As IHCL completes 120 years along with Brand Finance’s title for Taj as the strongest Indian brand for the third consecutive year, as well as being the World’s Strongest Hotel Brand, t2 sat down with Puneet Chhatwal, MD and CEO, IHCL, on what the recognition means to the brand and the way forward. Excerpts from the chat and glimpses from the celebration.

One hundred and twenty years... that’s a big legacy. What is it that sets Taj apart?

Actually, I’ve said it before, but because it is what I believe in, there’s no harm repeating it: Taj is not just a brand, it’s an emotion. We go all out because it’s that emotional bond we have, and that is needed in luxury positioning. And Taj has achieved it because the ethos of the Taj service is always from the heart. It’s not because hotels are so different... palaces, safaris, business hotels, conventions... so it’s not really you can say this is the process and the right process. It’s not about cut, copy and paste. It’s very individualistic, it has worked very well; it’s about iconic properties, which you just can’t build. You can’t build a new Taj Mahal palace in Colaba, you can’t build a Rambagh, you can’t build a Lake Palace, you can’t do another one in London behind the Buckingham Palace Gate. Whether India or abroad, it’s unique. And the people, which we call Tajness, is the culture, the DNA that adds to the uniqueness and then magic happens. And that’s possibly the reason why the last five years especially have been great for the brand.
Brand Finance has rated it as the strongest brand in India across all sectors. And the world’s strongest hotel brand. This is an unbelievable accolade for a brand coming from India or made in India. I think it’s the only one.

But how does that make you feel?

Very proud and very worried. Very worried, yeah. It’s a big responsibility. It’s very nice. But worried like... one mistake and then that’s it. The world and age we are living in, it’s very difficult to retrieve face. Plus, once you have a particular name then keeping that is also equally important in terms of just pushing harder. Not only keeping that, we have to always improve on it and build further what you have inherited. So like in a relay race you have to hand over the baton to the next person and not put the person in a negative start position.

Mostly it’s very proud. Mostly it’s very emotional. Mostly it’s very professional business. Also, mostly it’s creative and opportunity driven. Absolutely. Because it’s Taj, it gives you also a lot of opportunities. The question is, how do you capitalise or tap into those? Because everyone wants to have some relation with the Taj. If it’s the state governments, they want to see more Taj in their states. If it is the G20, they want Taj to do more catering than anybody else. If it is a father of a daughter, he wants his daughter married at the Taj or at least one event at the Taj. So, I think from multiple perspective, it’s a great position to be in.

Speaking of opportunities and tapping into them, IHCL as a brand has been expanding in the east. What is the game plan behind that expansion?

First, as a Tata Group company, we have always done our part in nation building, state building and regional building. Within that, we see a big opportunity which is maybe in five years, everybody will say it’s a no-brainer. But for now, if you look at the way the train network, the highways, the number of airports are increasing in the east, the rest will just follow. Once the infrastructure comes, the rest follows. But if you wait for all that to happen, then you stay behind. Whether it’s West Bengal, Assam, Meghalaya or Arunachal (Pradesh), we are at the forefront. It only takes a bit longer. That’s very normal. Also, given the terrain, the weather conditions, the infrastructure today, it just takes a bit longer.

What would you say have been your key contributions towards the brand?

I would not say since I took over, because I just said our forefathers created this wonderful property. Ever since I’ve been in command of running the spectacle... I think the right balance. First, Tajness for everyone, it’s not just for customers. It’s a 360-degree proposition for all stakeholders. Whether suppliers, employees, managers, anybody who has something to do with us. The second is a clear articulation of strategy and then we promise and then we deliver.
It’s been consistent delivery, quarter after quarter, half year after half year, year after year. And the journey continues. It’s been the building on the great platform provided by our forefathers. From a branded house, just Taj, to a full house of brands. And value creation. I mean going from whatever we were seven years ago to a multiple ‘X’ increase in the value of the company. Some because of the market, some because of demand-supply. But some also because of the right things we put in the right place. Making the right decisions at the right time. Or even a bit ahead of time.

Don’t wait till five years are over to build infrastructure. If you do it now, it will be better as difficult as it may sound today, especially in Calcutta the way we have increased our presence. And the city has responded fabulously, I believe. Five years ago when we celebrated 30 years of Taj at Taj Bengal... I said we will do so many hotels. Not many believed but then Raajkutir, Taal Kutir, Chia Kutir, Guras Kutir... everything followed. Now within the next four-five months we are opening in Raichak. Raichak and Ibiza will soon follow.The Ginger near the Tata Memorial Hospital will be opening.

What do the next five years look like?

We articulated a strategy... in which we say the next five is to accelerate to 2030... which means till now it was not. We never called it acceleration. So whatever will happen, will happen. Faster. Because all the new brands that we launched, they are beginning to blossom. At some point they will mature and will benefit from this.

Gateway has again been reintroduced as a subcategory. What is the idea behind that?

Some of these ideas were great. And we never destroyed these ideas... rather kept them on hold. On hold till the timing was right. And reimagined and relaunched them. Under the same name. But with a completely different DNA. So, Ginger today is the same name. But it has nothing to do with the old Ginger. Old Ginger was positioned at a certain rate. And was like real value for money. But the Ginger today is more interactive. It is more vibrant, more co-working.
Similarly, Gateway is our new upscale full service, and not less than Vivanta. Rather same level or even higher, in terms of service. Because Vivanta is a real lifestyle boutique, it’s maybe not ideal for tier-II or tier-III cities. But tier-II, tier-III cities also have a lot of big weddings. So that way Gateway should get more scale. More growth in tier-II and tier-III.

Staying with Ginger, what is the reason behind the expansion? Calcutta is going to have some more.

Ginger is ideal for every district capital of India. And all metros can have five, 10 or 15. In Delhi NCR we have around five. In Mumbai we have around five. In Goa we just opened last month. So, Mumbai could have another 15 or 20. I think Ginger is ideal for the upcoming middle-class, to benefit for both business and leisure.

What are some of your favourite Taj properties?

I would say number one is Rambagh Palace and Taj Mahal Palace Colaba. There are two #2s. Taj Lake Palace, Udaipur, and Umaid Bhawan Palace. Number three is Taj Falaknuma Palace. My decision to join the hotel business happened in the lobby of Taj Mahal. I used to live very close to that property. My school was in the vicinity and we always met friends there.

What are some of the new openings that you are excited about?

There have been a lot of signings. I am actually excited about every opening. Maybe by the time you go to press we would have opened Taj in Puri. And then we are opening Taj at the airport in Kochi. We opened La Estoria in north Goa, which is under the SeleQtions banner. I am looking forward to the Raichak opening. I think for us to be on the Ganges is different than anybody else.

Internationally, are we going to see Taj open in any new country?

In seven-eight months, maybe nine, the one in Frankfurt, Germany, will open. Two years from now in Bahrain, Riyadh and Mecca.

Welfare has been the core of the group’s philosophy. How has that been incorporated into the IHCL system?

Our ESG+, programme which is called Paathya... which is the six Ps. Except for where we have committed by 2030 to have renewable energy at 50 per cent... I think everything else is already on point. Everything is 100, 100, 100. So it’s skilling 100,000 people. It’s 100 per cent reuse of recycled water. 100 per cent green meetings. 100 per cent adoption of UNESCO guidelines. Jamshedji Tata said the community is not just another stakeholder, rather the purpose of the existence of any business. He had defined the purpose 157 years ago. We started talking about it now in the global world in big businesses. That’s what the group has done well and will continue to do. We are the oldest operating company of the group. So we have to do it... that’s non-negotiable.