Reliance To Buy EIH , East India Hotels For Rs 1021 Crores, Enters in Hospitality Sector

India's top listed conglomerate, Reliance Industries (RELI.BO: Quote), diversify into new businesses by acquiring a 14.1 percent stake in hotel chain EIH Ltd (EIHO.BO: Quote) for $217.5 million.

Lead by Mukesh Ambani, the world's fourth-richest man, Reliance's cover petrochemicals, refining, oil and gas exploration, and retail.

The cash-rich company, which has the highest weighting in the benchmark Bombay Stock Exchange index ......By Reuters

In India's growing hospitality sector, Reliance will compete with players such as Indian Hotels Co Ltd (IHTL.BO: Quote) -- owner of the Taj luxury chain and an arm of the salt-to-software Tata Group -- and ITC Ltd (ITC.BO: Quote), which also makes cigarettes.

EIH manages 32 hotels globally and has been looking to expand in overseas locations such as London, New York and Paris.