Cox & Kings for India hub

Move planned as a run-up to the company's IPO.

Cox & Kings, the oldest travel company in the world, is charting a global consolidation plan in the run-up to its intial public offer (IPO) in India.

Of the two options being considered, the Indian arm of the global travel services major, Cox & Kings India Pvt Ltd, may emerge as the holding company of around eight Cox & Kings group companies across the world. Eventually, there will be an IPO on the Indian bourses.

Noble & Co, the UK-based financial adviser to Cox & Kings, is also evaluating an alternate proposal of consolidating the group's operations under Cox & Kings UK. If this takes shape, the company will be listed overseas.

Confirming the development, Peter A Kerkar, global CEO, Cox & Kings, told Business Standard: "The IPO for us is not a mere fund-raising proposal. There is huge investor appetite for our brand. We see a tremendous sectoral growth in the coming years. Our Indian operations are poised to record 45 per cent plus growth in the current year."

"Prior to listing, we are evaluating proposals for consolidating our global operations under Cox & Kings (India) Pvt Ltd.

We will announce our final plan by the end of October," Kerkar added.

The group companies include Cox & Kings UK, Cox & Kings US, Cox & Kings Japan, Cox & Kings Germany, Cox & Kings Australia, Cox & Kings Turkey, Cox & Kings Italy and Cox & Kings New Caledonia.

While the group turnover is over Rs 1,200 crore (£160 million), the Rs 550 crore (£75 million) Indian business has registered 40 per cent growth from a year ago. It recorded a Rs 450-crore turnover in 2002-03. According to Kerkar, Cox & Kings UK is largely the majority shareholder in most of the group companies.

It holds around 38 per cent in Cox & Kings India while the President Hotel (a subsidiary of Tata group company Indian Hotels Company) hold a 23 per cent stake. Employes hold around 5 per cent and the balance 34 per cent is held by the Kerkar family.

In travel and tourism, the company specialises in destination management "" both inbound and outbound ""business travel and leisure travel. It also has a full-fledged money changing division.