Avis Europe Plc will henceforth hold a 33 per cent equity stake in Mercury Car Rental Ltd. EIH's wholly owned subsidiary, Mercury Travels, at present holds a 50 per cent stake in Mercury Car Rental Ltd.

According to the director's report to the shareholders published in the EIH Ltd's annual report for the year 1998-99, "Most of the approvals needed for the joint venture company have been obtained from appropriate authorities."

As per the joint venture agreement the existing shareholders of the company, including EIH Ltd, will hold 67 per cent of the equity capital, while 33 per cent will be held by Avis.

While the new joint venture takes of, EIH's German venture Vision Travel GmbH has been dissolved and the investmentof Rs 2.6089 crore made by the group through Mercury Travel Ltd has been written off in the profit and loss account of MTL.

Due to this MTL has recorded a net loss of Rs 2.14 crore in the current year against a profit of Rs 1.19 crore recorded in the previous financial year.

According to the director's report to the shareholders of Mercury Travels Ltd "Vision Travel GmbH which was established in Berlin, Germany could not perform as expected due to adverse market conditions. The liabilities of the subsidiary company far exceeded its assets compelling its board of directors to dissolve the company..."

A host of hotels managed or owned by the group are set to start operating in the year 2000. The 104-room Oberoi Agra that is likely to start operating in 2000 is owned by a joint venture company with EIH holding a 30 per cent stake in the company.

Among the other hotels of the group that are likely to open soon are Trident Cochin in June 1999; Wildfire Hall at Mashobra, Himachal Pradesh, owned by jointventure company Mashobra Resort Ltd in 2000.

Two other hotel projects under EIH International in Mauritius and Egypt are also likely to start operating in 2000. EIH International is a wholly owned subsidiary of EIH Ltd.

EIH recorded a profit after tax of Rs 96.41 crore in 1998-99 against Rs 123.25 crore in the earlier year. The total tunrover of the company however marginally increased to Rs 475.69 crore in 1998-99 from Rs Rs 471.96 crore in 1997-98.

SS Mukherjee takes over as dy MD of EIH Ltd.

SS Mukherjee, appointed alternate director at the meeting of the company's board of directors on May 28 will hold the post of deputy managing director from that date subject to shareholders' approval. The annual general meeting of the company is scheduled for July 28.

Mukherjee had joined EIH Ltd in 1972 and has been a senior vice president with the company for several years.