DUBAI, 23 August 2007 — UAE-based business conglomerate S.S. Lootah Group, which has varied investment interests across a broad spectrum of industries in the emirates, Asia, Africa and Europe, yesterday announced its foray into India by unveiling its plans to open a wholly-owned subsidiary this year.
The subsidiary which will be an arm of the Group’s international operations under S.S. Lootah International, also signed two MOUs with the Hyderabad-based IVRCL Infrastructures and Projects Limited to explore infrastructure development opportunities across India and the region.
The MOU signed in the presence of the Minister of State for External Affairs, E. Ahmed, will also jointly explore opportunities in regional infrastructure projects.
Commenting on the Group’s plans to diversify into India, the second fastest growing economy in the world after China, Eng. Yahya Lootah, vice chairman, S. S. Lootah Group said: “There is a natural synergy between India and the UAE across both the cultural and economic gamut and our intention of an India-base reflects our desire to elevate this relationship to a more fruitful business and investment cooperation. As a keen observer of the Indo-UAE economic relationships with a higher weight for trade currently, we believe it is time that we jointly unlock the investment potential in our bilateral relations through partnering in global opportunities.”
He said the partnership with IVRCL is the first step in the Group’s India strategy and that the India office will serve as a platform to explore opportunities in India and ASEAN countries through strategic partnerships, insourcing and sourcing global business collaboration opportunities.
“We are also proud to be the first private sector entity from the UAE to set up a permanent base in India in line with the vision of Sheikh Mohammed bin Rashid Al-Maktoum, vice president, Prime Minister of the UAE and Ruler of Dubai, to enhance bilateral relations between the countries for significant economic and social gains for the region as a whole,” he said.
Yahya said the Indian operations of S.S Lootah will focus on key growth sectors including infrastructure, services, manufacturing and knowledge economy.
“We do believe that there could be significant partnerships in these sectors with mutual gains. The inflow of investments from the Gulf countries to India is low compared to the potential,” he said.
Total FDI from the Gulf countries till 2006 was only $2 billion, despite investments in India that is reported to offer returns in the range of 19.3 percent compared to 14.7 percent in China, an assessment by the US Department of Commerce said.
