The Taj Group of Hotels said hello to the Australian continent in December last year with its very first acquisition in this part of the world, W, at Woolloomooloo Bay in Sydney. This picturesque addition to the Taj family is just the entrée in a multi-course feast of acquisitions across the globe. The Pierre in New York was a delicious hors d'oeuvre.

For this 102-year-old company, mergers and acquisitions are the fastest way to its goal of becoming the best in the hospitality business worldwide.

Raymond Bickson, managing director, Indian Hotels, explains further, "As far as our expansion plans for the gateway cities across the world are concerned, we see merit in acquiring an established operation with an established brand equity, as opposed to implementing greenfield ventures."

For Mr Bickson, this entry into what he calls one of the top 10 test markets for the brand is a significant one and represents one of the fastest growing markets of international arrivals into India.

An appetite for growth
For well over a century, the Taj Group has been a dominant force in South East Asia. The Group is now extending its reach in this region through brand extensions and in new geographies via the M&A route.

The acquisition of The Regent — re-christened Taj Lands End — in Mumbai's elite suburb of Bandra, set the ball rolling in 2002. This move, says Mr Bickson, gave the company immediate access to the emerging north Mumbai market. The Jiva Grande Spa will shortly open at the hotel. The company is also looking at converting the 90-odd apartments as an extension of Wellington Mews as it feels that the north Mumbai market is ripe today for luxury serviced apartments.

In July 2005, the Taj Group took over the management of The Pierre, a luxurious landmark hotel on New York's Fifth Avenue, marking its entry into the hospitality industry in the United States.

With W, now renamed Blue, the 100-room boutique hotel in Sydney, the Taj Group has acquired a prestigious address in Australia. It is located within walking distance from the Sydney Opera House and is adjacent to the Royal Botanical Gardens.

A rich banquet
"In India, we are a 600-pound gorilla. We need a more balanced portfolio to take advantage of a broader range of opportunities," says Mr Bickson. The Taj Group has looked at brand extensions in India with spas, adventure tourism and luxury residences which will not only consolidate its dominance in the local domestic market but will also play a big part in bidding for international properties.

To fund its plan of unfurling the Taj flag all over the globe, the Group has earmarked $100 million. China may well be the next country to partake of the legendary Taj hospitality. Mr Bickson promises to be there in time for the 2008 Beijing Olympics and the 2010 Expo. The company also has its eyes open for opportunities in Europe, the Middle East, Asia and the US.

Uploaded on May 17, 2006