In an interview with Meena Konar of Myiris.com, Major (Retired) Madhukar Katragadda, director, KDJ HolidayScapes & Resorts says, 'The company's focus continues to remain on its sustainable and profitable growth strategy.'
1. How do you see company's performance for the coming quarter?
We expect our growth momentum to pick up going ahead. We underwent restructuring of our business model in the last few quarters; we expect all these efforts to pave way for sustained growth in the coming quarters.
2. Do you expect any increase in room rates?
As of now, we have no plans of increasing the tariff.
3. What growth opportunities are you seeing in hospitality industry?
The Indian tourism and hospitality industry is slated for an impressive rate of growth in the next few years. Regarded as one of the largest segments in the services sector, it is also one of the significant foreign exchange earners and one of the key contributors to the country's GDP. The total market size of the tourism and hospitality industry is expected to touch USD 400 billion by 2022 and its contribution to GDP is expected to grow over 7 % during 2013-2023. Fresh FDI inflows will further boost rate of growth for this sector. Indian timeshare industry, still at its early stages of development, is also expected to widen its penetration in the years to come.
The recent initiatives taken by the government both on the policy and infrastructure front will give further impetus towards the growth and development of the sector. The industry which is already one of the larger employers in the country, will further beckon more employment opportunities in the years to come.
4. How many new members have you added in FY 2013-14?
In FY 2013-14 we had added 500 members. Our current cumulative membership strength is 1,300 members, which we wish to scale up to 20,000 members by 2021.
5. Could you tell us about your capex and expansion plans?
Our operations were started in 2010-11 and currently we have 16 properties, 2 owned by the company at Khandala in Maharashtra and Jodhpur in Rajasthan, and the rest through tie-ups. We plan to expand our base to different smaller towns across India like Coorg, Sikkim, Tamil Nadu, Kerala etc.
Going forward, we plan to add one destination every year. The properties added would be a mix of both asset heavy (building properties) and asset-light model (leasing and tie-up with properties). In line with our expansion plans we wish to invest to the tune of Rs 1.5 billion in the next five years.
6. What are the new initiatives taken by KDJ Holidayscapes?
We have two upcoming projects - a 63 room resort property at Anjuna Beach, Goa and in line with our medical tourism plans we are also in process to develop a 150 bed Multi-Super Speciality hospital at Jodhpur
7. Would you like to convey any message to the shareholders of the company?
The company's focus continues to remain on its sustainable and profitable growth strategy, creating value and satisfaction for our shareholders. We intend to continue to leverage our robust foundation to achieve our goals. With our continuous endeavor and engagements we seek support of our shareholders, who have reposed their belief in us for these years.