In India, just asset-light model doesn't work: IHCL's Puneet Chhatwal

A combination of asset-light and asset-heavy is the right formula, driving absolute returns in its owned portfolio where the operating leverage is currently higher, he said

Puneet Chhatwal, managing director (MD) and chief executive officer (CEO) of Tata Group’s hospitality arm Indian Hotels Company (IHCL), said that just an asset-light strategy does not work in India, and asserted the company will continue to build and invest in properties across the country ‘selectively’. 

Chhatwal said it's been more than five years since the company has been focusing on the asset-light model. 

He explained that in India, just adopting an asset-light strategy doesn’t work.

“You can grow faster if you are asset-light because scaling up is faster. But capital efficiency cannot be the only business model.”

A combination of asset-light