Over a year after Reliance Industries (RIL) picked up a minority stake in Kolkata-based EIH, Nita Ambani has been appointed as an additional director on the board of the hospitality chain.
Moreover, the company, which returned to black in the second quarter this fiscal, has also appointed Mukesh Ambani's right hand man Manoj Modi on its board as additional director.
In a filing to the Bombay Stock Exchange (BSE) today, EIH said both Nita Ambani and Modi have been appointed in the capacity of non-executive and non-independent directors.
The company said these appointments were part of induction of four new persons on the company's board as additional directors in non-executive roles.
HDFC Managing Director Renu Sud Karnad and Robert Henry Burns, Founder of Regent International have also joined the EIH board as independent directors designated as additional directors, the company said.
In August last year, RIL had bought 14.12% stake for Rs 1,021 crore in EIH as the Oberoi group promoters looked to thwart a possible takeover by rival hospitality player ITC.
At present, RIL owns 14.8% stake in EIH that operates hotels and resorts under Oberoi and Trident brands and rival hospitality firm ITC holds 14.98% stake in EIH.
When contacted an EIH spokesperson said no change had been made in the company's share holding and management structure of the company.
According to industry observers, RIL's move to buy equity in EIH was a reflection of Nita Ambani's ambition to expand and consolidate services sector operations like hospitality, wellness and lifestyle.
In a separate filing to the BSE, EIH said it recorded net profit of Rs 16.59 crore for the second quarter ended September 30, 2011.
In the quarter ended September 30, 2010, the company's net loss was Rs 14.97 crore, it said in a filing to the BSE.
The company's net sales for the quarter ended September 30, 2011 increased 8.78% to Rs 216.99 crore, as against Rs 199.46 crore during the corresponding quarter last fiscal.
EIH's scrips closed at Rs 94 on the BSE, up 2.79% from the previous close on the BSE.
