EIH Ltd

Investment date: Aug 2007, Apr 2011
Percent stake: 1.0%
Type of Investment: Secondary (stock market purchases)
Sector: Hospitality
Website: www.oberoihotels.com

EIH is the largest company in the Oberoi Group and the third largest hospitality company in India.  Founded in 1934, the Oberoi Group owns and / or manages 25 hotels, and two luxury cruise ships in four countries under the luxury “Oberoi” and five star “Trident” brands.  In addition, the group is engaged in in-flight catering, airport restaurants, travel and tour services and car rentals.

Tourism in India has accelerated in recent years, with the number of foreign travellers up from 2.6 million in 2000, to 5.1 million in 2007.  However, the hospitality sector in India has historically suffered from under investment, and as a result, there are more luxury rooms in Manhattan than in the whole of India.  The Oberoi Group, with its premium portfolio of properties and reputation for excellence is therefore considered a unique asset in the industry.

Elephant Capital currently has a position of 1% in the company, built up through secondary market stock purchases in August 2007 and iti also participated in its rights issue in 2011.  In December 2008, Elephant Capital partially exited this investment, selling 1.3m shares.