EIH grabbing business from others, says Oberoi

KOLKATA: EIH Limited, which runs the Oberoi and Trident hotels in India and abroad, was staying afloat in difficult times by grabbing business from others, a top official of the company said.

"The size of the cake is not increasing. But we are able to increase our market share by grabbing business from other hotels," executive chairman of EIH Limited P R S Oberoi said.

Asked whether the group was resorting to undercutting of tariff rates for grabbing market share, Oberoi said, "That is not our strategy. We are doing by better marketing and increasing our reach to customers."

He said that this had been reflected by the first quarter results of the current financial year where net profit increased to Rs 10.55 crore as compared to Rs 9.45 crore in the previous corresponding period.

The present economic and social scenario in the country was affecting the hospitality sector to a large extent, Oberoi told reporters after the company's AGM here today.

To a query, Oberoi said that the strategy followed by EIH now was not to increase owned-properties from the present number.

He, however, said that the company was having land at Bangalore and Goa where EIH would build its own properties.

He said that the company was actively looking at managing hotels at Shanghai and Beijing, besides Casablanca in Morocco where it had signed an agreement with a local partner there.

To a query, Oberoi said that Reliance Industries was a 'friendly investor' with 19 per cent stake in EIH.

"Between us and Reliance, we can stave off takeover threats", he said. The promoters (read Oberois) hold more than 35 per cent stake in EIH."

"We are also increasing our stake in EIH gradually," he said.