Chandra to Also Head Board of Indian Hotels
IHCL has been without a chairman since Cyrus Mistry resigned on Dec 19
New Delhi: Indian Hotels Company (IHCL) has appointed Tata Sons chairman N Chandrasekaran as the chairman of the board of directors of the company.
In a statement issued to the BSE on Thursday, IHCL stated Chandrasekaran has been elected as the chairman of the board of directors with effect from February 22 vide a written resolution of the board. The new Tata Sons chairman was initially appointed as a member of the board on January 27. IHCL has been without a chairman since Cyrus Mistry resigned on December 19.
In a brand restructuring exercise announced this month, IHCL had grouped all its hotels in the current portfolio globally under a single branded house identity called Taj Hotels Palaces Resorts Safaris. IHCL stated that brands Vivanta by Taj and Gateway will merge under a single Taj brand identity and that each of the four groups: Taj Hotels, Taj Palaces, Taj Resorts and Taj Safaris, will have clearly defined experiences. The company has been showing signs of a turnaround with CEO Rakesh Sarna at the helm. IHCL posted a jump in profits in its results for the quarter ended December. IHCL's profit after tax for the qu- arter ended December 31, 2016 was ₹ 92 crore compared to 58 crore for the corresponding quarter of the previous year. The company reported total income from operations of ₹ 696 crore for the quarter ended December compared to ₹ 663 crore for the corresponding quarter of the previous year.
In a letter addressed to the board of directors of IHCL dated December 5, ousted Tata Sons chairman Cyrus Mistry, who was also the chairman of IHCL, had highlighted the issues it faced.
“IHCL was facing challenges in 2012. Expensive overseas acquisitions, including the Pierre were bleeding and the Sea Rock project had capital blocked and was losing value... there had been almost no investment to support the domestic market – which was at a critical juncture, being flooded by MNC competition (with global brands, loyalty programs and distribution) with very aggressive expansion plans, Mistry had stated.
N Chandrasekaran ET ARCHIVES