ITC is exploring the possibility of setting up a hotel in Nepal through its subsidiary ITC Surya Nepal, chairman Sanjiv Puri said in his maiden press conference.
Expanding footprint
Mr. Puri said that this was part of ITC’s strategy to expand its footprint in the hotel segment in neighbouring countries. “Ideally, these would be countries where there is a tourist inflow from India,” he said in the media interaction after the inauguration of ITC’s second luxury hotel ITC Royal, here on Tuesday by West Bengal Chief Minister Mamata Banerjee.
To a question on the upcoming Sri Lanka project, he said that there was no change in the schedule (despite the recent disturbances there).
“We have to go ahead. In between there has been a change in the operating environment and gestation is large, but we are hoping that tourism there would look up soon,” he said.
The project is set to be completed by the end of 2020, and this is ITC’s own hotel. Pointing out that ITC was now pursuing a strategy of “asset-right” in its hotel business, he said that it was focussing more on leveraging its experience in helping others manage their hotel properties.
“We have relaunched and modernised our Welcome Hotel brand towards this end,” he said. ITC has 108 hotels with 26 more in the pipeline, he said. The business operates under four brands.
Mr. Puri said that ITC Royal, in which ₹1,400 crore has been invested, would be promoted along with the adjacent ITC Sonar as a convention centre.
The group is investing another ₹1,700 crore for setting up a personal care manufacturing facility and for capacity and technical upgrade of existing units. “We are optimistic about West Bengal,” he said. This investment comes on the back of ₹4,000 crore investment in setting up two new food processing facilities and augmenting existing unit, according to Mr. Puri. An IT unit is also scheduled for launch next year.
ITC is also investing in the State’s agricultural sector through backward integrations. “Over 70,000 farmers have benefitted from ITC’s interventions in over 500 West Bengal villages. Additionally, the company has spearheaded a wheat development programme that covers 8,500 acres.
On the ongoing lifestyle recast business, he said that the process of optimising the rest of the business [after selling the John Players brand] is continuing.
