The Hindu Business Line : Virgin Group to launch new biz in ‘communications’

India plans: Sir Richard Branson, Chairman of Virgin Group, at The Club at The Leela Kempinski Kovalam Beach resort in Thiruvananthapuram on Friday.

Sankar Radhakrishnan

Thiruvananthapuram, Feb. 29 This weekend, the UK-based Virgin Group is launching a new business venture that the group’s Chairman Sir Richard Branson believes “will make a big difference to Indians”.

“It’s in communications,” is all he’s willing to reveal. Talking exclusively to Business Line at the Leela Kempinski Kovalam Beach resort, he adds with a smile that the company’s new business venture will “add a bit of competition to one particular segment”.

The Virgin Group will certainly be looking at entering the hospitality and leisure market in India, he reveals. The group already has a small hotel division that focuses on up-market hotels and is starting a city-hotel division, says Sir Richard.

He believes that there is a shortage of hotel rooms in India given the country’s growth and it makes sense for the group to explore this segment.

Hospitality sector

Kerala will be on the group’s radar when it ventures into the hospitality sector in India. “I have heard much about Kerala. We’ve been extremely happy since we’ve been here,” he says. “But I doubt we’ll do anything for 18 months, since we’ve got quite a few other things we are planning first,” he adds.

One of those things is, of course, the hush-hush “communications” venture Virgin is launching this weekend. The group is also looking at expanding its radio station network in India, he says. Virgin is also exploring “one or two other areas” as well.

“We would one day like to start a domestic airline,” Sir Richard says. The Government of India’s rules don’t allow this at present, but ‘may be one day’,” he says wistfully. Sir Richard is, in fact, scheduled to lunch with Mr Vijay Mallya, Chairman of Kingfisher Airlines, on Saturday. “But that’s just a social lunch,” he emphasises.

Virgin Atlantic, the group’s international carrier, currently flies from London to New Delhi and Mumbai. But it’s also possible that the airline may soon fly to one or two other Indian cities as well, he says.

The airline will also explore the option of flights from the UK to Kerala, he adds.

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Virgin Group to launch new biz in ‘communications’