This coupled with the Kirloskar group's plans to focus on core areas has led to the move to sell its property. The company had been receiving enquiries for the acquisition of the company's business. There were reports of Indian Hotelsand ITC Hotels pitching for this property. There are reports that Indian Hotels would be taking over the hotel from the Kirloskars and the deal could be finalised after the EOGM approval. At its board meeting held on January 20, the board of directors of the company decided that "in view of the increasing competition and the marginal profitability the company has had for over three decades, it was desirable to explore the possibility of the sale of the whole or substantial undertaking of the company." Meanwhile the PIH has posted a profit of Rs 18.20 lakh on net sales of Rs 498.60 lakh for the quarter ending December 31, 1998. During 1997-98, PIH had made a net profit of Rs 274.87 lakh on a sale of Rs 1983.30 lakh.