Executive Briefing

Reverse repo deals for corporates likely: The standing committee on money markets, headed by RBI deputygovernor YV Reddy, has recommended that RBI may allow corporates to enter into reverse repo deals with the central bank.

DSE brokers block merger plan: DSE has dropped its ambitious proposal of creating a mega northern region stock exchange through a merger with Kanpur, Jaipur and Ludhiana stock exchanges following opposition from several brokers who did not consider it feasible and felt it would result in devaluation of DSE’s membership card.

Telco figures in Fortune best bets: The Fortune magazine has identified Telco as one of the top 10 investment opportunities in Asia for the year 1999. In its latest issue featuring “Investor’s Guide – ’99”, the magazine has hand picked 10 stocks for long-term investments in Asia. Telco has been identified as one of the “good bets at a high-risk time,” by the magazine.

Andhra Pradesh plan to help M&M project: The Andhra Pradesh government is in the process of forwarding a proposal to the railways seeking a fast train service from Hyderabadto Zaheerabad as part of an incentive package to M& M. The company is believed to have stated that this will be a key factor in finalising the Zaheerabad site for "Project Scorpio", the new-generation multi-utility vehicle scheduled to make its debut in the third quarter of 2001.

Ceat rules out retrenchment: Ceat Ltd is moving against the recessionary tide. The company’s management has insisted that all its 3,900 workers remain in employment, irrespective of any restructuring or modernisation plans the company intends to implement. In a recently-signed agreement with workers at the Bhandup unit in Mumbai, the management has emphasised it will not cut any jobs.

MTNL to launch Internet service: MTNL will launch Internet services from January 26 as it has been issued a licence by DoT. MTNL will become a private Internet service provider, and provide 50,000 connections each in Mumbai and Delhi.

Scott Systems to open UK office: Pune-based Scott Systems, one of the largest infotechheadhunters in Asia, is setting up an office in Bracknel near London. A manpower resource centre of the $197 million Mastech Corporation, Scott systems will open the centre on January 15, 1999.

Rothmans expects to break even after seven years: International tobacco major Rothmans of Pall Mall of the UK expects to break even after seven years of setting up shop in the country. The company’s proposed 100 per cent subsidiary–Rothmans of Pall Mall (India) Ltd has set a target of incremental exports of $70 million over seven years.

Exide plan to stay on top: Exide Industries, which controls 92 per cent of the automotive batteries market, has devised a twin-track strategy to stay at top. First, it will develop new products, created through advanced R&D in collaboration with Hitachi of Japan, at the new car market. Second, to compete with the unorganised sector and improve margins, it will market aggressively in the replacement segment.

Sridevi to endorse Tata Tea’s Agni brand: Positionedagainst HLL’s A1, the fastest growing tea brand, as well as loose tea and local brands, Tata Tea has built the `Agni’ image on a platform of power and strength. Running an extensive test marketing around the country, the tea major will launch the exclusive brand this week. The brand will be endorsed by actress Sridevi. Agni will be marketed in all formulations be it dust or leaf varieties across the country.

Bankers move on euro awareness: For Indian exporters the euro is a non-event, or so do they think. However, foreign bankers are trying to convince them that it does matter in the medium to long run and they must be prepared.

BoI to sell off non-SLR assets: BoI will offload its low-yielding non-SLR investments to shore up its capital adequacy ratio which is pegged at 9.4 per cent. BoI chairman S Rajagopal said on Wednesday that the bank will sell off investments even at the cost of booking trading losses. The bank wants to expand the credit portfolio aggressively.

State selected forAsia’s largest trade fair: Maharashtra has been chosen as the partner state for the second consecutive year at Asia’s largest industrial trade fair, IETF’99 at New Delhi. As partner state, Maharashtra, which is the most rapidly developing zone in 1998 with a GDP one-and-a-half times the national average, would highlight its investment potential to a large number of domestic and international investors.

Industry to protest against power tariff hike: Over two lakh industrial units and traders in Maharashtra have decided to observe a `Black Day’ on December 14, the first day of the winter session of the state assembly, to protest against the increase in power tariff by MSEB. These units will switch off power at their end between 11 am and 12 noon and between 7.30 pm and 8.00 pm on that day.

FMC chairman gets two-year extension: The government has given a two-year extension to Forward Markets Commission chairman Vijay K Aggarwal. Aggarwal, whose five-year term expired on December 3, willnow hold office till December 2000. Aggarwal’s extension is part of the strengthening exercise at the FMC.