Hinduja group ties up with Dubai World

The Hinduja group has tied up with Dubai World, the holding company that manages and supervises the portfolio of businesses and projects for the Dubai government, for massive infrastructure development projects in Dubai and India.

While the Hindujas will spend Rs 1,200 crore in Dubai to set up a world-class waterfront project spread over 2 million sq ft, Dubai World will partner with the Hindujas in their attempts to set up a chain of hospitals across India.

The initial investment into the healthcare project is Rs 4,400 crore ($ 1 billion) that is to be equally contributed by the partners. The Hindujas are also exploring the possibilities of establishing a manufacturing unit for Ashok Leyland, the group's flagship brand, in Dubai.

According to A P Hinduja, chairman, Hinduja group, the company has already purchased land in the waterfront project of Al Nakheel (a Dubai World subsidiary) and would develop the area for world -class resort, commercial and mixed use purposes.

On his healthcare plans, Hinduja said the 51:49 joint venture with Limitless LLC (another Dubai World subsidiary) will initially set up hospitals in cities like Delhi, Hyderabad, Mumbai and Bangalore.

The Hinduja brand hospital chain is to have its presence in all major cities of the country. "We have already purchased the required land in six locations," Hinduja said.

The healthcare investments of the group will come through its listed entity in India ie, Hinduja TMT. The initial investment would aim at having facilities with a cumulative capacity of 2,000 beds in 2 - 3 years. Without ruling out the possibilities of a medical SEZ (special economic zone), Hinduja said that the hospital project would also include nursing schools and medical research programmes attached to them.

The technical expertise will come from its own, successfully managed P D Hinduja National Hospital and Medical Research Centre in Mumbai. Consulting firm A T Kearney has prepared a long- term business plan for the Hinduja group.

Formal agreements on the joint venture projects were signed by Hinduja representatives and Dubai World chairman Sultan Ahmed Bin Sulayem at New Delhi today.