The countrys third largest IT services firm Wipro has sent letters to investors saying that ex-joint CEOs Girish Paranjpe and Suresh Vaswani have been offered a severance package of Rs 7 crore each along with other remuneration and stock-based compensation they are entitled to as directors. Board of director of the company accepted the resignation of Girish Paranjpe and Suresh Vaswani, joint CEOs and directors as a board member with effect from January 31 and agreed to pay a severance pay of Rs7 crore, subject to application deductions, in addition to December remuneration and stock-based compensation that the director is entitled to till January 31, the notice said. Wipro, on January 21, had announced a change of guard at the top with company veteran TK Kurien taking over as the new CEO of the firms IT business. The move came in the backdrop of Wipro underperforming relative to its competitors over the last few quarters both TCS and Infosys have enjoyed far higher volume growth than Wipro while the No. 4 player, Cognizant, is fast catching up in top line numbers.
ABB net plummets 94% to Rs 6.8 crore
ABB, the Indian subsidiary of Swiss power and automation technology major, has posted a net profit of Rs 6.8 crore in the fourth quarter ended December 31, 2010, down 94% from Rs 109 crore reported in the same period a year ago. Its revenue increased to Rs 2,050 crore from Rs 1,885 crore, recording a growth of 9% year-on-year. The company received orders worth Rs 1,394 crore during the quarter compared to an order intake of Rs 2,376 crore in the same period a year back.
Bata India quarterly profit rises 35.39%
Footwear retailer Bata India on Wednesday posted 35.39% increase in net profit for the fourth quarter ended December 2010 at Rs 34.39 crore. For the same quarter last fiscal, the companys net profit was Rs 25.40 crore. Bata's net sales increased 23.52% during the three month period under review at Rs 355.85 crore, compared to Rs 288.09 crore in last fiscal. For the full year 2010, the company's net profit grew 41.84% at Rs 95.35 crore, up from Rs 67.22 crore in 2009, it said in a statement.
FIPB allows PE cos to pick 45% in Hero Investment
The Foreign Investment Promotion Board (FIPB) has cleared Hero Investments (HIPL) proposal allowing foreign private equity firms to buy up to 45% stake in the company at Rs 4,500 crore. HIPL, a non-banking financial company, owns 17.33% stake in the countrys largest two-wheeler maker Hero Honda. This forms a part of the stratgey employed by the Munjals to raise up to Rs 9,500 crore to acquire Honda's 26% stake in the two-wheeler giant. As FE reported earlier this month, The stake is going to be sold to global private equity players like Bain Capital, Carlyle Mauritius, Singapores Indivest, Zend Mauritius, TPG and Redwood Investment of the Warburg Pincus Group.
Temporary staff annual hiring up 20%: TeamLease
The countrys organised temporary staffing industry is growing annually at 18 to 20%, with temporary recruitments in the IT sector alone jumping about 19% last year, according to TeamLease. Staffing services firm TeamLease on said the countrys temporary staffing industry is slowly maturing, especially with more sectors opening to the idea. With an estimated 90 million temporary workforce, out of which about 500,000 are engaged by the organised sector, the countrys organised temporary staffing industry is growing at 18 to 20% year-on-year, it noted.
Airtel consortium to roll out Europe-India cable
Telecom service provider Bharti Airtel along with 16 other global telcos on Wednesday launched the Europe India Gateway (EIG) cable system that will enhance diversity and capacity between Europe and India. The 15,000-km cable has received investment of around $700 million and has a capacity of 3.84 terabits per second, Bharti Airtel said in a statement. EIG stretches from Mumbai in India to London UK, with landings in UAE, Oman, Saudi Arabia, Djibouti, Egypt, Libya, Monaco and Marseilles, Gibraltar, Portugal and the UK.
Rane TRW to make power steering fluid
Rane TRW Steering Systems (RTSSL), a 50:50 JV between auto components major Rane group and TRW of the US, has forayed into manufacturing and marketing of power steering fluid, a first manufacturer of power steering systems in India to enter into this business. The move is against feedback from individuals as well as bulk truck owners who were affected by the spurious fluid in the countrys market, said Harish Lakshman, managing director, Rane TRW Steering.