Aditya Birla Group has acquired Domsjö Fabriker, a leading Swedish speciality pulp and bio-refinery company, through its global companies Thai Rayon Public Company (Thailand) and Indo Bharat Rayon (Indonesia), for $340 million from a Swedish consortium
Aditya Birla Group has announced the acquisition of Domsjö Fabriker, a leading Swedish speciality pulp and bio-refinery company, through its global companies Thai Rayon Public Company Ltd (Thailand) and Indo Bharat Rayon (Indonesia), for a sum of $340 million from a Swedish consortium.
KK Maheshwari, business head, pulp & fibre, Aditya Birla Group, said, "This acquisition is in line with our strategy of having a substantive part of our speciality pulp for our consumption through our captive source. With Domsjö Fabriker, we are closer to this goal."
"As a large quality manufacturer of speciality pulp, Domsjö's has a synergistic fit with us. There is a great opportunity to further grow the company. Domsjö has an extensive investment programme for capacity expansion from its current 210,000 tons to 255,000 tons per annum by 2012. We are fully committed to Domsjö's growth. Going forward, our intent is to expand the innovation and research and development efforts at Domsjö as part of our global R&D efforts, added Mr Maheshwari.
Speciality pulp produced by Domsjö, finds primary use in the textile segment (viscose staple fibre and viscose filament yarn). Around 25% of the production is used in premium applications, such as binding agents for medical products, particularly pharmaceutical tablets and in casings (wraps) for the food industry.
Magma Fincorp consolidated profit after tax grew 69.86% to Rs44.93 crore for the fourth quarter ended 31 December 2011, over the corresponding period last year
Non-banking financial company Magma Fincorp Ltd said its consolidated profit after tax grew 69.86% to Rs44.93 crore for the fourth quarter ended 31 December 2011, over the corresponding period last year.
It had a consolidated profit after tax of Rs26.45 crore in the same quarter a year ago, Magma Fincorp said in a filing to the Bombay Stock Exchange.
Consolidated total income rose to Rs269.38 crore in the quarter under review from Rs216.48 crore in the same period previous fiscal, it said.
For the year ended 31 March 2011, consolidated PAT increased to Rs122.14 crore as against Rs71.32 crore in the last year. Consolidated total income jumped up to Rs872.34 crore in the year under review from Rs719.36 crore, it added.
The board of directors of the company has recommended a dividend of Re0.60 per share of Rs2 each for the year ended 31 March 2011.
On Tuesday, Magma Fincorp ended 0.14% down at Rs70.05 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 19,121.83.
TV Mohandas Pai quit because of internal squabbles and not, as he said, because he wants to serve the country. Moneylife pieced together the picture from circles close to the company
Given that the wealth of all its promoters remains substantially locked in the company, team Infosys puts on a strong united front, so as not to rattle investors or destabilise the stock price. This was evident in TV Mohandas Pai's larger than life presence at all the media interactions that followed the announcement of his exit plans and the company's worse-than-expected financial performance.
The media savvy Mr Pai asserted that he was only quitting to serve the nation and "to give youngsters a chance", but it wasn't quite convincing. Mr Pai claimed, according to a report in a national daily, that NR Narayana Murthy had offered him the CEO's job nine months ago, but he didn't take it. Soon after, embarrassingly, Mr Murthy, while heaping praise on Mr Pai, clarified that he had "not offered him any position" because he had "no locus standi to offer anybody a position in Infosys".
But is it merely "pique" at not getting the top job? Well, a day after the results, Mr Pai seems to have admitted as much. The Indian Express (19th April) quoted him as saying that he "does not agree with founder NR Narayana Murthy's principle of rewarding seniority instead of picking the best person to lead the company". Mr Pai, who apparently, believes he is best placed to head the company said, "What goes against me? Seniority. You are discriminated against because the founders have spent longer years," he told the newspaper, converting the battle as one between "founders" and "professionals".
Sources close to the company's top team, however, have a different view. They say that contrary to the public perception of strong unity, or the claim of "no discord" at the top, there were two clear camps at Infosys-one had Krish (S Gopalakrishnan) and S D Shibulal, while the other had the brash Mohandas Pai with Narayana Murthy and Nandan Nilekani as his backers. They say "with Murthy set to leave and Nandan already out, the writing on the wall was pretty clear because Krish strongly backed Shibulal as his successor. So Mohan would either have to go or be rather uncomfortable under the new dispensation. All he has done is to quit a little before (Mr Pai's resignation is effective 11 June 2011) Murthy's term ends in August".
In effect, the perception that Mohandas Pai quit out of "pique" and is "devastated" at parting from Infosys seems fairly accurate. On the other hand, K Dinesh, another founder-director also announced his exit, to coincide with the March-end results, but since he played no role of any substance, his departure will go largely unnoticed.
Significantly, there are no reports of S Gopalakrishnan lamenting Mr Pai's departure; instead, his matter-of-fact comment was that it "would not impact the firm as it has experience in transitioning leaders". Given how the capital market has reacted, Mr Gopalakrishnan and Mr Shibulal will have to work hard and prove themselves, or it will affect the founders' wealth as much as those of the public shareholders who swear by the company.
The internal assessment about the media savvy Mr Pai is also rather different from the public image he has cultivated. His 17-year association with Infosys, without direct responsibility for sales and performance, has also allowed him to occupy several public positions that hardly come the way of corporate directors. For instance, he must be the only professional director who was on the board of the Securities & Exchange Board of India (SEBI) and his role in helping former chairman CB Bhave in a sticky situation has been fairly controversial. Internally too, as the blog www.techgoss.com (by Bala Shah) notes, he was seen as abrasive or "cold and ruthless", in contrast to his genial and benign external image. Way back in January 2010, the blog had written about how Mr Pai was positioning himself to becoming CEO after Mr Nilekani.