Largest merger in the hospitality sector with over Dhs365million investment will exhibit at Arabian Travel Market 2014
Dubai, United Arab Emirates: Lama Group, one of the largest destination management companies in the UAE, and Carfare, a leading privately owned comprehensive mobility solution group, today 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 Dhs365 million. Both entities will retain their brand names but will operate under BK Group Holdings Co. and will offer complete travel and mobility solutions to more than 2.5million customers of the group.
"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 organizations in a rapidly growing industry," said Mr. Kulwant Singh, CEO and Managing Director of the new Group.
"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," said Mrs. Jasbir Bassi, Managing Director of both the Groups.
The merger will allow the companies to diversify growth opportunities while continuing to invest in its current business. Nearly Dh.50million will be invested in infrastructure projects in the next six months to supply the demand that will be generated after the merger.
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 very concept of how business is done in these areas and will be true game changers, said Mr. Fahim Aziz the Group General Manager.
"We believe the merger will enhance the products and services we are able to offer to our customers in every market we serve. We are certain that Dubai will experience millions of visitors especially during the Expo 2020 and with our collective infrastructure we will be able to take advantage of this emerging opportunity," added Mr. Singh.
The management team is expected to draw upon the experienced group of leaders from both companies with Mr. KS Bassi serving as chairman of the group while Mr. Singh and Mrs. Jasbir Bassi will serve as managing directors. Mr. Fahim Aziz and Mr. 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 organizations 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.
Both companies will be exhibiting in this year's Arabian Travel Market (ATM), the Middle East's largest travel and trade exhibition, from 5th to 8th May 2014, to inform business partners about the merger and seek potential clientele. As a result of the merger, the group will have an existing fleet of 3,500 cars, 200 limousines, a large fleet of 4x4 vehicles, three campsites, two cruises and two yachts. The company will have the strength of 650 employees working across
a network of 14 branches in the UAE and nine abroad. BK Group Holdings Co. will expand both companies operations into a new head office in Dubai Investment Park spread over nearly 40,000sq.ft and state of the art service center.
About Lama Group:
Lama Group is a leading global destination management company in the UAE. The group operates Lama Desert Tourism L.L.C., Lama Holidays, Lama Dubai-Floating Restaurant L.L.C, Lama Safaris and Cruises L.L.C., Lama Tours and Cruises Pvt. Ltd I India, Lama Tours and Travels Pvt. Ltd - Philippines. The Group is committed to serve customers with professional care and give them optimum satisfaction. The company has grown consistently in the past 15 years providing quality services to customers. The company is gearing up to tap new opportunities in the market through use of technology and innovations.
About Carfare Group:
Established in 1997, Carfare Group specializes in the rental and leasing of passenger and commercial vehicles. The group has evolved to be a market leader in the UAE setting very high standards in quality and service. The focus of the company is to provide a choice of modern and reliable vehicles at very competitive rates to individual and corporate clients, backed by quality service derived from a team of competent and confident professional.
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© Press Release 2014
