Nirma Group, the Ahmedabad-based conglomerate, is planning to enter the hospitality sector as part of its diversification strategy, according to people familiar with the matter. The group has applied for environmental clearance to develop a five-star hotel catering to the upper-upscale segment, marking its first major investment in the hospitality space.

The proposed project involves a 555-room luxury hotel along the Sarkhej–Gandhinagar (SG) Highway, one of Ahmedabad’s fastest-growing commercial corridors. The hotel is expected to cater to corporate, MICE and premium leisure demand, with the group currently in discussions with multiple international and domestic operators, including Indian Hotels Company Ltd (IHCL), Hyatt Hotels and Marriott International, sources said.

People aware of the discussions said Nirma Group is currently in talks with multiple international and domestic hotel operators, including Indian Hotels Company Ltd (IHCL), Hyatt Hotels, and Marriott International. However, a final operator has not yet been selected.

If approved and executed, the hotel is expected to be operational ahead of the 2030 Commonwealth Games, allowing the project to capitalise on anticipated demand growth driven by global events, business travel, and institutional activity. Queries sent to Nirma Group did not receive a response at the time of publication.

Industry executives noted that Nirma’s planned entry comes amid a structural shift in Ahmedabad’s hospitality market, which has seen increased investment activity over the past 18 to 24 months. The city has emerged as an active hotel development destination in western India, supported by industrial expansion, infrastructure development, and rising corporate demand.

“The depth and quality of demand in Ahmedabad today is significantly stronger than it was even a few years ago,” said Nandivardhan Jain, Founder and Chief Executive Officer of hotel investment and branded residences advisory firm NOESIS.

Nirma Group, which reported consolidated revenues of INR 12,207 crore, has diversified interests spanning detergents, soaps, soda ash, caustic soda, cement, and healthcare. Its proposed foray into hospitality would mark the group’s first major investment in the sector.