Mukesh Ambani's Reliance Industries has continued its diversification drive with the purchase of a minority stake in family-run luxury hotel group Oberoi.
Reliance Industries Investment and Holding Private Limited, a wholly owned subsidiary of Reliance Industries, has acquired a 14.12% stake in Oberoi subsidiary EIH for $217 million.
In a statement, Reliance said it had decided to make an investment as "the Oberoi family had developed Oberoi Hotels into a premier international brand".
The group owns the Oberoi Mumbai that reopened earlier this year after it was destroyed by the terrorists in November 2008.
The move provides Reliance with access to India's burgeoning leisure industry and continues Ambani's desire to diversify privately-owned Reliance, which had revenues of $44.6 billion in 2009 and a primary interest in oil and gas, into new areas.
Following the scrapping of non-competition agreements with his brother Anil Ambani in May, Mukesh Ambani (pictured) entered the communications industry with a $1 billion dollar acquisition of Infotel Broadband Services. (Continue reading here)
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