Why EaseMyTrip's E-bus venture could become a di-worsification trap

A profitable online travel agency (OTA) is a rarity, but EaseMyTrip (Easy Trip Planners) has always stood out as an exception. However, its latest diversification plans may cause concern, even among its most loyal supporters. The OTA recently announced a bold foray into the electric bus market, allocating Rs 200 crore to establish a manufacturing plant over the next two to three years capable of producing 5,000 buses. While the company's impressive track record of generating Rs 100 crore annually in cash suggests that capital isn't a concern, its latest venture marks a sharp departure from the asset-light business model that has driven its success. Here's why this shift could be a risky gamble.