Ashwini Kakkar-controlled Mercury Travels is eyeing acquisitions in the domestic travel space. The deals are likely to be in the areas of technology, forex, travel insurance and outbound and inbound travel.
"Inorganic growth is our most preferred route for expansion. Top priority will be to strengthen our domestic base and upgrade technology," said Ashwini Kakkar, the company's new promoter, who recently bought 74.9 per cent stake in the Oberoi Hotels-owned Mercury.
He refused to give any details on how big the size of the deals could be. However, industry sources see the size at Rs 100 crore (Rs 1 billion) or even more.
Mercury Travels will invest about $2 million every year (for the next few years) on technology. The aim is to become more user friendly by using various means, like direct-to-home, mobile commerce, call centre and a better web portal, to reach the masses,said Kakkar.
Mercury is in talks with a prominent direct-to-home player (believed to be Dish TV), for providing online information and services to its viewers.
"If viewers are watching a travel programme on one of the channels (of the DTH provider) and wants to know more, say, on a destination, they just have to click remote, which will activate our offices. Our executives will get back to them with the required information," he said.
Mercury Travels has plans to move out of its existing office at Oberoi Hotel in Mumbai and is on the look out for a new office.
"We have found out a space in the World Trade Centre, but has not yet finalised. We are also looking for new chiefs for information technology, human resources and finance," said Kakkar.
Mercury Travels has a transaction base of Rs 300 crore (Rs 3 billion) and employs 200 people. It has got 10 branches in India and one each in New York and Frankfurt.
"As much as 65 per cent of our revenue comes from corporate travel. The balance from inbound (15%), forex (10%), outbound and MICE (10%)," said Kakkar.
According to him, Mercury is the seventh largest travel company in the country.
Thomas Cook is the leader with Carlson, Kuoni, Cox & Kings, Travel Corporation of India and International Travel House following.
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