Scheduleforming part of the Balance Sheet - Domain-b

Annual Report 2007-2008
Your Company is the First hotel chain in India to announce the elimination of “Trans Fat” from all its F & B offerings across its
hotels. Taking cognizance of the ill-effects and health hazards that surround Trans fats, the Master Chefs of the Taj have made
every effort to ensure that this move will have no impact whatsoever, on the taste and texture of the food.
In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate environment management in all
business areas your Company initiated EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the
conscious effort of one of Asia’s largest and finest group of hotels to commit to energy conservation and environmental management.
EARTH has received certification from Green Globe, the only worldwide environmental certification program for travel and
tourism.
Your Company Taj Hotels Resorts and Palaces is delighted to have won the Selling Long Haul Travel Awards 2007 an award
nominated by travel agents and tour operators across the UK and Ireland,
Opportunities
Your Company is poised strategically to take advantage of:
� Rapidly growing market in India, South Asia and key gateway cities in source-market destinations.
� Expansion in international destinations with top-of-the-line luxury and leisure properties.
� Meeting growing demand in the budget and mid-market segments.
� Extending the product portfolio into related offerings viz. luxury residences, wildlife lodges and spas.
Key initiatives taken by your Company during the year are discussed in a separate section.
Threats
The threats identified by your Company are related mainly to the markets in which your Company operates and general factors
related to the tourism industry. Significant among these are:
� General downturn in global & domestic economies
� Interest rates fluctuation could have adverse effect on performance.
� Cheaper international airfares increasing the affordability of travel to international destinations, especially South East Asia,
Europe and Australia.
� Growing presence of international hospitality chains competing in the luxury and business segments to meet excess demand
situation.
These threats and your Company’s strategy to overcome them have been discussed in detail in the section on Risk and Concerns
and the Risk Mitigation Initiatives.
Update on Key Initatives
New Properties and Expansion Plans
The Domestic market has been rapidly expanding and your Company’s expansion strategy in the domestic market has been in line
with the expectations given the buoyancy in the industry. During the year under review, the Company has at strategic locations
made commitments by way of acquiring properties on lease, entering into tie ups for equipping hotels being built by partners and
executing a number of management and technical services contracts for managing, operating and rendering technical services.
During the year the Company commenced operations at the “Gateway” a 100 room Hotel in Vijaywada, Andhra Pradesh and a
beautiful 66 room Hotel Taj Tashi in the heart of Bhutan’s capital city Thimpu which reflects Bhutan’s rich heritage and architecture.
The project at Whitefield, Bangalore a 199 room premium hotel is slated to open shortly. Roots Corporation Ltd. the Company’s
wholly owned subsidiary commenced operation of it’s four new 100 rooms ‘Ginger’ hotels at Nashik, Agartala, Pondicherry &
Baroda under the ‘Smart basic’s’ format. During the year your Company launched several unique restaurants in the domestic &
International arena notably being “Latitude” the exquisite all day dining restaurant at Taj Samudra, Sri Lanka, The Italian restaurant
29