Jindal Group plans Rs 100 crore health sector foray

Jindal Group, one of the leading textile players in the country, has firmed up its plans to enter into health sector.

The Ahmedabad-based diversified group will soon float a special purpose vehical (SPV) for taking up a new project in health sector.

Jindal Group intends to set up a Medicity, which will have state-of-the-art hospital and medical college. Around Rs. 100 crore will be infused for the proposed project, which is likely to come up somewhere between Ahmedabad and Gandhinagar.

"Jindal already has land around Gandhinagar and the project is likely to require 10 acres of land", said sources close to the development.

The group also signed a mamorandum of understanding (MoU) with Gujarat government for this project during Vibrant Gujarat Global Investors Summit-2009 held in January.

The new project in health sector will be implemented in collaboration with Non-Resident Indians (NRIs).

The NRI parteners in the project are experienced doctors in US. A special purpose vehical will be formed to execute the project and Jingal Group is likely to pick up majority of stake in SPV.

The blue-print of the project is likely to be finalised within next six months and the group hopes to complete the project by October 2011. Apart from this, the group is investing Rs. 50 for expansion in textile space.

Having established its strong presence in weaving, processing and home textiles as well as fabric trading, the group has diversified into chemicals, financial services and trading.