Videocon’s hotel project in Ahmedabad on hold

The Indian multinational consumer durable goods company, Videocon Group, has put its hotel project on backburner. The company now plans to enter the Ahmedabad real estate market with a residential cum commercial project on the prime location of Ashram Road. The company has already submitted plans to the Ahmedabad Municipal Corporation (AMC) for approval. 

Sources close to the development said that there will be 60 residential units and 40 offices on the plot size of 4,500 sq m. The company will set up a ground plus 11 storeyed building on the location.

Videocon was planning to launch a five-star hotel and commercial shopping centre project near Nav Gujarat College on Ashram Road. The company had purchased the land where a residential colony called Lotus Society once stood. It had struck the land deal for around Rs30 crore in mid-2008, said market sources. 

The company had also submitted plans for approval to the town planning department of AMC, said AMC sources. If market sources are to be believed, the company was in talks with several international hotel chains for management of the hotel.
But, the company changed its plans. "Plans have been submitted for a residential cum commercial project and are awaiting approval," said sources. 

Although, officials of Videocon Group could not be contacted for comment, experts in the market say that the hospitality industry is passing through a tough phase while the  residential segment is not much affected. This may be one of the reasons for the change of plans. Ahmedabad-based developers JP Iscon has also put its two hotel projects on hold. 

National players like Godrej Properties, Hiranandani Group and Tata Housing have already forayed into the real estate sector of Ahmedabad. Godrej Properties has launched the fourth phase of its township, while Tata Housing has announced a joint venture with local developer Arvind Ltd. The Hiranandani Group has purchased land but is yet to announce a project.