Dear Shareholders,
It gives me great pleasure to invite you to the 52na Annual General
Meeting of the company. With stable governments both at the center and the state the
economy is expected to be on a growth path.
Inspite of positive atmosphere prevailing in the country, various developments such as
demonetization and introduction of GST had resulted in the stunted growth. There are many
headwinds the economy is facing. As a I result the hotel industry which is dependent on
the overall economy is subject to heavy fluctuations in the business. Our hotel industry
in India is heavily dependent upon the corporate business as the business through tourism
comprises a negligible percentage. The overall business sentiment is not what it ought to
be.
Inspite of the problems faced by the economy the expectation of the domestic as well as
international investors are very high. Even today peoplefeel thatthe Indian economywill be
one of the strongest in the world.
It is heartening to note that the state of Telangana is in the forefront of economic
development under the dynamic leadership of Sri.K.Chandrasekhar Rao, Hon'ble Chief
Minister of the State is recognized as number one state in many important parameters.
RecentlyTelangana State was adjudged by CNBC as the most promising state in the country.
Prime Minister of India survey had given Sri K. Chandrashekar Rao asthe best Chief
Minister in the country. Many innovative and progressive measures are undertaken by the
State Governmentwhich will improve business in Hyderabad exponentially.
Performance of the Company for FY 2016-17
The standalone performance of the Company in FY 2016-17, we have gross revenue
of Rs.86.84 Crores as against Rs.84.80 Crores in the previous year and consolidated
gross revenue is Rs.128.30 Crores as against Rs.124.74 Crores in the previous year.
PresentStatus:
The Hotel Industry across the country had suffered very badly due to the economic
slowdown and the hotel industry in Hyderabad suffered most due to prolonged Telangana
agitation. Now thatthe problem of separation of State of Andhra Pradesh is no longerthere
and uncertainties are no longer felt by the people, the city of Hyderabad has come back to
its original glory, and in the recent past we have witnessed a steady growth in occupancy
levels as well as the room revenues. With Marriott, Hyderabad and Courtyard, Hyderabad,
put together we have 500 rooms and the large convention and meeting spaces. Now that
Hyderabad is a preferred destination for its central location, best infrastructure etc.,
many national and international conferences are being planned in the future. That is a
good news for the Hotel Industry as convention means more room occupancy and more sales of
F&B. As all of you aware, we have divested Renaissance Hotel Project, Bangalore, to a
SPV, Viceroy Bangalore Hotels Ltd where J.P Morgan is our partner. This hotel will be
fully operational by October, 2017.
Through the sale of Chennai Project, the company's debt had been substantially reduced
and we are striving hard to further reduce the debt. This measure shall help Company to
strengthen its position. Our company is planning to expand its F&B business in a big
way by opening F&B outlets in Hyderabad and other Metros. F&B business will be
less capital intensive and can generate more revenues and profits in the nearfuture.
Our Companies core competence is in the operating Restaurant chains in the name of
Minerva and Bluefox. The revenue of Restaurants forthe year under review is Rs.41.34
Crores. We expectto increase the revenue from F&B outlets in the coming years.
Acknowledgment:
Before I conclude, on behalf of the Board of Directors of your Company, I wish to
convey earnest thanks to the valued Shareholders for yourcontinuedsupportandtrustinus.
I take this opportunity to thank the Government of India for its support to Hospitality
Industry. I also acknowledge the support extended by the State Governments and all
otherauthorities and regulatory agencies.
I would like to thank my colleagues on the Board for their valuable guidance and
contribution in steering the Company at all levels of achievement. I would also like to
thank customers, suppliers, bankers, financial institutions and all our shareholders.
Above all, I would like to place on record the commendable efforts and commitments
shown by our employees who have always contributed their bestforthe Company.
Thank you for sparing your valuable time.
With best wishes,
P. PRABHAKAR REDDY
Chairman.