Mahindra Resorts may enter mass market

Mahindra Holidays & Resorts India, part of the Rs 6,000 crore Mahindra group, is planning to foray into the mass market segment of the time share industry.

The company is currently chalking out a business plan for its proposed venture, which will be under a new brand name.

The move follows a recommendation by consultancy major McKinsey & Co. At present, its presence in the time share industry is restricted to the premium segment under the Club Mahindra brand name.

Says Vijay Srinivasan, head-marketing of Mahindra Holidays & Resorts India, "We are currently working out a business plan targeting the mass market of the time share industry. The concept and product offering will be different from Club Mahindra. We will be developing new properties/ resorts across the country to target this segment under a new brand name."

"The company's idea is to make holidaying a part of life for people," Srinivasan added.

The long term vision of the company is to become a dominant player in lifetime holiday business in south and south east Asia.

The holiday industry is pegged at $60 billion. The major players in the international arena are Hilton Grand Vacation Company, Mariott, Four Seasons, Fairfield and Disney Vacation Club. The US is the biggest market for the time share industry.

Started in 1996, the company today has a customer base of over 21,000 members and has 10 resorts across the country and one property in Bangkok.

For the period 2003-04, the company expects that its top line would grow by 25 per cent compared with the corresponding period in the previous year. It currently has a total debt of around Rs 25 crore and expects to be debt free by the end of 2005-06.

The Mahindra group has diversified interests in heavy utility vehicles, farm equipment, infrastructure and information technology.