Hindujas plan $10-bn investments in infra, defence sectors

Group to invest in distressed assets, identifies renewable energy as focus area

Encouraged by a pro-business government at the Centre, the Hinduja Group is planning to invest $10 billion in the Indian infrastructure and defence sectors.

According to Prakash Hinduja, chairman, Hinduja Group (Europe), the group is keen to take over distressed projects put up for sale by their promoters, as it does not want to "wait for 17 years" to set up a project, as happened with its power project in India. The group, he said, had learnt its lessons as its power project took 17 years to set up in Vizag, owing to a lack of approvals and a delay in land acquisition. The 520-megawatt (Mw) project will now be commissioned in June this year after Cyclone Hudhud damaged its jetty in October last year. The second phase of another 520 Mw will start soon after.

"We are also keen to participate in the defence sector, as the government of India is encouraging make-in-India projects," he said. But he added the group would hold on to 51 per cent stake in the joint venture, according to its group policy. "If the foreign partner wants, it can have 51 per cent stake in a technology company, while the manufacturing company will have our majority," he added.

"We are just waiting for the Budget to see what's on the table for investments for the NRIs (non-resident Indians) and groups such as us. Once the government gives clarity on taxation in the Budget, we will bring in our investments, as we think India is the next big investment opportunity in the world as of now," said Prakash Hinduja, who was joined by brothers Gopichand and Ashok.

The group currently has 10 verticals across the world, including automobiles, banking and chemicals. Prakash Hinduja said Africa was fast emerging as the next big investment destination, but India was currently the flavour of investors across the world, due to its domestic market.

The Hinduja brothers, who topped The Sunday Times rich list in the UK, with a wealth of £11.9 billion in 2014, want the Narendra Modi government to make it easier to do business in India. "Make in India is a good initiative and goes a long way to encourage investments. But a lot needs to be done - especially in tax reforms," he added.

He said the group would increase its participation in the corporate social responsibility projects as well. "We have given an offer to the state government, to take over all municipal hospitals in Mumbai, but we have still not heard from the government for the past three years," said Ashok Hinduja, chairman, India, Hinduja Group. "Given a chance, we would convert these hospitals into world-class hospitals and treat poor for free."

He said the group was keen to make investments in bringing world-class education institutions to India, but the existing rules were not in favour of fresh investments as the education sector was highly regulated. The Hindujas manage the Hinduja College of Commerce in Mumbai.