New Delhi, March 24: Hospitality major EIH Ltd - which owns the Oberoi chain of hotels, including Calcutta's Grand Hotel - today announced the appointment of Vikram Oberoi, son of chairman P.R.S. Oberoi, as its next MD and CEO from April 1.

Vikram's cousin Arjun Oberoi will become managing director-development at EIH Ltd, which runs a chain of luxury hotels and resorts under the Oberoi and Trident brands.

At present, both Arjun and Vikram are joint managing directors.

The present chief executive officer (CEO), S.S. Mukherji, will assume the role of executive vice-chairman in the latest organisation reshuffle, EIH said in a filing with the Bombay Stock Exchange (BSE).

The notice said Mukherji was relinquishing the CEO's post citing "personal reasons".

Mukherji will provide advice, guidance and assistance to the executive chairman, managing director and CEO and other senior management personnel as and when requested, the notice added.

Arjun is the son of late Tilak Raj Singh, elder brother of P.R.S. Oberoi.

The company said its board in a meeting held today approved Vikram Oberoi's elevation.

Arjun will also continue as an executive director of the company, the filing added.

As CEO, Vikram Oberoi will have the overall management responsibility and authority, including responsibility for day to day management affairs of the company, EIH said.

Vikramjit Singh Oberoi holds a bachelor's degree in science from the Pepperdine University in the US. He has over 25 years of experience in the hospitality industry.

P.R.S. Oberoi will continue to be in his present designation and there will be no change to his designation, EIH said.

Arjun holds a bachelor's degree in science (economics) from the University of Buckingham, United Kingdom. He has an experience of more than 22 years in the hospitality industry.

EIH is a Rs 1,279-crore hotel giant that was formed by the late M.S. Oberoi who once famously said: "You can make a hotel out of gold but no one will stay there unless you can provide efficient, gracious and caring service."

It reported a profit after tax of Rs 95 crore in the year ended March 31 last year.

The Oberoi group has a presence overseas as well with hotels in Dubai and Mauritius. It plans to build hotels in Ajman, which is an ocean front site 30 minutes from Dubai airport, Marrakech, and Casablanca in Morocco.

In India, it plans to build a couple of hotels in Goa, Navi Mumbai, Pune and Bangalore.

The promoters of EIH have a 35.24 per cent stake.

In 2010, they were able to ward off a takeover threat from ITC that had loomed when the cigarettes-to-hotels conglomerate had built up a 13.37 per cent stake in EIH - threatening to cross a 15 per cent threshold which in 2001 would have triggered an open offer for the company.

But ITC chose to wait and lurk which left Biki (PRS) Oberoi uncomfortable. Finally, he roped in Mukesh Ambani's Reliance Industries as a white knight in September 2010, which picked up a 14.8 per cent stake in EIH.

The takeover threat has since receded. RIL has an 18.53 per cent stake in the company - far short of the 25 per cent threshold that would now trigger the need for an open offer.

ITC currently holds 14.98 per cent and group firm Russel Credit holds 1.15 per cent.

On Tuesday, the EIH stock closed flat at Rs 102.55 on the BSE.