Chan­dra to Also Head Board of In­dian Ho­tels

IHCL has been with­out a chair­man since Cyrus Mistry re­signed on Dec 19

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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

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