Reliance acquires 14.12 % stake in Oberoi Hotels for Rs 1021 crore

File photo of The Oberoi in Mumbai.

Energy and petrochemicals major Reliance Industries Limited (RIL) today announced that it had acquired a 14.12 per cent stake in EIH Limited, which owns and manages the Oberoi and Trident brands of hotels in the country, for approximately Rs 1021 crores.

The acqusition was made through RIL's wholly-owned subsidiary Reliance Industries Investment and Holding Private Limited from Oberoi Hotels Private Limited and certain other promoters of EIH Limited, a statement from the company said.

"RIL’s investment in EIH Limited has been made as the Oberoi family had developed the 'Oberoi Hotels' brand into a premier international brand in the luxury hospitality sector and as a result EIH Limited has excellent future prospects," the statement said.

"RIL has full faith in and would support the management of EIH Limited and there is no change of management, operation or control of EIH Limited," the statement added.

RIL is India's largest private sector company on all major financial parameters with a turnover of Rs 2,00,400 crore ($ 44.6 billion), cash profit of Rs 27,933 crore ($ 6.2 billion), net profit of Rs 16,236 crore ($ 3.6 billion) and net worth of Rs 1,37,171 crore ($ 30.6 billion) as of March 31, 2010.

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