Real estate company Housing Development and Infrastructure Ltd (HDIL) has diversified into the high risk energy sector by floating a subsidiary, HDIL Oil & Gas Pvt Ltd in tie-up with a foreign collaborator, whose identity has not been disclosed.
The company has already diversified into hospitality and SEZs but is divrsifying in to other sectors due to the the slump in the real estate market.
Under the New Exploration and Licensing Policy (NELP) VII round HDIL Oil & Gas will bid for 10 blocks for which the government had extended the deadline for the placing the bids to 30 June.
In the seventh round of bidding 57 blocks were up for bids of which 29 are on land, 19 in deep water and 9 in shallow water.
However, the company's name does not figure in the winners of successful bidders in NELP VII.
As one of the largest real estate firms, HDIL was ranked the fastest growing real estate company in India in October 2007 by Construction World, National Institute of Construction Management and Research.
The company's turnover and profitability grew by more than 100 per cent in 2007-08 from the previous year, with the compny having maintained more than 100 per cent growth in the last three years.
In October 2007 HDIL was awarded the contract from Mumbai International Airport Limited (MIAL) for rehabilitation of approximately 85,000 slum dwellers under expansion and modernisation of Mumbai airport. For this project the company has bought 110 acres of land to rehabilitate the slum dwellers at an approx cost of 22 crores per acre. Construction work is already underway on 15 million sq ft at Kurla, for the rehabilitation project as also some commercial development. The first phase of rehabilitation is to be completed in 2 years.
MIAL had awarded HDIL the contract to redevelop 96 acres of land over five years. The company expects to generate 60-70 lakh sq ft of saleable area from the airport project.
It had acquired industrial plots for redevelopment in Navi Mumbai, Mulund and Bhandup aggregating close to 35 acres during November 2007 to February 2008. It is opening two malls this year at Kandivli and Bhandup and plans to open 200 malls across the country.
The company plans to put up 20 broadway screens by the year-end and is also open to buying other theatres, which are up on sale.