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Eros Group: Changing the skyline

Maitreyee Handique | August 29, 2003 14:22 IST

What keeps 77-year-old Jagdish Rai Sood ticking when most senior businessmen have delegated responsibilities in exchange for a quiet and peaceful retired life?

The patriarch of the Rs 1,500-crore (Rs 15 billion) Eros group says that his secret lies in "eating less and exercising daily."

As chairman of the group with interests in real estate and entertainment, he involves himself only with "analysing ideas and taking important decisions" related to his companies including Nehru Place Hotels Ltd and Ajay Enterprises.

A few of these important decisions will soon be executed. The company's Eros Cinema property will be demolished and rebuilt as a multiplex.

The Rs 250-crore (Rs 2.50 billion) Eros Corporate Tower office complex, that boasts of an indoor parking bay for 1,000 cars, in Delhi's Nehru Place will be opened soon.

A residential complex -- the Lakewood City suburb -- at Surajkund, Haryana, will be developed at an estimated cost of Rs 200 crore (Rs 2 billion).

In the pipeline are also plans to open an entertainment theme park in Surajkund, one four-star and two five-star hotels, including the 355-room Kanishka Hotel in Connaught Place which the group acquired after outbidding the likes of the Munjals of Hero Honda and Lalit Suri of Bharat Hotels in a Rs 106-crore (Rs 1.06 billion) deal last year.

The group is also planning to build a Global Business City in 350 acres that will house corporate offices and a shopping mall in Surajkund.

Sood says it's all about tuning the timing of the projects well. "We bought the Kanishka property when the prices hit a low last year. Otherwise it didn't make sense."

He expects the other two hotel projects -- the five-star Royal Garden Hotel and four-star Blue Diamond near Surajkund lake -- to be able to get consumer traffic when the Haryana government legalises casinos.

Talking about the Kanishka property, Sood says that the group is negotiating with several international hotel brands for a tie up. The hotel will be operational in six months.

"We are investing Rs 200 crore (Rs 2 billion) to renovate the building. While the exterior of the 19-storey building will remain the same, it will have a modern look with glass and aluminium panels and have the largest multi-cuisine restaurant in Delhi, spread over a 6,000-sq ft area serving four different types of cuisine," explains Sood. Hong Kong-based Chhada Siembeda Associate Ltd has been hired to do the interiors.

While Satish Sood, his eldest son and managing director of Nehru Place Hotels Ltd, the group's hospitality division, handles the day-to-day operations, Ajay Sood looks after the entertainment division as MD of Ajay Enterprise.

The group runs two cinema halls, Vishal Cineplex in Rajouri Garden and Eros Cinema. "The Eros Cinema will be closed within this week for renovation and we hope to open in six months," he informs.

The group that built housing complexes like Charmwood Village and Royal Retreat, has taken over almost all the major housing projects in the Faridabad region of Haryana with over 1,000 acres of land in its possession. It has already constructed 1,600 apartments and plans to develop 800 more in the future.

The Lakewood City housing project at Surajkund is spread over 127 acres around the lake and is being designed in such a way that "it will be a three-minute walk to the lake from every house," claims Sood.

While Gurgaon is stealing the thunder thanks to its fancy shopping malls and restaurants, Sood prefers to work quietly in the Faridabad-Surajkund region, sceptical as he is about the Gurgaon boom.

"I reckon hotels work best where there are tourists, and they work best in Delhi, Mumbai and Bangalore." He feels that currently people from Delhi are rushing to see the malls in Gurgaon.

"But how many times can they go there? Ultimately, business has to depend on local sales. In the long run, it's not feasible," he believes.

And on his long run on energy quotient he says: "When Eros Cinema was built in 1956, I worked at the site for 72 hours continuously. I can't believe now that I did it. But I'm always there when required. And then I forget my comfort."

Eros's building blocks

  • Multiplex in Delhi
  • Office complex in Delhi
  • Residential complex in Surajkund
  • One 4-star and two 5-star hotels in Haryana
  • Corporate offices and shopping mall in Surajkund
  • Renovation of Delhi's Kanishka Hotel

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