Tata Tea sips a Czech flavour

The UK-based subsidiary of India's second largest tea marketer, Tata Tea Limited, has signed an agreement to acquire the assets of a leading tea company in Czech Republic. Tata Tea (GB) Limited will buy Czech-based JEMCA from food processing company Alima Znackova Potravina. The company has still not disclosed the terms of the deal. The acquisition is being funded by the Tata-owned Tetley group, which it had acquired in 2000. Post this acquisition, Tata Tea (the world's second-largest branded tea company) would be able to consolidate its presence in Eastern Europe. JEMCA, which sells a wide variety of black, green, fruit and herbal tea, will continue to trade under the JEMCA brand name and pack tea at its production facility in Jemnice, Czech Republic.

Nissan to zoom down Indian roads

Japan's third largest car maker Nissan unveiled its plans of setting up a manufacturing or assembly plant for cars in India. The total investment would be to the tune of $840 million. Nissan is already selling premium SUV X-Trail in India, which it imports as a completely built unit (CBU). The company is reportedly planning to manufacture a 1300cc car, positioned in B+ segment. Market analysts suggest that this particular segment has the largest growth potential in the Indian car market - the hotselling Maruti Swift and Hyundai Getz are also positioned here. Much of the production is likely to be exported. Major Nissan stock holder, Renault SA, is already present in India through various collaborations with indigenous manufacturers like Mahindra & Mahindra.

Arjun Singh's reservation dilemma

In an effort to find some way out of the controversial reservation dilemma, the government announced on May 13 that if the private sectors failed to come up with any affirmative action, then it would become imperative for the government to bring in some law. After Arjun Singh's advice to bring in reservation for SC/ST and other backward classes in professional colleges, much debate has been going on. The corporates in particular, including big names like Narayana Murthy and Sunil Mittal, are not happy with this kind of planning and have asked the government to give them some time to find out a mutually acceptable way.

Monitor machine. in the exchange!

The Bombay Stock Exchange (BSE) has new innovations in mind, and in line with that it has set up an online surveillance system to ensure proper functioning of the capital markets. The system has been implemented by Wipro Infotech and Oracle. The first phase of the implementation was over in August 2005, and with the increasing surge in the market, the system becomes more relevant now. With technology being the main driver of growth in the capital market, BSE looks forward to more such kind of investments for facilitating functioning. With over 5 million transactions in a day, an integrated surveillance system for effective monitoring and compliance is necessary. Thus implementing such a solution will improve the speed of investigations. Presently, BSE's Online Surveillance System-integrated (BOSS-I) permits monitoring and data management for any suspicious activity.

ICICI Bank to fly the Indian way

A Memorandum of Understanding (MoU) has been signed between Indian (earlier known as Indian Airlines) and ICICI bank to facilitate the aircraft acquisition of the state-owned airline. The ICICI Bank would fund the pre-delivery advance payments (PDPs), which would be an External Commercial Borrowing (ECB) of $152 million. Apart from the PDP funding, the bank will also help Indian to apply for Export Credit Agencies (ECA) to get long-term funds. The agreement would be spread over a period of four years, starting from June 2006 till January 2010.

Deutsche does a 'Real'ty check

As the Indian retail sector is witnessing a 'Golden Age', it has become the centre of gravity for real estate corporates and investors worldwide. Rreef/DB Real Estate, the real estate unit of Deutsche Bank AG, plans to start off with a global fund that will invest about $300 million in India. The company sees huge untapped potential in commercial office space as more companies prefer to rent offices rather than own them. The company said that it may start a second fund, if India continues to pay well.

'Jet'ting a deal with Lufthansa

India's largest domestic airline, Jet Airways, has entered into an agreement with German national carrier Lufthansa. The agreement would revolve around the frequent flier programme of both the airlines, allowing members to collect or redeem their traveler points while using services of any one of the airlines. The facility is not only applicable to the 42 weekly flights, which Lufthansa operates from India; rather it has been further extended to the airline's 13,200 global weekly flights. This tieup between the two carriers looks to be extremely timely, as the Indian aviation market is growing at a phenomenal rate presently.

DLF under MRTPC scanner

DLF Universal Limited received a rap on the knuckles after the Monopolies and Restrictive Trade Practices Commission (MRTPC) found the Indian real estate biggie guilty of unfair trade practices. DLF was found guilty for delaying construction and subsequently charging extra money from customers for cost escalations. The issue was brought to MRTPC after aggrieved customers requested for an Unfair Trade Practice enquiry against DLF. The customers also filed a compensation application, seeking interest for late delivery, as DLF could not finish the construction on time. MRTPC has asked DLF to pay interest at the rate of 9% to its consumers.

IRDA against 100% FDI in SEZs

The Insurance Regulatory and Development Authority (IRDA) has disallowed the establishment of insurance firms with 100% FDI in special economic zones (SEZs). The SEZ, by definition, is not included in the domestic tariff area, therefore, regulating such entities in India is not possible. Any disputes arising out of claims will have to be settled by a court outside India. The Regulator wants that insurance firms in SEZs should, instead, be treated at par with general industry norms, which it has conveyed to the finance ministry. The government wanted to take advantage of the provisions in the new SEZ Act.

Tata 'Motor'ing down Brazilian roads

Tata Motors Ltd. has revealed its plans to hold 51% in a joint venture pact with Brazil's Marcopolo. The contract entails manufacturing of buses and coaches for Indian and overseas markets. An investment up to Rs.2 billion would be required to set up a new plant. The set up will have an initial capacity of 7,000 vehicles geared to make standard, luxury & city buses. With this joint venture with Marcopolo, Tata Motors would now be in a position to successfully address the growing demand in India.

Dravid: The new 'Citizen'

Japanese watchmaker Citizen plans to invest roughly $4 million in India in the next two years. The company is fiercely strategising itself in order to accomplish its goal of doubling its last year's turnover of Rs.600 million. It plans to open 350 retail outlets across the length and breadth of the nation by the year end. Citizen has also signed up the immensely popular Indian cricket team captain, Rahul Dravid as its brand ambassador.