Interview with Ankur Bhatia, Executive Director, Bird Group

Company Description: The Bird Group was founded in 1971 with the incorporation of Bird Travels. It has over 40 years of experience and more than 40 offices supported by over 5500 staff. Today Bird Group’s core business includes travel technology, comprehensive airline representation & management, hospitality, passenger aviation services & ground handling, cargo management, education & training, business consultancy & luxury retail. Together, the various companies within these verticals generate direct revenue in excess of USD 100 Million.

Can you briefly tell us about the Bird group?

It was started by my parents in 1972. We started off as agents for Lufthansa till 1992 after which we started diversifying into IT for travel. So basically we are a travel oriented group. We do a lot of things within travel like ticketing, representing nearly 15 airlines etc. Over the years we have grown and we have got five verticals in the group. In travel IT we are the largest players. We have a market share of maybe 60pc of all travel transactions that happen across the Indian sub-continent. We are into aviation services wherein we do ground handling at the airports. We are in into hospitality and have 6 hotels across the country and the seventh one we have acquired in London.  We have a joint venture with Dusit from Thailand and there are different categories of hotels. In London the hotel is called Royal Park. We are into retail as well so we are agents for BMW and sell their cars. We are the largest distributors for them in the country. Our Gurgaon outlet is the largest 4S facility for any luxury car in Asia. We also sell Porsche design from the design house of Porsche. We manufacture and sell Segways and we are getting more brands in retail. The last vertical is education. 

Coming to Segway, how did your group get into selling these personal transporters (PT) in India?

Segway Personal Transporter (PT) is an interesting product. Segway PT is one product which is unique in its proposition. It does not have any competition and it’s a vehicle that will help you navigate in places where you can’t have any vehicle going.  The technology behind the vehicle is excellent as well. India is a huge country and there is always a transportation issue. We saw the potential of the product and brought it here.

How is it doing now? When was it launched in India?

It was launched in November last year. We are going to complete one year at the end of this year. We already have sold 65-70 units across various segments.

Did you anticipate a huge demand for that?

It’s not a mass market product as it is a product meant for specific application purposes. We are talking about airports, campuses, high net worth individuals etc. As I mentioned all these segments are growing in our country. As the population grows in this segment so will the demand.

How long will it take for these segments to grow?

It’s not a product that will sell 10,000 units per year, there is no intent of that. The price point is very different, besides our roads are not meant to use the Segway product. If they where to change in the future, of course, we will move to that level. But on an average our business plan is to sell 200-300 vehicles on an annualised basis.

How are these products doing abroad?

Even abroad, there is a huge potential for the product to grow, . Globally Segway PTs sell 7,000-10,000 units a year. We would eventually get a new market share.

The other vertical you mentioned is Porsche design. What exactly is that?

Porsche design is all about selling goods from the design house of Porsche which is men’s luxury. Goods like luggage, pens, phones too are sold through our own showroom at the DLF Emporio in Vasant Kunj in New Delhi. Segway does not have a showroom but eventually we shall open one for Segway too. 

But you are also extending your presence in Emporio, in luxury apparel brands?

As mentioned we have got Porsche design there, we have planned something else also but nothing has been announced as yet.

Coming back to Segway products, you are offering consumers two models?

There are only two models that Segaway has--- the i2 and x2. But any of these two products can be accessorised. You can have different variants.

Currently where is the demand for the Segway products coming from?

Primarily in airports there is a demand for this product. We are going to tie-up with a company that uses the product for Out of Home advertising. So they are putting multiple products at places such as airports, railway stations for you to operate and with displays around. So it’s a catchy product and there is an advertising thing done around that.

Is there a possibility for the price of the Segway PT to come down in future?

The technology in this product is expensive, the batteries last forever. I guess over the years when the product gets to a mass market, the prices are going to come down. Is there a timeline for that, no! I don’t think so. There are a lot of duties, taxes that add to the price of the product.

Is it imported currently?

It’s built here, in the sense that all the parts are imported. Then the assembly process happens here. The assembly process is simpler and not expensive but it’s the parts like the batteries which are imported. This is an electric vehicle. It’s not a motorcycle, it is not a car, so there is no categorisation of this product.

Where is it assembled? And what is the capacity of the unit?

The product is assembled in Gurgaon and the capacity is to assemble 200-300 units a year.

The government is trying to promote electric vehicles, so is there a scope for this product to be promoted too?

Yes, we are in touch with the government. It takes time obviously, we have to convince them. They promote electric cars and this is not an electric car. The Segaway PT attracts a VAT of 12pc and scooters have zero VAT, so we have to convince them.

Currently you have just one showroom in Delhi. What about other cities?

For Segway we don’t have any showroom. We just retail it out. If somebody wants it, we send someone for a demo. We have plans but we have to decide where to have such a showroom, whether it has to be in a mall or should it be standalone facility. We sell across India and a lot of demand comes from Mumbai- from the film stars.

Coming back to the price, is it a deterrent for prospective customers?

Yes, it’s not meant for everybody in the sense that 4 lakh will get you a nice little small car. But there is a segmentation and you need to use it for a particular purpose. It can be used on the campus or airport, places you can’t drive vehicles. For eg a lot of people bought this for steady cam or camera mounted operation, for shooting. An entire IPL team has bought it for going around in stadiums. There are different applications and it requires out of the box thinking.

Are your sales confined to India?

We are only looking at India, Sri Lanka and the subcontinent. The vehicle is available in these countries but the focus is on India.

You talked about growth, you talked about your interests with BMW, Segway, apparels, Porsche design etc. So where is the focus right now?

Well, there is travel IT- we are No.1 players, aviation service- we are No.1, hospitality-once more hotels are built we will be a sizeable player. In retail we are the largest dealers of BMW in the country, with the largest facility. In education we are No.1 as well. There is no focus on a particular segment, we are a large group.

Is there any chance to leverage these businesses?

In aviation we do sell private jets, in luxury segment we sell yachts as well. The person who has a 7-Series will eventually get to an executive jet or yacht, so customer base remains same. None of that goes to mass market as of now. The hotels that we are putting in are high-end luxury. The first hotel which opens up in Delhi will be Dusit Devrana Resort in Delhi. It’s by and large the most luxurious resort in Delhi or North India that you have ever seen. Dusit is a company that comes from Thailand, it’s the largest operator for hospitality there. It’s like Oberois in Thailand, we have a joint venture with them for management. Devrana is one sub brand, it’s one high-end brand. We are opening two hotels in Delhi. We have one in Goa, Rishikesh, Jaipur and Kochi.

Are your products confined to the HNI?

Yes apart from B2B services that we have. If you travel between Delhi and Mumbai you have probably booked on our reservation system. Chances are 60pc, if not more!