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ITC Limited is one of India’s foremost private sector companies with a market cpaitalisation of over $13 billion and with diversified presence in various sectors. The over-arching vision of the company is expressively cpatured in its corporate positioning statement, Enduring value for the nation and for the shareholder.

RS.350 crore is likely to be invested by the company in the next three-four years through its foods division for a foray into the snacks segment. This includes setting up of about three new manufacturing plants across the country.

ITC Foods Division Divisional Chief Executive Ravi Naware said that in the next three to four years they would be looking at having two more plants to have complete presence in all the regions of the country.

The Value Added Tax (VAT) fear forced the shares of ITC to slump, through it has gained back its monentum again. The fall in the prices of the scrip was due to the West Bengal Government’s comment that it will impose VAT on tobacco and tobacco products starting April 1.

A recent report by DSP Merill Lynch says that steep tax increases will sharply slowdow ITC’s EPS growth in FY08 to six percent as compared to last 2 years of average of 20 percent. This is just a matter of this year.

Despite the negativities in the market, the scrip prices slowing down of and on, Merill Lynch feels that ITC’s business is fundamentally strong. Let’s see how far this under performance is ruled out by its strong fundamentals.

March 21, Telecom Regulatory Authority of India (TRAI) announced that the component of Access Deficit Charge (ADC) is applicable for the financial year 2007-08. The STD and ISD calls are set to become cheaper with TRAI slashing the Access Deficit Charge (ADC) paid by the private operators to BSNL.

The amended regulations will be effective from 1sr April, 2007 till 31st March 2008. Trai has completely abolished the ADC on outgoing international long distance calls (ILD). Earlier ADC on out going ILD was Rs.0.80 per minute. The ADC on incoming ILD calls have been reduced to Re.1 per minute from existing Rs.1.60 per minute.

The total amount of ADC has been reduced by TRAI, for the financial year 2007-08 to Rs 2,000 crores from existing level of Rs 3,200 crores. The ADC on percentage revenue share has been reduced to 0.75 percent from existing 1.50 percent of adjusted gross revenue (AGR) of all service providers (access providers) national long distance operators and international long distance operators.

A senior Trai official told that the regulator expects the service providers to fully pass on to the consumers the reductions in ADC. It seems that the telecom services providers are ready to pass on the reduction in the ADC and reduce ISD and STD charges.

Mr.Manoj Kohli, president of Bharti Airtel told that Airtel wwould pass on the benefits of ADC reduction to the customers and would consider reducing STD and ISD charges. All private operators pay ADC to BSNL for carrying out social obligations like providing services in rural areas.

India’s largest pharmaceuticals company by sales, Ranbaxy Laboratories Ltd, reported out to be out of the race to acquire the generic drug business of Merck KGaA of Germany. Over valuation is said to be the cause of Ranbaxy stepping back. Ranbaxy Laboratories Ltd, was believed to be the only Indian company left in the race, and had reached Round 2 of the bidding process.

Ranbaxy Laboratories Ltd, spokesman said that Ranbaxy can neither deny nor confirm the move to pull our of the Merck acquisition race. He cited confidentiality agreement for not being in a position to confirm the move. The top level sources said that Ranbaxy Laboratories Ltd, which had made it to the second round of bidding, decided to pull out after the valuations was too strtched at over $6.5 billion.

A source close to the developments said, that more information was available to the bidding companies, which helps them make better evaluation and judgement. Sources pointed out that an auction at this stage could easily take the valuationhs to over $6.5 billion.

They pointed out that the companies which still remain in the fray would submit the second round of bidding and may also go for an auction. Ranbaxy Laboratories Ltd, scrips have reacted positively on the news of Ranbaxy not going in for an over priced acquiaition deal.