MIH Group acquires 51% stake in Tek Travels

"This is a strategic partnership between MIH Group and Travel Boutique Online," said Nijhawan who, along with IIT alumnus Gaurav Bhatnagar, founded Travel Boutique Online in 2006. The two will continue to run the company along with the entire management after the acquisition. "While MIH will gain footprint in the domestic online business travel space, we will be able to tap international markets," he observed.

Travel Boutique Online offers a gamut of travel services such as airline, train and hotel reservation and holiday package deals. It also provides charter and choppers and helps with car rental, bus bookings and travel insurance. Its revenues stand at 90-110 crore.

MIH runs businesses in internet platforms, pay-television and related technologies. In India, it has an active presence in the e-commerce space through internet assets such as ibibo Games (social games), Goibibo.com (travel), Tradus.in (shopping marketplace), Payu.in (payments) and Gaadi.com (auto classifieds). Besides, it also has a majority interest in a fast growing online travel portal, Goibibo.com.

Last year, MIH Group bought a majority stake in the privately-held Gaadi Web, which runs Gaadi.com that helps users buy and sell new and used cars.

The current acquisition signals a rapid evolution of the country's travel industry which is poised for strong growth as well as consolidation. In a market that is largely fragmented with almost 85% dominated by small, unorganised or regional players, travel companies are using an inorganic growth strategy to grab a bigger market share and expand faster.

NASDAQ-listed travel services provider MakeMyTrip is reportedly scouting for possible acquisition targets. Last year, it acquired stakes in Le Travenues Technology, which operates www.Ixigo.Com, Singapore-based Luxury Tours & Travel and My Guest House Accommodations.