NEW DELHI | MUMBAI: India Hospitality Corp, the owner of Mumbai eateries Jazz by the Bay and All Stir Fry, has bought UK’s Adelie Food Group, which supplies quiches, salads, sandwiches and assorted ready-toeat food to retail chains such as Starbucks coffee and Sainsbury’s supermarkets, for $350 million from PE firm Duke Street Capital.
The transaction, the largest overseas acquisition by an India-focused company in the food and beverages segment since Tata Tea bought vitamin water maker Glaceau in 2006, will enable India Hospitality Corp (IHC) to spread its wings internationally.
IHC had made a failed attempt to acquire London’s famous noodle chain company Wagamama two years ago.
The deal will also make IHC India’s largest food services company and help strengthen its presence in the rapidly growing out-of-home food market in the country.
The company is a supplier to Cafe Coffee Day and Costa Coffee, and plans to expand this business aggressively.
“We have signed the deal. The acquisition makes us India’s largest food services company. We will make packaged food readily available for Indian consumers to buy from supermarkets and even from some mom-and-pop stores,” said IHC Chairman Ravi Deol.
Deol, who was Barista coffee chain’s first chief executive officer, said a decade ago only the affluent went to coffee shops in India, but now the middle class is willing to pay a premium for ready-to-eat food if it is fresh and packaged neatly.
According to Euromonitor, Indians spend $64 billion annually on eating out, which includes $13 billion on eating in quick-service restaurants (QSRs) such as McDonald’s and Costa Coffee, propelling the industry to grow at 25-30% annually.
“QSRs are reaching a critical mass,” said Debashish Mukherjee, partner and head of foods at consulting firm AT Kearney.
“There i s a need for food companies which can supply to large QSR chains instead of them depending on fragmented purchases,” said Debashish Mukherjee, partner and head of foods at consulting firm AT Kearney.
Adelie will help IHC create cold food manufacturing facilities and distribution chains in the country and provide the Indian company with consumer insights that can be suitably tailored for the local market.
The $350-million Adelie Group employs over 3,000 people across its seven manufacturing locations and distribution network in the UK. It supplies packaged food to supermarkets, cafes and airlines.
In addition to Starbucks and Sainsbury, its marquee customers include Asda, Costa Coffee and Gate Gourmet. The group consists of six companies and the existing structure of Adelie as the umbrella parent company is expected to continue with group firms such as Food Partners and Buckingham Foods maintaining their local identities.
Registered in Cayman Islands, IHC was set up as a blank cheque firm in 2006 with the specific mandate of making investments in the restaurant and hospitality sector. At present, Deol, Sandeep Vyas, a former Yum Restaurant executive, and Jason Ader, the founder of a New York-based hedge fund, own two-thirds of IHC with Goldman Sachs and Fidelity being the other shareholders.
In 2007, the company acquired airline catering firm Skygourmet and Sanjay Narang’s Mars Restaurants, a multi-brand restaurant chain with particular focus on western India.
In addition to Jazz by the Bay and All Stir Fry, it owns a string of restaurants and food outlets including Birdy’s, Dosa Diner, Roti, Pizzeria & Pasta Bar, and Tendulkar’s. In the hospitality sector, it owns Gordon House Hotels.
BIG BOYS OF INDIA INC HIKE STAKE IN GROUP COMPANIES
MUMBAI: The big boys of India Inc are hiking their stakes in group companies through various financial instruments, which includes buyback of shares, subscribing to preferential warrants or purchasing shares from the open market, signalling a confidence in their company’s future earnings. India’s richest businessman Mukesh Ambani, CMD of India’s largest company by market value Reliance Industries, and Subhash Chandra Goel, chairman of country’s largest television broadcaster Zee Entertainment Enterprises, have chosen to buy back shares from investors, while Kumar Mangalam Birla, chairman of the Aditya Birla Group, will purchase 1.65 crore preferential warrants for R1,500 crore in the next 18 months in Aditya Birla Nuvo (AB Nuvo). The latest to jump on the bandwagon are the Mahindras, the owners of India’s largest tractor and sports utility maker Mahindra & Mahindra (M&M), who have chosen to increase their stake by purchasing small slots of shares from the stock market. The group has increased its stake in the last three quarters to 25.34% in the past three fiscal quarters between April and December 2011, overtaking domestic institutional investors’ stake at 20.31% and a shade lower than the 26.30% owned by foreign institutional investors. (For details log on to: http://www.financialexpress.com/news/big-boys-of-india-inc-hike-stake-in-group-companies/935782/)
ADITYA BIRLA ARM TO INVEST RS 100 CRORE IN TRIMAX
NEW DELHI: Aditya Birla Capital Advisors, the PE arm of the Aditya Birla Financial Services Group, plans to invest Rs 100 crore in the Mumbai-based Trimax IT & Infrastructure. Trimax, promoted by S P Madrecha and C P Madrecha, is an information technology systems integration and managed service provider. It has partnered with technology providers such as Cisco, HP and Microsoft to offer systems integration, network rollout and maintenance and cloud computing services to companies and government agencies. Aditya Birla Capital Advisors CEO Bharat Banka confirmed the deal and said, “Trimax is uniquely placed within e-governance and the enterprise sectors, which exhibit strong and encouraging growth prospects. We are excited to collaborate with Trimax and play a value-added role in the growth of the company.” (For details log on to : http://www.business-standard.com/india/news/aditya-birla-arm-to-invest-rs-100-cr-in-trimax/471023/)
ASHOK LEYLAND, CZECH TRUCK ARM ENTER UK MARKET
CHENNAI: Commercial vehicle maker Ashok Leyland, part of the London-based Hinduja Group, is to enter Britain’s mid-range truck market through a tie-up by its Prague-based subsidiary, Avia Ashok Leyland. The latter has joined hands with a group of businessmen in the UKand launched a company called Longton Avia (UK) Ltd. Longton is part of the city agglomeration of Stoke-on-Trent in northwest England. Initially the new company would importing the trucks from Avia’s factory in Prague(CzechRepublic). There are plans to later build an assembly plant in Longton itself, said Jonathan Dale, commercial director, and one of the three businessmen mentioned earlier. “There was room for mutual benefit in forming a trading relationship and so a new company was formed,” he said of the Leylanddeal. Leyland, based in this city and India’s second largest maker of commercial vehicles (CVs), had acquired the truck business unit of Avia in 2006, as part of a plan to grow in the European Union and eastern European markets. It was also interested in access to a modern international vehicle for its light and medium CV range for Indiaand other export markets. (For details log on to : http://www.business-standard.com/india/news/ashok-leyland-czech-truck-arm-enter-uk-market-/471042/)
IIMs SHELVE GLOBAL EXPANSION PLANS
MUMBAI/AHMEDABAD: After years of fighting with the government to go international, the Indian Institutes of Management (IIMs) may not spread their wings at all. The three IIMs — Ahmedabad, Bangalore and Calcutta — confirmed to Business Standard that the economics of having an international campus is not in their favour and the same may not happen in the near future. The Ministry of Human Resource Development (MHRD), had in October 2009, allowed the IIMs to go international, but only as a collective brand. Some IIM directors, however, felt it would affect individual brand identity of their campuses, and had made known their fears to the MHRD, which then allowed them to go international with their individual brands. “I am not in favour of splitting my faculty across 10 locations. We have been getting proposals from various state governments to set up campuses in their respective states, but at this juncture, we want to take the advantage of ‘everybody together’ and grow here. We will, however, do activities abroad,” said Pankaj Chandra, director, IIM Bangalore. (For details log on to : http://www.business-standard.com/india/news/iims-shelve-global-expansion-plans/470982/)
ZEE TV BECOMES FIRST INDIAN CHANNEL TO FORAY INTO CHINA
BEIJING: Zee TV has become the first Indian television channel to enter the Chinese market. The clearance, which came after six years of negotiations, would allow leading Chinese hotels to access Indian programmes broadcast by Zee TV. For the first time, Indian cultural content including television soap operas will be distributed in Chinese television market, Indian officials here said. Some of the translated versions of the Indian drama serials are already popular in Chinese channels. The permission would enable Zee TV to focus on this segment. Zee TV acquired the rights in Chinaafter receiving the landing agreement from CTV-STVP, which is the sole agent authorised by Chinato distribute the foreign landed channels in the country. (For details log on to : http://www.business-standard.com/india/news/zee-tv-becomes-first-indian-channel-to-foray-into-china/162786/on)
INDIA INC INVESTED $2.7 BILLION ABROAD IN MARCH
MUMBAI: Overseas investments by Indian companies stood at $2.77 billion in March, up 37.6% over the previous month, with Binani Industries, Mercator Lines, HCL Technologies, Varun Shipping, Hexaware Technologies, Tata Steel emerging as major investors. As many as 489 overseas investment transactions were carried out by various companies in March, as per the Reserve Bank data released on Wednesday. Binani Industries invested a total of $323.34 million in its two wholly-owned subsidiaries based in Luxembourgand the USthat are involved in financial, real estate and manufacturing services. Mercator Lines, which is into agriculture and mining, through its joint venture-Mercator Offshore PTE-invested $150.15 million in Singaporeduring the month, it said. (For details log on to : http://www.financialexpress.com/news/india-inc-invested-2.7-bn-abroad-in-mar/935550/)
WALMART MAY ENTER ONLINE RETAIL IN INDIA
NEW DELHI: American retail giant Walmart is learnt to be actively exploring the online space in India. It was in talks with some leading e-commerce companies in Indiafor partnership possibilities, sources close to the development said. Walmart, however, said the information was “completely speculative”. The world’s largest retail company, with global revenue of $400 billion, is currently trying to strengthen its e-commerce operations in the USand other international markets, sensing competition from online competitors, including Amazon. In recent months, Walmart has been acquiring web-related companies internationally, including in China. The e-commerce space has turned active in India, with several serious entities in the game. Amazon has also entered but through the aggregator route, by launching jungle.com. Amazon opted for the indirect entry due to the restrictions on foreign direct investment (FDI) in the retail sector. (For details log on to : http://www.business-standard.com/india/news/walmart-may-enter-online-retail-in-india/471021/)
TELECOM SECTOR ATTRACTED $ 12,400 MILLION FDI IN 11 YEARS
NEW DELHI: The cumulative foreign direct investment in the country’s telecom sector over period of around 11 years crossed $ 12,400 million in September 2011, an annual report of Department of Telecom released today said. “Today, telecom is the third major sector attracting FDI inflows after services and computer software sector… Actual FDI in the telecom sector from April 2000 to September 2011 is $ 12,456 in million,” the report said. The government allows 74 per cent FDI in companies providing telecom services except for providing infrastructure, e-mail, voice mail service and manufacturing of telecom equipments, where 100 per cent FDI is allowed. By the end of financial year 2011, cumulative FDI in the country stood at $ 10,555 million, which 18.27 per cent more compared to $ 8,924 million in March 2010. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/telecom/telecom-sector-attracted-12400-million-fdi-in-11-years/articleshow/12628327.cms)
INDONESIAN TREMORS SPARK FEARS OF COAL CRISIS AMONG POWER COMPANIES
MUMBAI: A massive earthquake off Indonesiaon Wednesday rattled investors and sparked fears of a fresh crisis in coal supplies to the beleaguered domestic power sector. Shares of power generators, who are already struggling with issues relating to price of coal from Indonesia, fell around 2% as against a fall of 0.3% in Sensex. “This is a knee-jerk reaction to the news as it is too early to assess the damages,” said G Chokkalingam, executive director and chief investment officer, Centrum Wealth Management. “Power companies are highly leveraged and there are concerns over fuel supply, interest rate, changes in Indonesian policy that have impacted the cost of imported coal. The earthquake has added to the negative sentiment,” he said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/indonesian-tremors-spark-fears-of-coal-crisis-among-power-companies/articleshow/12631484.cms)
AVIATION MINISTRY MOOTS ECB WORKING CAPITAL CAP AT $2 BILLION
NEW DELHI: Even before the ink is dry on the Budget proposal to let domestic airlines borrow up to $1 billion overseas for working capital, the aviation ministry has sought a doubling of the limit, as cash-starved carriers continue to bleed. The aviation ministry has written to the finance ministry in this regard, even though South Block is yet to operationalise the window, which will be open for a year. There is no request to extend the duration, though. With most airlines struggling with high domestic interest rates, the proposal was seen as one of the major highlights of the Budget to help them borrow cheaper. ECBs are used mainly for investments, not working capital, which is why the window was opened only for a year. (For details log on to : http://www.financialexpress.com/news/aviation-ministry-moots-ecb-working-capital-cap-at-2-bn/935802/)
PHARMA LEADS INDIA’S PATENT CHARGE AS TECH, TELECOM LAG BEHIND
NEW DELHI: Top patent-seekers from US, Japan and China — who file the maximum patent applications — hail from IT, telecom and consumer electronics, while those from India are from an entirely different field: Pharmaceuticals. While IT, telecom and electronics majors are the top patent-filers of 2010, accounting for 73% of the10 leading entities each from US, Japanand China, these sectors are missing on the corresponding Indian list. The Indian list is dominated by pharma firms where 80% of the top 10 patent-filing entities are homegrown drug makers. Patents have long been recognised as a proxy indicator of a country’s innovative prowess. Sector-wise cumulative filings of these countries during 1995-2009 confirm the trend. While World Intellectual Property Organisation data show the pharma and biotech sector claims the lion’s share in Indian patent applications with over 31% of all filings in the last 15 years, comparable figures for the US, Chinaand Japanare significantly lower at 9%, 8% and less than 3.5%, respectively. Experts say individual dynamics that have shaped these industries, commercial incentive structure and historical factors are behind this aberration. (For details log on to : http://www.financialexpress.com/news/pharma-leads-indias-patent-charge-as-tech-telecom-lag-behind/935806/)
RELIANCE INDUSTRIES CAN RAISE KG-D6 OUTPUT WITH MORE DRILLING, TECH: REPORT
NEW DELHI: Reliance Industries will be able to raise gas production from the D6 block with the help of additional drilling and appropriate technology but current gas prices are too low to justify more investment, a report from Bernstein Research said. “We expect gas prices to double over the next three years, but the exact timing remains uncertain. To move forward with re-development of KG-D6 will take additional capital and will need a higher gas price. Current gas prices of $4.20 are not sufficient to warrant additional investment,” it said. Output at the D6 block has dropped sharply, creating a severe shortage of natural gas. Reliance Industries attributes the decline to geological complexities, while the Directorate General of Hydrocarbons (DGH) has accused the company of not drilling the required number of wells to produce more gas. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/reliance-industries-can-raise-kg-d6-output-with-more-drilling-tech-report/articleshow/12631138.cms)
COAL INDIA MAY RAISE PRICES ON THE CHILDREN’S INVESTMENT FUND’S PRESSURE
KOLKATA: Coal Indiaplans to raise prices of some grades of coal after a review at the end of this month but the increase would not be steep, top company executives told ET. “The CIL management is likely to finalise the issue of fuel supply agreements (FSAs) in the next board meeting. Following this, it will take up the price review. The review may also be discussed at the April 16 board meeting,” a senior CIL official said. Analysts say the company would be under pressure to increase prices after signing FSAs that commit higher supplies than its output. The company’s independent directors and The Children’s Investment Fund (TCI) – which holds 1% equity in the miner – have fiercely opposed new supply pacts, but the government has issued a presidential directive forcing the company to sign the agreements. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/coal-india-may-raise-prices-on-the-childrens-investment-funds-pressure/articleshow/12629461.cms)
COAL INDIA FUEL PACTS MEAN SUBSIDY TO PRIVATE COMPANIES: TCI
NEW DELHI: British hedge fund TCI, a minority shareholder in Coal India (CIL), today alleged that directing the coal PSU to sign fuel-supply pacts with power producers would amount to “direct transfer” of $19 billion to the private sector. In a presentation made to Coal Indiaboard which is likely to meet next week, The Children’s Investment Fund (TCI), said “we believe large industrial companies” pushed the Government to “impose new fuel supply agreements (FSAs) on CIL.” The Government on April 3 issued a Presidential directive to CIL to commit a minimum assured fuel supply to the power producers, failing which the company would be subject to paying a penalty. The move raised hackles of TCI and some independent directors on the board, which will soon consider a model FSA even as the Chairman and Managing Director designate, Mr S. Narsing Rao, would take about two more weeks to join. (For details log on to : http://www.thehindubusinessline.com/companies/article3304298.ece)
CENTRE TO USE ELECTRICITY FUND TO PUSH STATES ON REFORMS
NEW DELHI: The Centre has decided to leverage the national electricity fund (NEF) to push states on power sector reforms. The fund is meant to provide interest subsidy on loans taken by states for funding power distribution projects. Experts agree that the fund will help states reduce their funding cost, which should in turn lead to a reduction in their commercial losses. The Centre has set up the fund following recommendation of the V K Shunglu panel. The panel recommended that the states be asked to take over distressed loans of discoms if they want to avail financial assistance from the Centre. Besides, they should also commit on implementation of power reforms in a time bound manner while negotiating terms of availing central financial package. (For details log on to : http://www.financialexpress.com/news/centre-to-use-electricity-fund-to-push-states-on-reforms/935788/)
DOT MULLS CUT IN QUALCOMM LICENCE PERIOD
NEW DELHI: The department of telecommunications (DoT) is considering reducing the validity period for which UStelecom major Qualcomm Inc would be given broadband wireless access (BWA) or 4G spectrum to 18 years instead of the 20 stipulated under auction terms. The move is being considered after growing clamour from competing 4G operators for a level playing field in relation to Qualcomm. Infotel Broadband, a company controlled by Reliance Industries which has pan-India 4G spectrum, has communicated to the government in letters as late as last week the need for a level playing field among operators. It has requested the validity of its spectrum and licence be extended so that it has a level playing field with Qualcomm. RIL did not comment on the issue. (For details log on to : http://www.business-standard.com/india/news/dot-mulls-cut-in-qualcomm-licence-period/471051/)
IPL VIEWERSHIP SLUMP WORRIES ADVERTISERS
MUMBAI: Blame it on fatigue, format or form, television ratings for the fifth edition of the Indian Premier League (IPL) cricket tournament has been the lowest ever among the editions of the tournament till now. According to TAM Sports, a unit of TAM Media Research Pvt Ltd, the average television viewer rating (TVR) for the first six matches, has fallen sharply to 3.76. The fourth season (last year) had a rating of 4.63. TVRs reflect the percentage of viewers watching a programme at a particular time. Also, IPL-5 has reached 90.1 million viewers; IPL-4 got 101.7 million. Media planners and advertisers are concerned at the poor showing. “Brands have tied up with IPL at a premium. Obviously, its low performance is an issue,” said a media buyer, on condition of anonymity. Advertisement rates from season one to season four had risen nearly 20 per cent each time. This year, however, it has seen a commensurate fall of 15-20 per cent over last year. (For details log on to : http://www.business-standard.com/india/news/ipl-viewership-slump-worries-advertisers/471024/)
CENTRE KEEN TO BOOST ECONOMIC INTELLIGENCE BODY
NEW DELHI: To capitalise on the proposed changes in the Budget and the information on black money available with the government, the government is revitalising the economic intelligence council (EIC) headed by finance minister Pranab Mukherjee. The working group on intelligence apparatus pertaining to the EIC, which includes representatives from the enforcement directorate, the directorate of revenue intelligence, the income tax investigation, the Intelligence Bureau and the ministry of home affairs, is scheduled to meet under the chairmanship of finance and revenue secretary R S Gujral on April 20. The meeting, which would review the functioning of regional economic intelligence committees (REICs) across the country, is being held at the behest of the finance minister. Officials from the Reserve Bank of India (RBI) would attend the meeting as special invitees. In the meeting, the working group is slated to review the cases taken up by various participating agencies in 2011-12, the co-ordination among different investigating agencies and the additional revenue generated in the cases taken up by REICs. It would also analyse ways to enhance the effectiveness of the EIC forum and suggest corrective measures for its optimum utilisation. (For details log on to : http://www.business-standard.com/india/news/centre-keen-to-boost-economic-intelligence-body/471036/)
CABLE INDUSTRY ON COLLISION COURSE WITH TRAI
NEW DELHI: The cable industry is up in arms after the Telecom Regulatory Authority of India (Trai) has indicated bringing in a slew of measures under the proposed mandatory digitisation regime starting July 1. These measures include disallowing carriage fees, “must carry all private channels” diktat, carriage of not less than 500 channels per Multi Service Operators (MSO) headend, and 70:30 revenue share favouring local cable operators (LCO) among others. Sources said these measures have been discussed by Trai in its meeting with broadcaster, MSOs, and LCOs on Monday. “Trai indicated these measures becoming a part of its proposed tariff order and recommendations on Digital Addressable System (DAS) for the cable industry. This is unacceptable for us. We are looking towards the information and broadcasting (I&B) ministry for mediation and recourse,” said a top functionary of MSO Alliance, the apex body of leading MSOs like Hathway, InCable, WWIL, DEN, Digicable and others. (For details log on to : http://www.financialexpress.com/news/cable-industry-on-collision-course-with-trai/935790/)
INFOSYS EXPECTED TO POST MUTED REVENUE GROWTH
BANGALORE: Often considered as an indicator of the IT industry’s overall performance, Infosys’ revenue guidance for FY13 is expected to be in lower double digits in line with Nasscom’s growth projection of 11-14% for the industry, according to analysts. Standard Chartered, interestingly, has not ruled out a surprise outlook of 13-16% ahead of the industry forecast. For the fourth quarter ended March, brokerages Angel Borking and Sharekhan are predicting the IT bellwether to lag behind in terms of volume growth with TCS leading the pack. Sequentially, Infosys is expected to post a muted revenue growth and a likely fall in margins due to lower volume, rupee appreciation and continued delays in decision making. Analysts expect margins to fall in the range of 140-160 basis points to 32%, unlike the previous quarter when falling rupee improved profitability. In Q3 alone, rupee declined 7.7% against the dollar. (For details log on to : http://www.financialexpress.com/news/infosys-expected-to-post-muted-revenue-growth/935784/)
REGIONAL CHANNELS GAIN AS BROADCASTERS CHASE ADVERTISERS
MUMBAI: As advertisers shift their focus to regional markets to tap rising consumption, television broadcasters, too, are chasing regional channels, which are growing faster than non-Hindi television markets. On Monday, Sony Pictures Television, a subsidiary of Sony Pictures Entertainment, said it purchased a 30% stake in Telugu television broadcaster MAA Television Network. MAA Television Network owns four channels, including MAA TV, MAA Music, MAA Movies and MAA Junior. In January, the Mukesh Ambani-owned Reliance Industries struck a landmark deal with Raghav Bahl-run Network 18 in a unique arrangement that saw the latter buying out RIL’s stake in Eenadu TV’s news business and also purchasing a 24.5% stake in its Telugu general entertainment channel (GEC) and 50% in other regional GECs. (For details log on to : http://www.financialexpress.com/news/regional-channels-gain-as-broadcasters-chase-advertisers/935785/)
SPIELBERG STUDIO TO GET $200 M FROM RELIANCE ENTERTAINMENT
LOS ANGELES: DreamWorks Studios, the film company headed by director Steven Spielberg, will get around $200 million from its partner Reliance Entertainment to continue making films, according to a person with knowledge of the transaction. The financing is the second part of a 2009 agreement to finance the studio. In that agreement, Reliance Entertainment, a unit of Reliance ADA Group, provided the partnership with $325 million of capital for an undisclosed stake. The studio, which made Spielberg’s ‘War Horse’ and ‘The Help’ last year, will produce between three and five films a year, a reduction from the four to six that it initially announced, said the person. (For details log on to : http://www.financialexpress.com/news/spielberg-studio-to-get-200-m-from-reliance-entertainment/935779/)
MUMBAI IS THE WORLD’S LEAST AFFORDABLE HOME MARKET
MUMBAI: The average Indian would need to work for three centuries to pay for a luxury home in Mumbai, making that city the least affordable in the world for locals, according to an analysis of real estate and wages. The analysis shows a 100-sqm luxury residence in Mumbai costs about $1.14 million, or 308 times the average annual income in India, based on calculations from a housing index compiled using 63 markets by Knight Frank and income estimates of the US Central Intelligence Agency for purchasing-power parity in 2011. Shanghaibuyers would need 233 times the per-capita income in Chinaand Moscowinhabitants 144 times Russian earnings. Singaporeand New Yorkhomebuyers would need 43 years and 48 years, respectively, for equivalent residences using national income averages. (For details log on to : http://www.financialexpress.com/news/mumbai-is-the-worlds-least-affordable-home-market/935781/)
SSTL Q4 NET LOSS WIDENS TO R1,197.7 CRORE
NEW DELHI: Sistema Shyam TeleServices (SSTL) on Wednesday said its net loss widened to R1,197.7 crore for the fourth quarter ended December 31. This is against a net loss of R605.1 crore in the October-December quarter of 2010. The company, whose 21 licences have been cancelled by the Supreme Court, exuded confidence that the issues in the sector will be resolved soon. In February, the apex court had cancelled 122 telecom licences in the 2G spectrum case. On yearly basis, the net loss for SSTL, which operates under the MTS brand, widened to R3,531.4 crore in 2011 from R2,168.6 crore in 2010. (For details log on to : http://www.financialexpress.com/news/sstl-q4-net-loss-widens-to-r1-197.7-crore/935780/)
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