Ram Mandir’s inauguration at Ayodhya has caught the keen interest of Hindu devotees worldwide and with it, a ripe opportunity for businesses and investors across India. The Rs 85,000 crore makeover is expected to transform the ancient holy city into a global religious hotspot, bringing with it a host of economic goodwill.
Also built after a decades-long movement, the newly constructed Ram Mandir is turning out to be the catalyst that could propel the around 240 million people-strong Uttar Pradesh.
Dalal Street felt the religious touch too as retail investors upped their faith in certain companies that are linked to the Ayodhya Ram Mandir such as Allied Digital Services, Thomas Cook, Interglobe Aviation (IndiGo), and Easy Trip Planners between September and December. Ayodhya-based Pakka Ltd has rallied close to 150 percent in January so far.
The expected surge in tourism and residents will lead to substantial demand for FMCG, consumer staples, and quick service, restaurants (QSR), analysts at Jefferies said in a note. It is also expected to lead to an increased demand for both domestic and international connectivity from which aviation, railways, and ancillary service providers are set to gain.
Brands ready their arsenal
Estimates put the ratio of residents to tourists at 1:10 in Ayodhya, indicating the huge pilgrim attraction potential.
To tap into the sudden increase in demand, which is forecast to likely increase in the coming years, major brands in the consumer space have upped the ante to rake in maximum visibility for their products. Companies have tied up with shops and ‘dhabas’ in major cities of Uttar Pradesh like Lucknow, Gorakhpur, and Varanasi to showcase their brands.
Coca-Cola swapped its traditional red color branding with darker shades in line with the temple theme and has placed at least 50 vending machines at various shops.
Dabur has tied up with dhabas on highways of Uttar Pradesh to help push its Hajmola brand and has taken other measures to play up its hair oil and tea products.
Reliance Industries’ consumer arms have taken measures to promote its Campa soft drinks, Alan’s Bugles snacks, and Independence line of products. The company also intends to distribute ‘Independence’ water free of cost to devotees in Ayodhya.
Gautam Adani-led Adani Wilmar has tied up with dhabas and is pushing its Fortune brand through over 100 hoardings and kiosks and around ten snack shops, ET reported recently.
Traders and small business owners across India engaged in making earthen lamps, saffron-colored Ramnami flags, pennants, and others saw increased traction in the run-up to the inauguration of the Ram Mandir. A quick feedback from trade associations across 30 cities in different states shows that business worth Rs 1 lakh crore is expected to be generated thanks to the consecration ceremony, as per the Confederation of All India Traders (CAIT).
Providing further filip to demand for artisans, apps like Blinkit, Swiggy Instamart, BB Now, and Zepto are pushing ‘pooja essentials’ like diyas, flowers, fruits, sweets, and idols through separate categories on their apps.
Govt’s tourism support, revenue boost
A part of the Narendra Modi government’s manifesto that in part helped the Bharatiya Janata Party (BJP) come to power at the Centre, the erection of the Ram Mandir has seen an enhanced infrastructure focus that was previously lacking.
The Indian Prime Minister arrived in Ayodhya on December 30, 2023, with a thorough intent to help the city turn a new leaf and support the influx of tourists it is set to see in the decades and centuries to come.
“After the construction of Ram temple, there will be a massive surge in people coming to Ayodhya. Keeping that in mind, our government is spending billions on infrastructure projects,” Modi said.
PM Modi laid the foundation stone for development projects worth over Rs 15,700 crore. He inaugurated the $175 million Ayodhya Airport, which was built in less than two years and can handle around 10 lakh passengers, to start with. In addition, the newly redeveloped Ayodhya Dham Railway Station, other rail projects, and civic infrastructure projects were also announced.
As per the Master Plan 2031, the redevelopment of Ayodhya will be completed over 10 years with an investment of over Rs 85,000 crore to help meet increased tourist footfall, as per a TOI report.
Tourism-led development with an ethereal touch
For a region that saw an erstwhile leaner presence, the hospitality and tourism industry is now sensing greater opportunities in the long term, especially given its crisis-resistant nature.
Tourists, both domestic and international, flock to this South Asian country with a rich, non-pareil spiritual history going back centuries.
Ayodhya is currently home to only two big, branded hotels – Park Inn by Radisson and Cygnet. But this is only the beginning. Bigwigs including Taj Hotels, ITC Hotels, and budget players like Oyo have announced plans to enter the city in a big way.
In preparation for the expected surge of tourists to Ayodhya, the hospitality, travel, and tourism industry has generated around 20,000 new jobs. Officials in the sector anticipate the creation of numerous positions, including roles in hospitality management, restaurant and hotel staff, logistics management, and drivers, toward the end of this year or the first half of 2025. The demand-supply dynamics will be closely monitored by hotel companies and restaurant owners, not only in Ayodhya but also in neighboring cities like Lucknow, Kanpur, Gorakhpur, etc.