Unitech buys 33% in Pantaloon arm

Real estate major to invest Rs 25 crore in Home Solutions Retail

Real estate major Unitech is picking up a 33 per cent stake in the Pantaloon's home furnishings subsidiary, Home Solutions Retail India. HSRL had recently started operations in Mumbai.

Shiraj Dej, company secretary of Pantaloon Retail, confirmed the development. "Unitech is picking up 33 per cent in HSRL. Other details would be worked out soon," he said.

Pantaloon Retail India, the flagship of the Kishore Biyani-controlled Pantaloon group, would continue to hold around 66 per cent in the company, which is being projected as a one-stop shop for home furnishing and services.

Pantaloon had recently inducted Liberty Shoes as a strategic partner for its foray into footwear retailing.

Unitech group promoters Ramesh Chandra and Sunil Chandra have years of experience in real estate. It is widely believed that like Liberty Shoes, Unitech too would take active part in the daily operations of HSRL. Liberty group despite holding 49 per cent in the JV would be looking into the daily operations of the venture.

Top sources in the retail industry informed that Pantaloon group was planning to invest around Rs 225 crore in Home Solutions Retail in the next two years.

Unitech was likely to bring in Rs 25 crore as equity investment in HSRL. Pantaloon would bring in Rs 50 crore and the rest would be debt. Pantaloon Retail has thus far invested around Rs 3.3 lakh in the newly floated subsidiary.

HSRL is offering home products including furnishing, furniture consumer durable and home textiles. It is also planning to offer services such as plumbing, carpentry, painting and interior designing.

Sources also informed that Pantaloon is lining up Rs 75 crore for strategic investments in 2006-07.

"Pantaloon is actively looking for acquisitions in the next fiscal. Besides, acquisition it will float new subsidiaries for foray into new areas," sources said.

Pantaloon group had invested around Rs 24 crore in 2004-05 for acquisition of Galaxy Entertainment and Planet Sports.

Unitech recently bagged a Rs 2,000 crore project in Kolkata for setting up a convention centre. Bengal Unitech Universal, the joint venture between Unitech and NRI industrialist Prasun Mukherjee, would implement the project.