Velan Hotels Share Price

Incorporated as a private limited company in Mar.'90, Velan Hotels (VHL) was converted into a public limited company in Jun.'92. It was promoted by Muthukumara Ramalingam and his associates. The company is engaged in the hospitality industry. VHL had proposed to set up Hotel Greenfields in South Tirupur, Tamilnadu, at an estimated cost of Rs 500 lac and commence commercial operations by Oct.'92. Due to certain unavoidable reasons, the project was delayed and there were cost and time overrun. The hotel commenced partial operations in Jul.'93. The project was implemented in stages and was complete in Sep.'94. In Dec.'94, the company entered the capital market to take up new projects at Coonoor and Tirupur to cater to all categories of guests. As a part of the project, the company tookover Ritz, a running hotel, at Coonoor. After renovation and refurbishing and minor modifications, the hotel commenced operations in 1995. It also set up Uthra, a restaurant for the up-country market at north Tirupur. Uthra was commissioned in Jul.'95. The company's turnover reached Rs.592.13 lakhs for the year 1999-2000 as compared to Rs.582.22 lakhs during the previous year.