Australian builders make foray into Indian market
Multiplex and Leighton Holdings have signed pacts with Emaar to carry out construction projects in northern and southern India.india Updated: Jun 21, 2007 12:22 IST
Two of Australia's biggest builders have tied up with a Dubai-based developer to enter into Indian real-estate industry.
Multiplex and Leighton Holdings have signed pacts with Emaar, one of Dubai's biggest property companies, to carry out construction projects in northern and southern India.
While Multiplex struck a $3 billion deal to take up construction works in Southern India including Kochi, Goa and Hyderabad, the other major real-estate company - Leighton Holdings - have announced $1.5 billion worth deal with Emaar largely in northern India.
Multiplex's Dubai-based managing director for the Middle East and Britain, Graeme Robson, have signed the eight-year agreement with Emaar in which the construction projects will be rolled out in phases, The Australian newspaper reported on Thursday.
David Savage - the managing director of Leighton Asia, southern - told The Australian that the builder had completed or was building around 12 projects worth about $600 million in the sub-continent.
He said the agreement with Emaar was initially for five years with involvement in up to 100 projects.
"That's the current pipeline. Mining will be the future for us (in India), but it's still evolving," Savage said.
About 25 per cent of Leighton's $20 billion of work in hand is in north or southeast Asia, India and the Middle East.
The Kuala Lumpur-based executive said Emaar had approached Leighton, looking for a partner interested in expanding in India. Emaar, publicly listed in Dubai, posted a net profit of $2.05 billion in 2006.