Mahindra Holidays to spend Rs3.5-4 bn on expansion

Mahindra Holidays to spend Rs3.5-4 bn on expansion

Mumbai: Mahindra Holidays & Resorts Ltd, a subsidiary of automobile firm Mahindra & Mahindra Ltd, is adding 750 rooms at an investment of Rs3.5-4 billion as its membership increases, a top official said.

The expansion, to be funded from internal accruals and equity, will be through resort acquisitions, greenfield projects and room additions, Chairman Arun Nanda said on Monday.

“In this downturn, we haven’t seen a slowdown, we are going aggressive."

The company, will have 500 more rooms operational by this financial year end, while another 250 will be ready the following year, taking its room count to 1,500, Nanda said.

He also announced the company’s acquisition of the ‘Taj Garden Retreat´ at Thekkady in Kerala.

“We are also in the mood to acquire properties," said Nanda.

In December 2007, the company had filed initial papers for an initial public offering but had deferred the issue due to market conditions.

In January, it sold a 2% stake for Rs800 million to State Bank of India and another 1% for $10.06 million to NYLIM Jacob Ballas India Fund III, LLC ahead of the planned IPO.