Consultant Ernst & Young has been appointed to conduct the due diligence on the five properties that had been shortlisted by the management. Four of the properties are in Udaipur and Jaipur, while one is in Jaisalmir.

The company has also appointed solictor firm Garg & Co to look into the legal aspects of the proposed acquisitions. According to Goenka, preliminary reports from both the firms have been "very favourable". A team from Darjeeling Plantation is negotiating the deal with the sellers and Goenka is expected to be in Rajasthan to give final touches to the deal at the end of this week to March 18. "We hope to conclude the hotel deals by this weekend", Goenka said. According to Goenka, though the team is keen on the properties in Jaipur andUdaipur, certain reservations have been expressed about the Jaisalmir property. He noted that there are two three-star properties, with one having 56 rooms and the other 52. They have franchisees of Kwality Inn.

The management is already in touch with serveral overseas hotel chains who either have no or insignificant presence in India and are keen to expand their businesses. Goenka plans to expand the hospitality business by either acquiring running hotels or by setting up new ones. Quoting a study by Ernst & Young, Goenka said recommended areas of expansion are in all the four states in south India and also MP, Gujarat, Rajasthan and Goa.

Warren Tea to pay Rs 7.50 a share
Flagship Warren Tea Ltd announced an interim dividend of 75 per cent (Rs 7.50 on a Rs 10 equity share) at its board meeting held today. In the previous year, the final dividend 80 per cent. The company is expected to close the financial year to March 31, 2000, with a turnover of Rs 130 crore.