SPS Group to invest Rs 5K cr in hospitality, shipping foray
The Rs 5,000-crore Kolkata-based SPS Group, a steel manufacturing firm, has chalked out plans to diversify into the hospitality and shipping sectors. HT reports.business Updated: Jun 14, 2011 21:51 IST
The Rs 5,000-crore Kolkata-based SPS Group, a steel manufacturing firm, has chalked out plans to diversify into the hospitality and shipping sectors.
The company plans to invest around Rs 5,000 crore over the next four years for these ventures including developing luxury hotels and buying out shipping vessels.
"We will invest Rs 3,000 crore for the development of luxury hotels and the remaining Rs 2,000 crore will go into buying out shipping vessels and expansion of our logistics capability," said Bipin Kumar Vohra, chairman and managing director, SPS Group. The company has tied up with JW Marriott for the management of its hotels, he added.
The company is developing hotels at Kolkata, Durgapur and Silliguri in West Bengal and two at Bhubaneshwar and Jaipur.
The company is also entering logistics in a big way, he said. "Our plan is to acquire vessels and charter them out."
The SPS Group manufacturers Elegant brand of steel and has steel plants at Durgapur, Jharsugda and Himachal Pradesh.
The company is also eyeing the initial public offering route to raise funds.
"We have been conservative players and worked on debt. We now plan to come out with an IPO," Vohra said, without giving further details.
Shortage of hotel rooms coupled with an increasing influx of tourists has made the hospitality sector quite lucrative in recent times. Global hospitality chains have come to recognise the potential of hospitality business in India. There are around 1,00,000 rooms across India in all categories compared to cities such as Dubai, Bangkok and Las Vegas where each city has close to this number of rooms.