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Indian Hotels Co Ltd.

BSE: 500850 Sector: Services
NSE: INDHOTEL ISIN Code: INE053A01029
BSE LIVE 15:41 | 23 Oct 112.65 -1.35
(-1.18%)
OPEN

115.25

HIGH

118.25

LOW

112.10

NSE 15:48 | 23 Oct 112.80 -1.30
(-1.14%)
OPEN

115.00

HIGH

118.50

LOW

112.25

OPEN 115.25
PREVIOUS CLOSE 114.00
VOLUME 228146
52-Week high 136.32
52-Week low 83.11
P/E 113.79
Mkt Cap.(Rs cr) 13,373
Buy Price 112.65
Buy Qty 75.00
Sell Price 0.00
Sell Qty 0.00
OPEN 115.25
CLOSE 114.00
VOLUME 228146
52-Week high 136.32
52-Week low 83.11
P/E 113.79
Mkt Cap.(Rs cr) 13,373
Buy Price 112.65
Buy Qty 75.00
Sell Price 0.00
Sell Qty 0.00

Indian Hotels Co Ltd. (INDHOTEL) - Chairman Speech

Company chairman speech

1996 THE INDIAN HOTELS COMPANY LIMITED CHAIRMAN'S' REVIEW Another busy year for all your Company's hotels saw turnover rise by 43% and profit after tax by 71% over the previous year's levels. With these excellent results, the Board has recommended a dividend of Rs. 7.50 per share (compared to Rs. 5.50 in the previous year). The dividend will be payable pro rata on nearly 5.2 million Global Depository Shares issued in May, 1995, and will be 52% higher than the previous year. Taj Luxury Hotels Taj Luxury Hotels recorded improved yields and occupancies. More "De Luxe" and "Taj Club" floors, created as a part of the renovation, refurbishment and modernisation programme, were available during the year. Designed for the business traveller, who needs to live in and work from the hotel room, these floors and their new facilities have been well received. Addressing the needs of the same market, new large business centres with state-of-art office, communication and meeting facilities were commissioned in our Luxury Hotels. Taj West End, Bangalore, added a new expanded lobby along with public areas. The renovation programme of our Luxury Hotels will continue over the next two years. We have planned the programme in each hotel so that the inconvenience to our guests is minimal and sufficient rooms are available during periods of high demand. Taj Business Hotels Taj Residency, Hyderabad, became a part of the Company's operations during the year under review. The hotel has been fully remodelled, refurbished and upgraded from a Gatway Hotel. Taj Business Hotels serve a growing market, and there are now seven Taj Residency's in the Taj Group. Taj Leisure Hotels A recovery in international leisure travel during the year and a buoyant domestic market was evident in an improved performance by the TaJ Group's leisure hotels and resorts. Other Operations The performance of Taj Group's hotels and resorts operated by your Company has been equally heartening. Your Company has emerged as the market leader in airline catering in India. A new air catering unit in Mumbai located near the International Passenger Terminal has been commissioned during 1996-97. It is one of the most sophisticated units in Asia and has a capacity of 10,000 meals per day. The unit in Delhi is undergoing major renovation. With both domestic and international airlines increasing their flights, we expect continued growth in business. We are constructing an air catering unit in Calcutta. associated Companies are building air catering units, which will be operated by the Company, in Goa and Madras. New Projects Our new hotels projects reflect our policy to maintain the Company's leadership in the markets we serve: -- Two new luxury hotels in Mumbai and one in Madras are under way. -- We have acquired an 11 acre site in Calcutta where we will build a hotel of appropriate international standards. -- Taj Residency, Calicut, will open in 1996-97. -- Work on the Leisure Hotels at Jaisalmer and Jodhpur is progressing satisfactorily. The new projects of our associated companies and joint ventures are progressing well. We have decided to fully implement the Taj Group's plans in the budget and economy sectors through Gateway Hotels and Gateway Resorts Limited (GHGR), which has been promoted by your Company. GHGR's hotels and resorts will be marketed in close association with the Taj Group's hotels. The Pursuit of Excellence I would like to congratulate Mr. R.N. Tata, Tata Group Chairman and a member of our Boar, for his initiative in establishing the J.R.D. Quality Value Award. This Award, instituted in memory of Mr. J R D Tata, is an appropriate recognition of the man who epitomised excellence in thoughts, words and deeds. Encouraged by this award, your Company had embarked on a mission to improve the quality of its products and services in every area of the Company's operations. This process, which is initiated, will be to the benefit of all the stake holders in our business be it the customer, shareholder, the employee or the community at large. As I write this review, I am informed that, in this year's assessment for the "JRD QV" Award, one of the Taj Group's hotels viz., the Taj Residency in Bangalore, secured the highest points among all the competing units of various companies. I am sure shareholders will be proud of this achievement. The most important factor to maintain excellence in service - in our existing and new hotels - remains the recruitment, training and development of people. Shareholders enthusiastically supported our decision to establish the Indian Institute of Hotel Management, Aurangabad, as a hotel school of the highest international standards. We believe that we are steadily moving towards this objective. The first batch of students will graduate in August, 1996 after completing a 3-year curriculum created in consultation with some of the world's leading hotel schools. Most of them will join the Taj Group. Based on the overwhelming response for admission, we have now decided to increase the number of seats to 90. The Institute has drawn its faculty from India and overseas, and provides quality training facilities, innovative teaching methods, modern equipment and a high degree of computerisation. Most important, students receive practical training at the adjoining Taj Residency. We will now be adding to the Institute's facilities. These include a first class library, a computer training laboratory and a state of the-art auditorium. The Company also proposes to fund dormitory facilities for students and to provide faculty with housing. The Environment As part of our ongoing effort to protect and conserve the environment, the Environmental Initiative Group, which I referred to last year, has developed a co-ordinated environmental programme throughout the Company. The objective of this programme is to establish your Company as a model for the development of sustainable business practices and as a leader in the promotion of eco-tourism. This group of highly qualified environmentalists guide, advise and assist environmental task forces set up in each hotel of the Taj Group. Priority areas being addressed include the treatment of waste water and re-cycling of treated water for gardening, cooling towers etc.; the reduction of energy consumption; the reduction, the re-use and the re-cycling of waste; and the use of bio- degradable eco-friendly products in all our hotels. We recognise that the development of hotels in ecologically sensitive areas requires to be sustainable, and we have commissioned a pilot eco-tourism project by experts in the field. The project which is in progress will help us to determine our approach to building hotels near the coastline and in placed of historical interest as well as to the development of jungle lodges. Community Initiatives Your Company has always been committed to fulfilling its social responsibilities. In order to adopt a more focussed approach to community initiatives, we have established a cell to co-ordinate these activities across the Taj Group. In addition, the Company works in co-ordination with other companies on common social and community projects in various parts of the country. Risk Management In order to enhance levels of safety for guests, employees and the company's property, detailed assessments by Tata Risk Management Services were carried out in selected hotels across the Group. Their recommendations will, in the long term, favourably impact the insurance premiums paid by the Company. In Conclusion We hope that the welcome absence of events and circumstances, which has adversely affected travel in past years, will continue. Shareholders will, I am sure, continue to support of hotels in every sector, and travel and tourism now the world's largest industry can't grow very much further in our country without adequate supply. We are committed as ever to providing this essential infrastructure. Our thanks to all our staff who have made the present possible and will, no doubt, take your Company to even greater success. A.B. KERKAR Chairman Place : Mumbai Date : 28th July, 1996.