Mumbai: Vacation time-share company Mahindra Holidays and Resorts India Ltd will invest 500 crore in the next two years to add 500 rooms as it expects the industry to grow four times its current size.

In his first interaction with the media, Kavinder Singh, managing director (MD) and chief executive officer (CEO), said the firm is keen to acquire more resorts either through outright purchase or leasing to expand inventory and a presence footprint across the country.

“According to our internal estimates, the vacation industry in the US is at 42,000 crore, which is 5% of the total hotel industry in that country. If we take that as a benchmark, Indian vacation industry should be at 5,400 crore. But we are only at 1250 crore and has potential to grow four to five times," Singh said.

At present, Mahindra Holidays has 178,000 members and 2,500 rooms in 41 resorts.

He said the company will fund the expansion from its internal accruals as there is no debt on its books.

Singh has taken over from chairman Arun Nanda, who had been handling the additional responsibility since January when the previous chief executive Rajiv Sawhney stepped down. Sawhney was appointed in April 2011. Singh joined in November.

Singh brings 28 years of experience in the packaged consumer goods sector, having worked in Asian Paints, ITC Ltd and Pidilite Industries Ltd, the company said in a statement. At ITC, he was responsible for setting up and building the biscuits business.

Mahindra Holidays offers family holidays primarily through vacation ownership memberships. Club Mahindra is the flagship brand of the firm.

On Wednesday, Mahindra Holidays launched its new property—Club Mahindra Kanha in Madhya Pradesh.

“Club Mahindra Kanha is our fifth wildlife resort and the first in the state of Madhya Pradesh," Singh said.

Singh said his top priority is to ensure unique experience for customers as it will propel new members, better resort spends and annual subscriptions covering the cost of operations.

Mahindra Holidays had bought a 23% stake in Finnish vacation ownership firm Holiday Club Resorts Oy in July with an option to increase it to 100%. “We have not taken a call to increase to 100%. We have time till September 2016," Singh said.

Shares of Mahindra Holidays gained 2.79% to 269.10 on Wednesday on the BSE, while the benchmark Sensex lost 0.72% to close at 29,380.73 points.