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C AS E

4
Ginger: Smart BasicsTM
Dr Mukta Kamplikar1

Roots Corporation Limited develops and operates a fast-expanding chain of economy hotels across India under the “Ginger” brand. There is currently a lack of competition in the branded economy hotels segment and Ginger is the only branded economy hotel chain in India. The Ginger hotels are built around a concept that provides facilities to meet the key needs of today’s traveler, at affordable rates. Ginger faces challenges in different aspects of its business as it aims to deliver consistently, quality service to the customer and manage customer expectations.

COMPANY BACKGROUND

Exhibit 1: The proportion of hotel segments across Indian cities.
Jaipur Cochin Goa Pune Hyderabad Bangalore Chennai Kolkata Mumbai Delhi/National Capital Region Budget Mid-market First class Lurxury

R

oots Corporation Limited (RCL) is a wholly-owned subsidiary of The Indian Hotels Company Limited (IHCL). IHCL is a part of the Tata Group of companies (see www.tata.com), India’s premier business house. Taj Hotels Resorts and Palaces comprises 77 hotels, 7 palaces, 6 private islands and 12 resorts in 40 locations across India with an additional 18 international hotels in the Maldives, Mauritius, Malaysia, Australia, UK, US, Bhutan, Sri Lanka, Africa, and the Middle East. Incorporated on 24 December 2003, Roots Corporation Limited operates the first-of-its-kind category of Smart Basics™ hotels across India. Launched in June 2004, the Smart Basics™ concept created a revolution in the world of Indian hospitality. Roots Corporation Limited develops and operates a fast-expanding chain of economy hotels across India under the “Ginger” brand. The company either owns/ leases land on which it develops and operates hotels and has now started entering into joint developments where the owner brings in the land and bare shell and leases the same to the company. The company’s recent growth has been organic, through developing and

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