STAY HUNGRY STAY HUNGRY STAY FOOLISHSTAY FOOLISH

AT YOUR SERVICEAT YOUR SERVICECHENDER BALJEE-THE MAN BEHID ROYAL ORCHID CHENDER BALJEE-THE MAN BEHID ROYAL ORCHID

HOTELSHOTELS

Presented To Presented To Presented ByPresented ByMr.Pankaj Sharma Mr.Pankaj Sharma Ashish BansalAshish Bansal Ankush GuptaAnkush Gupta Karishma Anand Karishma Anand Sakshar JainSakshar Jain BBA-BBA-III DIII D

The ObjectiveThe Objective Hear about big company , their Hear about big company , their

humble beginning. humble beginning. When you hear how humbly they When you hear how humbly they

started, it gives you encouragement started, it gives you encouragement in your own humble state and think, in your own humble state and think, “why not?”“why not?”

CHENDER BALJEECHENDER BALJEE THE MAN BEHIND ROYAL ORCHID THE MAN BEHIND ROYAL ORCHID

HOTELSHOTELS

EDUCATION AND FAMILY EDUCATION AND FAMILY

B.Com. B.Com. From DelhiFrom Delhi MBAMBA Indian Institute of Indian Institute of

Management, AhmedabadManagement, Ahmedabad Wife Name - SunitaWife Name - Sunita Children - Two SonsChildren - Two Sons Arjun Arjun KeshavKeshav

Taking A Steady And Humble Taking A Steady And Humble Growth RouteGrowth Route

From Shimla to Bangalore, From Shimla to Bangalore, Chander Chander K BaljeeK Baljee, the Chairman and , the Chairman and Managing Director of Managing Director of Royal Orchid Royal Orchid HotelsHotels, has steered his company to , has steered his company to success with equal measure of success with equal measure of patience and intellect.patience and intellect.

THE BACKGROUNDTHE BACKGROUND Having grown up in a family of Having grown up in a family of

hoteliers in Shimla, Baljee always hoteliers in Shimla, Baljee always had an inclination towards the had an inclination towards the hospitality industry. Quite naturally, hospitality industry. Quite naturally, he got down to family business after he got down to family business after he completed his studies. he completed his studies.

Mr. Baljee started his own Mr. Baljee started his own restaurant ‘Fascination’ in Shimla. restaurant ‘Fascination’ in Shimla.

CONTINUED---CONTINUED---

Post completion of MBA, and a small Post completion of MBA, and a small stint in family business, To appease his stint in family business, To appease his yearning to accomplish greater heights yearning to accomplish greater heights and achievements in the industry, Mr. and achievements in the industry, Mr. Baljee started sourcing opportunities.Baljee started sourcing opportunities.

When he got to know about two When he got to know about two Mysore hotels up for lease, he came Mysore hotels up for lease, he came down all way from Shimla to the heart down all way from Shimla to the heart of South India.of South India.

CONTINUED----CONTINUED----

Baljee’s journey started in Bangalore Baljee’s journey started in Bangalore in 1973, when he took over in 1973, when he took over Hotel Hotel Stay LongStay Long and launched it as Hotel and launched it as Hotel Harsha. Harsha.

Bangalore was home to several Bangalore was home to several public sector units like HMT, BHEL, public sector units like HMT, BHEL, BMEL etc and was popularly known BMEL etc and was popularly known as a public sector town. as a public sector town.

Continued---Continued--- The promised pot of gold came with The promised pot of gold came with

its share of patience and struggle, its share of patience and struggle, but Mr. Baljee succeeded in but Mr. Baljee succeeded in establishing his very first hotel by establishing his very first hotel by leasing the erstwhile ‘The Stay leasing the erstwhile ‘The Stay Longer Hotel’ in Bangalore and Longer Hotel’ in Bangalore and renamed it Harsha (now operating renamed it Harsha (now operating under the ‘Ramada’ brand).under the ‘Ramada’ brand).

Continued---Continued--- In the year 1985, when Harsha started to In the year 1985, when Harsha started to

bring in decent business, he had an urge to bring in decent business, he had an urge to venture in something bigger .venture in something bigger .

Soon he found the golden opportunity of Soon he found the golden opportunity of leasing land on a prime location near the leasing land on a prime location near the old Bangalore airport. old Bangalore airport.

Though he had planned to build it as a 3 Though he had planned to build it as a 3 star hotel, Hotel Royal Orchid went on to star hotel, Hotel Royal Orchid went on to become his first 5-star, flagship hotel.become his first 5-star, flagship hotel.

The hotel was launched in the year 2001. The hotel was launched in the year 2001.

PROBLEMS IN HIS ODYSSEYPROBLEMS IN HIS ODYSSEY

LITIGATIONLITIGATION STRIKESSTRIKES DEBTDEBT 9/119/11 SARS –SARS – all these and more, affected the growth all these and more, affected the growth

and expansion plans of Baljee's and expansion plans of Baljee's company.company.

Motto during this – “This too shall pass.”Motto during this – “This too shall pass.”

THE GOLDEN PERIODTHE GOLDEN PERIOD In 2003, the hotel industry witnessed a In 2003, the hotel industry witnessed a

tremendous boom and for Royal Orchid tremendous boom and for Royal Orchid Hotels, there was no looking back.Hotels, there was no looking back.

By the year 2004 Mr. Baljee succeeded By the year 2004 Mr. Baljee succeeded adding four hotels including Royal adding four hotels including Royal Orchid Central, and Hotel Metropole Orchid Central, and Hotel Metropole under his company’s wing and under his company’s wing and constantly contemplated making the constantly contemplated making the company’s presence felt nationally. company’s presence felt nationally.

CONTINUED----CONTINUED----

Soon he embarked on new projects Soon he embarked on new projects in Hyderabad, Jaipur and Pune.in Hyderabad, Jaipur and Pune.

In order to raise funds for his In order to raise funds for his ambitious endeavours, Royal Orchid ambitious endeavours, Royal Orchid Hotels went public in the year 2006 Hotels went public in the year 2006 and raised Rs 130 crore in the IPO. and raised Rs 130 crore in the IPO.

THE ACHIEVEMENTSTHE ACHIEVEMENTS The Royal Orchid Hotel group soon achieved The Royal Orchid Hotel group soon achieved

remarkable position and now operates 12 remarkable position and now operates 12 hotels across Bangalore, Mysore, Pune, Jaipur, hotels across Bangalore, Mysore, Pune, Jaipur, Goa and Hyderabad. Goa and Hyderabad.

One of the fastest growing hospitality chains One of the fastest growing hospitality chains in India, the Royal Orchid Hotels brand always in India, the Royal Orchid Hotels brand always intends to provide high quality intends to provide high quality accommodation at an affordable price in accommodation at an affordable price in contrast to his competitors namely The Taj contrast to his competitors namely The Taj and Windsor Manor. and Windsor Manor.

They have their own niche of customers. They have their own niche of customers.

The Motivating ForceThe Motivating Force

““We had a good life - cars, house, We had a good life - cars, house, everything you needed was there,” everything you needed was there,” says Baljee.” says Baljee.”

But the business could be made bigger But the business could be made bigger and better so I decided to go for an and better so I decided to go for an IPO.IPO.

There Was The Urge To Do Something There Was The Urge To Do Something MoreMore

The StrengthThe Strength

When things are tight you monitor every When things are tight you monitor every expense . Only when business is doing well expense . Only when business is doing well inefficiencies creep in.inefficiencies creep in.

““One thing I have always believed is that One thing I have always believed is that whatever you do, you do in a very honest whatever you do, you do in a very honest manner... I never ever defaulted on any manner... I never ever defaulted on any financial institution payment or salaries to financial institution payment or salaries to employees.”employees.”

It was this impeccable track record which It was this impeccable track record which allowed Baljee to raise so much funding at allowed Baljee to raise so much funding at relatively low rates of interest.relatively low rates of interest.

SonsSons Both the Baljee sons have also joined the company.Both the Baljee sons have also joined the company. 27 year old Arjun is a hotel management graduate 27 year old Arjun is a hotel management graduate

from Cornell .from Cornell . 24 year old Keshav is a graduate of Wharton and 24 year old Keshav is a graduate of Wharton and

ISB. ISB. Arjun is handling an independent project - setting Arjun is handling an independent project - setting

up aup a budget hotel chain called ‘Peppermint’.budget hotel chain called ‘Peppermint’. Keshav (who worked with Lehman Bros in New Keshav (who worked with Lehman Bros in New

York before returning to India) looks after new York before returning to India) looks after new projects and sources deals.projects and sources deals.

Future HopesFuture Hopes The company is looking at a total The company is looking at a total

investment of Rs 250 crore investment of Rs 250 crore approximately for the expansion, out approximately for the expansion, out of which about Rs 100-150 crore of which about Rs 100-150 crore would be through equity and the rest would be through equity and the rest through debt. through debt.

Royal Orchid posted a net profit of Rs Royal Orchid posted a net profit of Rs 130 million in the last fiscal year to 130 million in the last fiscal year to March 2009. March 2009.

Chander Baljee is all set to take Chander Baljee is all set to take Royal Orchid hotels to the Royal Orchid hotels to the

pinnacle in the Indian hospitality pinnacle in the Indian hospitality panorama. panorama.

Currently we want to build a strong Currently we want to build a strong base in the country by establishing the base in the country by establishing the brand in every potential market and brand in every potential market and segment of hospitality.segment of hospitality.

Once we have consolidated, we would Once we have consolidated, we would look at acquiring a master franchise of look at acquiring a master franchise of an international hospitality brand for an international hospitality brand for India,” confirms Baljee India,” confirms Baljee

The group is now determined to strengthen The group is now determined to strengthen its national presence by establishing its national presence by establishing properties in upcoming markets across properties in upcoming markets across India like Mumbai, Ahmedabad and India like Mumbai, Ahmedabad and Hyderabad among others. Hyderabad among others.

The inspiring history of the group The inspiring history of the group reinforces that a vision leads to attainment.reinforces that a vision leads to attainment.

With the continual perseverance of the With the continual perseverance of the able visionary and his dedicated workforce, able visionary and his dedicated workforce, Royal Orchid can only anticipate realizing Royal Orchid can only anticipate realizing bigger ventures in the future. bigger ventures in the future.

CONCLUSIONCONCLUSIONTHE BELIEVERSTHE BELIEVERS

People who knew entrepreneurship was People who knew entrepreneurship was the Chosen Path. the Chosen Path.

They took the plunge straight after their They took the plunge straight after their MBA or after working barely a couple of MBA or after working barely a couple of years.years.

And they persevered until they made it big!And they persevered until they made it big! They believed in the power of their dreams.They believed in the power of their dreams.

CONTINUED----CONTINUED----

Emphasis on the passion for the Emphasis on the passion for the chosen field and view of monetary chosen field and view of monetary gains as a valuable by-product.gains as a valuable by-product.

Failure and some times a near death Failure and some times a near death situation on one or more occasions. situation on one or more occasions. 

Staying power to see through Staying power to see through difficult timesdifficult times

The LogicThe Logic The entrepreneur took a leap of faith. Then The entrepreneur took a leap of faith. Then

struggled and strived for years.struggled and strived for years. Before finally achieving a size and scale which Before finally achieving a size and scale which

made the effort what we call a 'success'.made the effort what we call a 'success'. For every such story there are several who For every such story there are several who

are still out there, struggling, striving. are still out there, struggling, striving. And for those who look at themselves in the And for those who look at themselves in the

mirror each morning, before they head out to mirror each morning, before they head out to sell those soaps, I hope you catch in it a sell those soaps, I hope you catch in it a glimpse.glimpse.

A glimpse of your hungry and foolish true self.A glimpse of your hungry and foolish true self.

THANK YOUTHANK YOU