ITDC to enter markets abroad

NEW DELHI: India Tourism Development Corporation (ITDC) is preparing to join the league of Indian hospitality chains venturing overseas for growth. The state-owned hospitality chain is in advanced talks with entrepreneurs in Guyana (South America), Moscow and Laos to establish joint ventures for a chain of speciality restaurants under the Ashok, Frontier brands.
The first of the overseas ventures will be established in Guyana, which has a sizable Indian diaspora, sources close to the development said.The first overseas venture is expected to be finalised by the end of this fiscal.
"ITDC plans to establish a chain of restaurants abroad under the Ashok and Frontier brands to target the Indian diaspora abroad. Three destinations have already been shortlisted and negotiations are underway with local firms for floating these joint ventures," the source added.
Though the firm initially intends to start with speciality restaurants, industry insiders pointed out that it might later also look at expanding into hospitality ventures abroad.
The move is part of efforts to shore up revenues. Its income for the current fiscal till November stood at Rs 291.54 crore, a 30.52% growth over the Rs 223.90 crore earned a year earlier. Net profit for the period was, however, over 250% higher at Rs 31.45 crore.
It is also undertaking a major revamp of its existing ventures in the country. Under this strategy, the firm is planning to introduce a fashion bar at Hotel Ashok. ITDC is also in talks with three international duty free operators to set up a joint venture company to bid for new duty free outlet contracts, both in India and in the overseas markets.