MANAGEMENT DISCUSSION AND ANALYSIS REPORT
1. Global and Indian Scenario
The global economy witnessed a recovery in 2022 following two years of a pandemic- inflicted environment. Global tourism is steadily improving towards pre-pandemic levels consequent to the relaxation of travel restrictions across countries and increase in demand for travel.
India is on a growth path and the services sector including the travel and tourism business is emerging as a major growth engine for the Indian economy, having successfully put the pandemic behind. People are once again flying in great numbers, airports are crowded, hotels are well booked, and travellers want to explore, connect and feel alive through the exhilarating emotion of travel.
The consequence of the COVID 19 outbreak on the companys business for the year ended 31st March, 2022 and 31st March, 2021, had been severe. However, with vaccination programs being implemented in India and across the globe, both business and leisure travel resumed resulting in strong rebound in the business during financial year 2022-23.
Domestic tourism together with inbound tourism has emerged as a key driver of economic growth. In year 2022, India recorded Foreign Tourist Arrivals (FTAs) of 6.19 million (Provisional) with a growth of 305.4% as compared to the previous year.
During the financial year 2022-23, the performance of ITDC registered an overall improvement. ITDC has achieved Revenue from Operations of Rs. 458.08 crore during the financial year 2022-23 as against Rs. 289.54 crore in the previous year 2021-22. This is the highest ever Revenue from Operations of ITDC and a jump of 58% over the previous year. During the financial year 2022-23, the Corporation has earned profit before tax of Rs. 85.94 crore as compared to profit before tax of Rs. 7.62 crore during 2021-22. This is the highest ever profit before tax of Rs. 85.94 crore which is eleven times more as compared to profit before tax of Rs. 7.62 crore of financial year 2021-22.
According to WTTCs research, the Travel & Tourism contributed 7.64% to global GDP; an increase of 22% from 2021. Further while Domestic visitor spending increased by 20.4% in 2022, international visitor spending rose by 81.9%.
ITDC is committed to act as a respected, preferred and leading "one stop solution provider" in the Hospitality, Travel and Tourism sector and achieve higher return on investment for its shareholders while contributing towards fulfilling the overall objective of development, promotion and expansion of domestic as well as international tourism in the country.
2. Segment wise performance including financial performance with respect to operational performance
Hotel Division
Hotels Division has achieved Revenue from Operations of Rs. 314.48 crore during the year 2022-23 as against Rs. 199.61 crore in the previous year, registering an increase of 58%. The Division earned a profit of Rs. 84.50 crore as against a profit of Rs. 13.20 crore during the previous year 2021-22.
Hotel Ashok
Hotel Ashok achieved a highest ever revenue from operations of Rs. 199.59 crore during the financial year 2022-23 as against Rs. 113.38 crore in the previous year 2021-22. The profit before tax of Hotel Ashok increased from Rs. 4.86 crore during 2021-22 to Rs. 50.51 crore during 2022-23.
Built in 1956, The Ashok, the flagship hotel of I.T.D.C. is a familiar landmark in the city sprawling over 25 acres of land including Hotel Samrat. The Ashok has 550 well appointed rooms with 160 suites, including the Ashok Presidential Suite, depicting an aura of opulence.
The Ashok offers premium banquet facilities and most favored banquet venues. The Ashok has been the venue for several prestigious national and international conventions, seminars and events. This year, the hotel hosted international guests/events of Interpol, ISHAM- The International Society for Human & Animal Mycology, NADA, Indo-German Programme on Universal Health Coverage, International Solar Alliance to name a few.
The hotel hosted conferences of several Ministries such as Women & Child Development, Textiles, Education, Youth Affairs & Sports, Culture, Finance, etc. The hotel was the venue for various Medical Conferences this year, i.e. Delhi Ophthalmological Society, Immunology, DOACON, Cardiology, etc.
The Ashok was the official preferred host for Olympic and Paralympics players, Padma Awardees, Teachers Awardees, National Sports Awardees, Awardees of Ministry of Textile, winner of Dadasaheb Phalke award by DFF (National Film Awards). The hotel is also used as a venue for film shootings.
The Ashok Convention Hall, with its grand dimensions has been a favourite venue for luxury life style exhibitions such as Wedding Asia, Jalsa, Hi life, Sutraa Ankur etc..
The Ashok was awarded National Tourism Award for the year 2018-19 for hotel providing best facilities for the deferentially abled guests on 27 th September 2022.
Over the years, The Ashok has augmented its facilities, keeping in mind the ever changing trends in hospitality industry. There have been upgradations in guest rooms, restaurants, public areas; all designed with an endeavour to provide the highest standards of service to the guests and to provide an experience of exclusive grand living. Post Covid, the hotel prepared itself for welcoming guests back with enhanced Covid safety protocols with upgraded rooms by refurbishing soft furnishings and upgrading infrastructure like lifts, boilers and enhancing fire safety, etc. The Ashok continues its efforts towards sustainability by shifting to LED in guest rooms and public areas for energy conservation, shifting from coal based tandoors to PNG, tree plantation drives, in house composting machine for horticulture needs and utilising water generated through ETP plant for horticulture purpose.
The hotel undertakes dedicated efforts for imparting training to all levels of employees with in-house training set up for entire F&B and banquets staff. Training was given on soft skills, personal grooming and situation handling for front office & reservation staff. Training and sensitisation session were held on prevention of sexual harassment of women at work place.
On the occasion of International Womens Day, a special session was conducted by the Hotel for the female employees of Delhi based HCE Units, "An Expert Talk on Womens Health, Nutrition & Well Being".
During this period, the hotel added a new spa, swimming pool and gymnasium under the brand name "Discover Collection Club" in its bouquet of services.
In consonance with the celebration of the "International Year of the Millets", the hotel introduced new millet items in The Coffee Shop and VVIP events, offering a range of Indian delicacies and introducing millets-fusion cuisine. The Ashoks Millet Breakfast at The Coffee Shop was well covered on social media viz "india.com". The Ashok Cake Shop specially curated Diwali Millet confectionary hampers which were well received.
The write-up on Chef Arvind Rai, Chief Executive Chef, The Ashok was featured in a book printed by IHM, Pusa (IHM Pusa @ 60, Essence of Hospitality and Life Skills). In addition to this healthy Millet Ladoo recipe was also shared by Chef Arvind Rai, Chief executive Chef on "thehealthsite.com". Recipes of Healthy Winter Desserts for Diabetic were published in Hindustan Times e-paper on 23rd November 2022 shared by Chef Gaurav Malhotra, Sr. Sous Chef, The Ashok. Similarly, recipes of Chef Sanjay Babu Dasari, Chef Vikram Shokeen and Chef Vikas Anand were also published on various social media platforms.
The hotel had the privilege of hosting various high profile and VVIP dignitaries such as Honble President, Vice President, Prime Minister and Chief Justice of India.
The hotel also had the pleasure to host renowned celebrities such as Indian actor Rajnikanth, Kabir Bedi, K.K. Menon, Rakesh Bedi, Giaa
Manek; Indian playback singer Hariharan, Indian boxer Nikhat Zareen, Indian Journalist Neelesh Mishra and others.
The hotel celebrated many special days like Valentines Day with special Valentines Gift Hampers for sale, "International Womens Day", "Navratri", "Ramzan-ul-Mubarak", "Diwali", "Kashmiri Food Festival", "Xmas", "New Year" and "Holi" among others with special promotions at The Cake Shop and Food & Beverage outlets.
Professionals of The Ashok hotel have been accredited with various awards
• Indian | - Chef Arvind Rai won |
Federation of Culinary Association | Exceptional Achievement Award in the field of Culinary Arts and Science |
• 19th ICF Annual Chef Awards in Indian Sweets | - Sh Dalbir Singh, Master Chef |
• IFC Culinary Art Competition Artistic Pastry | - Sh. Shakthi Prasad Dobhal in Showpieces; Sh. Tapas Das in Plated Appetizers; |
Sh. Amit Mandwal in Authentic Indian, Regional Cuisine; | |
Sh. Dinesh Singh in 45 minutes Live | |
Rice Cooking; | |
Sh. Ghanshyam in Plated Appetizers; | |
Sh. Neeraj Negi in 30 minutes Live Cooking- Eggs Benedict. |
Hotel Samrat
The revenue from operations of Hotel Samrat increased from Rs. 56.53 crore during 2021-22 to Rs. 66.84 crore during 2022-23. The profit before tax of the Samrat Hotel increased from Rs. 11.41 crore during 2021-22 to Rs. 28.55 crore during 2022-23.
Set in the beautiful landscaped gardens which it shares with Delhis landmark The Ashok, Hotel Samrat is an elegant structure built around a central flower-filled atrium and open- air courtyard. Its 255 standard and deluxe rooms feature twin as well as queen size beds overlooking the enclosed gardens fountains and water channels while satisfying the demands of the most discerning guests.
A combination of Kautilya hall, Chanakya hall, Chandragupta hall, poolside lawns and other spaces make Hotel Samrat a perfect venue for conventions, exhibitions and weddings.
The hotel hosted and/or was associated with various important conferences, events, organized by different Ministries/PSUs/ Companies/State guest houses. The hotel hosted conferences of Coal India, Bricks International, Weavers Service Center, NICDC Logistics, Central Health Bureau, National Center for Disease Control, Kendriya Vidyalaya Sangathan, Assam Bhawan, GIZ, National Stock Exchange, Ministry of Rural Development, ICPB, DOACON, International Buddhist Confederation, Ministry of Health, M/s PHD Chamber of Commerce, Ministry of Women & Child Development, M/s Academicians Bureau, M/s India Energy Forum, CIM Global, Hindi Rajya Bhasha (ITDC), M/s Central Health, Research & Innovation, Ministry of Labor, etc..
The hotel was a preferred venue for various Government departments/Ministries/ PSUs/ Corporates such as Ministry of Culture, Rural
Development, Science & Technology, Labour; UPSC, Lok Sabha Secretariat, awardees of Export Promotion Council Handicrafts, Coal India, SSRM Air Mail, Lalit Kala Akademi, NLC India, Lok Sabha Secretariat, C-DAC, FSSAI, DRDO, National Health Authority, Ashok Tours & Travels, AICTE, National Horticulture Board, Central University of Tamil Nadu, Coal India, RIS, Vande Bharatam Nritya Utsav (NCZCC), National Philately Exhibition of Post Office, ONGC, Centre for Health Research & Innovation, Delhi Golf Club, EPFO, HDFC Life Insurance, ICICI Lombard, Institute of Actuaries of India, LIC of India, Morarji Desai National Institute of Yoga, Rashtriya Ayurveda Vidyapeeth, Shakti Vahini, The Indian Express etc.
The hotel was the venue for stay of Padma awardees and officials from Indian Navy, Indian Army, IFS probationers, Indian Red Cross Society.
The hotel received groups from various state guest houses namely Odisha Bhawan, Uttarakhand Sadan, Madhya Pradesh Bhawan.
The hotel offers delicious packed meals filled with delicacies of various cuisines and sold over 5000 such packed meals. Navratra thalis dished out by hotel Chefs were highly popular among its patrons.
Hotel Samrat operated a Food & Beverage stall at Amrit Udyan (Rashtrapati Bhawan) from 31.01.2023 for two months. The hotel successfully completed this prestigious assignment with wide appreciation from the general public.
As part of the continuous modernization and upgradation of the property; complete renovation of 48 guest rooms, corridors, main lobby and entrance porch has been done. Regular kitchen upgradation is being done to maintain standards as per ISO-22000 requirements.
Hyderabad House
The revenue from operations of Hyderabad House increased from Rs. 6.41 crore during 2021-22 to Rs. 6.83 crore during 2022-23. The profit before tax of Hyderabad House increased to Rs. 0.62 crore during 2022-23 from Rs. 0.58 crore during 2021-22.
The Hyderabad House has been catering to the visiting dignitaries, Heads of States hosted by the Honble Prime Minister of India and has garnered huge appreciation for consistently providing excellent services and showcasing wide varieties of Indian/International cuisine.
The unit made catering arrangements for several VIP events at the Hyderabad House, South Block, PMO, Sushma Swaraj Bhawan, Jawaharlal Nehru Bhawan and for the External Affairs Minister of India, NSA, FS and other Secretaries of External Affairs Ministry. The unit conducted total 375 events in the financial year 2022-23.
The unit catered to various prestigious events hosted by the Honble Prime Minister of India for the Honble Presidents of the Republic of Maldives, Egypt and Honble Prime Ministers of Nepal, United Kingdom, Japan, Bangladesh, Italy, Australia, German Chancellor and the accompanying delegates of the respective countries. The unit also catered to Cabinet Members at PM House, MPs, VIP dignitaries
Vigyan Bhawan
The revenue from opeations of Vigyan Bhawan increased from Rs. 4.70 crore during 2021-22 to Rs. 14.71 crore during 2022-23. The profit before tax of Vigyan Bhawan is Rs. 6.04 crore during 2022-23 as against loss of Rs. 0.72 crore during 2021-22.
ITDC has been managing a VVIP catering unit at Vigyan Bhawan since 1979. This catering unit of ITDC has successfully handled many prestigious national and international events and most of them were attended by the Honble President, Honble Prime Minister as well as the Heads of the States. It is a matter of great pride that the services rendered at Vigyan Bhawan have always been appreciated.
Several important conferences were organized by the Vigyan Bhawan unit and some of which were graced by the Honble President of India and Honble Prime Minister of India; Ministry of Panchayati Raj, Ministry of Cooperation, Sangeet Natak Academy, Deptt. of Administrative & Public Grievances, Department of Expenditure, Department of School Education & Literacy, Directorate of Film Festivals, Ministry of Jal Shakti, Delhi Development Authority, Central Vigilance Commission, Govt. of Assam, Department of Telecommunication, National Human Rights Commission, NIDM, etc. were successfully catered to.
For conservation of energy, Unit converted to LPG from charcoal tandoor for green and efficient energy.
Parliament House Catering Unit
The revenue from operations of PHCU increased from Rs. 13.45 crore during 2021-22 to Rs. 18.22 crore during 2022-23. The profit before tax increased from Rs. 0.71 crore during 2021-22 to Rs. 0.87 crore during 2022-23.
The mandate was given by the Parliament of India to ITDC for taking over the catering operations from Northern Railways. A new unit with the nomenclature Parliament House Catering Unit (PHCU) was set up and commenced its operations from 16th Nov 2020. PHCU has successfully been catering to the requirements of Parliament House Estate.
PHCU has also been given the mandate to provide hospitality services in the New Parliament House Building and the unit is actively involved in the planning and operationalization of the catering services which is expected to be operational shortly.
The PHCU is responsible for providing VVIP catering services within the precincts of the Parliament House to the Honble Chairman Rajya Sabha, Honble Prime Minister of India, Honble Speaker Lok Sabha, Honble Deputy Chairman Rajya Sabha, Cabinet Ministers, Leader of Opposition, all the Members of Parliament in Lok Sabha & Rajya Sabha, visiting foreign delegation, Secretary General - Lok Sabha & Rajya Sabha and other high ranking officials and staff. The unit hosted Cabinet meetings, Call Ons, Parliamentary Commentary meetings, Inter ministerial meetings, VVIP tea receptions, Dinner/Lunches etc. in the financial year 202223.
Services were also provided in numerous Banquet Halls, Committee Rooms in addition to the pantries attached to the offices of dignitaries of Parliament House Estate (PHE). Approximately 5000 persons working in the PHE are availing the services offered by PHCU, ITDC on a regular basis.
PHCU celebrated "International Year of Millets - 2023" introducing specially crafted Millets Menu.
FSSAI License for ITDC PHCU is valid upto 06.03.2027. The unit is using Piped Natural Gas in Kitchen for conservation of energy. The unit is also technology driven and has introduced QR Code and tablet based ordering for the guests.
The unit has taken initiatives pertaining to New Parliament building, i.e. Planning and execution of New Kitchens at different levels, over all planning and execution of F&B Operations that include assistance in procurement of cutlery, crockery, glassware, hollowware, linen & equipments etc., hiring and recruitment of skill based kitchen & service manpower, along with back office staff, introduction of online food ordering ‘Food App for the Honble Members of the Parliament.
The ITDC Chef posted at the PHCU won awards during this period. Chef Montu Saini, PHCU was honoured for profound contribution in culinary profession by IFCA in their Annual General Assembly meet on 13th February 2023 at The Ashok Hotel.
Also, Chef Montu Saini was conferred with the prestigious French decoration "Officier du Merite Agricole de la Republique Francaise" at French Embassy on 23rd February 2023.
Ashok Events Division (AED)
The revenue from operations of the Ashok Events Division increased to Rs. 51.08 crore during 2022-23 from Rs. 29.30 crore during 2021-22 and it has earned a profit of Rs. 8.20 crore as against profit of Rs. 3.31 crore in the previous year 2021-22.
Ashok Events Division set up in 2002 is involved in Event Management for Government entities including Ministries, PSUs, Statutory bodies etc. It organizes events attended by Honble President of India, Honble Prime Minister of India, Cabinet Ministers, Ministers of States, Secretaries and other senior officials of various Government entities. It also has an MoU with Ministry of Tourism being engaged as Event Manager for MoT for organizing different functions on a pan India basis.
Ashok Events manages events, conferences and exhibitions both at national and International level for Ministries and various Government
Bodies. It also provides designing and printing solutions (Coffee Table book, guide books, diaries, posters, brochures, folders etc.)
INDUSTRY TRENDS
The Tourism & MICE industry has picked up momentum and the conference, events and exhibition business in particular was good for the Ashok Events Division during 2022-2023.
Organization of regular major events including conferences, exhibitions, workshops, Parvs, marts etc. gained momentum after lifting of restrictions due to the pandemic and focus shifted to holding more physical events.
The conferences, exhibitions and events etc. are growing and demand for tourism related services including events should be on the increase because of: -
• Effective branding and publicity of "Incredible India" and "Dekho Apna Desh" campaigns and mega events promoting tourism by the Ministry of Tourism, Govt. of India.
• Showcasing of Government schemes and launch of various projects by Central Ministries, departments and Autonomous bodies.
• India perceived as a major tourist and MICE destination.
• Major boost to Religious Sector Tourism.
Major events handled by the Division in 2022-23 include: -
15th Civil Services Day 2022 held on 20th - 21st April, 2022 at Vigyan Bhawan, New Delhi.
Mission Innovation Annual Gathering Meeting at The Ashok, New Delhi from 4th to 5th April 2022.
"National Mission for Clean Ganga (NMCG) Pavilion" from 17th to 24th May 2022 at Singapore during Singapore International Week.
"Exhibition - Nation Building & CPSEs" at Mahatma Gandhi Convention & Exhibition Centre at Gandhi Nagar (Gujarat) from 09th - 12th June 2022.
First Chief Secretaries Conference in Dharamshala (Himachal Pradesh) from 15th June 2022 to 17th June 2022. Chief Guest: Honble Prime Minister of India.
"National State Tourism Ministers Conference" at Dharamshala (Himachal Pradesh) from 17th Sep 2022 to 18th Sep 2022.
"National Tourism Awards 2018-19" held on 27th September, 2022 at Vigyan Bhawan, New Delhi.
"WADA 2022- Athlete Biological Passport Symposium" at The Ashok, New Delhi from 12th to 14th October 2022.
Drone Mahotsav at Pragati Maidan on 19th June 2022. Chief Guest: Honble Prime Minister of India.
"Seventh Governing Council Meeting" at RBCC, Rashtrapati Bhawan on 07th Aug 2022. Chief Guest: Honble Prime Minister of India.
"Har Ghar Tiranga" Bike Rally at Red Fort, Delhi on 3rd August, 2022.
"10th International Tourism Mart for the North East Region" at Aizawl (Mizoram) from 17th - 19th Nov 2022.
"Good Governance Week 2022" at Vigyan Bhawan from 19th - 23rd Dec 2022.
Second Chief Secretaries Conference at ICAR (Pusa) from 05th Jan 2023 to 07th Jan 2023. Chief Guest: Honble Prime Minister of India.
"DGPs/ IGPs Conference" at ICAR (Pusa) from 20th Jan 2023 to 22nd Jan 2023. Chief Guest: Honble Prime Minister of India.
"Bharat Parv - 2023" at Red Fort from 26th - 31st Jan 2023.
"Adi Mahotsav - 2023" at Major Dhyan Chand National Stadium from 16th to 27th February, 2023. Chief Guest: Honble Prime Minister of India.
"3rd Session of National Platform of Disaster Risk Reduction" (NPDRR) at Vigyan Bhawan, New Delhi from 10th to 11th March, 2023. Chief Guest: Honble Prime Minister of India.
"1st Global Tourism Investors Summit - Interaction with Heads of Foreign Missions in India" organized by Ministry of Tourism, Government of India on 23.03.2023 at Hall No: 2 & 3, Vigyan Bhawan, New Delhi.
"Chintan Shivir" of Ministry of Tourism at The Ashok Hotel, New Delhi from 28th to 29th April, 2023.
"Fabrication and Management of Exhibition" organized by National Water Development Agency (NWDA) in connection with G-20 2nd Environment & Climate Sustainability Working Group (ECSWG) meeting at Mahatma Mandir Convention and Exhibition Centre, Gandhinagar, Gujarat from 27th to 29th, March, 2023.
Through its Event Management activities Ashok Events also generated business for other verticals of ITDC including Hotels Ashok and Samrat, Vigyan Bhawan, and Ashok Travels & Tours (ATT).
Ashok International Trade Division (AITD)
The revenue from operations of Ashok International Trade Division (AITD) was Rs. 15.98 crore during the year 2022-23 against Rs. 20.15 crore in the previous year 2021-22. The AIT division has earned Profit before Tax (PBT) of Rs. 3.24 crore as compared to PBT of Rs. 5.74 crore in the previous year.
a) Operational Duty Free Shops at Seaports
1. Kolkata Seaport
2. Haldia Seaport
3. Chennai Seaport
4. Goa Seaport
5. New Mangalore Seaport
6. Vizag Seaport
7. Paradip Seaport
8. Kakinada Seaport
9. Krishnapatnam Seaport
10. Cochin Seaport
11. Tuticorin Seaport
12. Kamarajar Seaport
13. Jawaharlal Nehru Port Trust, Mumbai Seaport
14. Kandla Seaport
b) A decision has been taken to close down the shop at Mumbai seaport as it continued to be unviable.
Divisions analysis for the year:
The shops continued to remain operational in the midst of emerging new competition while new shops continued to open at different seaports. Our shops have been competing against the existing and newly opened multiple shops at seaports facing stiff competition. With a view to ensure uninterrupted operations at all these shops, the division made sure to keep the supplies uninterrupted.
With international travel having opened up and with that, Duty free shops at International airports also starting operations, as well as the current global situation, the supply chain of imported goods has been severely impacted. Therefore, there are emerging challenges for procurement of imported goods at Duty Free Shops. In view of adversely affected supply shortages, certain companies producing some of the fast moving brands have not only increased procurement prices but have also restricted promotional schemes.
The above factors have marginally affected the total sales even though by and large, the profitability has been maintained.
Steps taken to improve revenue from operations and profitability
• Motivation scheme for the shops introduced w.e.f. 1st April 2021 by launching Inter-shop competition, based objectively on Revenue and profitability growth has given a boost to the revenues as well employee morale. For their top performance achievements during the FY 2021-22, the shop at Jawahar Lal Nehru Seaport, Navi Mumbai won the "Platinum Star Performer award" while the shop at Vishakhapatnam won the "Golden Star Performer award". Awards for quarterly performance were also awarded to two top performing shops for each of the four quarters. Such motivational push not only promoted healthy competition amongst shops but also in turn helped in promoting revenue from operations and profitability of the division as well as AITD.
• Other measures taken for improved performance of shops include
- Dynamic flexi pricing on bulk purchase to push volume/value sales.
- Feasible price correction is undertaken from time to time basis feedback of the shops/team to align with the market trends.
- Back-end operations being streamlined to continuously minimize response time for front operation needs.
- Constant Product promotions with support of suppliers to improve both footfalls & conversion rate.
- Free Wi-Fi for the customers at the shop
- Leveraging technology to reach out to customers e.g. listing on Google Map
- Maintaining Continuity in stock supply chain in spite of supply constraints Ashok Travels and Tours Division (ATT)
The revenue from operations of ATT Division during 2022-23 increased to Rs. 62.87 crore from Rs. 23.66 crore during the year 2021-22. The ATT Division has earned profit of Rs. 16.19 crore as against loss incurred of Rs. 1.72 crore in the previous year.
Ashok Travels and Tours, the in-house Travel Division of ITDC has been providing all Travel related services like Air Ticketing, Car and Coach Rentals, Hotel Bookings, Tour Packages, LTC Packages, etc to various Ministries, Government Departments, public sectors, Government schools, and also to the general public for about last 50 years. ATT had also ventured into Cargo operations and has already handled some important and sensitive Cargo through Sea, Air and Surface successfully.
Pandemic has badly hit the travel, tourism, and hospitality sector, though the travel tourism industry is cautiously monitoring the protocols, state centric curbs and restrictions. Despite this, Ashok Travels and Tours not only handled air ticketing for various sports disciplines of Indian Olympics Contingent, Tokyo Olympics 2020 but also handled felicitation of medal winners and Indian Men and Women Hockey teams at The Ashok. ATT had been designated official Travel, Hospitality and Service provider to Team India Tokyo Paralympics 2020. Paralympics Committee of India (PCI) hosted sendoff of Paralympics contingent to Tokyo on 12th August 2022 at The Ashok.
ATT also handled booking of rooms and transport for dance groups which were invited by Ministry of Culture for their performance in Republic Day Parade 2022
Contract with National Board of Accreditation (NBA) for providing travel related services on PAN basis with ATT has been extended for two years
ATT signed MoU with Central Industrial Security Force (CISF), Central Reserve Police Force (CRPF) to provide online ticketing solution on Pan India basis. ATT also signed MoU with Hindustan Aeronautics Ltd (HAL) to provide seamless travel solution for booking air tickets and travel related services to all its offices located across India.
During the year, ATTs travel division deployed ITDC owned ten Toyota Innova Crysta cars to Lok Sabha on a monthly fee basis.
Ashok Institute of Hospitality & Tourism Management (AIH&TM)
The Ashok Institute of Hospitality and Tourism Management (AIH&TM) achieved revenue from operations of Rs. 3.85 crore during 2022-23 as against a revenue from operations of Rs. 4.86 crore in the previous year 2021-22. It has earned a profit of Rs. 0.13 crore as against profit of Rs. 1.48 crore in previous year 2021-22.
Ashok Institute of Hospitality & Tourism Management (AIH&TM) is the Human Resource Development Division of India Tourism Development Corporation Ltd. The institute came into existence in 1971 for in-house training of staff and executives in ITDC hotels. Skill development in Hospitality sector is a major need of the Nation.
Due to the wide gap between the availability and requirement of skilled manpower, the focus of AIH&TM is towards reducing the gap between demand and supply and providing skilled manpower to the Hospitality industry through the various training programmes of Ministry of Tourism, in accordance with Skill India Mission of Honble Prime Minister.
ITDC has set up a Centre of Excellence and Hospitality Education at Hotel Samrat, New Delhi. AIH&TM Centre of Excellence is affiliated with National Council for Hotel Management and Technology and it commenced the academic session from 2015-16.
AIH&TM is presently providing Education & Training Consultancy in Tourism & Hospitality Management besides providing training to Apprentices, and Industrial Trainees from Institute of Hotel Management and other reputed institutes and also organizing in-house Executive Development Programme for ITDCs Executives.
As part of business strategy, AIH&TM conducted following programme/courses:-
(a) AIH&TM had conducted (Public Financial Management System) PFMS training for the executives of ITDC. AIH&TM under the CBSP program (Capacity Building for Service Provider) of Ministry of Tourism, Government of India conducted the training of Taxi/Cab/Coach drivers under Tourism Awareness Program (fully sponsored by MoT) on Behavioural & soft skills with one basic foreign language viz. French and German.
(b) Designed & conducted, skilled based training for Ashok Hotel Staff.
(c) Imparting on-the-job training to Industrial Trainees from various professional Hospitality Institutes in the country.
The programme was conducted in various batches by AIH&TM, HRD division of ITDC at its campus located at Samrat Hotel in association with Rajdhani Taxi association and others who supported in mobilizing the drivers, wherein AIH&TM has trained 299 candidates under the scheme. Out of the total candidates, 165 are male beneficiaries and 134 female beneficiaries.
The Certificate Distribution Ceremony was conducted on 30.11.2022 for the participants who had successfully completed training programme.
(d) AIH&TM had conducted training programmes on "Training Programme on Preparation of Roster" for HR Executives of ITDC by ISTM.
(e) Also conducted training programme on hospitality skills for waiters of UPSC and other reputed organisations.
(f) AIH&TM had conducted training programme on "Updation of Manual on Procurement of Goods, Service Works and Consultancy etc." Vigilance Awareness Week 2022.
(g) AIH&TM also conducted Speech Competition, Integrity Pledge, Nukkad Natak at NDMC School and Walkathon to create awareness against the evil practice of corruption during Vigilance Awareness Week.
(h) On the occasion of "International Womens Day", AIH&TM had conducted programme on "Empowerment of Women through Spirituality" by Brahma Kumaris.
(i) B.Sc. in H&HA through National Council for Hotel Management & Catering Technology.
(j) One-year diploma courses in Food Production, Bakery and Confectionary, Front Office, Housekeeping and F&B service jointly with National Institute of Open Schooling under Ministry of HRD, Govt of India.
(k) 03 years B. Voc. Course in Food Production is also being conducted in affiliation with Jamia Milia Islamia University.
(l) Apprenticeship Training through MSDE, Ministry of Skill Development & Entrepreneurship.
(m) Customised Need Based Training for reputed organisations viz Punjab Tourism, SMVDSB, Air Force/MEA/ITBP, SSB, State Bhawans, CAG, EIL, Karnataka Bhawan etc.
(n) Skill Development-Hunar Se Rozgar, STC, Entrepreneurship, CBSP, Skill Development Initiative of Ministry of Tourism, Government of India sponsored by MOT.
(o) AIH&TM participated in the Bharat Parv (January) at Red Fort under the aegis of Ministry of Tourism, Govt. of India.
Ashok Consultancy & Engineering Division (ACES)
The ACES Division including SEL Projects achieved a revenue from operations of Rs. 13.71 crore during the year 2022-23 as against the revenue from operations of Rs. 14.98 crore in the previous year 2021-22. The Division incurred a loss of Rs. 1.75 crore during 2022-23 as against loss of Rs. 0.67 crore in the previous financial year 2021-22.
The Ashok Consultancy and Engineering Services Division of ITDC undertakes services from concept to commissioning of Tourism Infrastructure Projects, Up-gradation and renovation of ITDC properties and SEL shows. Besides, it provides consultancy services to Ministry of Tourism, State Tourism Departments and other private entities.
The division is actively involved in the preparation of Detailed Project Reports pertaining to Tourism Infrastructure Development Works, Feasibility Reports and provides Consultancy Services to Ministry of Tourism, various State Governments and private agencies etc. It has a team of experienced engineers and architects who are well versed in the development of tourism infrastructure. Since inception the division has executed more than 110 tourism infrastructure projects and has also prepared more than 105 numbers of Detailed Project Reports in the tourism field.
The following DPR are submitted recently by the ACES Division:
a) Development of Various Infrastructural Works at Kakadpura Pond, Tantya Mama Bhil Samadhi Temple (Patalpani) with View Point Bridge no 647, Kalakund and Janapav at Mhow, Dist. Indore, Madhya Pradesh for an amount of Rs 50.90 cr.
b) "Development and Beautification of Various Infrastructural Works at different locations in and around Behat, Dist. Gwalior, Madhya Pradesh" for an amount Rs 28.19 cr.
Currently, the Division is executing Tourism Infrastructure Project for Sree Narayana Guru Spiritual Circuit in Kerala for an amount of Rs. 63.26 Cr. sanctioned by MOT under Swadesh Darshan Scheme and Development of Infrastructure works in Beltaal Lake at Damoh, MP for an amount of Rs. 23.16 Cr. sanctioned by Ministry of Tourism under the scheme of Central Finance Assistance.
Targets for financial year 2023-2024 :
Implementation of following Sound and Light / Multimedia Shows are in progress and will be completed in the financial year 2023-2024:
1. SEL Show at Udaigiri Khandagiri, Odisha.
2. SEL Show at Sarkhejroza, Ahmedabad.
3. SEL Show at Yadavindra Garden, Pinjore, Haryana - Completed
4. SEL Show at Puttaparthi, Andhra Pradesh - Completed
5. SEL Show at Purana Qila, New Delhi.
6. SEL Show at Leh Palace, Leh, Ladakh.
7. SEL Show at TFC, Kargil, Ladakh.
Recently, an MOU was signed between Archaeological Survey of India (ASI) and ITDC for Illumination works and the following Detailed Project Reports were submitted to ASI for Illumination Works:
• Ramappa Temple, Telangana.
• Sivasagar, Assam
• Sher Shahs Tomb, Sasaram, Bihar.
• Group of Temples at Amarkantak, Madhya
Pradesh.
• Jal Mahal, Narnaul, Haryana.
• Bidar Fort, Bidar, Karnataka.
• The Residency, Lucknow, Uttar Pradesh
• Charminar, Hyderabad, Telanagana
• Tomb of Rabia Daurani (Bibi-ka- Maqbara), Aurangabad, Maharashtra.
• Pari Mahal, Sri Nagar.
Sound & Light Show
The Sound and Light show being a part of Engineering Division, the financial performance of Engineering division includes in SEL division also.
The SEL Division has the following function:-
1. Implementation of Sound and Light/ Multimedia Show projects.
2. Consultancy Services related to Sound and Light Show.
3. Illumination work
4. Operation of sound and Light Show
5. Preparation of DPR
Some other SEL projects which have been awarded to ITDC are at different stages of tendering/DPR stage during financial 2023-2024 and effort will be made to complete as many projects as possible during the financial year 2023-2024 subject to various approvals and clearances from different Authorities.
1. SEL Show/ Illumination at Nawal Sagar lake, Bundi- DPR approval stage
Consultancy services for different projects are in progress and will be completed in the financial year 2023-2024
1. SEL Show at Cellular jail, Port Blair- Completed
2. SEL Show at Dhordo, Kutch, Gujarat.
Corporate Marketing and Public Relations
The following initiatives were taken by the Corporate Marketing & Sales / Public Relations Division during the year 2022-23 :
Film Shoot :
• NFDC shot different verticals of ITDC for producing a TVC and Corporate film on ITDC which is now in the process of finalization.
• An elaborate scene for Vicky Kaushal starrer film ‘Sam Bahadur shot at Ashok hotel in September 22. The film based on life of Field Marshal Sam Manekshaw, and directed by noted director Meghna Gulzar, was shot at various areas of Ashok Hotel. Samrat Hotel got meal business of boxed thalis.
Digital Marketing:
• A professional agency has been appointed for Digital Marketing and social media management for ITDC
• Leveraged digitally on all our verticals/ hotels point of sales, Celebrity spotlights and brand engagement posts, all important events coverages, and ‘wish posts of significant festivals/days.
Marketing:
• Signed MoU with Ministry of Ayush for mutual cooperation and benefit, under the Medical Value travel vertical
• 63rd MEDICON conference of Delhi Medical Association held at The Ashok.
• SCO youth conference by Ministry of Sports at The Ashok Hotel.
• ITDC hosted 20th Global Conference of Actuaries at The Ashok.
• Leadership programme of Reliance Group during Jan 2023 at The Ashok.
• Hosted 17th Hospitality India Travel Awards at Convention Hall, The Ashok Hotel.
• Hosted 36th Parliamentarian Internship Training programme at The Ashok.
• Income Tax Parliamentary committee meeting was organized at The Ashok
Public Relations:
• On the occasion of Holi, a painting competition amongst the privileged children of Vrikishit Federation (NGO) was organized in the Tea Lounge of The Ashok
• Millets Breakfast Recipes photo shoot at The Ashok and publication of the same in print media.
• ITDC organized a cultural evening by musician/Synthesizer in The Coffee Shop of The Ashok on the eve of Christmas
• A musical band was organized in The Oudh and DJ in The Frontier and The Coffee Shop of The Ashok during New years eve
• ITDC officials participated in CBI Interpol Conference at Pragati Maidan
VISION & MISSION
Due to disinvestment of hotels run by ITDC, it was felt necessary to review the vision and mission of ITDC. Accordingly, ITDC Board in its meeting held on 28.9.2017 under new Business Plan, approved the new Vision & Mission to align focus and activity of competition in accordance with changed business and economic scenario emerging out of divestment of some of the hotel units. The new Vision & Mission is as under:
Corporate Vision
To position ITDC as a respected, preferred and leading "one stop solution provider" in the Hospitality, Travel and Tourism sector and achieve higher return on investment for its shareholders while contributing towards fulfilling the overall objective of development, promotion and expansion of domestic as well as international tourism in the country for all sections of the society.
Corporate Mission
To achieve the desired position by leveraging on inherent strength of Corporation as a well- known, established and trusted brand and by strengthening and enlarging other potential SBUs by adopting SBU specific strategy, increasing customer base from B2G to B2C and B2B, achieving customer delight (in terms of external and internal customers) and by offering value for money quality services at par with best in industry.
3. ITDC - SWOT Analysis Strengths
• Well established brand for almost 58 years in Hospitality, Travel & Tourism related services.
• Pool of highly skilled and experienced manpower in hospitality and travel & tourism related services like large banquets, VVIP catering, Domestic and global event management, Sound & Light shows, Tourism infra, Hospitality education and skill development, Duty Free Shops etc.
• Patronage of Ministry of Tourism and other Govt. Agencies. Events division has MoU with Ministry of Tourism, Govt. of India for handling their events.
• Zero Debt Company.
Weakness
• Ageing properties and manpower.
• Non up-gradation of systems for a long time.
• Low IT environment.
• High dependence on Govt Sector.
Opportunities
• Tourism infrastructure in India is improving which will eventually translate into significant business opportunities.
• Increased demand for mounting SEL shows at Heritage / ASI sites
• Upcoming large convention/exhibition facilities and strengthening of MICE infrastructure pan India have great scope for Event Management-based solutions and advanced technologies are available at low costs for different business verticals to utilize and increase productivity.
• Optimum utilization of infrastructure of hotels by leasing out extra space available.
• Increased demand for skill development courses, training & Education in hospitality as well as increased focus of States on improving tourism related infrastructure.
Threats
• Uncertainty due to ongoing disinvestment process of hotels
• New hotels with ultra-modern facilities are coming up.
• Depleting strength of skilled manpower.
4. Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations
Name of the Ratio | 2022-23 | 2021-22 | Explanations for change of 25% or more |
Debtors Turnover [Trade Receivables (Net) as no. of days of Revenue from Operations] | 60 days | 88 days | Performance is improved due to higher Revenue from operations |
Current Ratio | 1.62 | 2.10 | Due to increase of current liabilities |
Debt Equity Ratio | N.A. | N.A. | N.A. |
Interest coverage Ratio | N.A. | N.A. | N.A. |
Inventory Turnover Ratio | 8 days | 13 days | Increased sales contributed in the reduction of inventory ratio. |
Operating profit margin | 16.52% | 1.26% | Operating profit margin improved due to overall better performance |
Net profit margin | 13.17% | 1.51% | Net profit margin improved due to overall better performance. |
5. Environment Management Initiatives
Environmentally friendly policies including installation / up gradation of LED lights, organic waste plants and ETP plants etc. are regularly included in the Plan budgets every year for all units. ITDC Performance Standards have recognized as a benchmark for environmental and social risk management by achieving certifications from various organizations.
STPs/ ETPs have been installed in all of ITDCs properties for sustainable wastewater treatment. The Ashok / Samrat Hotel have a capacity of 1 MLD STP and 30KLD capacity of STP/ETP at Hotel Kalinga Ashok, Bhubaneswar. The Organic waste convertor is also installed at Hotel Ashok and Samrat to reduce hazardous and harmful waste to environment.
Hotel Ashok and Hotel Kalinga Ashok, Bhubaneswar have solar water Heating System installed to save energy. In addition, Hotel Kalinga Ashok also has standalone solar street lights installed in its premises.
6. Outlook
FY 2022-23 continued to be a year of strong recovery in the Indian travel and tourism industry. The outlook for the Indian hospitality industry during 2023 remains positive. The upsides working in favour of the hospitality industry in India are good macroeconomic environment evidenced by 6%+ GDP growth,
7. Risk and Concerns
i. Tourism is a sensitive product. It is affected by general economic conditions like global recession, general inflationary conditions; Socio-political risk like socio political environment internationally and within the country, advisories from foreign countries; Competition from international hotel chains; increased outbound travel etc.
ii. Companys specific risks (Level of Risks: Likely/Almost Certain), have been mentioned in the Board Report.
8. Internal Control
i. The Corporation has adequate internal control system commensurate to its nature of business. Board has laid down policies and procedures such as Licensing Procedure, Purchase Procedures, Engineering & Works Manual, Standards of Procedures (SoP) for Cash and Bank Transactions, Internal Financial Control Policy, Risk Control Mechanism, Delegation of Powers etc. for ensuring the orderly and efficient conduct of business.
ii. Professional services of Chartered Accountant Firms are availed to conduct Internal Audit of all units/verticals of ITDC. A detailed Internal Audit manual duly approved by the Board of Directors has been circulated to all the units.
iii. Internal Auditors monitor and evaluate the efficacy and adequacy of the internal checks & control systems. Quarterly Internal Audit Reports are submitted by Internal Auditors. Corrective action, wherever required, is taken by the units/ verticals. Significant observations, if any, are reported to the Audit Committee.
9. Human Resource Management and Industrial Relations
Total employees in the Corporation, as on 31-3-2022, were 567, which have now come down to 513 as on 31.3.2023. (Excluding 41 employees engaged on Direct Contract basis).
Out of 513 employees, 144 employees belong to Scheduled Castes (SCs), 11 belong to Scheduled Tribes (STs) and 47 to Other Backward Classes (OBCs). Moreover, 42 employees were promoted to the next higher posts, out of which 04 employees belong to Scheduled Castes (SCs). Further, there are 78 Women employees (41 Executives & 37 Non-Executives) working in ITDC as on 31.03.2023 constituting 15% of the total workforce of the Corporation. The overall Industrial relation situation in ITDC continued to be cordial and good.
In order to improve the competencies, mitigate the shortage of domain specific functionaries and strengthening of various verticals, need- based recruitment exercise has been initiated.
CAUTIONARY STATEMENT
Statement in the Management Discussion and Analysis describing the Companys objective, projections and estimates are forward looking statement and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government policies and other incidental factors.
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www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.