Mulk Holdings in Dh450m expansion deal with Mideast and Indian firms

Fraser Brown

DUBAI — UAE-based Mulk Holdings has announced a Dh450 million expansion programme that includes joint ventures with Gulf and Indian companies.

The global company, which deals in manufacturing, renewable energy, real estate and healthcare, said it has $500 million worth of contracts in India. Five different groups are involved in these renewable energy contracts with the support of Government of India, the company’s top official said.

“All our projects related to solar energy are in India because the country has policy guidelines for it,” Mulk Holdings Chairman Nawab Shaji Ul Mulk told reporters late on Saturday after the joint venture signing ceremony.

Mulk said the company is also talking to officials in Abu Dhabi’s Masdar city. “We are talking to them [Masdar] for Shams 2 and Shams 1,” he added.

Mulk will expand in its core industries and also form a joint venture with Enpar Group from India. Enpar Group headed by its chairman Ravi Lad has interests in manufacturing fabrics and electronics, renewable energy and real estate development. The two companies have signed a Memorandum of Understanding to form a joint venture company called Mulk Enpar.

According to the agreement, Mulk Enpar will have an even shareholding and invest over Dh300 million in a diversified expansion programme which will result into creation of a group of six companies strategically located in India, Sri Lanka, Europe and the UAE.

This is expected to turn Mulk Enpar into a large multinational conglomerate generating consolidated annual revenue of over Dh1.5 billion from 2012 and beyond.

These projects, all of which are in the advanced stages of implementation, will include Mulk Enpar Renewable Energy in UAE and India focusing on solar energy generation and processed heat applications; Alubond USA manufacturing plant in India under Alubond Dacs India Pvt Ltd; Alubond Australasia Sri Lanka, focusing on aluminum coil coating; Stradt Interiors, an interiors and high-end fit out company in Jebel Ali; the 100,000-tonne aluminium coil manufacturing plant either in Abu Dhabi or Sohar in Oman; and Alubond Europe, an aluminium composite panel manufacturing plant in Belgrade.

“We hope selection of joint venture company for coil manufacturing will be finalised within a few days. It could be either Abu Dhabi-based Emirates Aluminum or Oman’s Sohar,” Mulk said. He said 70 per cent of the production will be used locally.

An estimated Dh200 million investment is under consideration for the aluminium plant, he said, adding: “The group will provide 30 per cent equity while rest of the 70 per cent will be arranged by seven international banks.”

“We are excited at this joint venture and the opportunities it provides for both of the parties to join their strengths to not only grow in their core businesses but also to diversify into sustainable industries,” Mulk said.

“The support of imminent group of partners gives us the inherent strength to succeed in our objective of becoming a leading player in alternative energy, healthcare and construction industry.”

Ravi Lad, the chairman of Enpar Group, also expressed his satisfaction on the joint venture and said this partnership is a prelude to many such business ventures.

During the event, Mulk Holdings also unveiled a separate, extensive investment programme of over Dh150 million independent of the Mulk Enpar expansion. This expansion will target their existing companies in the healthcare sector; and establish new Alubond production plants in different locations.