Thomas Cook India Signs an Agreement to Acquire the Rights to the Thomas Cook Brand for the India, Sri Lanka and Mauritius Markets
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Date: 04-12-2019 5:52PM
Source: Thomas Cook India
Category: Business/ Finance, Hospitality, General, Consumer Interest, Travel & Tourism, Banking & Financial Services, Business Services, Events And Conferences
Location: Mumbai, Maharashtra, India
Business Wire IndiaThomas Cook (India) Ltd., India’s leading integrated travel and travel related financial services company, today announced it has signed an agreement with AlixPartners, Thomas Cook UK’s appointed Special Managers, to acquire the rights to the Thomas Cook brand in India, Sri Lanka and Mauritius for a one-time payment of GBP 1.5 Million (approximately Rs. 139 Million).
TCIL was previously contracted to pay an annual brand licence fee of Rs. 20 Million 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:
- TCIL can now use the iconic travel services brand name that they have operated for 138 years in India that enjoys high recall and strong brand equity.
- The 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.
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.
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. 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 Mn.
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.
In 2012 when TCIL were acquired by Fairfax Financial Holdings of Canada, we had entered into a Brand Licence Agreement with the erstwhile Thomas Cook Group of the UK to give us exclusive use of the brand until 2024 across India, Sri Lanka and Mauritius for an annual licence fee of Rs. 20 Mn. So when this very attractive investment opportunity of complete ownership of the brand name across these markets, for a onetime payment of Rs. 139 Million came up, it truly was an opportunity we had to grab!
Our teams now look forward to continue to build on the glorious heritage of Thomas Cook across India, Sri Lanka and Mauritius - to grow sustainable value for all our stakeholders in the years ahead.”
About Thomas Cook (India) Limited:
Set up in 1881, Thomas Cook (India) Ltd. (TCIL) is the leading integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa and Passport services and E-Business. It operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied T Pro, Australian Tours Management, Desert Adventures, Luxe Asia, Kuoni Hong Kong, Sterling Holiday Resorts Limited, TC Forex, Distant Frontiers, TC Tours, TC Visa, Travel Circle International Limited, Ithaka, Digiphoto Entertainment Imaging (DEI), Private Safaris East & South Africa.
As one of the largest travel service provider networks headquartered in the Asia-Pacific region, The Thomas Cook India Group spans 29 countries across 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.
TCIL has been felicitated with The Best Travel Agency – India at TTG Travel Awards 2019, The Best Outbound Tour Operator at the Times Travel Awards 2018 & 2019 and Leading Company with Cutting Edge Travel Innovation at the Times Travel Awards 2018, Best Risk Management-Framework & Systems at the India Risk Management Awards 2019; Best Cash Management Solution – India at the Asset Triple A Treasury, Trade, Supply Chain & Risk Management Awards 2018, Excellence in Domestic Tour Operations at the SATTE Awards 2018, Best Travel Entrepreneur of The Year at TTG Travel Awards 2017, The French Ambassador’s Award for Exemplary Achievements in Visa Issuance – 2015 to 2019 and the Condé Nast Traveller – Readers’ Travel Awards from 2011 to 2019.
CRISIL has reaffirmed the rating on debt programmes and bank facilities of Thomas Cook (India) Ltd at ‘CRISIL AA-/Stable on the long-term bank facilities of TCIL and CRISIL A1+ rating on the short-term bank facilities and short- term debt of the Company.
For more information, please visit www.thomascook.in
Fairbridge Capital (Mauritius) Limited, a subsidiary of Fairfax Financial Holdings Limited promotes TCIL by holding 65.60% of its paid-up capital and is responsible for the execution of acquisition and investment opportunities.
About Fairfax Financial Holdings Limited:
Fairfax Financial Holdings Limited is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Founded in 1985 by the present Chairman and Chief Executive Officer, Prem Watsa, the company is headquartered in Toronto, Canada. Its common shares are listed on the Toronto Stock Exchange under the symbol FFH and in U.S. dollars under the symbol FFH.U.
About Quess Corp Limited:
TCIL owns 48.39% of Quess Corp Limited, a provider of integrated business services.
About Subsidiaries of Thomas Cook (India) Ltd.:
Sterling Holiday Resorts Limited, wholly owned subsidiary of TCIL is engaged in time share and resort business.
SOTC Travel Limited, wholly owned subsidiary of TCIL is a leading travel and tourism company active across various travel segments including Leisure Travel, Incentive Travel and Business Travel.
Thomas Cook India Group holds a 51% stake in DEI Holdings Limited (DEI), one of the world’s leading imaging solutions and services providers.
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