Growth Is the Key Word For SITA

Jyoti Koul - New Delhi

With Kuoni recording a turnover of Rs 660 crore in 2003, its inbound division SITA has outlined ambitious growth plans. Despite events like 9/11, the foreign exchange earning of Sita has risen from Rs 100 crore in 2001 to Rs 175 crore in 2004. However, a shift in its strategy is apparent as the division is moving from consolidation to achieving growth-oriented targets by the year 2006.

Sita India has charted out a three-pronged growth plan that includes growth through market focus, geographical expansion and growth through innovation. Having gained a strong foothold, the company is focusing on strengthening its presence in Nepal, Sri Lanka, Bhutan and Dubai in order to become the top travel manager in these countries as well. Therefore, to expand in the SAARC region, it is entering Bhutan through a strategic partnership and it will expand its base in the Middle-East. As per its expansion plans, Sita will provide ‘innovation’ through the Internet, medical tourism, FIT, Spa and wellness tourism, besides investing in a call centre. Through its Internet real time booking engine and reservation system, Sita is expecting a business of Rs 50 crore in 2005. It has already acquired Resnet from ICICI ventures.

However, to offer the niche products, it is launching Sita Care to promote healthcare tourism. For this unit it will tie up with Apollo hospitals and Reliance Bio-Tech. To run the project, Sita will hire experienced medical staff. However, its prime market will be NRIs from USA, UK, Middle-East and Far East.

“India has a seasonal chart and the peak tourist season is limited to a few months, but that does not mean that for the rest of the year there is no activity. Why should temperature be an issue for us? Therefore, we are creating products like medical tourism, spa and wellness tourism, which have nothing to do with the season,” said Himmat Anand, COO, Sita. It will also launch the luxury holidays by next month through which it will target niche market segments (it will target UK and US in the beginning). It has also set an ambitious target of handle a minimum of 500 clients with a turnover of Rs four crore in the first year of operations in the luxury holiday segment.