Sunday, February 19 2006 13:31 Hrs (IST) - World Time -

Lucknow: Contrary to reports of a financial crisis, the Sahara Group proposes to make huge investments in retailing, housing, media and entertainment, hospitality, medicare and other sectors totalling over Rs 100,000 crore over the next five years, its Chairman Subrata Roy said today (Feb 19,2006).

The 58-year-old corporate honcho dubs as 'unfortunate'the rumours about the group's financial health as also about his own and attributes this to 'crap mentality' of certain sections of society.

Describing himself as a 'contended man', Roy told sources in an interview here: "I am pained at the tendency to criticise."

This along with lack of knowledge about the working of a closely-held company had led to all kind of perception and rumours about his group, Roy said asserting nothing would deter him to go ahead with his plans for mega investment that would help tripling the group's assets up to Rs 150,000 crore in the next five years.

"From 1998 onwards the growth was very high till the end of 2003. After 2003-04, the growth is much much higher. The group is growing by 30-40 per cent now. There is no cash crunch," Roy said dismissing the perception that sale of aviation business Air Sahara was due to financial compulsions.

Asked if the group had made any money out of the sale of Air Sahara for Rs 2,300 crore, Roy said, "I cannot give the details but I will say only one thing it was a positive sale. Ours was a sweet exit."

On reasons for exiting from the aviation business, he said that the sector was now suffering from a mis-match of demand and supply and "We could not have maintained the standards if we were to match the low cost airlines. In future it could have gone in losses. Moreover, there was no business synergy between our core strength and aviation."

Dismissing the reports that he would also sell his media and entertainment business as also the much touted Amby-Velly project as group was on the brink of a financial collapse, Roy said, "There is nothing, absolutely nothing like this.

"What I foresee is that the group should be more than double its size now in the next five years. Assets could grow by 2-3 times from the present level of Rs 50,000 crore," he added.

Maintaining that Sahara was a cash rich group, Roy, the focus of the investment in the next five years would be to build and expand the housing business where upto Rs 20,000 crore are likely to be invested further.

Asked for the sources of the funds, he said that housing is a business where the funds roll quickly.