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Monday, December 11, 2023

ITC To Pursue ‘Asset-Right’ Strategy For Its Hotel Business: Sanjiv Puri

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SAN FRANCISCO, Sept 7: ITC Ltd would pursue the “asset-right” strategy for its hotel business to ensure that the diversified conglomerate remains competitive and contemporary, and continues to deliver superior performance, its chairman Sanjiv Puri said.
The Kolkata-based multi-conglomerate, which operates hotels under the brand names such as ITC and Welcome, also said that it is exploring foreign markets for its hospitality business, he said.

According to Puri, the tourism and hotel industry is recovering after pandemic and the company will take the demerger process forward and explore alternate structure.
“Once things are finalised and we have a final proposal we will share it,” Puri told PTI when asked about the demerger of ITC hotel business.

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On the company’s plans to expand hotel operations overseas, he said they are “pursuing asset-right strategy sometime now and there are large number of hotels that have come in under Welcome hotels. The new brand called ‘Storii’ and ‘Momentous’ also will start soon.
“We are also getting interest from markets outside of India which we are right now in process of exploring. As and when something comes up, we will progress,” he added.

Giving rationale for doing alternate structure, he said an enterprise exists “not only for today but for tomorrow” as well and the primary task of management is to make sure that company remains competitive, contemporary, agile, and continue to deliver superior performance.
“How one organises or structures is a function of business maturity in competitive context. Hotels and paper business was separate companies and they were rolled back with a purpose. So given our move to an asset right strategy in hotels, we thought that it’s best to look at alternate structures. So that is the context,” he added.
Asked if ITC would bid in for Ashoka Hotel, the chairman said the process is yet to start and as and when it would begin “that is the time one could respond”.

“Only in examination of the model we can decide whether to do (bid) or not to do. So, we would see,” Puri, who is also CII vice president, said.
He is leading a CII business delegation to the US. The delegation is accompanying Commerce and Industry Minister Piyush Goyal.
Asset-right model refers to owning properties and managing for others. It also envisages the strategy of incremental room additions.

In the last fiscal, the company had introduced two new brands under its hospitality sector — ‘Mementos’ in the luxury segment and ‘Storii’ in the premium segment.
With over 100 hotels in 70 destinations across six distinct brands, ITC’s hotel group integrates India’s renowned tradition of hospitality and warmth, with globally benchmarked facilities and services. (PTI)

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