ITC, a diversified conglomerate, plans to expand its presence in the hospitality sector by venturing into more overseas markets, particularly in neighbouring countries and the Middle East. Sanjiv Puri, the Chairman and Managing Director of the company, announced this plan following the opening of its first international property. ITC Hotels, a subsidiary of the company, has already unveiled 22 new properties in the past two years and aims to introduce an additional 70 hotels across India within the next five years as part of its ambitious expansion strategy.
In addition to its focus on the hotels sector, the company aims to explore avenues for extending the reach of FMCG and other verticals into fresh international markets.
“We’re receptive to pursuing emerging opportunities. I believe our robust track record in hospitality equips us to venture beyond India’s borders. Presently, our focus lies squarely on nearby markets, whether in hospitality or FMCG,” stated Puri during a press briefing following the inauguration of the 352-room deluxe establishment, ITC Ratnadipa.
He mentioned that as the company delves into and comprehends a locale for a specific business, it might also consider it as a potential market for other verticals.
Continue Exploring: ITC Hotels charts course for expansion, targets 70 new properties within next five years
Referring to Nepal as an example, Puri stated, “We initially ventured into other sectors and are now eyeing the hospitality sector there. Similarly, here in Sri Lanka, we’ve commenced our journey with hospitality… As we delve deeper into understanding the region, we’ll explore opportunities across some of our other sectors too.”
Regarding the expansion of the hospitality business abroad, although the company primarily targets nearby markets, he mentioned, “We’re receptive to exploring further if compelling opportunities arise. We’re definitely keen on seizing such prospects.”
When asked if ITC is considering the Middle East as a market for the hospitality industry, he responded that it is a thriving economy with amazing growth prospects and that “we will certainly explore that if opportunity comes our way.”
Puri additionally mentioned that the company aims to broaden its presence across additional destinations in Sri Lanka in the future.
“This marks the beginning, and indeed, we aspire to expand and bolster the economy while fostering the development of tourism in Sri Lanka,” he expressed.
When questioned about ITC’s broader expansion strategy within the hospitality sector, he mentioned, “We have a robust pipeline comprising 70 hotels over the next five years.”
All 70 of these hotels are designated for the Indian domestic market, with the majority falling within the upscale segments.
However, he clarified, “In terms of global ventures, we are only starting out. As a result, we have not yet reached the point where we can specify a number.”
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Regarding the investments earmarked for the overall expansion, he refrained from disclosing a precise figure but indicated, “Between renovations and new properties, we anticipate spending somewhere in the range of INR 700 crore to INR 1,000 crore annually.”
When questioned about the progress of the demerger of ITC Hotels and its scheduled public listing, Puri affirmed that it is proceeding according to the specified timelines and is anticipated “before the second half of this year or by year-end.”
At its latest establishment in this location, the company had invested approximately USD 500 million. The inauguration took place on Thursday with the presence of Sri Lankan President Ranil Wickremesinghe.
The ITC Ratnadipa, also known as the ‘Island of Gems,’ boasts 352 guest rooms, suites, and serviced apartments, all featuring private balconies offering waterfront vistas.
Earlier in the day, addressing the inauguration of the new hotel, Puri remarked, “It’s only fitting for us to prioritize markets in nearby regions, buoyed by our Prime Minister Narendra Modi’s vision of ‘neighbourhood first,’ where Sri Lanka holds a particularly significant position. ITC is steadfast in expanding our footprint and enriching hospitality in the region.”
