Viewpoint

Nikko: The Indian journey

Rabindra Seth

Japan has made a substantial and conspicuous contribution to the Indian industry in segments such as automobiles and electronics. But, it has been somewhat shy of foraying into the hospitality sector. The first and so far the only chain, the Jal Hotels-owned Nikko has ventured into this country, not as a joint venture, but under a management arrangement with an exclusivity clause. The credit for this goes to S P Gupta whose Sunair Co. decided, during the run up to the 1982 Asiad, to diversify into hoteliering from his international trading business. Thanks to legal battles over the one-and-a-half acre plot in the heart of New Delhi, which were resolved as late as 1995, and the approvals regime ensured that construction took another five years. Finally, the first Japanese-managed property, the Metropolitan Hotel Nikko, opened its doors to guests in the last month of 2000.

Hotel Nikko, like the rest of the sector had to face challenges brought about by 9/11, the Afghan and Iraq Wars and our own tensions on the border. It weathered the storm and positioned itself among the preferred and more successful of the capital's hotels. In a chat with this writer, Gupta and his young son Vipul, who shares his father's managerial responsibilities, said that revenues have soared from Rs 12 crore to Rs 36 crore in the last three years. More importantly, the hotel broke-even in just three and half years of full operation against the rule book norm of at least five years. The last fiscal (2004-05) brought in a profit of nearly Rs 4 crore and a turn over of Rs 45 crore is projected for the current year for the 180-room property.

When asked the secret of his success, Gupta takes you back to the beginning. His investment in the five-star deluxe Nikko, standing on the smallest acreage in the capital, was a bare Rs 100 crore or Rs 50 lakh per room, almost half of the then prevailing expenditure. Meticulous planning and judicious financial controls made the difference. He claims he did not try to save on quality and chose the best material, fixtures and furnishings as well as the latest technologies. In the area of safety, he says, he was the first to use fully computerised fire prevention and control system as also the automatic cooling and heating concept. Even the telephone system had a unique feature of a single point service centre for all guest needs. He adds that a separate shower cubicle in the bathroom was also introduced by him. Although 80 per cent of his clientele are foreigners (half of them Japanese, naturally) he has a deep concern for vegetarians, especially Indians, who avoid onion and garlic. His is the only five-star deluxe hotel, he claims, which has a separate vegetarian kitchen which offers a hundred per cent vegetarian soup and baker's bread made without the use of eggs.

And, so, how has Jal Hotel reacted to the performance of the New Delhi Nikko? Gupta reminds you that in July 2004, with less than three years of operation, Jal Hotels conferred the Best Performance Award to Nikko, New Delhi in the overseas category. And, in 2005, Nikko's Sakura restaurant, the capital's most expensive fine-dining spot won the Hospitality Award for 'Outstanding hospitality and contributions to enhancing the standing of the hotel and Jal’s Hotel Chain throughout the world".

Gupta then informs you that Jal Hotels, now fully satisfied with their Indian experiment, are urging him to expand, of course, under the Nikko brand. He has chosen Gurgaon and Bangalore, where land has been identified. He is scouting for and in Kolkata and Chennai. He says he is not looking for any equity from Jal Hotels.

The fifth anniversary celebrations of The Metropolitan Hotel Nikko, New Delhi were flagged off in style on December 2 last year by the Japanese Ambassador Yasukuni Enoki. A remark made earlier in the day by the hotel's general manager Ryuhei Kono that the Japanese principle of Kaizen - constant innovation - is evident in all Nikko hotels, which came alive when apart from the participation of dignitaries, the highlight of the evening was the release of the book Sakura's Japanese Kitchen: The Culture and Cuisine of Japan by the well-known food writer, Sourish Bhattacharya. The book gives historical insights into factors that make Japanese cuisine unique. It includes a glossary in English that helps make sense of Japanese ingredients and cooking techniques, and, easy-to-do recipes. It also has some interesting tidbits about Japanese beliefs. One is that eating the first produce of the season adds seventy-five days to your life each year. Or, did you know that Japan actively promoted vegetarianism till the Royal decree of 1872 changed it all.

Sunair and the Guptas have, as they say, brought Japanese hoteliering to India but in their ‘Chutney Restaurant’ in New Delhi, famous for its array of chutneys, they have also given a touch of Japanese aesthetics to the north Indian specialities of the eatery.