The Hindu Business Line : Weekly News Round up

Indian industry registered a year-on-year growth of 1.43 per cent in April. Although modest, it is better than the preceding month figure of minus 0.75 per cent. The 1.43 per cent annual rise in the Index of Industrial Production in April - against 6.22 per cent last year - has been led mainly by electricity and mining. These two sectors have grown by 7.06 per cent and 3.8 per cent, as compared with 1.39 per cent and 6.14 per cent respectively in April 2008.

Indian Hotels Company Ltd, which runs the Taj Group of hotels, will acquire Sea Rock Hotel in Mumbai for Rs 680 crore. Indian Hotels will pick up an 85 per cent stake in ELEL, the company which holds a long-term sub-lease of the land on which Sea Rock is built. Indian Hotels will demolish Sea Rock and develop a hospitality structure. It would also house a convention centre, besides commercial and retail outlets.

Shareholders of a de-listed company will be allowed at least one year after the date of delisting to tender their shares to the promoters of the company, according to the delisting regulations that were notified this week. The existing delisting guidelines of SEBI allow a period of six months only. To make for a successful delisting, the minimum stake to be held by promoters and persons acting in concert must be brought to 90 per cent.

The annual wholesale price index based inflation rate has further slipped from 0.48 to 0.13 per cent for the week ended May 30. That makes it the 13th consecutive week where year-on-year inflation has ruled below the 1 per cent level. The coming week (i.e. ended June 6) could well see the headline inflation rate turning negative - the first time in over two decades. The sub-one per cent overall inflation numbers, however, hide the much higher price increases registered in foodstuffs.

Satyam Computer Services Ltd earned a net profit of Rs 52 crore in February on a strong operating profit margin of 17.46 per cent. The company had earned Rs 637 crore total income during the month. The operating profit was Rs 118 crore without other income, which was negative due to foreign exchange loss. It was at Rs 61 crore in January.

Specialty chemicals company Lanxess India Pvt Ltd said it is set to acquire the chemical businesses and some assets of Gwalior Chemical Industries Ltd for Rs 536 crore (82.4 million euro), a cost that includes debt of Rs 156 crore (24 million euro). It is the first acquisition of Lanxess India, a subsidiary of Germany-headquartered Lanxess AG. The deal is expected to conclude by the end of the third quarter of the current fiscal.

Pfizer Animal Health has acquired Vetnex Animal Health Ltd, Ranbaxy's animal health business that was later divested to ICICI Venture. The acquisition is expected to close by the end of the third quarter of the financial year. The company, however, has not disclosed the financial details. Pfizer Animal Health is a business unit of Pfizer Inc, and Vetnex has a presence in the poultry, livestock and companion animal segments.

Compiled by M J Madhavan
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