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Saudi Arabia-based entrepreneur Ravi Pillai has entered into an agreement with ITC Welcomgroup to manage his hotel properties in India and abroad.
Pillai told newspersons here that the Welcomgroup would manage all his properties other than Leela Kovalam, which his RP Group Hotels and Resort had acquired but was still being managed by its previous owner.
NEW PROPERTIES
The disputed 16.47 hectares around the Kovalam Palace too has become the property of the RP Group. But the case over title of remaining 4.3 hectares and the ownership of the palace is still unresolved.
Pillai said he is investing Rs 100 crore in a new 75-room property in Kozhikode. He already owns two others in Kerala and is setting up two more in Dubai.
The Kozhikode property will be called Raviz Welcome Hotel. The Raviz Kollam, a five-start deluxe facility, is averaging 70 per cent occupancy.
Proposed plans to take over the Leela Group’s property in Chennai have floundered since a mutually agreeable price could not be reached, Pillai said. He has options open for taking over more properties within India, proposals for which are being evaluated.
HIGH WAGES
With regard to the ‘around five per cent’ investment in Dhanlaxmi Bank, he said he was not looking for profit. He was interested merely because the bank was a home-grown one.
According to him, investing in Kerala was becoming a losing proposition because of the skyrocketing wages, shortage of land and bad politics.
“One can hope to engage the services of a labourer for Rs 150 in Gujarat. But in Kerala, one would have to settle for nothing less than Rs 700,” he said.
Assured supply of quality power was another major issue, Pillai said.
He has managed to acquire some land in Thiruvananthapuram but has not decided how to make use of it. He, however, ruled out setting up another hotel.
Philanthropy
On whether he proposed to set aside part of his wealth for philanthropy, he said he was already spending 30 per cent of his annual revenues for charity.
The latest in the effort is the annual event of a proposed mass marriage of up to 200 couples from economically weaker sections. The event is scheduled for August 25 at Kollam.
Each couple will be gifted with five sovereigns of gold and Rs 15,000. Pillai is also offering a job to each husband in his group company.
The Ravi Pillai Foundation is taking care of the corporate social responsibility activities of the RP Group, Pillai said.
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