Veteran speaks. We want to add 5,000 rooms by FY 2030, says Club Mahindra’s outgoing chairman Arun Nanda

The most important factor for our success is the value system of the Mahindra group. A vacation ownership company can be successful only if there is trust. Along with trust, the second factor is our product. The idea has been to create a destination where families can bond. My biggest reward is not to see the rise in share price but to see four generations of families holidaying together at our resorts. All our resorts are designed for families and that is our uniqueness. 

The high point is customer satisfaction and a growing trend of members opting for upgrades. The other is the company’s focus on sustainability.  

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I had a certain target in mind for memberships and resorts but could not achieve due to Covid-19. I regard that as a miss. The pandemic coupled with the geopolitical situation led to high inflation, an increase in oil prices and airfares.  

I don’t have any regrets. I was always given a free hand by the Mahindra group.  

We are in a good state now. We are developing six projects that will add 750 rooms. Our desire is to add 5,000 rooms by FY 2030.  

It is not an easy task but is not impossible either. We are a debt-free company. We have ₹1,136 crore of fresh cash and investments. We also have ₹1,250 crore of receivables. Plus we have a future cash flow as we are adding members. Capital is not an issue for us but time taken in securing approvals is a problem.  

In the future, our growth will come from a combination of both asset acquisitions and self-developed properties. We are currently in the advanced stage of acquiring a 200-room property in India. The majority of our new properties would be in India, but we are also looking in neighbouring countries especially Sri Lanka.  

The Holiday Club Resort acquisition in Finland has worked well. The company made an operating profit last year and repaid around €40 million of debt from its internal resources. But the geopolitical situation in Europe has been a challenge. We will not consider any company acquisitions in the short term till geo-political situation improves in Europe.  

Our membership base and number of resorts are the biggest entry barrier for somebody else. Anyone wanting to enter business can’t build a hundred resorts in one day. This is not an easy business to start with. Also, for us our difficult period is behind us and we are now in a growth phase. 

Both come from two different generations. With the late Mr Keshub, it was a paternal relation. I have been blessed to have a relationship with Anand where he treated us as an equal. Keshub and Anand always introduced me as a colleague. The best part of the relationship was that I could discuss issues openly with them. This is something you can’t do with all promoters.

I don’t think it is right for me to continue. I believe the current management is competent and should take its own decisions.