Globalising markets and the expected higher rates of growth of the Indian economy will lead to growing demand for high quality accommodation. India is grossly under-roomed and it is estimated that hotel room capacity will have to at least double over the next five years to keep pace with the expected growth in demand. It is companies such as yours, with a strong balance sheet, that can contribute effectively to the creation and sustenance of such capital intensive and long gestation projects like hotels, which constitute an important part of infrastructure for the growth of trade, commerce and industry.
Towards this end, your Company had initiated an aggressive ...view middle of the document...
Construction of the second hotel near Upper Worli in Mumbai has already commenced, together with a housing project for managers. The construction of ITC Sonar Bangla at Calcutta is progressing satisfactorily. The second hotel project in Delhi is at an advanced stage of completion and will be ready to receive guests in the next few months.
in order to re-position effectively the product and service offerings of the ITC Welcomgroup chain across different segments of consumers, a revised branding strategy is being implemented. This will enable your Company’s hotels business to focus even more closely on the needs of consumers and position itself to dominate the major segments of the hospitality industry.
Your Company believes that with skills and expertise developed over the years, it is possible to build a global hotel business by owning and managing hotel properties overseas. This objective is part of your Company’s strategic direction, and will be embarked upon after establishing a dominant position for the ITC Welcomgroup chain in India.
On completion of the expansion plans, nearly 1500 rooms will have been added to the ITC Welcomgroup chain over the next few years. These investments, apart from providing an attractive growth opportunity for your Company, would stimulate large direct and indirect employment besides supporting substantial foreign exchange earnings. Given the high economic multiplier impact of investments in hotels, it is estimated that your Company’s investment programme will create upwards of 20,000 additional direct and indirect jobs.