S. S. Lootah Announces India Foray, to set up Subsidiary

(From left) Eng. Yahya Lootah, Vice Chairman, S.S. Lootah Group, Indian Minister of State for External Affairs, Mr. E Ahmed and Mr. Rashid Lootah, Board member, S. S. Lootah Group in New Delhi after the MoU signing ceremony.
  • First private sector business group from the emirates to open wholly-owned office in India after the recent visit of His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister of the UAE and Ruler of Dubai to India
  • Signs MoU with Hyderabad- based IVRCL Infrastructures & Projects Ltd to develop infrastructure projects in India and the region
  • Group’s base in India to scout for opportunities across services, manufacturing and knowledge economy
New Delhi, August 22 2007: The UAE-based multi-billion dollar business conglomerate, S. S. Lootah Group, which has varied investment interests across a broad spectrum of industries in the UAE, Asia, Africa and Europe, today announced its foray into India by unveiling its plans to open a wholly-owned subsidiary in India this year.

The subsidiary which will be an arm of the Group’s international operations under S.S. Lootah International, also signed an MoU 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, Mr. E Ahmed, will also lead to looking for opportunities jointly 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 more fruitful business and investment cooperation. As a keen observer of the Indo-UAE economic relationships with a higher weightage 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 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 His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister of the UAE and Ruler of Dubai, to enhance the bilateral relations between both the countries for significant economic and social gains for the region as a whole,” he said.

Mr. 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.

The total FDI from the Gulf countries till 2006 was only US$2 billion despite investments in India is reported to offer returns in the range of 19.3 per cent compared to 14.7 per cent in China according to an assessment by the US Department of Commerce. Cumulative trade between India and the UAE has grown substantially over the years and was to the tune of over US$18 billion during April 2006-February 2007 compared to over US$11 billion during the previous corresponding period in 2005-2006. The UAE is the second largest destination for India’s exports after the US.

“As a business Group with a reputation for innovation and intelligent and sustainable investments, we look forward to be partners in the growth of Indian business and economy. We are currently in the process of identifying various opportunities across India which will be soon announced in the next two to three months,” Mr. Yahya added.

   

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