Indian Hotels Company (IHCL) aims to expand its services in domestic market and in order to do so the company has decided to endow Rs 3000 crore for brand expansion in the time period of 4-5 years.
N Chandrasekaran, Chairman in IHCL said, "We expect that the strong Indian economic growth, the growing base of domestic customers and higher foreign tourists shall benefit us. The focus will be largely in the Indian subcontinent through a mixture of asset light growth and selective capital expenditure outlays. We have a capex of Rs 3,000 crore for next 4-5 years and capex of 300 crore for next year, but it will depend on the performance of the company.
He added, "Over the next two years, we expect to open 10 new hotels properties under the Taj brand, 11 under the Ginger brand. This will result in a net addition of 1,883 keys to our portfolio. Also, I am happy to announce that today the Board has approved a Rights issue of Rs 1,500 crore. This will be an opportunity for all shareholders to participate.
IHCL further informed that the company is raising funds for its expansion purpose, long term capital need, and debt repayment.