HDIL ties up with Lehman Brothers for Dharavi development

Global investment bank Lehman Brothers has teamed up with Wadhawan group promoted HDIL to bid for the redevelopment of Asia’s largest slum, Dharavi. The project is expected to generate close to Rs 25000 crore in revenue for the Maharashtra government.

HDIL has formed a special purpose vehicle (SPV) with Lehman Brothers. HDIL will hold a majority equity stake, reports suggest.

Reportedly, the new company will bid for the redevelopment of all the five sectors of Dharavi that the government has announced to develop through a global tender process. Interested developers will be evaluated technically and financially by a committee led by the state chief secretary.

HDIL reported a net profit of Rs 202.69 crore on sales of Rs 443.28 in Q1 June 2007. HDIL mainly operated in the Mumbai region.