ETW Staff– Mumbai
Lama Group, destination management companies in the UAE, and Carfare, privately owned comprehensive mobility solution group, has announced the signing of a definitive agreement to merge two premier services in the hospitality industry.
The strategic move will create a combined company worth over Dhs 365 million. Both entities will retain their brand names but will operate under BK Group Holdings and will offer complete travel and mobility solutions to more than 2.5million customers of the group.
Kulwant Singh, CEO and managing director of the new Group, said, “Today we are creating the largest merger in the hospitality sector. The expansion of Dubai’s infrastructure in preparation for Expo 2020 has motivated us to take this step and invest for the future. We are combining two dynamic organisations in a rapidly growing industry.”
Jasbir Bassi, managing director of both the Groups, said, “Both our companies have witnessed high growth and success over the years so it made sense to combine our strengths. We will be able to significantly broaden our reach in the UAE and in the region and continue to take substantial market share from existing competitors. This merger gives us the advantage to create a truly global company, a market leader in providing complete travelling solutions for both individual and corporate clients.”
The merger will allow both companies to diversify growth opportunities while continuing to invest in its current business. Nearly Dhs 50million will be invested in infrastructure projects in the next six months to supply demand that will be generated after the merger.
Fahim Aziz, the Group general manager, said, “The result of this merger will also enable us to offer a variety of innovative solutions related to travel and mobility industry, which in its essence will redefine the concept of how business is done in these areas and will be true game changers.”
The management team is expected to draw upon the experienced group of leaders from both companies with KS Bassi serving as chairman of the group while Singh and Jasbir Bassi will serve as managing directors. Fahim Aziz and Avtar Singh will be the general managers for both the groups respectively.
The expansive network and diversified portfolio of products and services of the combined organisations will strengthen the company’s ability to serve a large number resident customers and arrivals from India, GCC and other markets. New offices will be created in the region to serve the customers including additional services such as express visa centers and luxury coaches.
As a result of the merger, the group will have an existing fleet of 3,500 cars, 200 limousines, a large fleet of 4×4 vehicles, three campsites, two cruises and two yachts.