ITC group to invest Rs 25K crore in hotel business in 5 years
Chennai: ITC Group, as part of expanding its hotel business, has lined up investments of Rs 25,000 crore over the next five years, a top company official said.
"We have huge investments coming up on hotel business. We have a land in Sri Lanka. It will have our first overseas venture (for ITC Group) on ultra luxury..", ITC Group, Chairman Y C Deveshwar told reporters here.
Stating the group's hotel business was growing at a fast pace, Deveshwar who is here for the inauguration of its largest property in India -- the ITC Grand Chola, said, "they also have a presence in Nepal".
Besides, these two properties each in Nepal and Sri Lanka, the Group was also eyeing entering Bangladesh and other neighbouring countries
On the company's upcoming projects in domestic market, ITC Group Director-In Charge, Nakul Anand, said currently the group has about 8,000 rooms and plans to add another 5,000 rooms in the next three to four years.
He said the group is setting up properties in Ahmedabad, Amritsar, Bhubaneshwar and Coimbatore.
"With this, we will have a total capacity of 13,000 rooms..",he said, adding for their Sri Lankan operations they have recently bought a five acre land in Colombo.
"We should be making investments of about Rs 500 crore..", he said, adding many more expansion plans were still in the "drawing board".
He said these expansion plans will attract investments of USD 2 billion (over Rs 10,000 crore) of which 35-40 per cent have been already utilised. To a query, he said the group's upcoming hotels would be based on renewable energy with LEED standards.
On ITC's tobacco business, Deveshwar said the group expects to garner revenues of Rs 15,000 crore over the next five year period. "Last year the revenue from tobacco industry was Rs 5,500 crore. Obviously, we are looking to generate Rs 15,000 crore in next five years..", he said.
In reply to a query, he said, "We need Indian companies to create Indian brands competing with global market".