IHCL to acquire 51 pc controlling stake in Atmantan for around Rs 240 cr

Mumbai, Nov 14 (PTI) Indian Hotels Company Ltd (IHCL) on Friday said it has signed pacts to acquire a majority 51 per cent stake in Sparsh Infratech, owning company of the brand 'Atmantan', for around Rs 240 crore.

"This partnership with founders Sharmilee and Nikhil Kapur brings together Atmantan's proprietary programmes and IHCL's vision of entering and expanding in the integrated wellness segment across select destinations globally, including within our portfolio...The Rs 240 crore acquisition will be funded through inter accrual," IHCL Managing Director and Chief Executive Officer Puneet Chhatwal told PTI.

The deal gives IHCL ownership of the Atmantan brand, a 97-key luxury wellness centre in Mulshi near Pune, and its proprietary expertise, enabling expansion of the wellness platform in collaboration with its founding promoters, the company said.

"We are looking at expanding to 5-10 Atmantan in the next 5 years across the country. We will explore opportunities in regions, including Kerala, the east, northeast, one or two in the north, whether it's Uttarakhand, Himachal or Jammu and Kashmir and maybe even the Aravallis in Rajasthan," Chhatwal said.

Talking about the overall capex in the proposed expansion of wellness centres, he said, "It is expected to be around Rs 2,500-5,000 crore. Of this, 50 per cent of the funds will come from IHCL, while the remaining half is expected to come from investors interested in the acquired brand." When asked about rebranding Atmantan, Chhatwal said, "The name is the culmination of Atma, Man and Tan, which is mind, body and soul. We love the name... A brand is only strong if it's able to stand on its own feet," he stated.

Nikhil Kapur, Founder-Director of Atmantan Wellness Centre, said, the whole company has been set up with the purpose of creating healing or wellness centres in India and overseas.

"Atmantan is our maiden project. And now with this joint venture, we'll be opening more. We will be looking at opportunities both in India as well as overseas," he added. PTI SM SHW