Raj Travels to expand fleet to 200 buses

Firm in talks with Daimler to buy luxury vehicles.

To become the largest intercity luxury bus service company, tour operator Raj Travels and Tours is in talks with DaimlerChrysler India to buy the entire two years production of its Mercedes-Benz buses in India.

The company wants to expand its fleet from the existing 51 buses to 200 vehicles in the next 6-12 months, said Lalit Sheth, chairman and managing director, Raj Travels and Tours.

"DaimlerChrysler India is expected to launch 25 luxury buses this calendar year and 95 buses in 2007. We have expressed our desire to buy this entire lot. We would like DaimlerChrysler to do simple customisation to match our needs," said Lalit Sheth. DaimlerChrysler is yet to give its final decision on this, he said.

Simultaneously, Raj Travels is also in talks with Volvo, Tata Motors (Globus) and recently formed Force-Man for buses.

Raj Travels is expected to invest Rs 75-100 crore in this expansion and money will be raised through internal accruals and debt.

The company prefers Mercedes buses to be equipped with a 300 horse power engine, and has asked for a pricing of Rs 60 lakh per bus. It has also requested for features like headsets on each seat, pantry and a chemical toilet.

DaimlerChrysler officials were unavailable for comments. However, during the recent launch of its Actros trucks in Pune, senior company officials had indicated the company's plans to launch buses in the country, initially targeting intercity bus companies.

"Our aspiration is to be the largest organised player in the intercity bus service trade, matching global standards. So far, the company is dominant only in the southern and western markets. We are aspiring for dominance throughout the country," said Akash Sheth, chief executive, Raj Travels. The service was initiated by the company last year with Volvo buses.

"As per our long-term plans, we would like to use a Mercedes or a Volvo bus for long distance routes. For medium distance may be a Man and Tata Globus vehicles," said Akash Sheth.

Travel and tourism is the major source of revenue for the firm. The company has reported a turnover of Rs 180 crore for the year ended March 2006, growth of 84 per cent compared with the previous year.