IHC Assumes Full Control of Operating Subsidiaries

 
TIDMIHC 
 
India Hospitality Corp. Management Assumes Full Control of 
                           Operating Subsidiaries 
 
    MUMBAI, India, Aug. 5 -- India Hospitality Corp. ("IHC" or "the Company") 
is pleased to announce that it has assumed direct operating control of its 
Indian subsidiaries, after the disengagement of the operating agreements 
between IHC's operating companies, Mars Restaurants Private Limited ("MRPL") 
and SkyGourmet Private Limited ("Sky Gourmet") (together the "Operating 
Companies") and Mars Catering Services Private Limited ("Mars Catering"), a 
company controlled by Sanjay Narang, as of 31 July 2009 (the "Agreements"). 
 
    IHC entered into the Agreements with Mars Catering at the time of the 
reverse acquisition and re-admission to AIM on 24 July 2007 and the 
Agreements were scheduled to run for a minimum period of two years. 
 
    Management 
    Mr Sanjay Narang and Mr Arvind Ghei have now ceased to act as President 
and Chief Financial Officer of the Operating Companies, respectively, 
following the disengagement of the Agreements. Mr Narang will be appointed 
the honorary non-executive chairman of Sky Gourmet, the airline catering 
business, for a period of 2 years for the purpose of providing a smooth 
transition and business continuity. 
 
    Over the previous two quarters, the Company taken the necessary steps to 
put in place an experienced operating and management team which will enable 
the Company to continue to run and further develop its operations going 
forward. 
 
    Gordon House Brand 
    IHC, via its subsidiary MRPL, has also entered into a licence agreement 
with Mr Narang whereby it has allowed the continued use of the Gordon House 
brand for the Hotel Sahar, Mumbai, owned by Mr Narang, for a further period 
of 2 years. Additionally, the Company has extended the existing agreement 
with Mr Narang for IHC to continue to directly manage the operations of the 
Gordon House hotel in Colaba. 
 
    The Directors believe that these hotels, along with its third hotel 
property under the Gordon House brand in Pune, will be key drivers of the 
Company as it develops a pan-India hotel portfolio. 
 
    Restaurants 
    Following the disengagement of the Agreements, the restaurant locations 
being used by Not Just Jazz by the Bay, Pizzeria Pasta Bar and Just around 
the Corner, owned by Sanjay Narang, will be transferred back to Mr Narang as 
per the original contract. 
 
    IHC has subsequently entered into an arrangement with Mr Narang whereby 
IHC will franchise the aforementioned restaurant brands to Mr Narang for a 
period of 1 year for a franchise fee in the initial three month period. This 
arrangement will provide IHC with the opportunity to maintain a continued 
presence of these restaurants in Mumbai whilst new locations are identified 
within the city. IHC will continue to directly own and operate the Birdy's 
bakery chain. 
 
    Non Compete Agreement 
    As a result of the disengagement of the Agreements, Mr Narang and his 
affiliated entities shall be bound by exclusivity, non-compete and 
non-solicit restrictions relating to Sky Gourmet for a period of 2 years. 
This arrangement will enable the IHC management to continue to develop the 
existing airline relationships alongside Mr Narang. 
 
    IHC CEO, Ravi Deol, commented, "With this transition IHC moves to its 
next phase and acknowledges the valuable contribution made by Sanjay Narang 
and Arvind Ghei. Supported by a strong operating organisation, customers and 
a clear future strategy, we look ahead with optimism." 
 
    For Further Information Contact: 
 
    India Hospitality Corp. 
    Raghavendra Agarwal 
    [phone] 
    [e-mail] 
    www.indiahospitalitycorp.com 
 
    Nominated Adviser: Grant Thornton UK LLP 
    Fiona Owen 
    [phone] 
 
    Broker: Noble & Company Limited 
    Sunil Sanikop 
    [phone] 
 
    Media Contact: Mutual Public Relations Ltd. 
    Harsh Wardhan 
    [phone] 
 
    Investor Relations Contact: Sand Hill RP 
    Michael A. Tew 
    [e-mail] 
    [phone] 
 
    About India Hospitality Corp. 
    India Hospitality Corp. is a diversified pan-Indian hospitality and 
leisure company. In July 2007, IHC closed on the acquisition of India-based 
Mars Restaurants Private Limited, an emerging hotel and restaurant company, 
and SkyGourmet Catering Private Limited, an airline catering company with 
2,800 employees across its facilities in India, from Navis Capital Partners 
and its affiliates. 
 
    SOURCE  India Hospitality Corp. 
 
    CONTACT: India Hospitality Corp., Raghavendra Agarwal, [phone], 
[e-mail]; or Nominated Adviser: Grant Thornton UK LLP, Fiona Owen, 
[phone]; or Broker: Noble & Company Limited, Sunil Sanikop, 
[phone]; or Media Contact: Mutual Public Relations Ltd., Harsh 
Wardhan, [phone]; or Investor Relations Contact: Sand Hill RP, 
Michael A. Tew, [e-mail], [phone] 
 
 
 
 
 
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