Balaji Hotels & Enterprises was incorporated in August 1989 as Sri Vinayaka Traders, a private limited company, the company was renamed Balaji Hotels and Enterprises Pvt Ltd in January 1994, and Balaji Hotels & Enterprises in March 1994. It was promoted by M Dharmaraj and his associates as a private limited company. The other promoters are Magunta Sreenivasulu Reddy and Magunta Sudhakar Reddy of the Balaji group. The company was proposes to enter the hotel industry by setting up a 333-room five-star deluxe hotel in Madras. The company also proposes to create a chain of 4-star hotels in Madras and in Coimbatore. The Magunta Aqua Farms was amalgamated with the company with effect from 1 April 1993.
The company has entered the steel sector by setting up Balaji Steel Corporation (BSC) which produces ingots, and other products. BSC has acquired Krishnaveni Enterprises Pvt Ltd. The company’s 5 Star Deluxe Hotel project at Abbotsbury, Madras is progressing satisfactorily, the civil finishing work is completed and the soft launch of the Hotel is expected to be made during the second quarter of 2001.