Diversified state-owned Balmer Lawrie & Co today acquired tour operator Vacations Exotica for Rs 20 crore to give a boost to its package-tour business.
"We have acquired tour operator Vacations Exotica for Rs 20 crore," Chairman and Managing Director Viren Sinha told reporters here.
The company came into existence in 2007 and is yet to break even.
"We are not that strong in package tours as we are in ticketing. That is why this acquisition will add synergy to our business," Sinha said.
The acquisition is expected to generate additional revenue of Rs 300 crore in 2014-15, he said.
Vacations Exotica, a part of Vacations Exotica Destinations Pvt Ltd, has a national presence and runs outbound tour packages mostly to Europe, the Far East and South Africa, he said.
"We have acquired the tour business of Vacations Exotica Destinations Pvt Ltd and are taking over most of their assets and liabilities, which include 110 people as well nine offices and 113 preferred partners," Sinha said.
Balmer Lawrie already has a travel agency, Balmer Lawrie Tours & Travel, with total net sales of Rs 656 crore. The ticketing business accounts for 90 per cent of Balmer Lawrie Tours & Travel's total revenue.
Meanwhile, the company said construction of its logistics park in Vizag is slated to begin shortly. The project will entail an investment of Rs 220 crore and is likely to become operational over the next 22 months.
