ITC eyes man­aged prop­er­ties in ad­ja­cent coun­tries

The Hindu Business Line - - NEWS - DEBASISH BHADURI

Di­ver­si­fied con­glom­er­ate ITC Ltd is ex­plor­ing man­aged ho­tels over­seas, par­tic­u­larly, in mar­kets “ad­ja­cent” to In­dia.

New prop­er­ties are be­ing looked at in Sri Lanka, Nepal and Bangladesh. Man­aged prop­er­ties will be un­der the “Wel­comHo­tel” brand.

Ac­cord­ing to San­jiv Puri, Chair­man and Manag­ing Direc­tor, ITC’s Nepal sub­sidiary, Surya Nepal, is al­ready ex­plor­ing “some op­por­tu­ni­ties” there.

“The Nepal sub­sidiary is look­ing at some op­por­tu­ni­ties; while, we can look at other ad­ja­cent mar­kets to In­dia,” he told me­dia per­sons fol­low­ing the in­au­gu­ra­tion of the com­pany’s sec­ond ho­tel in Kolkata.

Built at a cost of ₹1,400 crore, the ITC Royal Ben­gal will have 456 rooms mak­ing it one of the largest prop­er­ties for the com­pany. “Wel­comHo­tel would look at man­aged prop­er­ties both In­dia and out­side,” Puri added.

Apart from Wel­comHo­tel, the other ho­tel brands owned by San­jiv Puri, Chair­man & Manag­ing Direc­tor, ITC

ITC Ltd in­clude ITC Ho­tels, Wel­comHer­itage and For­tune. ITC Ltd is con­struct­ing its first over­seas prop­erty at Colombo in Sri Lanka. The ho­tel (brand ITC Ho­tels) is ex­pected to go on­stream by the end of next fis­cal.

Pres­ence in Sri Lanka

While Puri did not spec­ify how much in­vest­ments have gone into it, he did point out that the re­cent ter­ror at­tacks on the is­land na­tion, have not al­tered the com­pany’s plans to bring its Colombo prop­erty on-stream.

“There is no change in time­line. These projects have long ges­ta­tion pe­ri­ods (con­struc­tion). If there are changes in the op­er­at­ing en­vi­ron­ment we have to take that into ac­count,” he said.

Do­mes­tic prop­er­ties

On the do­mes­tic front, man­aged prop­er­ties are ex­pected to grow over a pe­riod of time.

Of the 108 ho­tels they own and man­age across the four brands, the break-up be­tween owned and man­aged prop­er­ties will be to the tune of 50:50. The Wel­comHo­tel brand is be­ing re­launched to fo­cus more on man­aged prop­er­ties, Puri said adding that 13-14 ho­tels are ex­pected un­der the brand over the next few years. Hill sta­tions and re­sort lo­ca­tions will be the fo­cus.

“We have quite a large foot­print across dif­fer­ent lo­ca­tions. So we feel it is the right time to ex­plore an as­set-light strat­egy. This means, we can use our ex­per­tise to help and man­age other prop­er­ties. Even the Wel­comHo­tel brand is be­ing re­launched,” he added.

Ap­prox­i­mately, 20 per cent of the ₹20,000 crore that the com­pany is in­vest­ing in In­dia will be to­wards its ho­tels di­vi­sion.

In­vest­ments in Ben­gal

Ac­cord­ing to Puri, an ad­di­tional ₹1,700 crore will be in­vested in Ben­gal over the next 3-5 years as the con­glom­er­ate looks to set up a per­sonal care manufactur­ing fa­cil­ity in Howrah. Land ac­qui­si­tion is al­ready on for the fa­cil­ity.

ITC al­ready has ex­ist­ing per­sonal care manufactur­ing fa­cil­i­ties in Harid­war and Guwa­hati.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.