ITC Limited launched its 12th property, a luxury hotel in Gujarat

AHMEDABAD: Diversified conglomerate, ITC Limited, on Wednesday announced the launch of its 12thproperty, a premium luxury hotel, ITC Narmada, in Ahmedabad. Industry sources peg the group as having invested Rs 600 crore in setting up the 19-storey, 291-key premium luxury hotel, which was inaugurated by Gujarat CM Bhupendra Patel. The property is Gujarat’s first with a LEED Platinum certification for environment and sustainability parameters.


The group chairman and managing director, Sanjiv Puri, during a media briefing announced a cumulative investment worth Rs 1,000 crore in Gujarat. This includes the newly opened hotel in addition to a packaging plant and a ‘few other projects’ said Puri.

“We will soon operationalise a packaging facility at Nadiad. Besides, a few other small-time projects in the manufacturing sector will also be executed here,” Puri said addressing the media.

The packaging plant, claim well-placed sources, will have a manufacturing capacity of 70 million sheets per annum. ITC Group will also be starting with four more manufacturing facilities in India in coming days including agro-food processing units, a spice production unit and one for nicotine and nicotine derivatives.

Commenting on the hospitality sector, Puri said, “During the pandemic hospitality sector was impacted. But this sector has now demonstrated robust growth and revival. Since the third quarter of last year, the recovery has been clearly visible," said Puri during a media interaction after the launch of ITC Narmada.

Puri however underlined slow revival in the international travel, stating that inbound travel is yet to be fully stabilised as compared to outbound travel. “However, we are very optimistic. Overall, it is a good time for hospitality sector,” he added.

Speaking of inflation concerns, Puri mentioned that inflationary pressures on account of supply chain disturbances due to pandemic and geopolitical situations, have impacted food and energy costs.

“Primarily, it has impacted on our FMCG business as we buy these commodities. Because of the high inflation, there is bound to be some impact on volumes,” he said.

The ITC Group chairman however added, “Given the extent of inflation and its pressure on costs, it is not possible to manage it with whatever efficiencies we can bring in. First we will try to manage this by internal efficiencies and passing on costs will be the last option.”

Commenting on the prevailing economic uncertainties globally, Puri assured that the investment plans at ITC are on track without getting hampered due to the disruptions.

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