Indian Hotels Company Ltd (IHCL), India’s largest hospitality firm by market capitalisation, is making a significant foray into the integrated wellness sector. Puneet Chhatwal, Managing Director & CEO of IHCL, has articulated an ambitious vision, forecasting the company’s wellness business to surpass Rs 1,000 crore in revenue within the next ten years.
Strategic Acquisition and Vision for Wellness
This strategic move follows IHCL's acquisition of a 51% stake in Sparsh Infratech Private Ltd, the owning company behind the luxury wellness brand ‘Atmantan’. Located in Mulshi near Pune, Atmantan is an integrated wellness destination spanning 36 acres, founded a decade ago by Nikhil and Sharmilee Kapur. Chhatwal highlighted that discussions for this acquisition spanned nearly six years, beginning before the COVID-19 pandemic, indicating a long-term strategic intent rather than an impulsive decision.
The name ‘Atmantan’ – derived from Atma (soul), Mann (heart), and Tan (body) – resonated deeply with IHCL’s philosophy. Chhatwal emphasized that the global trend is shifting towards wellness, with consumers increasingly willing to invest in health, longevity, and a younger appearance. He differentiates this from traditional spa services, calling it a “way of life” that focuses on holistic well-being.
"The world is moving towards wellness. People are willing to pay more to look younger, lead healthier lives and for longevity. This wellness is not like a spa. It is a way of life," stated Puneet Chhatwal.
While the wellness market is gaining traction globally, Chhatwal believes it is still in its nascent stages in India. He noted a shift in Indian consumer behavior from a savings-driven economy to one where individuals are more inclined to spend on personal well-being, presenting a timely opportunity for IHCL.
Expansion Plans and Financial Strategy
IHCL plans aggressive expansion for the Atmantan brand, aiming to open or have under development at least five new Atmantan centres by 2030, with two more expected to open soon, including one in Hyderabad. These new facilities will primarily be newly built, though the company remains open to acquiring and rebranding suitable existing properties.
Regarding its asset-light model, IHCL clarified that while it pursues management contracts for many properties, the wellness segment might see a different approach. While one or two of the five new Atmantan centres could be management contracts, the majority are expected to be owned. Chhatwal explained that IHCL has never been entirely asset-light, citing ongoing construction projects like hotels at Cochin and Goa airports, in Assam, and the significant Taj Bandstand project, a Rs 2,000 crore investment.
IHCL is currently a debt-free company with substantial cash reserves, enabling it to fund these expansions and acquisitions, including the Rs 240 crore investment in Atmantan, through internal accruals. The company also plans to retain Atmantan’s founders, Nikhil and Sharmilee Kapur, in operating roles to leverage their specialized expertise in wellness.
Chhatwal views the wellness business as a high-margin sector that also garners significant societal respect by contributing to people's health. While wellness travellers may differ from traditional luxury hotel guests, IHCL anticipates targeting a similar demographic to its upper upscale and luxury hotel clientele.