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Hindujas plan to invest in UAE realty

business Updated: Mar 26, 2007 18:09 IST
PTI
Hindujas plan to invest in UAE realty

NRI businessmen promoted Hinduja Group on Monday announced plans to invest over Rs 5,500 crore in health care in India and property development business in UAE, where it is also exploring setting up an automobile unit.

Hinduja Group, which has interests in automobile, oil, IT, banking and health care, signed separate agreements with UAE's state-run firms to pursue development of commercial properties and resorts in the Gulf nation, besides setting up medi-cities, hospitals and day care centres in India.

The group has forged a joint venture with Limitless LLC, a subsidiary of Dubai World, for the health care business, which would see an investment of one billion dollar (nearly Rs 4,400 crore) in two to three years.

The project involves setting up of medi-cities in Delhi, Mumbai, Bangalore and Hyderabad with about 2,000 beds.

The investment would most probably come through the group's listed entity in India, Hinduja TMT, Hinduja Group Chairman (India) Ashok P Hinduja told reporters in New Delhi.

"As Hinduja TMT is a listed company, we have to seek the approval of the board... The group will hold 51 per cent stake in the joint venture with Limitless (the remaining 49 per cent)," he added.

On plans to invest Rs 1,200 crore in real estate business in UAE, he said: "The company has already bought land in the Waterfront Project of Al Nakheel" - a member of Dubai World (an investment and holding company of government of Dubai).

The agreement with Dubai World on real estate was inked by Gulf Oil Chairman Sanjay G Hinduja.

At the same function, R Seshasayee, Managing Director of the group's flagship Ashok Leyland, signed an MoU with Dubai World Chairman Sultan Ahmed Bin Sulayem to explore investment opportunities in Dubai's auto sector.

As regards the real estate project, he said the group would be developing 2 million sq ft of property.

Commenting on the tie-up with the Hinduja Group, Sulayem said it would bring invaluable capacity to the projects implemented in Dubai.

Referring to the health care project in India, Ashok Hinduja said the company could also look at applying for an SEZ status for these medi-cities.

"The project would not only provide hospital facilities, but also offer nursing schools and other services like clinical trials," he said.

The joint venture will also create centre of excellence in medicare and would move to smaller cities and towns in the second phase.

Global consultancy firm AT Kearney had worked out a long term business plan for the venture. Hindujas are already running a hugely successful hospital - PD Hinduja National Hospital and Medical Research Centre - in Mumbai.

On the branding on the chain, Hinduja said it has not been finalised yet, but was most likely to be under the group's name.