The Hindu Business Line : JMJ Group to foray into hotel, retail segments

Hyderabad, Dec 4 The Rs 260-crore JMJ Group, with core business strengths in perfumery blending and manufacturing of herbal extracts, has firmed up plans to foray into hotel and retail segments. The Mumbai-based company is building 5-star hotels in New Delhi, Jaipur, Dehradun and Hyderabad, 3-4 star hotels in Pune, Raipur and Udaipur, with a plan of creating 1,500 rooms. The total investment required is Rs 2,000 crore.

The company has acquired the required land in all these locations. It has raised Rs 125 crore through FDI from GT&T of UK that has invested in Asrani Inns and Resorts, which it acquired recently, to focus on hotel business, according to Mr Gopal Viswanathan, Chief Executive of JMJ Group.

For raising funds to execute the diversification programme, the company has sought the help of HVS International, a consulting firm, to prepare a detailed project report.

A combination of FDI, IPO, ECB and loans from financial institutions has been contemplated, he told Business Line.

To execute the projects in hotel and leisure segments, the Group has created JMJ Infrastructure, JMG Marketing and acquired Asrani Inns and Resorts. The company is set to launch its first budget hotel in March next, marking its entry into the hotel business with the 39-room hotel in Powai, Mumbai. Work has already started on the Delhi project, where it is building a 4-star and 5-star hotels in row, with the target of opening them in 2010, ahead of the Commonwealth Games, he said.

Retail plans

In the retail sector, the company is already into ‘convenience stores’, with 8 of the typical 300 sq.ft. area stores in Mumbai. Plans are to establish a national chain of such stores, with products that include the company’s own confectioneries and packaged drinking water.

The JMJ Group manufactures ‘Attar Hina’, and a range of herbal extracts, which has export market, and has packaging product manufacturing facilities at Silvassa.

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