orissa. The ArcelorMittal plant in Jharkhand, announced in October 2005, would have a capacity of 12 million tonnes a year. In 2006, the company announced a similar sized project in neighbouring Orissa.
Unitech in talks to sell stake in wireless unit
Mumbai: Unitech Ltd, the country’s second biggest real estate developer, is in talks with more than three companies for selling a stake in its new wireless unit, managing director Sanjay Chandra said.
Unitech hasn’t selected a stakeholder yet, Chandra said by telephone. The company is at least a month away from completing the process, he said. Telenor ASA is close to investing $500 million for a 26% stake in Unitech’s wireless unit, ‘The Economic Times’ reported on Wednesday, without saying where it got the information.
Japan’s NTT DoCoMo may invest in Tata Tele
New Delhi: Even as Japan’s biggest mobile phone services firm, NTT DoCoMo said Wednesday it is in talks with India’s Tata Teleservices Ltd (TTSL), an analyst said the deal was good for the company as investments could come in for future expansion.
International news agency ‘Reuters’ on Wednesday quoting unnamed company sources, reported that Japan’s NTT DoCoMo was in talks with TTSL and the deal may exceed $933 million.
A spokesperson for Tata Teleservices, in an emailed reply, said, ‘‘as a policy in the Tata Group, we do not respond to queries related to market speculation. However, I do urge you to revisit and check the authenticity of your information.”
— Staff Writer