Hospitality firm EIH Ltd today said it would enter into a contract with Reliance Industries (RIL), its single largest public shareholder, to manage a property owned by the latter at Navi Mumbai.
The announcement was made on a day when EIH shareholders approved induction of Nita Ambani, wife of RIL Chairman Mukesh Ambani, as a board member.
"EIH will probably manage the Reliance property which will come up at Navi Mumbai on their land," Oberoi told reporters after the company's AGM here.
The Navi Mumbai project spread over 15 acre will be a 160-room hotel and service apartments under the Trident brand, he added.
Asked whether this model would be replicated in other cases, Oberoi said that it was a decision of RIL. "We have not said anything on these lines to Reliance."
RIL holds 18.53% stake in EIH Ltd, which runs hotels and resorts under Oberoi and Trident brands, through Reliance Industries Investment and Holding Pvt Ltd.
ITC with 14.98% stake is the second largest single public shareholder in EIH Ltd followed by LIC with 6.08% as on quarter ended June 30, 2012.
Asked whether ITC was in a position to claim a berth in EIH board, Oberoi categorically said, "No".
In November last year, EIH had announced the appointments of Nita Ambani and Mukesh Ambani's right-hand man Manoj Modi on its board as additional directors.
Earlier in the day during the AGM, Oberoi told shareholders that the promoters would continue to increase their holdings in the company. At present, promoter holding in EIH is 35.23%.
Speaking about expansion plans, Oberoi said that the company had inspected a couple of sites in Ahmedabad, while Oberoi and Trident hotels were coming at Pune and Hyderabad.
The proposed Oberoi hotels at Bangalore and Goa were awaiting environmental clearances, he added.
About overseas ventures, Oberoi said China was being looked as a serious destination starting with Shanghai, along with Marakkech, Casablanca, Dubai and Sri Lanka, where the company would go for management contracts.
