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| Mahindra Holidays to line up Rs 400 cr for expansion |
| BS Reporter / Mumbai Sep 30, 2008, 00:48 IST |
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Hospitality major Mahindra Holidays & Resorts India (MHRIL), part of the $6-billion Mahindra & Mahindra group, is planning to spend Rs 350-400 crore to double its capacity to 1,500 apartments over the next one year. The plan includes acquisitions, construction of new properties and expansion of existing properties.
Arun Nanda, Chairman, MHRIL, said, “We will spend Rs 350-400 crore in expansions during the current and next financial year. There will be a lot more announcements like these in the coming months. We haven’t witnessed a slowdown despite a downturn in the market as we fund our debtors ourselves. Our members don’t have to depend on banks for funding.”
MHRIL also announced the acquisition of Taj Garden Retreat, a Taj Group-operated resort in Thekkady, Kerala, for an undisclosed amount. The 32-room heritage property will be renamed Mahindra Tusker Trails. The company has also acquired a second heritage property at Ooty, the hill station in Tamil Nadu.
The capital expenditure for expansion will be funded through internal accruals, company executives said.
Discussions are on to raise further capital, the means of which were not disclosed.
The company’s plans of an initial public offering, which were stalled due to unfavourable market conditions, are back in discussions, officials said.
“It’s (IPO) under discussion again...we had delayed it due to unfavourable economic conditions. We have not decided the launch date yet”, said Ramesh Ramanathan, managing director, MHRIL.
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