www.skpcrossborder.com Jan 2006
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India Inc - Investment briefs

Tata Steel to buy Thai Millennium for US$ 400 mn

Tata Steel Ltd. recently struck a deal to buy Thailand's Millennium Steel PCL for about US$ 400 mn.

Tata Steel, India's largest private steel producer, acquired Singapore's NatSteel Ltd. last year giving it downstream steel processing plants in China and Thailand. It has since been searching for more assets in Asia as part of its $23 bn expansion programme over the next 12 to 15 years.

Millennium has a capacity to make about 2 mn tonnes of wire rods a year. With this new venture Tata hopes to use semi-finished steel from its plants in India and convert it into products such as steel sheet for the auto sector or wire used in construction.

Tata Steel has also announced plans to set up two new plants in India and expand its existing plants to take its steel making capacity to about 34 mn tonnes over the next few years.

Indian Hotels buys Sydney's W Hotel for US$ 27 mn

The Indian Hotels Company Ltd (IHCL), which runs the Taj group, recently acquired a property in Sydney for US$ 27 mn from Harilela Group of Hong Kong.

The acquisition marks the entry of the Taj group in the Australian market.

Called the W Hotel, the 100-room property is currently operated by Starwood Pacific Hotels under its `W' brand. Taj Hotels is likely to take over management from early February 2006.

IHCL has been rapidly expanding its overseas presence, taking the Taj brand international and creating brand awareness in its key markets. Last year in July it acquired the management of The Pierre Hotel in New York. This year it has entered into management contracts for leisure properties in Malaysia (Rebak Island Marina Berhard) and Dubai (Taj Exotica Resort and Spa, Palm Island).

The Taj group also intends to extend its footprint to areas in China, Russia, and Singapore among other emerging destinations. The Australian acquisition will take the total number of its international properties to 18 . It now sports properties across the US, the UK, Africa, West Asia and the Far East, besides the 56 hotels spread across 39 Indian cities.

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Boeing to invest US$ 185 mn in India

India's civil aviation minister, Praful Patel, recently made know the Boeing Company’s plans to invest US$ 185 mn in facilities in India and source US$ 1.9 bn in products and services over a period of 10 years.

Along with an investment of $100 mn on a repair, maintenance and overhaul facility, the Chicago-based aerospace company will spend $75 mn on a pilot training facility, with a further $10 mn on other facilities.

The aviation Ministers announcements included a confirmation of state-run airlines, Air-India, intention to buy 68 aircraft from Boeing, in an attempt to expand and modernise its fleet, affect cost savings and add new long-range routes. The aircraft are valued at more than $11 bn in total at list price.

While making known Boeing’s intentions to look at India's participation in design and manufacture of aircraft parts in the long term, Alan Mulally, chief executive, Boeing Commercial Airplanes also revealed a contract with HCL Technologies for software for the 787.

Boeing is also in deals with Hindustan Aeronautics Ltd., a research deal with the Indian Institute of Science, and software services agreements with Tata Consultancy Services Ltd. and Wipro Ltd.

With delivery scheduled for November 2006, the 68 aircrafts include 23 777s - including eight long-range and 15 extended range aircraft - and 27 of the wide-body Dreamliner, due to enter service in 2008. Air-India Express, the budget airline, will receive 18 737-800s.

Swiss Gudel to open manufacturing unit in Pune

Swiss Gudel, a major player in the linear robotic technology and automation system, recently opened its factory at Pirangut near Pune.

With an investment of $2.5 mn, the new unit will manufacture industrial robots, gantry, systems with articulated robots. The factory is spread over three acres and has a design centre, validation centre, area for trial and testing of the manufactured robots as also special system for simulation. Its production capacity is roughly 30 to 40 systems per year, with robots in three modes - for machine testing that is for loading and unloading of parts, handling parts for the different processes and for bottle packaging.

The first robot is set to leave the factory premises to its customer - the Baroda-based Elecon - for loading CNC lathes, followed a month later by a delivery Saint Gobain for glass handling.

Gudel had set up its operations in Pune in November 2004. It also has a manufacturing centre for accessories required for robots. It already has installations in the country at Hyundai, Saint Gobain, Asahi, Tata Motors and Samtel among others. Recently, it supplied 300 m gantry to Bharat Forge for 230 kg crankshaft manufacturing.

In future the company will be looking at requirements in other segments such as food processing, packaging and spatial measurements, which the parent company is already into.

While the Company would like to start exports in two years, it plans to claim in the next five years a minimum of $20 mn of the $50-60 mn Indian market.

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India Inc
- Investment briefs
TCS eyes BPO units in Europe
Malaysian edible oil firms keen on plantation, refining in India
Biotech-IT park coming up in Pant Nagar
French car maker revs up to enter Indian market
Tata Steel to buy Thai Millennium for US$ 400 mn
Indian Hotels buys Sydney's W Hotel for US$ 27 mn
Boeing to invest US$ 185 mn in India
Swiss Gudel to open manufacturing unit in Pune

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