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Hotel
Taj Mahal is a venerable hundred years old; by far, the first
Indian owned hotel to reach the landmark. Reema Sisodia plays
time traveller to profile the landmark moments of this unbeaten
innings...

Much
has changed since Jamsetji Nusserwanji (JN) Tata commissioned
the hotel at the turn of this century. From the sleepy single
hotel enterprise as described by JRD Tata, Indian Hotels Company
Limited (IHCL) has spent the last one hundred years transforming
itself into the largest hospitality operation in India, on
the way rewriting the records many times over.
A brand that has established itself firmly on the map of the
Indian hospitality industry, the Indian Hotels Company Ltd
(IHCL) is changing with time, now touching across various
products of the hospitality sector, such as hotels, resorts
and palaces. And on the threshold of its second centenary,
it continues to identify new strategies, formulate refreshed
policies and introduce new approaches to meet future challenge.
Formative years
The Taj Mahal Hotel, Mumbai was commissioned in 1898 and opened
its doors to 17 guests on December 16, 1903. In essence, the
hotel is the personal dream of J N Tata, reportedly conceived
after being denied entry into a then leading British hotel,
The Majestic. Coming through on his promise to build
and operate a hotel second to none East of the Suez,
JN Tata invested the princely sum of two and a half million
rupees into the dream.
From its inception the Taj was planned on a luxurious scale
and guests had at their disposal the latest arrangements and
contrivances, such as power laundry, electric irons, a chemists
shop, resident doctor, Turkish bath, post office and modern
sanitation. In 1933, the countrys first air-conditioned
restaurant-cum-ballroom was also established at the Taj. The
same year also saw the opening of the Harbour Bar, Mumbais
first licensed bar.
The next major landmark was in 1968 when the Taj entered its
Take-Off Stage. American architect Melton Bekker
conceived a new tower wing, architecturally different, yet
within the overall theme of the Taj motif. The Taj Intercontinental
became operational in 1973.
Through
the years
But a series of expansions had already started two years earlier
beginning 1971. The foundation stone for this phase was laid
when the companys then chairman A B Kerkar, negotiated
with and convinced the Maharajahas of Udaipur and Jaipur to
convert their palaces into hotels which the Taj would run
leading to the Rambagh Palace in Jaipur and The Lake Palace
Hotel in Udaipur.
The early 70s was also when the Fort Aguada Beach Resort,
Goa was started. The then chief minister of Goa personally
discussed the project feasibility with the companys
decision makers. In 1974, the Taj Coromandel, Chennai and
Fishermans Cove, Chennai was set up.
The period between 1977 and 1987 is said to be the golden
decade of the Taj group as far as expansion is concerned.
Says Subir Bhowmick, chief operating officer & senior
vice-president, luxury division, who has been with the company
for the last 35 years, From the late 60s, there
was no looking back for the group. The group also pioneered
numerous concepts in F&B like the introduction of Schewzan
cuisine, first 24-hour coffee bar, etc.
Change In Guard
The next watershed year for the Taj group was 1997 with a
change in guard.
The properties, divided region-wise, were now categorised
under three distinct brands namely Luxury, Leisure and Business,
each with an individual chief operating officer at its head.
Camelia Panjabi, former marketing director, who was with the
chain for 35 years till May 2001, says, Segment branding
of the various properties took place in the year 1993-94,
though the formal trifurcation took place only in 1997. The
company spent around Rs 100 crore on the refurbishment of
the luxury brands before actually coining the term luxury
brands.
The new levels of competition also saw a change in business
strategy. Instead of going in for more properties existing
ones were renovated. Also, new systems were put in place;
for example, all the features in luxury hotels were standardised,
etc.
Changing the face of the F&B across properties and introducing
new attractions in the form of Taj premium packages are also
part of the new ventures. Says Jamshed S Daboo, chief operating
officer, Leisure Hotels, The Indian Hotels Co Ltd, We
have been continuously evolving and upgrading our products
and services. The concentration is more on value add-ons and
offers, apart from geographic expansion. Concentrating on
domestic tourism, tapping first time five-star guests, offering
packages that can be converted into repeat clientele is part
of our new strategy. We have recorded a growth rate of 25
per cent over the last two years.
100 and beyond
For the future, the Taj group is looking at product upgradation
for properties across all brands. New F&B outlets have
been introduced in in various properties. Some outlets are
being revamped and new cuisines are being introduced.
The concept of spas and wellness centres has also become a
part of business plans. These have been recently opened at
properties in Chennai, Goa and Kerala. Expansion plans, especially
the setting up of Business Hotels in the north, is also on.
Shashank Warty, chief operating officer, Taj Business Hotels,
says, Providing value add-ons in terms of state-of-the-art
business facilities are topmost on our list of priorities.
We have also recently introduced wireless internet facilities
for guests.
Adds Daboo, With these new initiatives, we are targeting
a new profile of travellers.
The company also recently made inroads in Madhya Pradesh by
setting up a new property in Gwalior. Wellington Mews, the
companys service apartments project, is slated for an
opening in August 2003. At the recently acquired property
in Mumbai, Taj Lands End, plans are on to add four more floors
to the existing property. The additional 44 rooms would also
be in the nature of service apartments. The companys
property in Maldives has also been made operational recently.
Wah Taj
From one hotel in 1903, today the chain has 10 hotels under
the Luxury brand, 18 under the Business Hotel brands and around
24 under the Leisure Hotels category. More will certainly
follow. All in all, the next 100 years promises to be very
different from the preceding ones.
| Footsteps
In The Sands Of Taj |
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In 1971-72 the company floated a shareholding company
called the Indian Resorts Company Ltd for properties
based in Goa. Apart from this Taj also formed a company
called Oriental Hotels for its expansion in the South
in which it got an NRI group called Reddys to come
up with 27 per cent investment and the land. IHC put
in another 27 per cent and the rest was subscribed
by the public. Oriental Hotels now controls the Fishermans
Cove in Chennai, the Taj Malabar in Cochin, Kerala,
and the Sea Pearl Hotel in Vishakapatnam.
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The companys foray in the international arena
took place in the 70s, with the setting up of
the Asian Resort and Restaurant Association Ltd (ARRA)
in Hong Kong by the Tata Enterprises Overseas (TEO),
a Tata subsidiary based in Zurich. The proposal was
to find customers for IHCs services abroad.
Among the hotels that had responded were Al Ghubra
Guest House of the Sultan of Oman and the Taj Sheba
Hotel in Sana, Yemen. By 1981, ARRA with the help
of IHC had built up a corpus of nearly US$ 1.5 million.
In the early 80s, ARRA with some US based NRIs
acquired its first property, the 740-room Lexington
Hotel in New York for US$ 35 million. This property
was recently sold by the company for US$ 110 million.
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The Taj Air Catering Unit was established in 1976,
which, according to sources, garnered around 70 per
cent of the market share of the air catering business.
Recently the company sold of 50 per cent of its share
in Singapore, receiving Rs 92 crore in return.
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In 1994-95, the company through GDRs (Global Depository
Receipts) sold 10 per cent of the Indian Hotels Company
for US$ 86 million and thus liquidated most of their
debts.
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The 90s also witnessed the entry of the Taj
Group in smaller Indian towns and tourism spots. A
company called Gateway Hotels and Gateway Resorts
came into existence.
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