FLIGHT Centre Travel Group (ASX:FLT) has spiced up its offering in India with its latest acquisition.
The Brisbane-based retailer will acquire Travel Tours Group (TTG) which specialises in foreign exchange, the MICE (meetings, incentives, conferences and exhibitions) sector and leisure, corporate and wholesale travel.
The Bengaluru-based business recorded about $150 million in total transaction value (TTV) across 18 locations in FY16.
Combined with $419 million TTV from existing Indian operations, the market is poised to become Flight Centre's sixth largest country based on sales. India would surpass South Africa to follow Australia, USA, UK, Canada and New Zealand.
Flight Centre managing director Graham Turner (pictured) says the acquisition will diversify the company's offering beyond corporate travel in India.
"This will enhance Flight Centre's scale in sectors where it already has a strong or emerging presence, including corporate travel, foreign exchange and MICE, and give the company a stronger platform for growth in key leisure sectors," Turner says.
"TTG has a strong leisure travel presence in the key South India markets of Bengaluru and Chennai, which will complement Flight Centre's Flight Shops offering in the country's north and west."
TTG owner Shravan Gupta will continue to manage the company and report to Flight Centre's leader in India Rakshit Desai.
TTG employs 380 people and operates five key brands including tour company Travel Tours, leisure centres Travel Air and inbound charter operator Splendour Holidays.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support