INDIA IS EMERGING AS ONE OF THE BEST PERFORMING ECONOMIES ACROSS THE GLOBE WITH THE GDP GROWTH ESTIMATED AT 7.6% IN THE CURRENT FISCAL. THE INDIAN TRAVEL AND TOURISM INDUSTRY, BESIDES BEING AN IMPORTANT PROXY OF GROWTH, IS A SIGNIFICANT SOURCE OF FOREIGN EXCHANGE AND IS A MAJOR EMPLOYER. IT IS AMONG THE TOP 10 SECTORS IN INDIA TO ATTRACT THE HIGHEST FOREIGN DIRECT INVESTMENT (FDI). DURING THE PERIOD APRIL 2000-MARCH 2016, THE HOTEL AND TOURISM SECTOR ATTRACTED AROUND US$ 9.23 BILLION OF FDI, ACCORDING TO THE DATA RELEASED BY DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION (DIPP).
As you all are aware, we started ‘The Byke’ journey by acquiring 2 hotels with 102 rooms in 2010-11. From this humble beginning to having a portfolio of 677 rooms today, we have indeed come a long way. We have spent these 5 years in building our foundation and cementing our understanding of the hospitality industry, besides building a team, setting up processes & controls and establishing a strong brand in the mid-market tourism segment. We believe that this foundation will help us leapfrog into an aggressive era of growth going forward.
We have focused on creating value through our values. We believe in value-for-money and thus we are in the middle-class segment with the motto of providing leisure for all. Our focus in on asset light model with light balance sheet. Our “pure vegetarian” tag appeals to a larger set of consumers who are looking for affordable options that do not interfere with their cultural sensitivities.
The success mantra for our growth is guest satisfaction through quality services. This is further driven by brand loyalty, excellence in delivery and collaborative efforts with our partners.
Following these principles and values we have been able to generate attractive returns for all stakeholders: for our consumers who can enjoy leisure at an affordable rate, for our hotelier partners and for our investors and employees through profitable growth. Revenues have grown at over 36% CAGR over the last five years, hitting Rs,230 crore for 2015-16. Profits rose nearly eleven fold to hit Rs,26 crore mark in the same period. We earned a spot on FORBES ASIA’s Best under a Billion list last year and in the current year. However, we believe that this is only a small beginning and our best is yet to come.
Today, we aspire to create a formidable brand by 2020 with 25 properties across India. We are at an inflexion point where we have created our positioning and brand, and will now leverage it to grow aggressively. We believe we have all the ingredients in place which will help us in attaining this vision - experience, team, processes and capital.
Our focus would be on locations where we foresee a good opportunity to generate revenues across all sources, be it F&B, corporate or social events. Keeping this in mind, we recently added our second largest property of 122 rooms at Thane. We expect significant revenue contribution from all streams in this property.
When complete, our 25 properties would represent the diversity of India and its geographical expanse. We believe that our vegetarian-only approach has helped us in creating a niche positioning for ourselves. Going forward, we will continue to focus on this. We can gladly say that this value proposition has been a positive catalyst for us rather than a deterrent. Together with this, being asset light in an industry which is fraught with challenges is sure to assist in attaining our vision.
It is heartening that the Government is pursuing policies to encourage foreign direct investment, especially in service sectors such as Hospitality. We believe that initiatives like ‘Make In India’ cannot be fully successful without the motto of ‘Serve in India’, and the service sector deserves equal prominence and attention. These policies should result in increasing numbers of business travelers visiting India which would have a direct and positive bearing on occupancies in metropolitan cities. The government’s friendly visa policies focus on cleanliness, and better infrastructure is sure to augment the inflow of tourists as well.
The hospitality industry helps in the revival of the economy. The impact of technology to reach out to millions has added a fast and exciting boost to the economy. Technology is improving customer experience, operations and several other aspects. With the dawn of the ground breaking enterprise solutions, the hospitality scene in India is improving.
I have always strongly believed that people are our biggest asset. We would continue to select carefully, train and motivate our people. This will enable us to compete effectively.
We are focused on delivering outstanding shareholder value. As we enter into an exciting growth phase of our journey, we seek continuous support and faith from all our stakeholders. I would like to express our sincere gratitude to all our stakeholders for continued trust and support. I expect the same cooperation from you all to make our future journey more remarkable.