Thomas Cook India signs agreement with Thomas Cook UK

Our Bureau Mumbai | Updated on December 03, 2019 Published on December 03, 2019

File photo   -  Reuters

Acquires rights to brand in India, Sri Lanka, Mauritius for one-time payment of approximately Rs 139 million

Fairfax's Thomas Cook (India) on Tuesday announced that it has signed an agreement with Thomas Cook United Kingdom (UK) to acquire the rights to the Thomas Cook brand in India, Sri Lanka and Mauritius for a one-time payment of approximately Rs 13.9 crore.

The company in a statement said that it signed am agreement with AlixPartners, which is appointed Special Managers, to acquire the rights. 

Two months ago, Thomas Cook UK went bankrupt leaving several of their customers in trouble.

Also read: Why Thomas Cook (India) is not affected by Thomas Cook's collapse

TCIL was previously contracted to pay an annual brand licence fee of Rs 2 crore to TCUK until 2024 for usage of the brand.  Thomas Cook (India) Limited has operated the Thomas Cook brand name uninterrupted in India since 1881.

In 2012 when TCIL was acquired by Fairfax Financial Holdings of Canada, TCIL had entered into a Brand Licence Agreement with Thomas Cook Group UK for exclusive use of the brand name until 2024 across India, Sri Lanka and Mauritius. 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. 

TCIL’s acquisition of the exclusive ownership of the Thomas Cook brand in these markets means that TCIL can now use the iconic travel services brand name that they have operated for 138 years in India.

The agreement

This agreement ensures brand use rights in perpetuity and means that TCIL can use the brand in perpetuity on a royalty-free basis.

This move by TCIL also prevents possible new entrants into these markets, using the brand name.

Following Thomas Cook UK’s sale of its entire stake in Thomas Cook India to Fairfax Financial Holdings in 2012, the Thomas Cook India Group has embarked on a significant growth and expansion strategy.

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.

Today, the Thomas Cook India Group, is one of the largest travel service provider networks headquartered in the Asia-Pacific region -  spanning 29 countries and 5 continents, a team of over 9700 and a combined revenue in excess of Rs. 6718.7 Cr. (over $ 0.96 Bn.) for the financial year ended March 31, 2019. 

The Thomas Cook India Group continues to remain financially strong with cash and bank deposits balances of Rs 10,883 Mn. as of September 30, 2019. On a standalone basis Thomas Cook India is debt free. The Group generates an average annual free cash flow of around Rs. 2,000 million.

Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd, said, “I am delighted that we have been able to sign an agreement to acquire the rights to the iconic Thomas Cook brand across India, Mauritius & Sri Lanka. The brand 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 since 1881."

Published on December 03, 2019
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