EIH

[00:00:00] Welcome to the latest episode of Har Stock Kuch Kehta Hai, presented by Angel One. A podcast where we will know and understand the journey of a company. We hope you enjoyed our previous episodes.

[00:00:18] If you are listening to this podcast for the first time, we would recommend that you check out our previous episodes as well. Where we talked about Tata Motors, Raymonds, Indigo Airlines and Gillette India Limited. My name is Rohan and let's start today's episode.

[00:00:35] Oberoi Hotels is India's largest hotel chain. Mohan Singh Oberoi, the man behind this chain, started his journey at the front desk of a Cecil Hotel in Shimla. His manager Mr. Ernest Clark, pleased with his work and dedication, made him his partner in his new hotel Carlton Hotel.

[00:01:05] Clark bought the property of this hotel with a loan. Later, he faced a lot of trouble due to this loan, but Mohan Singh Oberoi saved him. After a while, Clark died. And Mr. Oberoi became the solo proprietor of Clark Hotel.

[00:01:21] In these years, Mr. Oberoi had completed his business and he was happy. Then what happened? He got into the business of moving forward. He started a company called East India Hotels in 1949. This company used to manage the operations of Oberoi Palace in Srinagar, Kashmir.

[00:01:42] After a few years, East India Hotels listed their shares on BSE in 1956. Their business started going well, because there were no hotel chains in India that provided such good services. In the meantime, the company changed its name to EIH Limited,

[00:02:02] because the name East India Hotel was after the name of East India Company. After this, the company opened many luxury hotels in different places, like Indonesia, Himalayas, Brantambur, everywhere. Then in 2002, East India Hotels started flight catering operations in Chennai.

[00:02:21] This was the result of their acquisition of EIH Associated Hotels Limited. In November 2003, the company launched Motor Vessel Vrinda in Kerala, which was a luxury cruiser. After 3-4 months, the company signed an agreement with Hilton International to co-brand their Prident Hotels in India.

[00:02:42] The Oberoi Towers rebranded Mumbai as Hilton Towers, and the Trident Hotels rebranded them as Trident Hilton. In 2005-2006, the company commenced their first flight service operations at Bangalore to cater to increased flights to that city.

[00:03:02] In World Travel Awards 2007, Oberoi Hotels and Resorts received the award of Leading Luxury Hotel Brand in Asia. Trident Hotels was rated the best first-class hotel brand in India at the Galileo Express Travel Awards 2007.

[00:03:17] Due to some internal conflicts, EIH terminated their strategic marketing and co-branding alliance with Hilton International in April 2008. During the year 2008-2009, the company signed the management contracts for setting up and operating flights kitchen at Cochin and Calicut airports.

[00:03:38] In December 2009, the company opened the 440Key Trident at Bandra Kurla, Mumbai, where there are three specialty restaurants, each with their own distinctive cuisines and ambience.

[00:03:49] In August 2010, the company sold some shareholders who had around 14% stake to Reliance Industries Investment and Housing Private Limited at a cost of Rs. 1021 crore. Till now, the company's hotel businesses and flight catering businesses are doing well. Now let's talk about the competition of EIH.

[00:04:13] The biggest competitor of EIH is Indian Hotels Co Ltd i.e. IHCL, which is known for its brand Taj. EIH's revenue per available room is increasing faster than industry average. Overall, industry's ref bar rose between 19-21%, while EIH's ref bar rose by 48% by combining all the domestic hotels.

[00:04:39] Other players in the industry are ITC Hotels Ltd, Lemon Tree Hotels Ltd, Shale Hotels etc. Now let's know a little more about this industry. In the year 2024, India's hospitality industry market size is expected to reach $247.31 billion.

[00:04:57] India has been a popular global destination for leisure and business travelers, which has had a positive impact on the country's hospitality sector. India's domestic tourism has shown remarkable resilience and strength in recent years, and people have also seen an increasing preference for staycations.

[00:05:15] Reason for this growth is due to factors like ease in travel plan, safety and opportunity to discover hidden gems within India. Now let's look at EIH's financial performances. In the financial year 2024, EIH Ltd's profit after taxation was 186.9 crore rupees, which was 79.8% up on an year-on-year basis.

[00:05:40] EIH's revenue has also increased by 29.7% year-on-year and reached 680.1 crore rupees, and EBITDA also increased by 60% and reached 308.4 crore rupees. EIH's revenue has now increased due to increasing demand in the luxury travel industry. Whether domestic or international, EIH has positioned itself as a preferred choice for travelers.

[00:06:05] The cost-saving measures have also increased profitability, reflecting EIH's commitment towards sustainable growth and financial resilience. Now let's talk about financial performance. Now let's talk about EIH's CSR initiatives. EIH's main focus has been on energy saving and energy efficiency. Their hotel's key feature is energy conservation.

[00:06:29] EIH uses heat recovery wheels, thermal storage vessels and heat pumps to lower energy consumption and peak load requirements. Apart from this, hotels have automated remote control machinery which reduces idle time. In hotel gardens, they use natural fertilizers, processed waste from sewage treatment plants i.e. STPs and biopesticides.

[00:06:53] For newspapers and laundry, the company uses cotton bags. Recycled paper is used in business packages and greeting cards. Soaps are recycled and donated to charities. All cleaning and washing detergents in hotels are biodegradable.

[00:07:09] EIH wants to grow its business with such environment-friendly practices and give people the luxury travel experience. With this, we come to the end of this episode. Thank you so much for listening to us. We hope that you liked this episode.

[00:07:27] If yes, then please do share it with your friends and family. Through this show, we will bring a story of a new company for you every week. So don't forget to follow the show, Har Stock Kuch Kehta Hai presented by Angel One.

[00:07:41] We will meet you in the next episode with a new company. So until next time, wishing you good luck in your financial journey. Thank you for watching.