Sahara-Turner Construction JV: How much work does it have?

Excerpts from India Business Hour on CNBC-TV18 Watch the full show »

After 34 years of existence, Sahara has ventured outside the Parivar. It has struck a joint venture with Turner Construction and says it expects the JV to do business worth USD 25 billion over the next 20 years. However, CNBC-TV18's Sajeet Manghat and Ashmit Kumar report that Sahara is still as reticent as ever when it comes to divulging information.

Subrato Roy Sahara encouraged journalists to seek more information about Sahara's latest step -- a JV with private equity player Acropolis Capital and America's leading construction company Turner Construction. But apart from saying that the JV would take on projects worth USD 25 billion over the next 20 years, Sahara was tight lipped about other aspects of the partnership.

"They had, there are certain policies they have already started to join hands as a shareholder but it will be enhanced in future, near future it will go stage wise, so today whatever I would say, will not stand good maybe after few years," Sahara said.

Even getting the partnership structure was like pulling teeth with a string and a hammer.

The Chairman says, "At the moment Sahara is going to hold 63% and between Acropolis and Turner and also Sahara it will change as I said it has some scheme of 2-3 years."

Even Turner Construction, which is associated with the construction of iconic buildings like United Nations, and Yankee Stadium, did not throw much light on the financial aspects of the partnership.

"What we bring to this venture its more than just the capitalisation that we might make it will be a lot of the people that we bring and lot of the intellectual rights that we carry is that we will bring to this company," said Nicholas E Billotti, President & CEO, Turner Construction International.

However, CNBC-TV18 learns that Turner is likely to get a 10% stake in the JV, with Acropolis getting the balance.

But even Acropolis played its cards close to its chest.

"To your question specifically as to which projects Acropolis invest in, the three shareholders will construct and undertake all construction activities under this platform, whether it be for Sahara or for third party work. But development work in which investments are required are to be done on a case by case basis, we will undertake their profit judgement at that point of time," Annat Jain, Managing Partner, Acropolis Capital Group said.

And as the conference proceeded there were more questions than answers...and questions on Sahara's ongoing tussle with Indian regulators rubbed Subroto Roy the wrong way.

Experts say that at first glance, this JV could be used to consolidate contractors in various Sahara real estate projects but the billion dollar question is: how many projects and how much area of construction is the JV going to handle?