Bizbits

MUMBAI: The public sector behemoth 8211; Cotton Corporation of India CCI 8211; has set itself the target of procuring 8-10 lakh bales of cotton during the year commencing on October 1 depending on the crop situation. Addressing a press conference after the 28th annual general meeting, M B Lal, chairman of CCI said that the crop damage has been negligible and the total crop in the country during the new cottonyear is likely to be around 178 lakh bales, the record registered in the year 1996-97.

He also expressed readiness to commence operations in Maharashtra if it was allowed. Presently with the current monopoly procurement scheme in place the CCI cannot operate in the state. Textile commissioner BC Khatua, who was also present at the conference stated that the monopoly scheme prevalent in Maharashtra has got an extension of one year with a rider that it will not get any further extensions. He congratulated the chairman of CCI for attaining excellent results when all the sectors of the cotton industry had faced a severe jolt last year due to several reasons including far-east currency crisis and low demand of yarn, both domestically and internationally.

For most of the 1997-98 season, the international price of cotton remained either lower or at par with the domestic prices in India. Hence, there was little demand for Indian cotton in the overseas market except some demand from Bangladesh.

Gujaratannounces new IT policy

GANDHINAGAR: One of the most industrially developed states, Gujarat wakes up a little late but firmly to enter the sunrise industry8217; with chief minister Keshubhai Patel announcing the state8217;s first Information Technology IT Policy on Tuesday.

The highlights of the policy included immediate creation of a State Venture Capital Fund of about Rs 50 crores, floating an autonomous company, named Gujarat Informatic Limited, and setting up a HighTech InfoCity on a 200-acre plot on the outskirts of the state capital here. Patel said the state government has decided to commit at least one per cent of the state government budget to provide resources for proliferation of IT8217; by 2000 AD, gradually raising it to 3 per cent of the budget by 2005. The policy beckons private participation in attracting additional resources and encouraging healthy competition from global agencies mainly in creating 1 information corridor between the state capital and 26 district headquarters by2001.

Philips sells unit

MUMBAI: Philips India has announced the sale of its industrial components unit at Loni in Pune to Compass Partners International, a private equity firm with offices in New York and London for an undisclosed sum.The sale of the industrial components in India is part of the worldwide decision to divest its non-ceramic passive components business group as a 8220;going concern8221;. The Loni unit, manufacturing of non-ceramic passive components, contributed about five per cent of Philip India8217;s sales turnover for 1997.It has over 700 employees and 10 managerial staff. The value of the plant and machinery, along with 65 acres of real estate at Loni, are pegged at about Rs 100 crore.

Amex Bank

MUMBAI: American Express Amex Bank, the travel and financial services company, on Tuesday announced the launch of retail banking services in India. It has tied up with the Karvy group for the distribution of its quot;Personal Financial Servicesquot; PFS products.

K L Muralidhara PFS,said that it would introduce new products in deposit, credit and advisory services. Rupee firms up MUMBAI: The rupee firmed up against the US greenback on renewed dollar sales by corporates and exporters spurred by expectations that economic sanctions against India would be lifted.In interbank foreign exchange forex market the rupee rallied smartly to close sharply higher at 42.45/47 per dollar, a more than five paise gain from the overnight finish of 42.50/52.

NPL plant sale

HYDERABAD:

Natco Pharma Ltd NPL board of directors, in a bid to save the company from disaster, has proposed to sell its bulk drug division and certain immovable and movable properties.

The company has called for an extraordinary general meeting EGM on October 7, 1998, to seek shareholder approval. quot;The company is considering various options available for restructuring its operations and improve profitablity,quot; Natco Pharma sources said. To help facilitate this, Natco Pharma plans to sell any of itsdivisions/facilities, business rights and tangible/intangible assets, the sources added.

According to an estimate, the sale of the division and other assets will fetch about Rs 150 crore for the company. This will enhance the company8217;s networth.