Puravankara may not have a very successful listing but that has not deterred the massive expansion the company is planning.

The company is focusing on its hotels divisions and in an exclusive chat with NDTV the company's management reveals that hospitality is where it sees big growth coming from going forward.

"We have some massive expansion plans across some key cities in south India. We have set up a fair amount of our funds debt and capital which we will sink into these investments," said Ravi Ramu, CFO and ED, Puravankara.

Those expansion plans will require well massive funding plans and the company is planning on setting up a SPV for its hotels business and is in advanced talks with a global PE fund to divest between 20-30 per cent of its stake.

The plans will be finalised in the next couple of weeks. While the company is also not ruling out bringing in another Private Equity fund at a later stage, it admits that the reason to structure it as a separate company is to eventually list it.

Hospitality majors

Puravankara will invest between Rs 500 crore to Rs 1,000 crore of its own money over the next three years, Cochin will be the first stop with a super luxury hotel, followed by Bangalore, Hyderabad, Coimbatore and Mysore.

The company is also in talks with global hospitality majors including Four Seasons, the Ritz Carlton, Oberoi and the Hilton group to manage its properties.

"Yes of course, we don't intend to operate these hotels ourselves, we want to get it done by the best operators and we are talking to the best operators around the world," Ravi Ramu said.

The company foresees that the next wave of growth will come from tier II towns and is focusing heavily in this area for future growth.
Source: NDTV Profit

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