The Hinduja group is all set to make a big splash in India. After maintaining a low profile for the last few years due to the Bofors controversy, the group is eager to make up for lost time.
A blueprint drawn up by the Hinduja brothers envisages entry into the insurance business, manufacture of light commercial vehicles, huge branch expansion for IndusInd Bank and foray into real estate.
The expansion programme, which will be unveiled in the next couple of months, would help the group grow 10 times in its market capitalisation from $1billion (around Rs 4,500 crore) in the next five years, said GP Hinduja, one of the four Hinduja brothers.
Group chairman SP Hinduja said the group has already signed a memorandum of understanding with a foreign insurance major, which would pick up a 26 per cent stake, the maximum permissible limit under the Indian laws, in the joint venture firm.
He, however, did not name the company because of a confidentiality clause, and only said the insurance firm is based somewhere in Europe.
The four Hinduja brothers - SP, GP, AP and Prakash - were speaking at an informal get-together of a few journalists here on Monday. This is the first time in many years that they spoke about the investment and expansion plans of their Indian operations.
Commenting on specific businesses, GP Hinduja said the group was looking at launching light commercial vehicles where there was an "explosive growth opportunity" and was also looking at the prospects of overseas acquisition.
He, however, denied that Ashok Leyland, the group's commercial vehicle and diesel engine maker, would get into passenger car manufacture.
On the banking business, they said IndusInd would go in for a major expansion and add 80 branches to its existing 131 branch-network.
S P Hinduja said, "Money is not a constraint for us. We are now betting big on India, which is now the biggest growth story all over the world, and are looking at both organic as well as the inorganic route." Overseas acquisitions make more sense at this point of time, he added.
The Indian operations of the group employ 25,000 people most of whom are into transport (Ashok Leyland), information technology (Hinduja TMT), banking & finance (IndusInd Bank), infrastructure project development (Ashok Leyland Project Services) and energy (Gulf Oil).
It is also into media and communications, and trading through unlisted companies.
