30 Minute Interview

Rs 6000 Crore Earmarked For Hotel Expansion Over The Next Five Years

Y C Deveshwar CHAIRMAN, ITC LIMITED

ITC Limited has turned its focus on its hospitality division and a substantial part of the Rs 14,000-crore expansion programme across the board will be channeled into the hospitality business.

Y C Deveshwar speaks about his plans to catapult ITC Hotels to India's leading hotel chain in an informal chat with Savio Rodrigues.

What was the reason behind the amalgamation of ITC Hotels and Ansal Hotels with the parent company ITC?

Nearly 80 per cent of the capital employed in the hotel business is already residing in ITC's balance sheet. The amalgamation was aimed at facilitating better alignment of investment and incomes, besides promoting fiscal efficiencies, rationalising operating costs and assisting in providing a clear and composite picture of the company's hotel business to the investors. In fact, the timing of the amalgamation is particularly appropriate as the travel and tourism industry in India is poised for rapid growth.

In recent times, ITC has stressed emphatically on its focus towards its hotel division. What are your long-term plans in the arena of hospitality?

Sometime ago, the company's board approved of a Rs 14,000-crore expansion programme across all divisions of the group. Expansion of the ITC Welcomgroup chain through addition of hotels in key locations was one of the main sectors identified in which the company would concentrate its investment. Our investment plans are aimed at positioning each of the businesses in the ITC portfolio as a leader in its respective market. Apart from capital expenditure for organic growth, the strategic investment plans include outlays towards acquisitions, both in India and abroad. We have earmarked Rs 6000 crore towards the expansion of our hospitality division in the next five years.

What are your short-term plans for the hotel division?

ITC is planning to build three new super deluxe luxury hotels in Chennai, Bangalore and Hyderabad at a cost of Rs 1,000 crore and they would be functional in the next two to three years.

ITC is also looking at taking its brand, international. What key international cities has the company identified?

ITC is looking at taking its hospitality business outside India, as the global markets are now opening up to Indian brands and on the international market ITC Hotels has created for itself an indomitable brand image. We are currently eyeing the UK hotel sector and scouting for appropriate locations in the country.