The leisure and entertainment company Country Club (India) Ltd is betting big on international markets besides charting out a Rs 350-crore expansion plan in the country to strengthen its existing business.
In the heart of Hyderabad, a few yards from the CM’s camp office, one finds quite a few billboards overlooking the usually busy flyover that helps ferry Hyderabadis to the Hitec City. What distracts the attention of drivers however is not the ubiquitous men in khaki but a sizzling Sania Mirza on a massive hoarding inviting party animals to the exotic world of the Country Club.
And, the man behind this tempting world is also seen wearing a black suit complete with black glasses giving a vigorous V sign. He is the controversial Yeragudi Rajeev Reddy the Country Club king of India.
The Hyderabad-based leisure and entertainment company Country Club (India) Ltd (CCIL) is these days betting big on international markets besides charting out a Rs 350-crore expansion plan in the country to strengthen its existing business.
Floated in 1989 by Rajeev Reddy, CCIL at present has a presence in Sri Lanka, Thailand and West Asia. The 56-year-old Reddy’s first entprepreneurial venture included a real estate firm—Amrutha Estates & Hospitality Pvt Ltd set up with an initial capital of Rs 4 lakh. Subsequently, he expanded into recreation and now operates 55 CCIL-owned (70 per cent of which are acquired properties) and 175 CCIL franchised properties globally.
CCIL went public in 1992 and currently holds 52.13 per cent stake in the company, while the remaining is with FIIs, mutual funds and general public. It made its international foray in 2005 acquiring a 50-room property in Sri Lank for about $2 million. Reddy’s business may be booming but his past particularly his involvement in the collapse of the Prudential Bank still raises eyebrows. Trouble started in 2003 when Reddy and CCIL was accused of defaulting on payments. A writ petition was filed by one P Surya Prakash Rao, depositor and shareholder of Prudential Bank against Reddy and Prudential Bank.
According to Rao, Reddy was due to pay Rs 42 crore and prosecution was launched against him along with other erstwhile directors of Prudential Bank on the ground of cheating and other offences. Several protestors staged dharnas in front of CCIL and Reddy’s residence demanding him to repay the debt. Rao also claimed CCIL promoters are close to the Congress political leaders in the city and hence managed to come out clean.
In fact, the state government withdrew all cases against him. As though a loan default allegation was not enough, Reddy's reputation was muddied further, when one of the club members committed suicide after losing a card game at the club. The state government had to quickly step in imposing a permanent ban on CCIL from allowing members to play cards. It took a good two years for the company to be back on track. CCIL has reported a net profit of Rs 56.13 crore in 2012-13, as against Rs 49.58 crore the year before, reflecting a growth of 13.21 per cent.
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