MUMBAI: In a move that lends credence to consolidation in the Indian
travel industry, Mumbai-based TravelPort, a Rs 60-crore company with 65 franchisee
outlets in eight cities, has acquired city peer Shree Balaji Tours (SBTPL) for
an undisclosed sum. The deal comes a week after Thomas Cook acquired TCI for Rs
175 crore.
SBTPL posted a revenue of Rs 20 crore in 2005 and is
one of the major players in the Goa sector, taking almost 15,000 tourists to the
holiday destination last year.
Post-acquisition, TravelPort will
invest Rs 5 crore in expanding its operations in Goa, including setting up a Goa-specific
travel portal and underwriting three hotel properties in the state.
“We have been looking at vertical growth for the company. Goa remains one
of the prime tourist attractions in the country, generating Rs 10,000 crore in
revenue. We want the sector to drive our growth and Balaji Tours has been operating
in Goa for six years.
Almost 85% of its revenue comes from these
operations,” said company CEO Javed Akkhtar. Goa contributes almost 40%
of TravelPort’s revenue.
The company will also benefit from
SBTPL’s considerable network among 400 travel agents. “Balaji Tours
had 40,000 room bookings in Goa last year and with TravelPort’s 10,000 bookings,
we are looking to further consolidate operations in the state,” added Mr
Akkhtar.
SBTPL’s founder Kailash Kabra will join TravelPort
as CEO, special projects, and will head the company’s Goa business. |
