NEW DELHI: Analjit Singh-promoted Max Group is planning a foray into the hospitality sector, with a wellness resort brand 'Vana'.

The venture is being spearheaded by Singh's 30-year-old physicist son, Veer Singh, and the company, Vana Retreats & Hotels Pvt Ltd, has plans to build and operate lifestyle properties across India and abroad with an initial project outlay of 300 crore.

The first 21-acre property set amongst sal forests in Malsi Estate, Dehradun is currently under construction and is expected to be completed by winter this year. The 90-room luxury property will offer yoga, ayurvedic and other wellness therapies, aimed at well-travelled, health-conscious individuals and families.

"We are hoping to set up 7-10 Vana retreats in the next decade," Veer Singh said. Half the project cost of 300 crore will be in the form of equity, he told ET. The family's plans to foray into the hospitality space with its own brand was first reported by ET in 2011.

This is not the first association with hospitality forAnaljit Singh. In 2010, the chairman of Max IndiaBSE 0.13 % owned 7% stake in EIH, the parent company of the Oberoi hotel chain, though he subsequently reduced his holding to about 4% and divested. EIH sold around 14% stake to Reliance Industries, and Singh put his stake on the block, finally exiting by selling his stake to RIL for close to 200 crore. During this association, Singh discussed a management contract with EIH for a five-star hotel at the location the Vana resort is coming up at, but those plans did not materialise.

That original plan was the genesis for Vana, Singh said. "I was also involved in the discussions. But six months into the discussions, we can do it on our own and decided to turn this into an independent project." There will be no synergy between Max Group and Vana Retreat in terms of business, he said.

A physicist by education and alumnus of Imperial College, London, Veer has been working on the plan for some time. "This venture is Veer's baby and Max Group's involvement is minimal," said one of the persons familiar with the plans.

According to Manav Thadani, MD, HVS Hospitality, this sector is still in a nascent stage and wellness as a category is growing. "There is a lot of room for new brands to come in. Even a host of internationally established chains such as Six Senses, Banyan Tree and Anantara are looking at the Indian market very seriously," he said.

source:http://economictimes.indiatimes.com/markets/real-estate/news/max-group-plans-to-build-and-operate-lifestyle-properties/articleshow/18857409.cms