Tina Edwin
NEW DELHI - The Economic Times
April 11, 2001
BERJAYA Group of Malayasia has chalked out plans to enter the timeshare holiday business in India with an investment
of Rs 70.5 crore.
The Berjaya group is one of the major business conglomerates in Malaysia with interest in hospitality, construction
and recreation.
According to plans drawn up by the company, Berjaya proposes to own, acquire, build, construct, take on lease,
franchise, maintain and operate hotels and resorts and provide holiday accommodation. It would also act as management
consultants and advisers to hotels, resorts and restaurants.
The proposed venture would be 100 per cent owned by the Berjaya Group, with Berjaya Vacation Club Cayman holding
90 per cent stake. The balance 10 per cent would be held by Berjaya Vacation Club Berhad, Malaysia.
The Indian venture would be named Berjaya Vacation Club India Pvt. The Foreign Investment Promotion Board has already
cleared the proposal. For Berjaya, this is the second coming.
The company had ventured into real estate activity here with construction of multistorey commercial buidings prior
to the South Asian me own. At that point the company had announced major investment plans for India.
Following the crisis, most plans had been put on hold. So far the company has constructed one building in south
Delhi.
The Malaysian company has been allowed to pay its parent technical and consultancy fees up to three per cent of
the capital cost of each project undertaken.
It has also been allowed to pay three per cent of the net turnover as franchising, marketing and publicity support
fee. A further 10 per cent of gross operating profit of the company was sought to be paid a management fee and
10 per cent of annual turnover as royalty fee for use of trademarks and brand name of Berjaya Vacation Club.
Berjaya Vacation Club has an affiliation with Resorts Condominiums International and offers its members an option
to choose from an array of over 3,100 resorts in 80 countries spread over Asia, Europe, the Middle East and the
Americas.
The company owns resorts at popular holiday destinations such as Singapore, Mauritius, Seychelles, Fiji, Sri Lanka
and England besides the home country.
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