Category: Breaking Corporate India Earnings News

Hexaware Technologies on 04 October 2007 has won a large engagement with a leading German Financial Institution. The order is worth 5 mn Euros.

This is a major development project which entails building a new core application for the client. The scope of the build also involves integration of the new built solution with the back-end system involving three different businesses of the client. A fairly large J2EE programming team and Oracle experts have already been deployed on the project.

Panacea Biotec has entered into a MOA with Family Vaccines, Philippines to provide access to value added combination vaccines under the umbrella of easy vaccines manufactured by the company, to the people in Philippines through a chain of 50 immunization clinics, run by Family Vaccines.

Philippines has a birth cohort of around 2.5 million with an EPI immunization coverage of about 80%. At a GNI per capita at US $ 1170 and a GDP per capita at US $ 4614, Philippines has been accorded a developing country status. The global vaccine market is expected to top US $ 10 billion in 2007 and US $ 23.8 billion in 2012.

Ranbaxy Laboratories on 04 October 2007 the company has received final approval from U.S. FDA to manufacture and market clarithromycin for oral suspension, USP, 125 mg/5 ml and 250 mg/5 ml. The company is the first company to have been granted a generic approval for the oral suspension form along with clarithromycin tablets. Total annual market sales for clarithromycin were $99.7 million with suspension sales totaling $25.3 million.

The office of generic drugs, U.S. FDA, determined the Ranbaxy formulation to be bioequivalent and to have the same therapeutic effect as that of the reference listed drug Biaxin Granules (clarithromycin for oral suspension, USP), 125 mg/5 ml and 250 mg/5 ml of abbott laboratories.

European automobile major Volvo is reportedly in advanced negotiations to acquire a majority stake in Eicher Motors. As per reports, Volvo has emerged as the front-runner after inspecting the Indian truck makers’ books, pipping DaimlerChrysler.

Report suggests that Volvo had offered Rs 675 an Eicher share against Daimler’s Rs 500. The deal price is expected to be above Volvo’s offer, translating into a market capitalisation of around Rs 2,000 crore for Eicher Motors. This is way above Eicher’s current market price and market capitalisation of Rs 1,202.53 crore.

Volvo may acquire the majority stake in the company either from the promoters or through fresh issue of shares trough the preferential route. The existing promoters headed by Siddhartha Vikram Lal will continue to own a minority stake in Eicher Motors, which could be less than 26%, the report added.

We have received reliable information from insiders that AT&T Bids For India Telecom License With Mahindra Unit – US Telecommunications major AT&T Inc. Sources said it has bid for licenses to provide mobile services in all 22 circles in India.

Bharti Airtel has become the first Indian telecom company to hit a subscriber base of over 50m (about 48m of these would be mobile customers) till the end of September, making it the tenth largest wireless telecom operator in the world. The company will also launch its DTH by the end of March 2008.

Omaxe’s wholly owned unit Satvik Hitech Builders Pvt. Ltd. will apply for a license to provide telecommunications services in 22 circles.

So considering this rush of new applications, Vodafone’s BUY out of HTIL appears to be really cheap and reasonable.

Sobha Developers has entered in to a joint development agreement with QVC Realty and Chintels India, to develop an integrated township spread over 192 acres in Gurgaon, Haryana. This is an addition to the list of integrated township projects already launched by the company in Kochi and Thrissur.

Projected investment estimated to be over Rs 20,000 million and the total development in excess of 6.5 million square feet.

US-based private equity fund Goldman Sachs is learnt to be in talks with Indiabulls Real Estate (IREL) for investing $200 million (around Rs 800 crore).

Insiders told us that half of the proposed investment, around Rs 400 crore, could be in a 50:50 special purpose vehicle (SPV) to be floated by Goldman Sachs and parent firm Indiabulls, while the remaining Rs 400 crore could be in IREL’s existing projects.

Indiabulls Group is also looking to diversify into sectors like power, retail and telecom. The group has already applied for mobile licences.

The Mahindra Group is planning to hive off its logistics division, Mahindra Logistics, into a different company. The group will invest at close to Rs 1,200 crore for expansion of the business.

Mahindra Logistics is also reportedly in talks with international players in similar businesses for investing and exploring joint venture possibilities.

The report indicated that usually large firms have a logistics division to handle in-house and external transportation business. But as the Indian economy continues to grow at near double digit rates, the demand for logistics, as well as the sector itself, is rapidly increasing.

Mahindra Logistics handles transportation requirements of specified projects for other companies. It also offers corporate employee transportation services mainly to information technology and outsourcing companies.

Mukesh Ambani is also entering Logistics in a big way. Previously he was unsuccessful in BUYING out India’s largest Logistics company – VRL – Vijayanand Roadlines Pvt Ltd. VRL will go public sometime in 2008 according to our sources.