Investment banking and capital market firm Jefferies has issued a list of about eighteen companies across sectors like hospitality, FMCG, aviation, railways and ancillaries that are likely to benefit from the temple tourism boom Ayodhya is set to witness in the wake of the grand Ram Janmabhoomi temple.
In a report, Jefferies says the potential beneficiaries in the hotels and hospitality sector are Indian Hotels Company Ltd, ITC Hotels, EIH Ltd, and Oyo Rooms. "At present, Ayodhya has seventeen hotels with 590 rooms. 73 hotels are in the pipeline of which 40 are already under construction. IHCL, Marriott International, Wyndham, etc have already signed deals for hotels. IHCL has signed contracts for two new properties in Ayodhya to be operational in 2027," Jefferies says in a report.
"ITC hotel is exploring opportunities. Oyo to add 1000 hotel rooms in Ayodhya," it says.
Jefferies pointed out in the report that Ayodhya's enhanced status as a religious and cultural tourist destination will lead to increased footfall from pilgrims and tourists, both domestic and international.
The report says FMCG and quick service restaurant businesses too have a good opportunity in the pilgrimage sites like Ayodhya, the Golden Temple and Vaishno Devi, among others as they offer a significant captive market with strategic first mover advantage.
"QSR chains such as Restaurant Brands Asia (RBA), Devyani International, Jubilant Foods are either in discussions to set up outlets or have already begun setting up outlets," the report says, pointing out that the surge in the tourism and residents will lead to a substantial demand for FMCG, and QSR.
The companies that are likely to benefit according to Jefferies in these segments are Jubilant Foodworks, Britannia Industries, Godrej Consumer, ITC, Westlife Foodworld, Hindustan Unilever, Devyani International and Sapphire Foodworks.
The report also pointed out that with the construction of an airport in the city, the aviation companies too are vigorously adding Ayodhya as one of the key destinations. While IndiGo has announced Ayodhya as its 86th destination, Air India has announced direct flights from Bengaluru, Kolkata and Delhi, the report says.
"Spicejet and Akasa Air also announced flights connecting Ayodhya with multiple cities, while IRCTC has announced tour packages to the city," the report says. Jefferis has listed travel sites like MakeMyTrip and EaseMyTrip along with the airlines as the potential beneficiary.