Mapping the Indian Empire

The group re-entered India in 1987, when it gained controlling interest in the leading commercial vehicle-manufacturing company, Ashok Leyland, now its flagship company in India. This acquisition came when the Hindujas bought the Leyland Group in Britain in association with IVECO (a fully-owned subsidiary of FIAT SpA of Italy). A recognised export house since 1978 and trading house since 1992, Ashok Leyland exports to over 40 countries in Asia, Middle East, Africa and South America.

But it is the Ashok Leylands Projects Services Ltd (ALPS) which spearheads project development activities for the group in India. ALPS also provides professional services to help international companies interested in projects in India by undertaking pre-investment feasibility studies, appraisals, development of joint ventures, company formation, and also provides negotiated equity on behalf of the Hinduja Group as commitment to the sustained results of its services. This has included power generation, airport construction, air cargo transportation, development of roads and associated infrastructure. ALPS has already been shortlisted for the second round of talks for the disinvestment of Air India and Indian Airlines and is a strong contender for the privatisation bid.

It was not long before the Hindujas moved into the crucial power sector and it was sooner than later that the brothers were involved in yet another unsavoury controversy, over the business advice given to them by the solicitor-general of India, Soli Sorabjee. The Hinduja National Power Corporation Ltd won the bid for one of the eight fast-track power projects selected by the Government of India.The 1,040 MW coal-based thermal power station based in Vishakhapatnam, in Andhra Pradesh, is estimated to cost $1.37 billion and will operate on a build-own-operate (BOO) basis. The group has also signed an MOU to establish a separate joint venture to lease/purchase/refurbish/operate coal-based and gas-based thermal power stations and hydel power stations in India.

Gulf Oil India was set up in 1993 to enter the oil sector and the company has already set up a lube oil plant at Silvassa, while a new company, Gulf Carex India Ltd, makes and markets a range of DIY vehicle maintenance products. The Group has also signed an MOU with the Orissa Government for setting up a major Lube Base Oil Refinery.

The Hindujas’ entered the banking and finance sector with Indusind, a broadbased economic platform to mobilise resources of overseas and resident Indian businessmen and professionals. Its first venture in the financial securities industry was the launch of the first commercial private bank called Indusind Bank in 1994.

But it is Ashok Leyland Finance Ltd (ALFL) which is the group’s leading leasing, financing and hire purchase company with sales worth over Rs 230 crore. The Hinduja Finance Corporation Ltd (HFCL), which commenced its operations in 1994-95, has diversified in a major way into telecom, info technology and the media with subsidiaries like In2cable.com and IndusInd Media and Communications (IMC) capable of providing not only cable television but services like internet, telephony, data transfer, teleshopping and the like. Intel USA has taken a 3.3 per cent equity stake in IMC for $49.23 million, in May 2000, giving the company a benchmark valuation of $1.5 billion (Rs 6,800 crore).

A pet project of the Hindujas is the Hyderabad-based IDL Industries Ltd involved in the manufacture, supply and export of ‘industrial’ explosives and detonators. IDL has also entered the field of floriculture and a variety of roses are being grown for export to Europe and other continents!