Cement cos under MRTPC scanner
Economic Times

ALLEGATIONS of cartelisation came back to dog the cement industry this week. Trade practices regulator, MRTPC, on Tuesday ordered an investigation into the business practices of 14 leading cement manufacturers, which are alleged to have colluded to increase prices The commission issued notices of inquiry against these companies after its investigative wing—the Director General of Investigation and Registration (DGIR) — submitted a preliminary report on the matter. The companies have until October 25 to respond. The DGIR concluded that the price hikes were over Rs 50 for a 50-kg bag between April 2005 and March 2006, much higher than the rise in the cost of production, which worked out to be about Rs 7. The investigation also said the Cement Manufacturers’ Association served as a platform for discussing prices. RENAULT-BAJAJ ALLIANCE French car maker Renault and domestic two-wheeler major Bajaj Auto are close to striking an alliance for joint development of a $3,000 car as well as light commercial vehicles. A top-level Renault team visited India last week to discuss the proposed partnership modalities. The products, both passenger and goods carriers, will be sold in India as well as exported to overseas markets FORD-TATA BID US auto major Ford shortlisted the bidders for its iconic brands Jaguar and Land Rover amids specualtion that Tata Motors has emerged as the front-runner. Ford announced that they were examining the sale of the their two brands ‘in greater detail’ after receiving bids. The due dilligence by the bidders is likely to begin next week. Tata Motors is also looking at roping in a private equity partner for the proposed deal. Mahindra & Mahindra has also submitted the bid for the deal whose valuation is being pegged at $2-3 billion. The deal is likely to have a built-in clause that may make it impossible for the buyer to retrench employees or restructure operation at the UK plants. INFOSYS SIGNS DEAL WORTH $250 MN INFOSYS Technologies has signed a $250-million outsourcing contract with Royal Philips Electronics of the Netherlands. As part of the agreement, Philips will enter into a seven-year contract with Infosys BPO, which will provide finance and accounting (F&A) services as well as process purchase orders. The deal, structured like an acquisition, includes the takeover of Philips’ shared service centres in Chennai, Thailand and Poland, employing 1,400 people, by Infosys BPO.