Operating Agreements

 

TIDMIHC 
 
RNS Number : 9087W 
India Hospitality Corp. 
05 August 2009 
 

India Hospitality Corp. 
 
 
5 August 2009 
 
 
Operating Agreements 
 
 
IHC Management Assumes Full Control of Operating Subsidiaries 
 
 
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. 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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