Bhagwati plans Rs 150cr convention centre in A'bad

Firm likely to strike land deal for the project soon.

Ahmedabad-based hospitality company, Bhagwati Banquets and Hotels Limited. is scouting for land in the city to build probably the largest convention centre-cum-hotel of the country.

Even as the 100-acre convention centre project on the outskirts of Ahmedabad is awaiting some clearances by the state government, the promoters of Bhagwati Banquets are sure to hit right on time.

"The convention centre-cum-hotel project will come up on an area of 1,80,000 sft., We have already built the country's largest convention centre in a hotel at Surat, spread across 55,000 sft of the total area. We plan to build a bigger convention centre in a hotel in Ahmedabad, which is likely to be spread across 60,000-65,000 sft," said Narendra Somani, chairman and managing director of Bhagwati Banquets & Hotels.

Bhagwati Banquets, which is also in the catering business, is supposed to strike a land deal for the project soon. Expected to be commissioned by 2009, the project will add 150-180 rooms.

Somani added that the project was likely to cost over Rs 150 crore for which the company will be raising funds after discussions with the board.

Recently, the company also raised the limit of investment by foreign institutional investors (FIIs) from 40 per cent to 45 per cent. With frequent enquiries pouring in from several FIIs, Bhagwati Banquets is in the process of allotting stake to interested parties.

While the company has already raised around Rs 43 crore by allotting close to 22 per cent stake, it intends to raise the stake of FIIs to 35 per cent for raising another Rs 15-20 crore, said Somani.

As part of its expansion plans, the company is also increasing the number of rooms at its upcoming five-star hotel in Surat from 100 to 180.

The project, which includes 'The Grand Bhagwati (TGB) Club', will require an investment of around Rs 115 crore, he added.