The Indian Hotels Company, which owns the Taj Group of Hotels, is looking at a growth of 10 per cent for the current year, Ratan Tata, chairman, said at the company's 101st annual general meeting held today.
The hospitality/ tourism industry has been going through a difficult time following the terrorist attacks of September 11, 2001, on the United States, the war risks and the US state department advisory which resulted in a drop in international travellers.
With the advisories now lifted, the rest of the year is expected to be better for the group, Tata said.
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As part of the hospitality chain's expansion plans, The Taj brand will be re-positioned in the luxury segment, and the group would be foraying into the four star hotel category in small towns and also establish budget hotels.
Putting to rest the speculation about the acquisition of Regent Hotel, Mumbai, Ratan Tata said: "We are looking at Regent." However, the Lokhandwalas, the promoters of the Regent, have so far been denying this.
Meanwhile, the Taj Group has acquired one of ITDC's properties under construction at Chandigarh.
Tata said it is unlikely to bid for any more properties in the foreseeable future.
The group has appointed global consultant McKinsey & Co for undertaking cost restructuring.
"The reduction is expected in procurement and operating costs, working capital and arising out of centralisation of common services," R K Krishnakumar, managing director of IHCL, said.
The company has initiated a consolidation and restructuring process aimed at reducing the number of companies in the group.
The intention is to create transparency as well as a better definition of the business. After the proposed restructuring the overall number of companies would be reduced from 54 to 30. Of these, 19 companies will be dealt in the current year, Tata said. The company has no plans for a rights issue.