Indage to transfer hotel business to agri arm

The Mumbai-based Champagne Indage is planning to wind up its hospitality firm, Indage Hotels, by transferring its business and properties to group firm, Champagne Vineyards.

The shareholders of Indage Hotels will get shares of Champagne Vineyards at a ratio to be fixed by independent valuers.

The Rs 20 crore Indage Hotels owns restaurants such as Athena, Sin, Zaha, Mimosa and Tantra in major cities and also runs pubs and lounges in Mumbai, Pune and Bangalore.

Rajesh Chalke, head of operations, Champagne Indage, said as per the current plan, the business of Indage Hotels would be transferred to Champagne Vineyards and the group would set up a new company to handle the agriculture business.

Chalke said the move was to provide value to shareholders of Champagne Vineyards. He said the group was now planning to form a separate company to take care of the agricultural business.

"Overall it is a unique proposition wherein the company has raw materials, production and brand portfolio of its own to top the marketing network. So it will enhance the operational performance and, thereby, investor value," he added.

Champagne Indage had positioned its hospitality business in way to promote its own branded wine business.