Mahindra Holidays to securitise receivables to fund expansion

Chennai, July 29 (IANS) Holiday resorts company Mahindra Holidays and Resorts Ltd. plans to securitise portions of its Rs .1,800 crore receivables to part-fund its expansion projects totalling around Rs 550 crore to Rs 600 crore, said a top company official.

"We have receivables from our members who have taken the membership on instalments. Those are receivables. We will securitise/discount that with other financial institutions. The transaction is similar to bill discounting," Kavinder Singh, Managing Director and Chief Executive Officer, told reporters here on Friday.

He said the company has raised funds from this route earlier as well.

Singh said the expansions are planned over the next two-three years adding around 500 rooms to its inventory.

The company has planned two Greenfield projects at Naldhera (Himachal) and Assanora (Goa) in addition to further expansions planned at Ashtamudi in Kerala and Kandaghat in Himachal, Singh said.

According to him, the company has expanded in Rajasthan by adding a fourth property with 50 rooms and near Saputara in Gujarat with a 75-room resort, taking its total room inventory to 3,004.

Meanwhile, for the first quarter of the current fiscal, Mahindra Holidays has earned a total income of Rs 254 crore and a net profit of Rs 30 crore.