TAJGVK to double its turnover by 2009-10

Mumbai, Apr 25 (UNI) TAJGVK Hotels and Resorts Limited, a Taj group of hotel chain in collaboraton with GVK group of Hyderabad, has chalked out an expansion programme to ramp up the turnover from the current Rs 189 crore to Rs 500 crore with an estimated cost of Rs 400 crore.

According to GVK Group Chairman G V Krishna Reddy, the hotel and resort joint venture with Taj Group having the responsibility of the management, has decided to increase the room inventory from 684 to 1440 by the year 2009-10 mainly in the emerging markets of Bangalore, Chandigarh, Hyderabad and Chennai with focus more on business and leisure class of visitors.

Mr Reddy said that the expansion works have already been started in Taj Krishna, Taj Residencies, Taj Banjara (all in Hyderabad) and Taj Chandigarh and Taj Chennai. Three new hotels would shortly come up at Begampet near Hyderabad, Chennai and Bangalore.

Out of total capital expenditure of Rs 400 crore over the next 5 years, a sum of Rs 120 crore would be equity from internal resources while the remaining Rs 280 crore would be debt through borrowing from institutions, he said.

The TAJGVK has posted a net profit of Rs 46 crore for the year 2005-06 from Rs 22 crore in the previous year on total income of Rs 189 crore for the year as compared to Rs 116 crore in the previous year.

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