Thomas Cook (India) has acquired the rights to use the Thomas Cook brand in India, Sri Lanka and Mauritius markets. The deal involves a one-time payment of approximately Rs 13.9 crore (GBP1.5 million).
An agreement to this effect has been signed with AlixPartners, Thomas Cook UK’s (TCUK) appointed special managers. The agreement ensures that Thomas Cook (India) can now use the brand in perpetuity on a royalty-free basis. This move by TCIL also prevents possible new entrants into these markets, using the Thomas Cook brand name.
Madhavan Menon, chairman and managing director, Thomas Cook (India) Ltd (TCIL), said, "We have been able to sign an agreement to acquire the rights to the iconic Thomas Cook brand. It is one of the most respected names in the travel services space and one that we at Thomas Cook India have operated uninterrupted for 138 years now."
An integrated travel and travel-related financial services company, it has been operating under the Thomas Cook banner in India since 1881. In 2012 when TCIL were acquired by Fairfax Financial Holdings of Canada, it had entered into a Brand Licence Agreement with the erstwhile Thomas Cook Group of the UK to pay an annual brand licence fee of Rs 2 crore until 2024 for exclusive use of the brand in India, Sri Lanka and Mauritius markets until 2024. The brand license agreement also gave TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
"So when this opportunity of complete ownership of the brand name came up, we had to grab it," said Menon.
Among the largest travel service provider networks headquartered in the Asia-Pacific region, Thomas Cook India Group's operations is spread across 29 countries and five continents. With a combined revenue in excess of Rs 6,718.7 crore for the financial year ended March 31, 2019, it currently employs over 9,700 people across its offices.
In addition to Thomas Cook, the Thomas Cook India Group operates leading B2C and B2B travel brands including SOTC, TCI, SITA, Asian Trails, Allied T Pro (ATP), Australian Tours Management (ATM), Desert Adventures, Luxe Asia, Kuoni Hong Kong, TC Travel, Private Safaris East & South Africa, Sterling Holidays and Digiphoto Entertainment Imaging (DEI), with strategic investments in Ithaka by Travel Junkie Solutions.
Thomas Cook India Group, according to a company statement, continues to remain financially strong with cash and bank deposits balances of Rs 1,088.3 crore as of September 30, 2019. On a standalone basis Thomas Cook India is debt free and the group generates an average annual free cash flow of around Rs 200 crore.
"Our teams will continue to build the Thomas Cook business across India, Sri Lanka and Mauritius, and grow sustainable value for all our stakeholders in the years ahead,” TCIL said in a statement.
(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)
 |
| Madhavan Menon, CMD, TCIL |
Madhavan Menon, chairman and managing director, Thomas Cook (India) Ltd (TCIL), said, "We have been able to sign an agreement to acquire the rights to the iconic Thomas Cook brand. It is one of the most respected names in the travel services space and one that we at Thomas Cook India have operated uninterrupted for 138 years now."
An integrated travel and travel-related financial services company, it has been operating under the Thomas Cook banner in India since 1881. In 2012 when TCIL were acquired by Fairfax Financial Holdings of Canada, it had entered into a Brand Licence Agreement with the erstwhile Thomas Cook Group of the UK to pay an annual brand licence fee of Rs 2 crore until 2024 for exclusive use of the brand in India, Sri Lanka and Mauritius markets until 2024. The brand license agreement also gave TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
"So when this opportunity of complete ownership of the brand name came up, we had to grab it," said Menon.
Among the largest travel service provider networks headquartered in the Asia-Pacific region, Thomas Cook India Group's operations is spread across 29 countries and five continents. With a combined revenue in excess of Rs 6,718.7 crore for the financial year ended March 31, 2019, it currently employs over 9,700 people across its offices.
In addition to Thomas Cook, the Thomas Cook India Group operates leading B2C and B2B travel brands including SOTC, TCI, SITA, Asian Trails, Allied T Pro (ATP), Australian Tours Management (ATM), Desert Adventures, Luxe Asia, Kuoni Hong Kong, TC Travel, Private Safaris East & South Africa, Sterling Holidays and Digiphoto Entertainment Imaging (DEI), with strategic investments in Ithaka by Travel Junkie Solutions.
Thomas Cook India Group, according to a company statement, continues to remain financially strong with cash and bank deposits balances of Rs 1,088.3 crore as of September 30, 2019. On a standalone basis Thomas Cook India is debt free and the group generates an average annual free cash flow of around Rs 200 crore.
"Our teams will continue to build the Thomas Cook business across India, Sri Lanka and Mauritius, and grow sustainable value for all our stakeholders in the years ahead,” TCIL said in a statement.
(The writer is a Mumbai-based independent business journalist and has extensively covered diversified consumer businesses over the last two decades. He can be reached at hello@ashishktiwari.com)
