Indian Hotels Company Ltd (IHCL), which has embarked on an overseas expansion plan, has proposed to change the name of Taj Mahal Mumbai hotel to Taj Mahal Palace and Tower hotel as part of a re-branding strategy to celebrate the Taj Centenary year. Taj Mahal Palace and Tower was the original name of the hotel, established 100 years back.

IHCL is adding six new properties in different locations around the world, thereby increasing the number to 18 by 2005. Addressing shareholders at the company’s 102nd annual general meeting, IHCL managing director Raymond Bickson said, "we are looking at opportunities in Seychelles, Middle East, Kuwait, Dubai, Qatar and Doha, and by 2005, post-expansion, the number of rooms will be increased from 8,100 to 8,900."

The growth of the Taj Group has emerged from a unique mothership — Taj Mahal Mumbai — which has resulted in over 8,100 rooms across three continents and nine countries with 65 properties.

IHCL chairman Ratan Tata said, "we would prefer to expand in the international market through franchise or management contract rather then owning properties. It makes sense for us in holding few properties and looking at expansion by way of management contracts without owning physical assets. Most of the funds for expansion will come from internal accruals."

Mr Bickson further stated, "to leverage on the Tata Group and Taj strength in the global arena, special thrust has been given on sales and marketing and public relations. We already have seven international offices and plan to open offices in Paris, Milan, Frankfurt and Dubai by the end of this year."

IHCL whole-time director Zubin Dubash, at the sidelines of the AGM, said, "we are positioning the Taj brand as a global luxury brand. We have embarked on a branding architecture, for which an overseas consultant has been appointed."

Mr Bickson added, "the Taj brand is immensely valuable with aspirational luxury proposition. We are working with Tata Motors for introduction of customised variants of Indigo GLX and Safaris, which will be used for communication purposes at the company’s various properties. While Indigo will be used mainly in cities, Safari will be used in places like Rajasthan and Goa. Likewise, we are also leveraging our association with Barista. All the restaurants in our luxury hotels will be serving Barista beverages very soon."

As far as its foray into budget hotels is concerned, the company plans to commission its unique value hotel in Bangalore by next March.

To sustain and improve profit margins, the company has designed and implemented a number of cost restructuring programmes under the Total Overdrive for Profits (TOP) programme for revenue management, being carried out with the assistance of McKinsey.