TAJ HOTELS Taj Hotels Parent Company Category Sector Tagline/ Slogan USP

Indian Hotels Corporation Hotels Tourism and Hospitality Indias leading hospitality chain Extravagant Indian Interiors STP

Segment Target Group

Leisure and business travelers Upper class, business travelers

Positioning

Prime location, luxury living with Indian values

INTRODUCTION The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. It was founded by Jamsetji N. Tata onDecember16, 1903. Currently the Taj Hotels Resorts and Palacescomprises 57 hotels at 40 locations across India. Additional 18 hotels are also being operated around the globe. During fiscal year 2006, the total number of hotels owned or managed by the Companywas 75. The Taj hotels are categorized as luxury, leisure and business hotels. The Taj Luxury Hotels offer a wide range of luxurious suites with modern fitness centers, rejuvenating spas, and well-equipped banquet and meeting facilities. The Taj Leisure Hotels offer a complete holiday package that can be enjoyed with the whole family. It provides exciting activities ranging from sports, culture, environment, adventure, music, and entertainment.The Taj Business Hotels provide the finest standards of hospitality, which helps the business trips to be productive.They offer well-appointed rooms, telecommunication facilities, efficient service, specialty restaurants and lively bars,wellequipped business centres, and other conference facilities.

HISTORY AND CERTAIN CORPORATE MATTERS Introduction and Overview The Company was incorporated in 1902 and it opened its first hotel, The Taj Mahal Palace & Tower, Mumbai, in 1903. The Company then undertook major expansion of The Taj Mahal Palace & Tower, Mumbai by constructing an adjacent tower block and increasing the number of rooms from 225 to 565 rooms. With the completion of its initial public offering in the early 1970s, the Company began a long term programme of geographic expansion and development of new tourist destinations in India which led to its emergence as a leading hotel chain in India. From the 1970s to the present day, the Taj Group has played an important role in launching several of India's key tourist destinations, working in close association with the Indian Government. The Taj Group has a philosophy of service excellence which entails providing consistently high levels of personalized service and innovative means of improving service quality. The Taj Group has been active in converting former royal palaces in India into world class luxury hotels such as the Taj Lake Palace in Udaipur, the Rambagh Palace in Jaipur and Umaid Bhawan Palace in Jodhpur. In 1974, the Taj Group opened India's first international five star deluxe beach resort, the Fort Aguada Beach Resort in Goa. The Taj Group also began its business in metropolitan hotels in

the 1970s, opening the five-star deluxe hotel Taj Coromandel in Chennai in 1974, acquiring an equity interest and operating contract for the Taj President, a business hotel in Mumbai, in 1977, and opening the Taj Mahal Hotel in Delhi in 1978. In 1980, the Taj Group took its first step internationally by opening its first hotel outside India, the Taj Sheba Hotel in Sana'a, Yemen and in the late 1980s, acquired interests in the Crown Plaza - James Court, London and 51 Buckingham Gate Luxury Suites and Apartments in London. In 1984, the Taj Group acquired under a license agreement each of The Taj West End, Bangalore, Taj Connemara, Chennai andSavoy Hotel, Ooty, with which the Taj Group made its foray into Bangalore. With the opening of the five star deluxe hotel Taj Bengal in Kolkata in 1989; the Taj Group became the only hotel chain with a presence in the five major metropolitan cities of Mumbai, Delhi, Kolkatta, Bangalore and Chennai. Concurrently with the expansion of its luxury hotel chain in the major metropolitan cities, the Taj Group also expanded its business hotels division in the major metropolitan and large secondary cities in India. During the 1990s, the Taj Group continued to expand its geographic and market coverage in India. It developed

specialized operations (such as wildlife lodges) and consolidated its position in established markets through the upgrading of existing properties and development of new properties. Taj Kerala Hotels & Resorts Limited was set up in the early 1990s along with the Kerala Tourism Development Corporation. In 1998 the Taj Group opened the Taj Exotica Bentota which strengthened the Taj Group's market position in Sri Lanka. In 2000, the launch of the 56 acre Taj Exotica, Goa and the Taj Hari Mahal in Jodhpur were completed. In 2000, the Taj Group entered into a partnership with the GVK Reddy Group to set up Taj GVK Hotels and Resorts Limited and thereby obtained a prominent position in the market in the southern business city of Hyderabad, holding three hotels and a major share of the market. In 2001, the Taj Group took on the management contract of Taj Palace Hotel, Dubai, and has established itself as an up-market hotel in the Middle East region. The Taj Exotica Resort & Spa, Maldives launched the Taj Group into the premium luxury hotel market and since its opening in July 2002, has won several international awards. The Taj Group also obtained licenses to manage and operate two leisure hotels; the Rawal-Kot, Jaisalmer and Usha Kiran Palace, Gwalior in October 2002. In September 2002, the Taj Group acquired an equity interest in the former Regent Hotel in Bandra which gave

the Taj Group access to the midtown and North Mumbai market. The hotel has since been renamed as the Taj Lands End, Mumbai. In 2003, the Company celebrated the centenary of the opening of its Flagship hotel, the Taj Mahal Palace & Tower, Mumbai. In 2004 the Taj Group opened Wellington Mews, its first luxury serviced apartment in Mumbai. In the same year, the Taj Group also launched the first of its "value-formoney" hotels in Bangalore branded 'Ginger', which division has 11 hotels in various locations in India and is owned through its wholly owned subsidiary. In 2005 the Company acquired on lease The Pierre, a renowned hotel in New York City, to enter the luxury end of the developed hotel markets internationally. The Company entered into a management contract for Taj Exotica in Palm Island Jumeirah in Dubai to expand its existing presence in the United Arab Emirates. The Company enhanced its position as an operator of converted palaces by entering into a management contract for Umaid Bhawan Palace, Jodhpur in the princely state of Rajasthan in India. The Company, through a subsidiary, acquired the erstwhile 'W' hotel in Sydney, Australia in February 2006 and renamed it as 'Blue, Woolloomooloo Bay'. To expand its presence in the

US market, the Company acquired in early 2007 Ritz Carlton in Boston and Taj Campton Place in San Francisco. Hotels operated by the Taj Group internationally are located in US, Australia, Dubai, Maldives, Malaysia, Sri Lanka, the United Kingdom, South Africa, Bhutan and Zambia.

CORPORATE SUSTAINABILITY RESPONSBILITY

AND

SOCIAL

As a part of Tatas; India's premier business house; we; at Taj Hotels, have always believed in society and environment being integral stakeholders in our business along with our shareholders, customers, vendors and others. Over the last decade, the movement towards ecologically sound tourism has gained urgency and importance across the globe and we recognize that responsible practices in vogue are as diverse as the geographies. We promote corporate citizenship through our strategic public-private partnerships which encourage building livelihoods of less-advantaged youth and women. The causes we promote include reducing malnutrition, promoting indigenous artisans and craftsmen and enhancing employability of identified target groups by sharing our core competencies as a leading hospitality company. We encourage training and development of differently abled youth.

We at Taj have the unique scope and opportunity to develop raw potential into a skilled workforce that is immediately employable by various players in the industry. A majority of our community projects are focused around extending our key strengths in food production, kitchen management, housekeeping, customer service and spas to promote economic empowerment of candidates from vulnerable socio-economic backgrounds. We are fully committed to the cause of building a sustainable environment by reducing the impact of our daily operations on the environment and improving operational efficiencies, resource conservation, reuse and recycling of key resources. The "Communication on Progress 2011-12 is an update on the impact of various initiatives undertaken by our company in social & environmental fronts. This year again our report has received an 'A+' rating, by external assurance provider - KPMG for the 3rd consecutive year, further propelling us to rededicate our commitment to the Sustainability journey. We believe in continuous learning and sharing and would be delighted to have your thoughts and suggestions.

GOALS Promoting as much as we can during any big event happening in the country such as Formula 1 and have special offers for guests. .Create bonds and good relationships with Training centers to develop our staff. Provide special cars/busses to transfer the customers from where they have parked to the hotel and try to use the lands around to build up a parking lot.

VISION The Taj Group of Hotels commits itself to the overall improvement of the ecological environment, which we are all a part of. We recognize that we are not owners but caretakers of the Planet and owe it to our children and future generations of humankind. It is our endeavor not only to conserve and protect but also to renew and regenerate the environment in which we live and operate Our commitment encompasses all actions related to our products, services, associates, partners, vendors and communities. We will partner and engage with our environment through EARTH: Environmental Awareness and Renewal at Taj Hotels. For us EARTH is not a program, nor a process; it is a way of life

EARTH In an endeavour to reinstate its vision and efforts to boost sustainable tourism, Taj Hotels Resorts and Palaces presented EARTH (Environment Awareness & Renewal at Taj Hotels) this year. Implementing schemes such as the Gangroti Glacier Clean-Up Expedition, as well as designated Earth rooms, which minimise environmental impact, Taj is one of Asia's largest group of hotels to commit to energy conservation and environmental management. EARTH has received certification from Green Globe, the only worldwide environmental certification program for travel and tourism. The Taj began a century ago with a single landmark - The Taj Mahal Palace Hotel, Mumbai. Today, the various Taj hotels, in all their variety and historical richness, are recognised internationally as the symbols of true Indian hospitality. The Company's history is integral to India's emergence into the global business and leisure travel community; and looking to the future, Taj Hotels Resorts and Palaces is well positioned to meet the increase in travel activity with the rapid expansion of the Indian Economy.

PRODUCTS Room Restaurant and Bar Meeting room and Banquet facility Amenities Services Safe deposit box

SERVICES Courier Child care Laundry Pet Internet Traveldesk Babysitting Wake-up call Barber shop Boutiques Currency exchange In room telephone service Express check -in and out Florist

 Front desk 24 hour Gift shop Maid service

TAJ WORK CULTURE At the Taj Group, our commitment to service excellence is rooted in our two guiding principles called the Four Steps of Serviceand the Taj People Philosophy. One of our key priorities is to empower our people to deliver on our legacy of impeccable service. FOUR STEPS OF SERVICE A warm and sincere welcome. Use the guest name, whenever possible. Fulfill guest needs and provide anticipatory service. Defect free products and services. Fond farewell using the guest name, whenever possible.

The following philosophy is a summary of our beliefs and values towards our employees. TAJ PEOPLE PHILOSOPHY: The Taj People Philosophy displays our commitment to and belief in our people. We see Talent Management as the most important sustainable competitive advantage in the future.You are an important member of the Taj family.We endeavor to select, retain and compensate the best talent in the industry. We reward and recognize quality customer care based upon individual and team performance. We commit to providing you with opportunities for continuous learning and development. We abide by fair and just policies that ensure your well-being and that of your family, the community and the environment. We commit to regular and formal channels of communication, which nurture openness and transparency. We strongly believe that you are the Taj.

SWOT ANALYSIS SWOT Analysis 1. Group comprises 93 hotels in 55 locations across India with an additional 16 international destinations 2. Employee strength over 13000 people 3. The perfect experience of Indian luxury living 4. Employee retention due to good brand image 5. Considered to be the most premium hotel chain in India 6. Top-of-the-mind brand recall 1. Limited market share due to tough competition from international and domestic players means 2. Terrorist attacks left a question over the security 1. Introduce better membership plans 2. Improve hygiene standards 3. Upgrade to international methods of work 1. Other heritage properties 2.Competitors upgrading to

Strength

Weakness

Opportunity Threats

international standards of work ethic 3. Expectation of clients in terms of technological development Competition 1. Leela Group of Hotels 2. Oberoi Hotels and Resorts 3. Hyatt

Competitors

STRATEGIES Taj Hotels, Resorts and Palaces, today a global hospitality chain with over 75 properties in over 60 locations, has been a steward of social responsibility since its founding in Mumbai, India, in 1903. As part of India's premier business house, the Tata Group, Taj Hotels and its holding company, the Indian Hotel Company Co Ltd, are committed to serving its many local communities by furthering education and skills training, particularly among rural populations; preserving Indian art, culture and wildlife, and promoting sustainable, environmentally sound operations.

In an endeavour to reinstate its vision and efforts to boost sustainable tourism and integrate environment management in all business areas, Taj Hotels Resorts and Palaces presents EARTH (Environment Awareness & Renewal at Taj Hotels), a project which reiterates the conscious effort of one of Asia's largest and finest group of hotels to commit to energy conservation and environmental management. EARTH has received certification from EarthCheck, the only worldwide environmental certification program for travel and tourism. Taj Hotels has joined the internationally-recognised EarthCheck benchmarking and certification system as an extension of its existing environmental policies. Taj Hotels has long recognised that as a leader it has an important contribution to make and a responsibility to demonstrate to others how they can be part of the fight against climate change. Having implemented the Environmental Awareness and Renewal (EARTH) programme, a project which began as a conscious effort to commit to energy conservation and other sustainability strategies, Taj Hotels was one of the first groups to join the tourism industry in its efforts. With environmental management gaining utmost importance across sectors and industries, Taj Hotels Resorts and Palaces will consciously focus on spearheading several efforts primarily in the engineering and energy conservation areas. Currently driven by several initiatives under the Eco Taj Policy, Taj Hotels will map the best practices under EARTH and drive them across all areas of operations and new product development in the group.

This also marks the Group's efforts in continuing to build and sustain awareness of discerning customers who are socially conscious. EarthCheck will provide the EARTH project with independent and comprehensive proof of their environmental commitment through the monitoring and improvement reports EarthCheck will produce for Taj Hotels each year as part of the certification procedure. Taj Hotels commitment to sustainability has its pragmatic purposes as well With a vision to create sound environment management in its operations as well as product development strategies, Taj Hotels has always believed in improving the quality of life of the communities and has been committed to environment conservation. Caring for and protecting the environment is an essential part of corporate ethos. ABOUT EARTHCHECK EarthCheck is the international benchmarking and certification programme for the travel and tourism industry based on the Agenda 21 principles for Sustainable Development endorsed by 182 Heads of State at the United Nations Rio Earth Summit in 1992. EarthCheck, is the only worldwide environmental certification program for travel and tourism with participants in more than 50 countries. EarthCheck is managed by EC3 Global, a subsidiary of the Sustainable Tourism Co-operative Research Centre.

POLICIES At IHCL we endeavor to provide our guests outstanding services and experiences in our hotels and luxury residences around the world. We value your business and your faith in us in delivering you a superior level of service. We recognise that privacy is important to our guests, and hence IHCL's Global Privacy Policy explains our practices regarding personal information we collect when you visit our hotels, restaurants, bars, our website, when you fill up a form and become member of our loyalty programmes. We request you to read this policy document carefully before sharing personal information with us. By visiting our web sites, we assume, your acceptance to the practices described in this policy document. This policy document covers the following areas relating to privacy of information provided by you: Personal information collected by IHCL from its guests. How does IHCL use the personal information collected from its guests. How does IHCL share the personal information collected from its guests, including with third parties. Non personal information collected by IHCL.

 Links to websites of third party marketers. Taj's policy regarding protection of its guests' personal information. How long does IHCL retain your personal information. Should you want to opt out. Dos & Dont to ensure your security. Policy Modifications. Get in touch for any clarifications.

Personal information collected by IHCL from its guests There are a number of situations in which your personal information may be gathered by IHCL to serve you better. At various touch points with our guests, we may collect the following personal information including, but not limited to: your name and contact information; date of birth; how you prefer to be addressed in communication from IHCL, preferred modes of communication; your job designation and business address; spouse name, anniversary, credit card details, including the three-digit code that appears on the back of your credit card; member number of our loyalty programmes, membership numbers of frequent flyer or travel partner programmes you are enrolled into, your

dates of arrival and departure from our hotels/restaurants/other outlets, your preferences when you stay or dine at IHCL, your transaction history at IHCL; offers you have availed of from third party marketers in response to communication from IHCL. We may also record details on guests who have stayed or dined with you at IHCL, including their names and contact details. Besides the above, we may also collect the following:

When you will out a form (online or hard copy), stating your preferences when you stay or dine at IHCL. Such information may include details relating to health matters. User name and password selected by you when you register at our website or become a member of our loyalty programmes at our website. When you enroll in our loyalty programmes (eg., Taj InnerCircle) online we collect your personal information and record your membership number and password. If you choose to reserve a room online we record your arrival and departure dates, number of guests in the group, details of guest rooms and tariff details. When you make a request for a proposal from our meeting planners, by visiting our websites. When you contact us with your questions or comments. From time to time, our website may offer a feature that allows you to send an electronic postcard or otherwise share a message with a friend. To fulfill you request, IHCL may require personal information about the person to whom you are sending an electronic postcard or message, including name and email address, along with the text of

any message you choose to include. Using this feature is tantamount to entitling us to store and use the recipient's name and email address. We do not knowingly collect personal information from individuals under 18 years of age. As a parent or legal guardian, please do not to allow your children to submit personal information without your permission. We do not knowingly collect information related to your racial or ethnic origin, political opinions, religious or other beliefs, health, criminal background or political affiliations, unless it is volunteered by you. We may use any healthrelated information provided by you only to serve you better and meet your specific needs when you stay or dine with IHCL.