Why busbice is a family business
Posted On July 12, 2021
Busbice, the family-owned business that has a history in the tourism industry, has decided to stop its operations and close its doors for good after six years.
Sources say the family business was not in a financial position to survive as the number of tourists visiting the country declined in the last few years and the government is not in an even better financial position today.
“I am very sad that we are no longer able to fulfil our purpose of giving back to the country, to the people who love this country,” said the owner of Busbices Busbitch in Mumbai, Ramesh Bose.
“We were in business for more than 50 years.
Our family was here for more years than I could remember.
We had a very successful history in tourism.
We have always been able to provide our services to the tourists and the locals, but at the moment we have no choice.”
Sources say Busbics family has decided not to continue in the business.
“It is a very difficult decision for us, but we have to follow our own heart,” said Ramadhan Bose, the co-owner of the business who was not available for comment.
Bose was part of a group of six bus operators who decided to go under the busbices banner in 2014 after a spate of business failures at busbills franchises.
The group was approached by several operators, including the Busbops franchisees, who asked for an extension of the lease period.
The franchisees asked for additional financial assistance of around Rs 1,500 crore.
But, with the help of a small number of investors, the franchisees secured an additional lease of over 1,600 days, the lease of which was extended by another 1,000 days from the end of 2019 to the end in 2020.
In October last year, Busbicas family, which had operated in the market for almost 50 years, decided to end its business.
“We are not looking for a new lease period,” said Bose who also owns a hotel in the city.
“The lease was extended and we can continue operating in a few months.
We want to focus on the brand and to keep the bus in service,” he added.
Sources said that, during the lease extension period, Buss franchisees were asked to pay the operators Rs 1.2 lakh in rent.
“At the moment, the operators are paying rent on the spot,” said a source.
“In the meantime, the owner wants to see how long the lease lasts.
We are also working on raising funds for the next lease.
We will not be able to continue operating until the current lease expires,” said another source.
Busbics bus is not the only brand of buses to have fallen into disrepair.
The Tata Group has also shut down a busbish franchise in Rajasthan and two others in Punjab.
Sources close to the Tata group say it is not easy to operate a franchise business without a large customer base.
“There are so many brands in the country.
There are many franchisees with a similar ethos.
It is a struggle to keep up with demand,” said an official with a public relations firm.
The source said that Busbikes franchisees had to go out of business after they faced heavy losses during the financial crisis in 2015.
The loss was the largest ever at Tata Group’s franchisees.
“But, they are still running in business.
They are still offering services,” said one of the sources.