Orange County plans Rs 200 cr expansion

Opens Rs 20-crore Kabini resort.

Orange County Resorts and Hotels Ltd, a Bangalore-based company, and part of the Ramapuram Group, plans to invest around Rs 200 crore to set up resorts in Karnataka and Kerala in the next 2-3 years.

On Tuesday, the company, which owns the 71-room Orange County Resort in Coorg, announced the opening of Orange County Kabini, built on the banks of the Kabini river in Nagarhole. The property is spread across 17 acres, built at an investment of Rs 20 crore, Orange County director-marketing Jose T Ramapuram told reporters here.

Four new resorts have been planned in Hampi, Bangalore, Karwar and Kumarakom in the next 2-3 years. "We have acquired 27 acres in Hampi and are scouting for around 50 acres in Karwar," he said.

The two projects are expected to cost around Rs 100 crore. The company also claims to have purchased 22 acres in Kengeri for a luxury resort at a cost of around Rs 30 crore. It is also looking for suitable locations in Goa and Kerala.

An IPO has been planned in the next two years to raise around Rs 100 crore to fund the expansion. "We will dilute around 20 per cent of our stake in two years," vice-chairman Abe T Ramapuram said. Another Rs 50 crore is likely to be raised through private placement.

According to a release, the Ramapuram Group has over Rs 100 crore in net assets. It owns about 2,000 acres of rubber, coffee and cashew plantations in Karnataka and Kerala.

Orange County Resorts and Hotels Ltd has an authorised capital of Rs 20 crore and will invest in the new projects along with private equity and debt. The Kabini project has been part-funded by the SBI.

Officials said the Coorg resort was built at an investment of Rs 35 crore. Its turnover during fiscal 2006-2007 was Rs 20 crore. "We made a profit of Rs 2.25 crore last fiscal and expect Rs 3.2 crore this year," Ramapuram said. Kabini is expected to breakeven next year.

The Kabini Resorts offers two kinds of tribal themed suites "" 26 jacuzzi huts and 8 pool huts. To reduce the usage of plastic water bottles, reverse osmosis (RO) plants have been installed in all the rooms.

The company has also invested Rs 3.2 crore in a windmill in Chitradurga and receives "clean energy" on a barter basis from the Karnataka government, for its Kabini resort.