Leading The Pack

IHCL's 'Aspiration 2022' strategy is likely to see it emerge as a clear market leader. Puneet Chhatwal, MD & CEO, IHCL talks about how a combination of European-style management, American skills in marketing, and emotional intelligence of Indians has proved to be a winning formula.

- Gurmeet Sachdev

Earlier this year, Indian Hotels Company Limited (IHCL) posted a rather large profit. This is a remarkable achievement given that you have only just settled into your role at the helm of India’s largest hospitality company. How did you achieve such stellar results in such a short span of time?

After joining IHCL, as an important first step, the company’s senior management got together and developed a five-year strategy — ‘Aspiration 2022’ which has set its sight on making IHCL an iconic and profitable hospitality company in South Asia. Our strategy is three pronged: Restructure, Re-engineer and Re-imagine our portfolio to achieve 8% point earnings before interest, tax, depreciation and amortization (EBITDA) margin improvement by 2022. We are very pleased with the progress we are making in the execution of our strategic plan to drive profitable growth for our company.

The Taj Group has experienced several highs and lows during its long and checkered history. But you seem to have got your act together, with a strong focus on growth. How confident are you of consolidating your position in South Asia?

We are South Asia’s largest hospitality company by market capitalisation and are also an iconic brand. Our confidence comes from working for one of India’s most loved brands, backed by a strong legacy of the Tatas and a fantastic team of 30,000 people who work tirelessly to ensure that exceptional service is delivered, day-after-day.

There seems to be a sharp focus on EBITDA-margin enhancement as well as renewed focus on Jiva Spas, Taj Chambers and Khazana as individual profit centres. Can you highlight specific focus areas and core strategic plans?