Aditya Birla Group
The income-tax department has slapped two Aditya Birla group companies with a tax demand order of Rs 3,900 crore over demerger of telecom business that took place nearly four years back.
In 2009, Aditya Birla group demerged its telecom business into two companies, viz. Idea Cellular and Aditya Birla Telecom. The income tax department is now treating the transfer of assets, licence and liabilities from Aditya Birla Telecom to Idea Cellular as a slump sale, which is taxable.
Third largest manufacturer of carbon black US-based Columbian Chemicals Company fell into the hands of Aditya Birla Group. The deal size is expected to be around $900 million (Rs 4100 crore).
Sources reveal that Kumar Mangalam Birla, controller of Aditya Birla Group will close the deal as early as next week. JP Morgan is advisor to the deal.
For acquisition of funds Aditya Birla Group is talking with several banks including Deutsche Bank, Royal Bank of Scotland and other foreign banks.
It is expected that Aditya Birla group will pay USD 800 million in cash for the deal.
After receiving a nod from the Orissa government on all the environmental issues, the Aditya Birla group said that it will now be expanding itself.
This will come as a rude shock to the Vedanta Resources that has been stopped by the government from going ahead with similar expansion process.
The current capacity of Birla's Utkal Alumina is around 1.5 million tons of alumina. This is the key ingredient for making aluminium. Talking to ET, Debu Bhattacharya, managing director of group said,
"We went to the environment ministry for an approval for the expansion and we have got it."
The Aditya Birla Group is aiming to double its turnover to $65 billion in the next financial year, said the group chairman Kumar Mangalam Birla.
"It was our ambition to become a Fortune 500 company and we were able to achieve this in 2008, two years ahead of the deadline we had set. Now, we want to become a $65 billion group by 2015," he added while speaking at an event organized by the National Institute of Personnel Management.
Financial services provider, Aditya Birla Financial Services today announced that it has proposed to acquire 75 per cent stake in Aditya Birla Money through an off market transaction.
The company proposed acquisition accounts for 4.15 crore shares of Aditya Birla Money at Rs 59.76 per share by inter-se transfer totaling to Rs 248.26 crore.
The Aditya Birla Group has been planning to separately run the financial services business, which was being operated under the group company AB Nuvo.
Behind this decision, the company has a rationale to unlock value and get benefit through the economies of scale.
Diversified company Aditya Birla Nuvo has posted a consolidated net profit of Rs 1.44 crore for the quarter ended September 30, 2009 as compared to a net loss of Rs 104.6 crore during similar period last year.
In the July-September three month period, the company has recorded a total income of Rs 4,952.92 crore. However, in the comparable period a year before, the company had clocked a total income of Rs 3,669.73 crore.
Aditya Birla Nuvo, which has interest in telecom, BPO, garments and insurance, has posted a consolidated net loss of Rs 156.40 crore for the quarter ended December 2008, against a net profit of Rs 30 crore in the same period last year.
On a standalone basis, the company’s net profit for the December quarter took a dip of 95.12 per cent to Rs 4.1 crore against Rs 84 crore in the previous corresponding quarter.
Aditya Birla Nuvo Ltd, a leading diversified company of Aditya Birla Group, has announced that it has temporarily ceased its fertiliser unit located at Jagdishpur in Uttar Pradesh.
The conglomerate has taken this step due to inaccessibility of gas due to a strike called by the employees of state-run oil firms.
According to company officials, production will start again once gas supplies are restored.