PRESS DIGEST - Indian Business News - May 5

MUMBAI, May 5 (Reuters) - Indian newspapers carried the following stories in their print or Web editions on Monday. Reuters has not verified these stories and does not vouch for their accuracy.

ECONOMIC TIMES (www.economictimes.com)

* Egnineering firm Larsen & Toubro Ltd (LART.BO: Quote, Profile, Research) is about to undergo a massive restructuring that will result in the creation of a dozen "operating companies" under the guidance of a separate board of directors.

* Telekom Malaysia (TLMM.KL: Quote, Profile, Research) is learnt to be looking at increasing its stake in Spice Communications (SPCM.BO: Quote, Profile, Research) to at least 51 percent from 39.2 percent, through a combination of open offer and buying some shares from the Modis.

* Reliance Communications (RLCM.BO: Quote, Profile, Research) is set to enter GSM handsets retailing market. It has signed agreement with vendors including LG Electronics (066570.KS: Quote, Profile, Research), Samsung (005930.KS: Quote, Profile, Research), Motorola (MOT.N: Quote, Profile, Research), Sony Ericsson, Spice Mobiles (SPCL.BO: Quote, Profile, Research), Fly Mobile and HTC.

* Developer DLF Ltd (DLF.BO: Quote, Profile, Research) is learnt to be setting up a joint venture with Italian leather and luggage accessory firm, Piquadro (PQ.MI: Quote, Profile, Research), to sell the latter's products in India.

* National Aviation Company of India Ltd is all set to hike fares by 10 percent on domestic sectors and may also raise fuel surcharge on international routes.

* Drug maker Cipla (CIPL.BO: Quote, Profile, Research) has made an unconditional offer to share the know-how of making all 354 essential drugs with state-run drug makers. This follows the pharma industry's offer to sell essential drugs at half its maximum retail price to the government, subject to certain conditions.

* A proposed government restriction on drug trade margins is likely to exclude products of four big players - GlaxoSmithline (GLAX.BO: Quote, Profile, Research), Ranbaxy (RANB.BO: Quote, Profile, Research), Nicholas Piramal NICH.BO, and Cadila Healthcare (CADI.BO: Quote, Profile, Research). These have given brand names to high-trade margin drugs originally sold by their chemical names, which do not fit into the definition of generic generics.