The project is likely to house a luxury hotel as well as residential apartments.
Two years after Mukhesh Ambani bought into Prithvi Raj Singh Oberoi’s EIH Ltd, the two have decided to take their relation forward with plans to jointly develop a property in Navi Mumbai.
Reliance owns 15 acres of land in Navi Mumbai which the partners are now looking to develop as a mixed-use property. This may include a 160 to 180-room hotel and luxury apartments as well, EIH Ltd chairman PRS Oberoi said on Tuesday.
In 2010, Mukesh Ambani had picked up a strategic 14.8% stake in EIH via Reliance Industries Investment and Holding Pvt Ltd to keep rival ITC Ltd from launching a possible takeover attempt. Since then Ambani gradually raised his stake, which currently stands at 18.5%, whereas ITC’s stake is a tad below 15%.
For the first time since 2010, their attempt at going into joint business is taking shape, although details of the Navi Mumbai project are still being worked out, Oberoi told reporters after the EIH annual general meeting.
Nita Ambani attended this shareholder meeting as a director and Mukesh Ambani’s close advisor Manoj Modi’s was inducted into EIH’s board.
EIH is looking at places like Ahmedabad and Pune while Trident Hyderabad is slated to open in December-January. Overseas, it is actively scouting for opportunity in China though nothing has been finalised yet, vice chairman SS Mukherjee said. Oberoi Dubai, which is under construction, will be commissioned early next year.
EIH has also decided to go slow on new projects, “anticipating bad days.” Going slow on capital expenditure would mean more cash for other things like repaying debt. “We may become debt-free next year,” Mukherjee said. EIH Ltd’s long-term debt fell sharply from Rs300 crore to Rs110 crore during 2011-2012.
“We have increased our holdings and will continue to do so gradually. One needs a lot of money for that and we are endeavouring to raise it as far as possible,” Oberoi said.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}