The Mukesh Ambani led Reliance Industries may jointly develop two hotel projects in Bangalore and Goa with EIH Ltd at an estimated cost of Rs 700 crore. "In all probability we will develop the Bangalore and Goa projects in association with RIL," EIH chairman and chief executive P R S Oberoi said on the sidelines of the company AGM. While RIL has little less then 15 per cent stake in EIH,ITC also has a similar holding in the hospitality company. Oberoi said while the proposed hotel at Bangalore would have 250 rooms,the one in Goa will have 100 rooms. He said both would be managed by Oberoi hotels. "We hold our own land in both locations. We have 8.2 acre in Bangalore and 55 acre in Goa. Currently,each room costs Rs 2 crore for Oberoi brand hotels without land," Oberoi said. Based on this calculation the total combined investment would be Rs 700 crore in the two projects. Oberoi did not give details of the proposed shareholding pattern in the projects which would be executed by floating a separate company or companies. The current EIH management was open to offer a berth in the board to Reliance,but it was up to them to decide on this. Asked if Ambani raised his stake post revised new takeover code,Oberoi replied,"We will be happy if they raise the stake." In the new proposed SEBI takeover code open-offer trigger would be only after 25 per cent stake was acquired instead of the current regulation of 15 per cent. Oberoi,replying to shareholders said,"I assure you ITC will not take over (the EIH Ltd). We wanted a friendly investor and now Ambani who is a friend of mine is an important and friendly shareholder". While reacting to the new takeover code,ITC chief Y C Deveshwar at his company's AGM last month,had said the company was open to it (raising stakes in EIH) if the opportunity was good.
