New Delhi : Indian real estate major DLF Ltd is set to diversify and enter the insurance segment within a year as it has tied up with US-based Prudential Insurance.
"We have entered into an agreement with Prudential Insurance of US (in February 2007) and the joint venture would help us in developing and selling life insurance products in India," DLF chairman K.P. Singh told reporters here.
Each party would invest to the tune of about $250 million in the joint venture company over a span of seven years, in proportion to their respective shareholdings, of which DLF is currently holding 74 percent, company officials said.
"As our business grows, it only makes sense to diversify and insurance is a big market with huge potential," said Piya Singh, a DLF director.
Among its other new business initiatives, DLF will build a series of mega projects including Special Economic Zones (SEZs), especially for the IT sector, budget hotels and infrastructure.
"We would be leveraging real estate capabilities into related areas like SEZ, infrastructure and hospitality," stressed K.P. Singh.
He said the company has plans to develop luxury, business and budget hotels and serviced apartments. It had tied up with global hospitality chain Hilton last year to develop a chain of hotels across India.
The company is, however, scouting for other partners to establish joint ventures for acquisition and development of budget and luxury hotels.
DLF Wednesday announced its entry into the primary capital market to raise Rs.87.50 billion to Rs.96.25 billion, with a price band of Rs.500-550 per share. Pitted as one of India's largest IPOs, the offer opens June 11 and closes June 14.