Hiranandani family to invest ₹3,500 crore in energy business
MUMBAI: Niranjan Hiranandani’s family is investing around ₹3,500 crore to build liquified natural gas (LNG) terminals in Maharashtra and West Bengal, in a diversification for the Mumbai developer who built the iconic 250-acre Hiranandani Gardens township in suburban Powai.
Led by Darshan Hiranandani, Niranjan’s son, H-Energy (formerly known as Hiranandani Energy) expects to start commercial operation of its first LNG terminal at Jaigarh in Maharashtra by October. The Hiranandanis are spending around ₹1,700 crore in setting up the terminal and laying down a 60 km pipeline from Jaigarh to Dabhol that is expected to be ready by May 2018.
“It is a big diversification of the group. If it succeeds in the way he (Darshan) plans to do, in five years’ time, he will be bigger than me in terms of volume of turnover at least,” Niranjan Hiranandani said in an interview.
The energy venture operates as a subsidiary of Niranjan’s realty firm Hiranandani Communities, which primarily focuses on building large townships across Maharashtra.
The company is planning to start construction of its second LNG terminal at Digha in West Bengal with an investment of another ₹1,700 crore. “It is an ambitious plan. There will be gas to Kolkata and even Bangladesh... all those tie-ups are all in the offing. Most of the permissions are there. We are working on the structuring and other things,” he said.
In a telephonic interview Darshan Hiranandani said, H-Energy has devised plans to ramp up the energy business and is looking to bring in more professionals at the senior level.
It also expects to provide gas to retail outlets in the long term, he added. “After a few years, the energy business would also get a professional CEO (chief executive officer). We are in a huge entrepreneurial growth phase. There are around 180 people today. We will add 250 people next year,” said Darshan, who is also managing director of Hiranandani Communities.