In what may be a prelude to getting foreign investment, Hathway Investments has hived off five magazines -- Outlook, Outlook Traveler, Outlook Saptahik, Outlook Home and Outlook Money -- into a separate company.

"The publishing business has been demerged from Hathway Investments into a separate company called Outlook Publishing India Ltd. This company will take care of all the present and future publications," Maheshwer Peri, publisher of Outlook, told Business Standard adding that though there were no proposals as yet, infusion of foreign funds in the company is not ruled out.

Asked whether hiving off the publishing business as a separate company is a part of the larger strategy to get foreign direct investment in the future, Peri said, "The answer is both yes and no. We are open to foreign direct investment. But, we are not currently considering any proposal for the same actively."

Outlook Publishing India Ltd is 100 per cent owned by Hathway Investments, which is the investment company of Raheja. The Mumbai-based Raheja has interests in businesses like retail, construction as well as cable distribution business apart from a growing interest in publishing. "I have a business deadline to start two more magazines in some time," Peri said.

According to him, the move to demerge the publishing business forms a part of Hathway Investments' strategy to create independent business units after each achieved a critical mass in size. "This is a part of the group strategy. Hathway Investments has functioned like a fund which allows a company to go on its own once it achieves a critical mass," Peri said.

Peri, however, did not divulge the financial details of the company including its paid up equity capital.

However, sources close to the deal said that the company has been structured with a low paid up equity base. With a large capital base, and varied interests it may have been difficult for Hathway to induct a foreign partner.