Balmer Lawrie buys Indian travel venture Vacations Exotica
Balmer Lawrie & Co Ltd has purchased travel venture Vacations Exotica from Vacations Exotica Destinations Pvt Ltd, according to a Thursday disclosure. The said acquisition includes the travel firm's employees and existing customers. The financial terms of the deal were not disclosed, wrote Reuters.
Launched in October 2007, Vacations Exotica currently employs over 118 workers. The Mumbai-based firm operates nine offices and four associate headquarters. One of those offices is located in the US, the report detailed.
The travel service has been posting an average growth of 25%. According to Singhi Advisors partner Ajoy Lodha, Vacations Exotica's travel and tours business' revenues is at INR120 crore, and has a potential to climb to approximately INR450 crore within three or four years. The investment bank Singhi acted as advisor to the acquisition deal, the report explained.
Lodha said: "Travel business is going through a phase of consolidation as service providers want to add value-added services which can enhance margins. The reduction of credit periods in ticketing business and also price-wars have pushed down margins in air ticketing business significantly. Packaged tours business especially outbound has reasonable entry barriers and also far better margins and therefore attractive to players strong in ticketing space."