DARE - Because Entrepreneurs Do

Early on in my career, soon after I completed my M.Com from Mumbai University, I remember debating long and hard between whether I wanted to be a professional or an entrepreneur. However, it took me less than two years of working with a large finance company to realize that this was a no-brainer: business it had to be!

Vibhas Prasad

It simply had to be. Hailing from a family that had for more than a century run a sugar mill out of Pilibhit in Uttar Pradesh, it was not difficult to see why. I had spent all my growing years watching a live business in operation, which obviously and almost imperceptibly had honed my instincts for business. I was born to a business family and now I was ready to do it on my own.

I could sense fairly early in my life that I was a 'natural' when it came to analysing risks and returns and identifying potential business opportunities. My limited role working with an Asset Management company could only provide me with so much. The adrenaline rush that comes from running one’s own business in flesh and blood is irreplaceable for those who have tasted it.

And so I joined my family business—not the sugar but the hospitality business in early 2003. Over the previous years, I had seen the Indian hospitality industry, up close and personal. Other than our sugar business our family also happens to run the largest hotel chain in the state of Uttarakhand by the name of Leisure Hotels Ltd, with more than 20 properties across 15 locations. There are another 10 in the pipeline across the state and elsewhere. We tweaked the old model of running only owned properties and forayed into the areas of managed properties and short duration camps, which have a small gestation period.

While initially, human resources and brand visibility were an issue, we realized soon enough, that—if you build, they will come. Since we were unable to fund new projects from internal accruals alone, we decided to aggressively raise debt to build some new large properties. Sure enough, this saddled us with debt servicing burdens that could not at times be fully met by the cash flows. However, even as we chased growth, we never lost our balance. In other words, our aggression was always within limits, tempered by prudence. Therefore, while plenty of debt was available, we heeded the advice of our finance managers about the importance of ensuring that we stayed within the safe limits and adhered to sound business principles.

There is enormous potential in the hospitality sector, even as India realizes its full economic potential and breaks out of the shadows of the past. We want to be one of the players leading the charge in this exciting sector, be right there among the leaders. With this in mind we are steaming ahead and pushing to take our hotel business to the next level.

There is no doubt that this will call for deep pockets and even deeper resolve. But we have reasons to believe that we do not lack in either. Experience has proved that with thorough planning, strong conviction and drive anything is possible. We have a plan for getting there. For this I am working closely with our advisors: we are essentially identifying the most effective ways of raising funds that can help us stay ahead of the growth curve that we have set for ourselves. Various options are being considered to fuel the growth including divesting non-core assets, raising private equity, entering into joint ventures and even bringing in investors for different projects rather than at an enterprise level.

Other than raising finance to fuel our growth as outlined above we are emphasizing on two crucial areas: aggressive marketing across print, outdoor and the Internet media, to increase visibility and human resource planning to ensure that we attract excellent talent for key leadership positions. Given the business we were in we realize that visibility and quality of service are critical for us to stay on top of the game and make our growth sustainable. My background and interest in finance are of course helping me separate the ‘wheat from the chaff’.

The philosophy of “total guest orientation & satisfaction” has been the guiding force behind the organization’s growth in the last 21 years; we are proud of our rich heritage and even more excited about making a difference in Uttarakhand; “Atithi Devo Bhava” or simply, “Guest is God!”