Confirming the news to GoaChronicle.com, Ashish Kapadia, Managing Director, Delta Corp, stated, “We are keen to expand and take our business services to tourism and hospitality destinations in other parts of the world. At this point of time our analysis indicates that the Sri Lankan market looks promising for our business and we are certainly taking an active interest in that market and are considering options of investments. Nothing yet has been finalized.”
Delta Corp has recently appointed Citibank and UBS as strategic advisors to scout for foreign business partners keen in investing in India in the tourism and hospitality business.
The company is the only company in its business to have a FIPB approval that allows it to tie-up with foreign investors even though casino business (gaming) is in the negative list of Foreign Direct Investment (FDI), which indicates that the Government of India has restricted the inflow of FDI into the gaming business. However, with gaming not being the only business of Delta Corp, hospitality and real estate being other two strong business arms of the group where FDI is permissible, technically there lies a door open for FDI.
According to Kapadia, “We are company listed on the stock exchange and we owe certain transparency to our investors, if a foreign partner is keen to invest in our company there are many options of our business that they can choose from, we understand that in gaming FDI in not permitted, so why would we violate those rules and more importantly would a foreign partner not do a due diligence on such matters, they would never take the risk to violate any law of the country.”
We have not decided on the scope of our business relationship with our foreign partners, we still in the process of understanding their interest in the Indian hospitality market, but we are open to any discussions if it meets with the objectives of our business. For example if a foreign partner is keen on management of our hotel operations, if the alliance makes business sense to us, we will pursue it. It is too premature to comment on the nature of our foreign alliance at this stage; we have appointed Citibank and UBS as strategic advisors to assist in the same, Kapadia further added.