The Hindujas, of the multi-billion-dollar Hinduja Group, well-known for making trucks and running a bank in India, are also spreading their wings, and venturing into real estate. The Group’s six-year-old real estate arm Hinduja Reality Ventures seems to have got a shot in the arm with Mauritius-based Rabna Holdings joining hands with them as an equity partner a few months ago. The relaxation in FDI (foreign direct investment) norms — allowing 100% FDI in the sector — seems to have helped. With the prevailing scenario where bank funding is seen as drying-up, the Rabna partnership has brought in the much needed-equity funds. A company insider says Rabna has parted with a hefty premium to pick-up around five percent stake in the reality venture.
“The amount is somewhere between INR 150 to 160 Crores,” according to a Hindujas insider. There are actually many more global funds vyeing for the realty pie. Ashok Hinduja, the youngest son of founder Parmanand Hinduja, is treading carefully, as many seasoned players have so far ended up burning their fingers in the real estate business. Today, the Hindujas have a land-bank of over 2,500 acres in Bangalore, Hyderabad and few other cities. At its 40 acre holding in Bangalore, the Group is developing an IT/ITES park, where a hotel and retail complex would also come up. In the same city, it plans to develop a township and other complexes on another 115 acres. With Rabna at its side, the Hindujas would not need to resort to fire-sales … they would instead now have the wherewithal to hold on to their land-bank for better days to come. The London headquartered Hindujas are anyway in for a long haul in India.