Yatra Online acquires corporate travel agency Globe Travels for ₹128 crore

Online travel agency Yatra Online Ltd on Monday said that it has acquired Globe All India Services Ltd (Globe Travels) from Ramkrishna Forgings Ltd for ₹128 crore, marking a strategic move to bolster its corporate business and drive inorganic growth. 

The acquisition, expected to be completed this quarter, will enhance Yatra’s capabilities in the reservation and booking services sector, which spans both corporate and leisure travel, as well as tour planning and car rentals, the company said in a statement to the stock exchanges.

The acquisition is set to expand Yatra’s corporate customer base by 40%, adding 360 companies to its current roster of about 850.

“This will help gain access to new geographies, increase market penetration, and add new capabilities to our existing line of business, thereby accelerating the marketing of products and services and maximizing revenue opportunities," it said in the statement.

Globe Travels contributed ₹250 crore, or 6.3%, to Ramkrishna Forgings' consolidated turnover in the fiscal year ending March FY24, with net revenue reaching ₹18.82 crore. The company has experienced significant growth, with turnover increasing by 51% from ₹161 crore in FY22 to ₹214 crore in FY23.

“This acquisition aligns with our strategy to deepen our presence in key verticals and markets while further strengthening our corporate travel and MICE (Meetings, Incentives, Conferences and Exhibitions) capabilities. Globe Travels’ expertise complement our existing offerings, allowing us to provide an even more comprehensive and tailored travel experience to our clients across India,” said Dhruv Shringi, co-founder and chief executive, Yatra.

Ramkrishna Forgings had originally acquired the Kolkata-based Globe Travels in April 2013, when the travel agency reported a turnover of ₹159.85 crore for FY12. 

The proceeds from the current sale will be directed towards entering the aluminium forgings segment, with a focus on the electric vehicle (EV) market.

“As part of our strategic product rationalization initiative, we have decided to focus on our core segments, particularly in forged, machined, and fabricated products for diverse sectors such as automotive, railways, oil and gas, and power, where the company sees great potential for growth and expansion," Naresh Jalan, managing director, Ramkrishna Forgings, said in the statement to stock exchanges. 

Yatra Online reported a consolidated revenue of ₹100.8 crore from operations for Q1FY25, ended 30 June, reflecting a 9% decline from ₹110.1 crore in the same quarter of FY24. Net profit fell to ₹4.3 crore from ₹7.3 crore in the corresponding quarter last year, primarily due to reduced volumes in the consumer business as the company adjusted discounts amid intensifying market competition.

Yatra's standalone revenue from operations for the quarter ended 30 June, dropped to ₹69.7 crore from ₹78.6 crore a year ago. However, profit doubled to ₹2.1 crore from ₹1.04 crore in the corresponding period of the previous year.