Following the cancellation of Uninor's licences, Telenor is planning to set up a new company with new partner, which would participate in fresh auction for spectrum
New Delhi: Norwegian company Telenor on Thursday said it is in discussions to rope in a new partner for its telecom business in India before the government auctions the spectrum, reports PTI.
The company's Indian unit Uninor suffered a major setback after 22 of its licences were cancelled by the Supreme Court in February in the 2G spectrum allocation case.
While cancelling 122 licences in all of various telecom operators, the apex court ordered the government to conduct a fresh spectrum auction, where Telenor intends to participate with a new partner.
"We are in active discussions for partners with handful of people," Telenor Executive Vice President and Head of Region Asia Sigve Brekke told reporters.
Telenor operates a telecom services joint venture 'Uninor' in India with real estate major Unitech. It holds over 67% stake in Uninor, while the rest is with the Indian partner.
Following the cancellation of Uninor's licences, Telenor had said it planned to set up a new company for.
It had also sought damages from Unitech accusing it of "fraud and misrepresentation" of facts based on which it had invested over Rs6,000 crore in the joint venture.
"I am quite optimistic that we will part with all these issues prior to the auction dates. The day we go into that auction, we need to have established a new company, which has transfered assets, a company with a new partner and the old partner is out. All this needs to be in place before the auctions," he said.
Brekke added that new partner may have 26% share in the new entity, as Indian rules allow foreign companies to own a maximum of 74% stake in a telecom venture.
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Colgate Palmolive India has reported healthy results, with 18% increase in quarterly sales and 15% increase in net profits despite a challenging economic environment
Colgate Palmolive India (Colgate), a leading fast moving consumer goods (FMCG) company, reported net sales for the quarter ended March 2012 at Rs685.9 crore, 18% higher than the corresponding quarter last year. Its net profit was Rs446.5 crore, an increase of 15% over the March 2011 quarter, which stood at Rs114.1 crore. Its growth was fuelled by volume growth of 12%, with toothpaste leading the category with an impressive 14% growth. Also, prudent price increases and cost management has enable the company to maintain steady operating profit margins, which has grown at a CAGR of 29% over the last three-and-half years.
The FMCG major’s net sales grew by 18%, which is in line with its historic year-on-year sales growth for its last three quarters which stood at 19%. In a challenging environment, its operating profit grew at 21%, which is less than its average year-on-year growth over the last three quarters, but impressive nonetheless. In an industry characterised by purchasing power of consumers, the fact that consumers are buying despite inflation and low buying power, essential products like toothpastes will sell and hence ‘recession-proof’. Its valuation might look a bit overpriced with a market-cap to operating profit of 24.42 times. Like Hindustan Unilever, Colgate has performed well in benign market conditions. Hence the markets could be attaching a premium to it, as it hopes that economic condition improve, going forward. However, an aggressive valuation in times of uncertainty would make a value investor, or for that matter any investor, uneasy. Having said this, the company has had a good history of marketing solid products which there is always demand.
The company commands a market share of 54% in the toothpaste segment, which is up from 52.2%. In the mouthwash category, it has a volume share of 26.2%, up from 25.7%. Apart from its flagship brands Colgate Dental Cream, Active Salt, MaxFresh, Colgate Sensitive and Colgate Total, the company has launched new products. It has launched Colgate Super Shine Toothbrush that provides circular bristles that helps remove stains from teeth. In the mouthwash segment, it launched another variant of its Colgate Plax Fresh Tea, which contains natural tea extracts. It also released Palmolive body wash variants as well as Palmolive Thermal Spa range.
The company has paid a total dividend of Rs25 per share for the fiscal ended 31 March 2012, as against Rs22 for the corresponding period last year.