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Jaiprakash to demerge hospitality business

India's diversified Jaiprakash Industries plans to spin off its hospitality business to focus on its core activities, an economic daily said on Monday.

"We are planning to bring the (hospitality) business under one company -- Jaypee Hotels," the Business Standard newspaper quoted group Chairman Jaiprakash Gaur as saying.

The company could not be reached for comment.

The Delhi-based company has interests in construction, cement, hydro-power and hotels.

Jaiprakash's hospitality business is spread over three companies, group flagship Jaiprakash Industries, Jaypee Hotels Ltd and Jaypee Greens Ltd.

Jaiprakash Industries owns the Hotel Residency Manor in Mussoorie while Jaypee Hotels owns the Vasant Continental and Siddharth hotels in Delhi and Hotel Jaypee Palace in Agra.

Jaypee Greens is developing an 18-hole golf course, along with hotels, a convention centre, food courts and a residential complex spread over 438 acres at Greater Noida near Delhi.

The plans are for Jaiprakash Industries to transfer its hotel to Jaypee Hotels while Jaypee Greens will be merged with Jaypee Hotels, the newspaper said.

Earlier this year, Jaiprakash Industries received the approval of its shareholders to hive off its cement business to its fully-owned subsidiary, Jaypee Rewa Cement Ltd.

The demerger of the cement and hotels divisions will help the group flagship concentrate on its core engineering construction business.

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