After Sri Lanka, is Nepal next on ITC’s expansion radar? Sanjiv Puri opens up on investment, growth, and demerger

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In an exclusive interview with CNBC-TV18, Sanjiv Puri, Chairman of ITC Group, shed light on the company’s recent foray into Sri Lanka, its investment strategy, and potential future expansions, including a possible move into Nepal.

ITC’s entry into the international hospitality market with ITC Ratnadipa marks the largest investment by any Indian company in Sri Lanka to date. Puri emphasised the significance of ITC Ratnadipa, situated amidst the breathtaking backdrop of the Indian Ocean and Beira Lake. With nine vibrant dining options, the property aims to showcase the best of Sri Lanka while adhering to ITC’s renowned hospitality standards.

“The globally acknowledged cuisines of ITC Hotels will also find a pride of place in ITC Ratnadipa through a repertoire of fine dining experiences. ITC Hotels’ commitment to promote local cuisine through its initiative – ‘Local Love’ has led its renowned chefs to draw inspiration from Sri Lanka’s ancient culinary traditions & indigenous foods. The Ahasa bride bar is an experience in itself and the entire property is an engineering and design marvel,” said Sanjiv Puri.

ITC’s expansion plans

Explaining the rationale behind venturing into Sri Lanka, Puri highlighted the country’s untapped tourism potential and its alignment with India’s “neighborhood first” policy. Despite economic challenges, Puri expressed optimism, citing promising macroeconomic indicators and the resilience of Sri Lanka’s economy.

“When we make investments, we look at analysis beyond the near-term issues. Sri Lanka has great potential in terms of tourism and it is not explored that much. The country has a lot to offer and tourism is bound to flourish here. There has been a bounce back in tourism already, and the economic bounce back is also looking up,” Puri said.

Furhter talking about ITC’s investment and expansion plans, Puri revealed that Nepal could be the next destination. With ongoing exploration by its subsidiary, ITC aims to capitalise on proximal markets while maintaining a robust pipeline of 70 properties for the next five years, including 22 new openings in India over the past 24 months.

“We will continue to look at various destinations, but we have a subsidiary in Nepal and we are looking for options there,” said Puri.

ITC demerger and post-COVID travel trends

Touching upon ITC’s demerger process, Puri assured stakeholders of progress, aiming for completion by year-end. Amidst the post-pandemic surge in travel enthusiasm, Puri advocated for sustainable tourism and encouraged the youth to prioritise properties upholding the highest standards of sustainability.

With an optimistic outlook on the hospitality sector, Puri emphasised the evolving preferences of modern travelers and the role of ITC in shaping sustainable and memorable travel experiences. As the company continues to chart its expansion course, all eyes are on potential future endeavors, including a potential entry into the Nepalese market.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow