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| Audikeshavulu set for Rs 300 cr hospitality expansion |
| Raghuvir Badrinath & Ravi Menon / Chennai/ Bangalore Aug 06, 2009, 00:02 IST |
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D K Audikeshavulu, the Bangalore-based businessman with interests in diverse sectors like liquor, hospitals or hospitality, is embarking on a Rs 300 crore expansion of his hospitality business. Audikeshavulu, also chairman of the Tirumala Tirupati Devasthanams, has some hospitality properties in Bangalore and is putting up a 380-keys five star property in Bangalore.
Audikeshavulu is understood to have invested around Rs 125 crore for the project to get it going and industry sources indicate they are looking to raise another Rs 150 crore to complete the project. The project site adjacent this property also has a full-fledged convention centre which is ready for operation.
Industry sources indicate that various global and Indian hospitality majors are in discussions to get into a management contract agreement for the property and Deloitte is understood to be handling the mandate. “We understand, Hyatt is understood to have shown interest in the project,” sources noted.
Audikeshavulu, over the past year, has been steadily beefing up his various businesses, after he offloaded his majority stake in his brewery to UB Group.
In addition to expanding the hospitality business, Audikeshavulu is expanding his healthcare business and is set to acquire the Bangalore-based Lakeside Hospital with 200-beds. Audikeshavulu also manages the Mallya Hospital in Bangalore and Medinova chain of diagnostic centres in addition to the flagship Vydehi Institute of Medical Sciences and Research Centre in Bangalore.
Vydehi Institute is embarking on a Rs 200 crore expansion to double its patient-handling capacity from 1,150 beds in two years time. The Rs 100-crore multi-specialty hospital, in Whitefield, next to the Satya Sai Hospital, has 75 acres and the expansion will see the hospital develop into a Health City with a number of disciplines to be added in. According to industry information, Vydehi is understood to be scouting for a joint venture partner including having had discussions with the Parkway Group of Singapore.
Kesavalu however did confirm that they have had discussions with various strategic and private equity players and it is too early to confirm the route which they will take to expand.
“Even if external funding did not materialise, we have the resources to mobilise expansion,” he added. Industry sources indicate that the business group is looking to structure a holding company in which there may be some private equity infusion in the near future.
“As we understand, they are planning a Rs 500 crore expansion over two phases in the near future. They will surely require external funding,” investment banking sources noted.
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