Corporate | SAIL to raise around $2 bn through stake sale

Corporate | SAIL to raise around $2 bn through stake sale

London: Steel Authority of India Ltd (SAIL) said it will raise about $2 billion (Rs9,260 crore) from offering investors a 10% stake in the company.

The government is selling a 10 % stake in SAIL, V.K. Mehta, an executive director at the company, said in an interview.

Mehta also said India will become the world’s second largest steel maker in 2012 and that demand for the metal will outpace that in China, Russia and Brazil.


Hyundai to invest Rs800 cr on small car for India

Chennai: South Korean car-maker Hyundai will invest around Rs800 crore to develop a small car for the Indian market that is likely to be launched in the next two years.

The firm, which has operations in India through a wholly -owned subsidiary, Hyundai Motor India Ltd, will manufacture the car, which will be smaller than the Santro, at its plant here.

“We are developing a small car and approximately Rs800 crore will be invested at the Korean plant for development," newly appointed managing director and chief executive officer of Hyundai Motor India Ltd (HMIL) Han-Woo Park said.

He declined to give any details, but said: “It will be smaller than the Santro and the price will also be lesser. It will take at least 24 months from now to launch the car in India. Right now, it is in the design stage."

“Initially it will be targetted at India but gradually it will also be exported," he said.

“It will be manufactured at the Chennai plant once the design gets completed," he said.

HMIL, which sells popular compact cars like Santro, i10, i20, has made India a small car hub for the Korean firm and has been exporting the cars to overseas markets.

In October, the company sold a total of 51,736 units, an 11% growth compared with same month last year. Its exports, however, dipped by 11.9% to 23,435 units during the month.


Bharti to look at opportunities in emerging markets

Bharti Airtel Ltd., India’s largest mobile-phone operator has said that it will look at opportunities in emerging markets after a failed merger with South Africa’s MTN Group Ltd.

“Bharti is interested in markets where we can implant our unique business model, which is a growth model and that will be a win-win for us," chief executive officer Manoj Kohli said on Tuesday in a television interview.

“I think we’re done with MTN," he said.

The New Delhi-based carrier aims to expand outside its home market as it faces increasing competition from Vodafone Group Plc and Japan’s NTT DoCoMo Inc. Bharti last month reported profit growth slowed for the ninth quarter as competitors cut call charges in the world’s second-largest wireless market.

“India’s auction of spectrum to provide third-generation wireless services is scheduled to take place on 14 January," said Kohli, who expects Bharti to start its commercial 3G service in early 2010.

“I think we are a bit late, behind many countries in the west," Kohli said adding: “but I think it’s right time for us, because of the affordability needs of Indian customers, because the infrastructure now will be at the right cost and handsets will be under $100."

In September, Bharti called off talks for a proposed $23 billion merger with MTN after failing to get South African government approval, setting back efforts to create a company that would have trimmed costs and challenged Vodafone.

— Bloomberg