Tour operator Cox & Kings has announced its plans to start a non-banking finance company (NBFC) to finance holiday travel and students studying abroad.
The company board on Tuesday approved the demerger of its foreign exchange business into a new company called Cox & Kings Financial Services Ltd (CKFSL). It said the company was in the process of applying for a licence to operate as a NBFC and will add multiple product lines to its suite of offerings over time, including holiday finance and overseas student finance.
“The working capital needs of the forex business are different from those of the tours and travel business,” Cox & Kings said in a statement, adding that the decision to spin off the forex business was taken to enable it to “capitalise on growth opportunities in an independent manner”.
“Strong macro drivers, coupled with strategic brand presence, will enable CKFSL to flourish. There are abundant large-sized avenues for natural product diversification and the timing of this demerger is most opportune,” said Cox & Kings chief executive officer Peter Kerkar.
