NATIONAL PAINTS PLANS Rs.500-CRORE INVESTMENT IN INDIA

NATIONAL Paints, the largest paint consortium in the Middle East with annual sales of $1 billion, is setting up shop in india.
The company having 12 factories worldwide and presence in 45 countries plans to invest Rs.500 crore in India in the next three years to establish its operations. It will open a string of factories beginning with Kerala, Chairman Salim F Sayegh said.
The Rs.50 - crore factory with a capacity to produce 120 to 150 tonne daily will be opened by state industries minister Elamaram Kareem on Saturaday. This 13th factory of the company will manufacture the entire range of paints with special focus on decorative paints and wood finishes. It is aiming at a business of Rs.100 crore from Kerala in the first year of operation.
CM Sathiadevan, CEO, National Paints Factories, India, said the company will open the next factory at Ahmedabad followed by one in Pune and Chennai. The three factories will come up in three years. The production from Chennai plant will cater to the export market in Sri Lanka, Maldives, Bangladesh and other fast eastern countries.

GROUP COS' MERGER BUZZ BOOSTS MVL

SHARES of Delhi-based real estate firm MVL are being accumulated by informed traders. The Stock has gained close to 14% in the past one week. Buzz is that promoters are looking to merge two group companies - Global Digital Technologies and Balaji Tirupati Buildcon - with MVL. According to a source, the merger would be an all-share deal, and would not entail any cash outflow for MVL. Both Companies - global Digital Technologies and Balaji Tirupati Buildcon - own two million square feet of space between them. Balaji is develping a project under the affordable housing segment. MVL shares closed at Rs.197, up 4% over the previous close. When contacted, a senior company official said, "Nothing has been finalised as of now." The Company is also said to be talking to certain players to venture into hospitality projects in the National Capital Region.

RBI TO UNVEIL NORMS FOR CORP BOND REPO

THE RESERVE BANK OF INDIA (RBI) is on track to put in public domain the draft guidelines for repo in corporate bonds. The central bank is also set to have a policy frame-work in place for the introduction of credit derivatives, with adequate safeguards, factoring in the lessons from the global crisis, according to RBI deputy governor Usha Thorat.
The current regulatory policies in India do not allow banks to guarantee corporate bonds. By allowing repo or ready forwards - a repurchase facility that allows banks, mutual funds and insurance companies to borrow against corporate bonds - there could be more incenvtive for corporates to tap the market for funds directly through the issue of bonds. It makes possible for investors in these bonds to trade in the secondary market, thereby making these bonds liquid.
"It is argued that for the development of corporate bond market, banks should provide credit substitutes such as guarantees. But experience of other countries, particularly china and korea has not been encouraging." said Ms Thorat in here address at the "Conclave of CEOs and CFOs" organised jointly by the Institute of Public Enterprise, NMDC, CII (AP) and CEO Clubs India.

FOREX RESERVES UP BY $932 M

FOREIGN exchange reserves rose $932 million during the week ended september 4, largely on a ccount of inflows through foreign investment.
According to the latest data released by the Reserve Bank of India in its weekly statistical supplement (WSS), total foreign exchange reserves including gold and special drawing rights, (currency with the International Monetary Fund) rose $1,287 million to touch $277.6 billion during the week ended September4.
While foreign currency assets and gold rose$1134 million and $157 million respectively, reserves with the IMF and SDR dipped $1 million and $3 million respectively.