Mumbai: Domestic brokerage Reliance Money Ltd has tied up with Kuoni Travel India Pvt. Ltd to buy and sell foreign exchange at the travel firm’s 75 retail establishments across the country.
The tie-up will be for one year but could be renewed, said Sudip Bandyopadhyay, chief executive officer of Reliance Money, a wholly owned subsidiary of Anil Ambani-controlled financial services company Reliance Capital Ltd.
“We have completed our contract with Kuoni India to set up shop-in-shops in their outlets to target the over nine million Indians who travel overseas every year,” Bandyopadhyay said. “Apart from selling them forex, we will have an opportunity of offering them travel insurance and loans, and later follow it up with our other retail services as we will have their contacts in our database.”
This cooperation with Reliance Money will enable Kuoni, which also runs outlets under the SOTC brand, to improve services to customers, said Zubin Karkaria, managing director, India and South Asia, for Kuoni Travel Group. Kuoni Travel India is part of Zurich-based tourist travel corporation Kuoni Travel Holding Ltd.
The number of outbound tourists from India is expected to touch 16.3 million by 2011, according to global business intelligence provider Euromonitor International.
Reliance Money is expected to generate revenues of Rs15,000 crore from Reliance Money Express, its business unit for foreign exchange services, in the fiscal year to 31 March, Bandyopadhyay said.
Of this, between Rs2,000 crore and Rs2,500 crore would be from domestic retail, a segment expected to benefit from the tie-up.
Bandyopadhyay said the partnership is expected to help Reliance Money to double forex retail revenues in the next financial year.
According to a January Citigroup Inc. report, Reliance Money has increased its outlets to 10,392 in the three months to 31 December, a growth of 136% compared with the same period the previous year.