Ganesh Hsg plans foray into hospitality

The Ahmedabad-based Ganesh Housing Corporation Ltd (GHCL), a real estate and infrastructure company, plans to foray into hospitality and entertainment sectors with a five-star hotel and shopping malls at an investment of Rs 100 crore.

The Rs 70 crore company is scouting for international collaboration in the hotel industry and has appointed a consultant to tie up with the US, UK and UAE-based companies.

"With foreign direct investment being allowed in the construction sector, we are planning to venture into infrastructure, hospitality and entertainment sectors. At present we are in talks with a few companies abroad for collaboration. Nothing has been finalised yet," said Shekar Patel, managing director, GHCL.

The company has identified land in Ahmedabad and is planning to develop a five-star hotel on a built operate and transfer. The company is scouting for international collaboration in the hotel chain industry for the venture.

The company has also embarked upon fresh investments of Rs 100 crore in new reality projects in Ahmedabad for the development of residential properties like bungalows' row houses and apartment.

"For the current financial year, a project of 120 residential bungalows will be taken up in the vicinity of Thaltej, Sarkhej-Gandhinagar Highway, at around Rs 40 crore. This project will fall under the Central government's 'residences increase' development scheme," said Bhavin Mehta, head, business development, GHCL.

The company has reported a net profit after tax of Rs 10.17 crore for the financial year 2004-2005. The company's reserves stood at Rs 32.52 crore on a paid-up capital of Rs 4 crore. The company's earning per share is Rs 25.40 on a paid-up capital of Rs 10 per share. Its book value is Rs 91.24 per share and the share is currently ruling at around Rs 60 on the Bombay Stock Exchange.

"Our company has made strategic investments in acquiring lands at prime locations in and around Ahmedabad, which will give an edge to the company and will benefit our shareholders," said Govind Patel, chairman, GHCL.