World Brief

British American Tobacco (BAT) has been enjoying virtual monopoly in Sri Lanka through its operation Ceylon Tobacco Company (CTC) for decades. However, it has recently raised concerns about high excise duties driving smokers to illegally manufactured but cheaper cigarettes rolled in 'toilet-paper' by local entrepreneurs. CTC is also the best source of excise tax for the government which currently receives about 10 percent of its income from levies imposed on cigarettes.

According to CTC, more cigerattes were smoked last year but the company's revenue slumped 6 percent. It is believed that 200 illegal brands are marketed clandestinely at over half the rate of CTC cigarettes. The illegal manufacturers are said to import cigarette paper declaring it as toilet paper to the customs authorities.

CTC has warned that unless the government cracks down hard on these illegal manufacturers, the revenue of the state will go down by around US$ 15.29 million this year.

American computer giant Microsoft has announced its association with the 2002 Commonwealth Games as an official sponor.

To be held in Manchester (in northern England), organisers of the Games so far have signed up only five official sponsors, the titles given to companies contributing more than 2 million pounds (US$ 2.94m) in support.

However, of the 62 million pounds (US$ 91.64) targeted to stage the event profitably, only 30 million pounds (US$ 44.1m) have been raised till date. But organisers are hopeful of more sponsors coming into the fray in the next few months.

Besides financial support, Microsoft is also to be a technology supplier for the Games, it is reported.

The world's richest soccer club, England's Manchester United, announced that its half year profits jumped a mammoth 42 percent due to strong growth in gate receipts.

The club, on track to win its seventh premiership title in nine seasons, said that profits rose to 17.3 million pounds in the six month to January 31, from 12.2 million pounds a year earlier.

According to Man Utd. statisticians, turnover in the period rose 13 percent to a record 720 million pounds while gate receipts increased to 28.4 million pounds from 21.4 million pounds thanks to the 20 percent increase in seat capacity at Old Trafford which now holds 67,700 spectators.

Moreover, sponsorship income went up by over 25 percent to reach 11.1 million pounds, owing primarily to a deal with mobile giant Vodafone. The club also secured a 303 million pound strategic alliance with Nike which will come into force from August 2002.

The Thai government plans to establish a 500 million Baht (US$ 11 million) fund to strengthen the garment industry before worldwide free trade hits in 2005, according to a newspaper report.

The Bangkok Post quoted Deputy Prime Minister Pongoi Adireksarn as saying that the fund will be set up with the money earned by the Commerce Ministry from bids for garment export quotas. The global quota system under the Agreement on Textiles and clothing is due to expire in 2005 and competition after that will be tougher.

Thai analysts, while welcoming the government's plan, believe that only certain government firms and some textile exporters are likely to benefit from the fund.

Garments and textiles are among Thailand's leading export items with revenue last year of 5.58 billion Baht which comes to about 8 percent of total exports.

Foreign liquor manufacturers in India had hardly enough time to celebrate the lifting of import restrictions on alcohol when the Indian government decided to spike the measure with a huge hike in tariff.

According to industry officials, the import duties on alcohol have effectively been raised to as high as 550 percent from the previous range of between 104 and 220 percent.

Analysts view that the duty rise has scotched the plans of producers from countries like South Africa, Australia, France and USA who had been expecting restrictions to be raised. In the view of an expert, with the new duty tariff a wine costing one dollar in the international market will effectively be priced at over five dollars in India.

Several firms which had already booked shipments into India ahead of the import tariff hike would be left with huge stocks of premium wine and whisky at airport waterhouses, say experts.

In anticipation of the market opening up, numerous foreign companies had also conducted large scale promotion campaigns to build up consumer interest, it is reported.

Bharti to Buy BT's Stakes

Indian Internet major Bharti Enterprises has announced decisions to buy out stakes of British Telecom (BT) in two key subsidiaries and merge two other group firms to form a single company for broadband services.

A statement released by the Indian Company said that it would purchase BT's 49 percent stake in Bharti BT Internet Ltd. and 50 percent stake in Bharti BT VSAT, which provides communication links to corporate.

The two other firms being merged are Bharti Telespatiale and Bharti Broadband Service. The merger will create Bharti Broadboand Services, which will provide a range of cross services, earlier being provided individually by the four firms, informs the company.

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