Bengal Cabinet Grants Industry Status to Hospitality Sector, Boosting Tourism and Job Creation

Bengal Cabinet Grants Industry Status to Hospitality Sector, Boosting Tourism and Job Creation

By Author

Published on November 16, 2023

In a landmark decision aimed at rejuvenating its tourism landscape and addressing employment challenges, the Bengal Cabinet has approved a proposal to confer industry status on the hospitality sector. This move, initiated by the state’s Tourism Department, is set to catalyze economic growth and revitalize Bengal’s tourism industry.

Key Benefits of the New Status

  • Electricity Bill Savings: Hotels in Bengal can now anticipate substantial savings on electricity costs, thanks to a shift to industrial power tariff rates. Estimates indicate potential savings of up to Rs 3 per unit, a significant relief given that electricity is often the second-largest expense for hotels.

  • Reduced Electricity Duty: With the new industry status, the hospitality sector will benefit from lower electricity duty, although the precise financial impact is yet to be fully quantified.

  • Lower Water Supply Costs: Hotels, which previously paid commercial rates for water, will now be charged at the more affordable industrial rates, further reducing operational expenses.

  • Decrease in License Fees and Taxes: The sector can also expect a reduction in various license fees and taxes, including property tax, easing the financial strain on hotel operators.

  • Enhanced Floor-Area Ratio (FAR): The improved FAR will allow for more extensive construction on given land parcels, likely

  • attracting more investors to develop hotels and related tourism facilities.

Sudesh Poddar, President of the Hotel and Restaurant Association of India’s Eastern Chapter, has expressed strong support for the decision, citing it as a long-standing demand. This move is anticipated to draw investors to the state's tourism sector and encourage the expansion of infrastructure.

With an eye on the upcoming Lok Sabha elections and ongoing job scarcity, the Bengal government views this development as a strategic approach to spur job creation. Investment in the hospitality sector is seen as a key driver for generating employment opportunities, considering Bengal’s rich tourism potential.

Tourism currently contributes about 13 percent to Bengal’s GDP, outpacing the national average. In 2022, Bengal welcomed over 1.04 million international tourists and 84.54 million domestic tourists. The industry status for hospitality is expected to further bolster these numbers.

The decision is poised to benefit the state's tourism industry, which employs over 15 lakh people. It also opens the door for major hotel chains to expand their presence in Bengal, enriching the state’s tourism offerings. Samrat Sanyal, General Secretary of the Himalayan Hospitality & Tourism Development Network, praised the decision for its potential to elevate the tourism sector.

The Bengal Cabinet's decision to grant industry status to the hospitality sector marks a significant step forward in enhancing the state's tourism and hospitality landscape. This move is expected to bring about a wave of positive changes, including increased investment, job creation, and overall economic upliftment in the region.


Adyar Ananda Bhavan Sells Majority Stake to Bodhi Tree Systems for $180 Million

Adyar Ananda Bhavan Sells Majority Stake to Bodhi Tree Systems for $180 Million

By Hariharan U

Published on November 15, 2026

Chennai-based Adyar Ananda Bhavan (A2B), one of India's established South Indian vegetarian food chains, has sold a majority stake to Bodhi Tree Systems for $180 million, marking a significant ownership transition for the family-run business. The transaction values A2B at approximately $350 million, according to an industry source cited by The Hindu.

Bodhi Tree Systems is backed by James Murdoch's Lupa Systems and was co-founded by Murdoch and former media executive Uday Shankar. Following the investment, Shankar will take over as chairman of A2B's board, signalling a move towards a professionally managed corporate structure as the company prepares for its next phase of growth.

The investment, valued at more than ₹1,600 crore, is expected to support A2B's expansion across India and international markets, modernisation of its manufacturing infrastructure and preparations for a potential public listing. VedaCorp, also known as Veda Corporate Advisers, advised on the transaction.

K T Srinivasa Raja, co-founder of A2B, said the business had grown from a single sweet shop established with his brother 50 years ago into a brand serving millions of families. He said the partnership with Bodhi Tree would help prepare the company for public markets and create an opportunity for customers, employees and investors to participate in its future.

Expansion Across India and Overseas

A2B is looking at opportunities in western India and Europe as it seeks to widen its geographical presence. The company also plans to expand its retail business, building on its existing network of restaurants, sweet shops and savouries outlets.

According to Vishnu Shankar of the promoter family, the investment will support the modernisation of A2B's factories in Chennai and Bengaluru. The company is also considering another manufacturing facility to cater to retail and export markets.

Founded in Chennai in the late 1970s, A2B began with a single shop in Washermanpet. Its subsequent outlet in Adyar became central to the brand's identity. Over the years, the company expanded across Tamil Nadu and Karnataka, including through highway outlets that became familiar stops for travellers.

A2B now operates around 160 outlets in India and more than 30 overseas, with a workforce of over 15,000 employees. Its international markets include Singapore, the United States, Australia, Malaysia and the United Kingdom.

Alongside its restaurants serving South Indian vegetarian cuisine, A2B has developed a retail business offering sweets and savouries through physical stores and online channels.

Bodhi Tree's Investment in India's Food Sector

Murdoch and Shankar said A2B had built considerable consumer trust over five decades and that its international operations offered an opportunity to take the brand to a wider global audience. They also acknowledged co-founders K T Srinivasa Raja and K T Venkatesan for partnering with them in building the business.

A2B marks Bodhi Tree's third investment, following its investments in ALLEN Career Institute and JioStar. The transaction also highlights the growing interest of institutional investors in established regional food and restaurant brands, particularly those with strong consumer recognition and opportunities for organised expansion.

Balachandar R, Director of Junior Kuppanna, said brands such as A2B and Haldiram's had only begun to explore the potential of India's food and beverage sector. He predicted that at least 100 food and beverage brands could be listed over the next decade.

Balachandar had previously advised on the 2019 investment in Dindigul Thalappakatti, which raised ₹260 crore from private equity firm CX Partners.

For A2B, the Bodhi Tree investment marks a transition from a family-built regional food business towards a larger, professionally managed enterprise, with expansion, manufacturing capacity and public-market readiness forming key priorities


Alivaa Hotels & Resorts Enters Ayodhya with the Launch of The Hoften Raghuvan

Alivaa Hotels & Resorts Enters Ayodhya with the Launch of The Hoften Raghuvan

By Hariharan U

Published on November 13, 2026

Alivaa Hotels & Resorts has entered Ayodhya's hospitality market with the opening of The Hoften Raghuvan Ayodhya, expanding its presence into India's spiritual tourism segment. Located in Beniganj along the Panchkoshi Parikrama Marg, the property is positioned to serve pilgrims and leisure travellers visiting the city, including those seeking accommodation close to the Ram Mandir.

The launch marks another step in the group's expansion across business, leisure and emerging spiritual destinations. Alivaa operates through its hospitality brands, including Alivaa, The Hoften and Xenious, catering to different traveller segments and market requirements.

Ayodhya's growing prominence as a spiritual and cultural destination has increased the focus on accommodation and organised hospitality infrastructure. The Hoften Raghuvan has been introduced to address the needs of visitors looking for contemporary comforts while travelling to the city for religious and leisure purposes.

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A key feature of the property is its commitment to 100% pure vegetarian dining, with food offerings intended to suit the preferences of pilgrims and families. The hotel also provides well-appointed rooms, modern amenities and high-speed Wi-Fi.

Alivaa's Expansion into Spiritual Tourism

Commenting on the launch, Akash Bhatia, Chief Executive Officer (M&F), Alivaa Hotels & Resorts, said Ayodhya's emergence as a major centre for domestic and international travel makes it an important destination in the group's expansion plans.

He added that The Hoften Raghuvan aims to bring the company's hospitality capabilities to a city where guest experiences are closely connected to faith, culture and tradition, while offering comfortable accommodation that remains sensitive to its spiritual setting.

Inderpal Batra, Co-Founder & CFO, Alivaa Hotels & Resorts, said the Ayodhya entry reflects the group's expansion strategy and its interest in emerging tourism corridors driven by spiritual and cultural travel.

He added that the company intends to build a scalable hospitality portfolio through its brands, supported by owner partnerships, operational efficiencies and disciplined growth.

Shivam Jain, Owner of The Hoften Raghuvan Ayodhya, said the partnership with Alivaa brings The Hoften brand to a destination with growing importance as a spiritual tourism centre. He highlighted the property's location on the Panchkoshi Parikrama Marg, vegetarian dining and accommodation facilities as features intended to serve pilgrims and leisure travellers.

Key Features of The Hoften Raghuvan Ayodhya

  • Location: Beniganj, on the Panchkoshi Parikrama Marg, with access to the Ram Mandir and other spiritual landmarks.

  • Dining: 100% pure vegetarian food offerings.

  • Accommodation: Well-appointed rooms with contemporary amenities.

  • Connectivity: High-speed Wi-Fi.

  • Market: Alivaa Hotels & Resorts' entry into Ayodhya and the spiritual tourism segment.

About Alivaa Hotels & Resorts

Alivaa Hotels & Resorts is an Indian hospitality company operating through its brands ALIVAA Hotels & Resorts, The Hoften and Xenious. Its portfolio caters to business, leisure and emerging travel segments, with a focus on contemporary accommodation, warm hospitality and locally relevant guest experiences.

The company is pursuing expansion through hotel-owner partnerships and a growing portfolio across business, leisure and tourism destinations in India.

The opening of The Hoften Raghuvan adds Ayodhya to Alivaa's network and marks its entry into a destination where the demand for visitor accommodation is closely linked to religious and cultural travel.


Zone Connect by The Park Enters Brij Bhoomi with New Hotel Opening in Mathura

Zone Connect by The Park Enters Brij Bhoomi with New Hotel Opening in Mathura

By Manu Vardhan Kannan

Published on November 13, 2026

Apeejay Surrendra Park Hotels Limited (ASPHL) has opened Zone Connect by The Park Mathura, marking the brand's entry into Brij Bhoomi, the land closely associated with the life and legends of Lord Krishna. The new property adds to the company's growing presence in India's religious and pilgrimage destinations.

The hotel features 42 well-appointed rooms across three categories, along with Café C, an all-day dining restaurant offering dining options for guests. It also houses Town Hall, an indoor events space that can accommodate up to 150 guests, making it suitable for social gatherings and other events.

Located on Masani Delhi Link Road, the property offers convenient access to some of Mathura's important religious and cultural attractions. Shri Krishna Janmabhoomi is approximately 3.6 km away, with a travel time of around 15 minutes, while Mathura Junction Railway Station is just 4 km from the hotel.

Speaking about the opening, Vikas Ahluwalia, Associate Vice President & National Head, Zone by The Park, said, “We feel truly blessed to be opening this lovely hotel in Mathura, the birthplace of Lord Krishna. Brij Bhoomi holds immense spiritual and cultural significance, and we are delighted to welcome travellers and pilgrims seeking a comfortable and contemporary hospitality experience. We also look forward to further strengthening our presence in the region with the upcoming opening of Zone by The Park in Vrindavan.”

The opening is part of Apeejay Surrendra Park Hotels Limited's plans to expand its presence across India's popular religious and pilgrimage destinations. The company already operates hotels in Katra and Prayagraj, while properties in Ujjain and Ayodhya are in the pipeline.

With the addition of Mathura and its upcoming property in Vrindavan, the company aims to strengthen its presence in the region and cater to travellers visiting destinations that continue to attract religious tourism and growing travel demand.

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