Last checked at 31 Mar 2008 12:01
India Hospitality's SkyGourmet Launches Fifth Kitchen in Hyderabad
NEW YORK, March 31 -- India Hospitality Corp. today announced that one of its divisions, SkyGourmet Catering Pvt. Ltd., launched its Airline Catering Unit (ACU) in Hyderabad, coinciding with last week's opening of the city's new Rajiv Gandhi International Airport.
SkyGourmet's Hyderabad ACU has the capacity to produce 25,000 meals per day, constituting approximately 25% of SkyGourmet's total capacity including capacity expansions currently underway at the company's Mumbai and Bangalore units. SkyGourmet is one of only two caterers to have been granted a concession at the new Hyderabad airport by GMR Hyderabad International Airport Ltd., a public-private joint venture between GMR Group, Malaysia Airports Holdings Berhad and both the State Government of Andhra Pradesh and Airports Authority of India (AAI).
The company has added close to 45,000 meals per day in capacity since January 2008. In the month of January 2008, SkyGourmet launched its Chennai operations with a capacity of 10,000 meals per day and embarked on expanding its ACU in Mumbai with an additional capacity of 10,000 meals per day. Hyderabad is the fourth largest city in India and capital of the state of Andhra Pradesh, which has emerged as one of India's leading states in the agricultural, manufacturing, information technology and pharmaceutical industries.
Kitchen expansions are an integral part of India Hospitality Corp.'s long- term strategy to scale its operations as India's second largest airline caterer in India. With this launch, SkyGourmet now has operating units in five of India's major airport cities: New Delhi, Mumbai, Bangalore, Chennai and Hyderabad. The Company plans to launch a similar unit in Kolkata shortly, which will complete the first phase of its expansion and firmly place it in the six metro cities that account for close to 80% of the domestic air traffic in India.
Industry experts estimate 25% annual growth in domestic travel in India over the next five years. The Indian Ministry of Civil Aviation has planned 500 fully operational airports in the country by 2020, up from just 80 today. The aggressive expansion program of the Ministry of Civil Aviation will include both Greenfield airports and refurbishment of existing airports.
About India Hospitality Corp.
In August 2006, India Hospitality Corp. raised US $103 million in an IPO and private placement and is listed on AIM, a market operated by London Stock Exchange plc, under the ticker IHC. In July 2007, IHC closed on the acquisition from Navis Capital Partners and its Affiliates of India-based Mars Restaurants Private Limited, an emerging hotel and restaurant company, and SkyGourmet Catering Private Limited, an airline catering company with 1,700 employees operating out of four locations in India.
In December 2007, in order to fund strategic growth initiatives, Hayground Cove and Navis Capital jointly invested US $28 million of additional capital in IHC, bringing their total invested capital to US $56 million. Following such reinvestment, Hayground Cove and Navis own approximately 52% of India Hospitality.
About Mars and SkyGourmet
Since its incorporation in 2000, Mars has diversified into bakery outlets and operating and managing food courts and hotels. SkyGourmet was incorporated in 2002 and is headquartered in Mumbai. SkyGourmet currently provides in- flight catering services to a number of domestic and international airlines, including Jet Airways, Kingfisher Airlines, Air India Express, Indian Airlines, and Jet Lite. It has operations in Mumbai, New Delhi, Bangalore, Chennai and Hyderabad. For the nine months ended December 31, 2006, the combined entities had audited revenues of approximately US $18.9 million and 1,700 employees.
Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and with respect to UK commodity derivatives business by the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK business. Deutsche Bank is acting exclusively for IHC and no-one else in connection with the acquisition and related transactions and other matters referred to in this announcement and will not be responsible to anyone other than IHC for providing the protections afforded to clients of Deutsche Bank AG nor for providing advice in relation to the acquisitions and related transactions or any matter referred to in this announcement.
Deutsche Bank is IHC's nominated adviser and broker for the purposes of the AIM Rules for Companies. Its responsibilities as IHC's nominated adviser and broker under the AIM Rules for Nominated Advisers are owed solely to London Stock Exchange plc and not to IHC, any director of IHC or any other person.
No offer or invitation to purchase or subscribe for ordinary shares in or warrants to purchase or subscribe for ordinary shares or warrants of IHC is being made by this announcement.
For Further Information Contact: Investor Relations Contact: ICR Inc. William Schmitt 203-682-8200 Nominated Adviser and Broker: Deutsche Bank Mumtaz Naseem +44 20 7545 8000
SOURCE India Hospitality Corp.
03/31/2008
/CONTACT: Investors, William Schmitt of ICR Inc., +1-203-682-8200; or Mumtaz Naseem, Nominated Adviser and Broker, Deutsche Bank, +44 20 7545 8000 /
INDIA HOSPITALITY CORPORATION