The Hindu Business Line : Thomas Cook to focus on `organic growth'

DEVELOPMENT PLANS: Mr Udayan Bose (right), Chairman, Thomas Cook India, with Mr Madhavan Menon, MD, at the company's AGM in Mumbai Monday. — Paul Noronha

Mumbai June 25 Thomas Cook (India) Ltd plans to strengthen its corporate travel business and would get its e-business on track by later this year.

Addressing the shareholders at the company's 30th Annual General Meeting here on Monday, Mr Udayan Bose, Chairman, said the company has around 30 to 35 corporates as its clients. Denying any further acquisitions, he said the company would focus on "organic growth".

Explaining the acquisition of Travel Corporation of India to its shareholders, now a 100 per cent subsidiary of Thomas Cook India, he said TCI's strong presence in inbound tourism made up for the "weakness" of the company in the sector.

"We would be around No 2 in outbound tourism, but TCI's No 1 position has strengthened our presence in the inbound market too," he said. Thomas Cook acquired TCI for around Rs 182 crore in December 2006.

Earlier, the company had said that the board of directors had approved, in principle, a rights issue in the ratio of 1:3 of up to Rs 225 crore. The proceeds from the issue are to be used to part-finance the acquisitions, with the rest coming from internal accruals.

Thomas Cook posted a net profit of Rs 2.39 crore in the quarter ended March 31, 2007. Its financial year is from January to December. The company's shares closed at Rs 59.70 on Monday as against the previous day's close of Rs 60.35.