Thomas Cook India Obtains its Brand Rights in Perpetuity
Integrated travel and travel-related financial services company, Thomas Cook India Ltd., (TCIL) signs an agreement with AlixPartners, Thomas Cook UK's appointed Special Managers, to acquire the rights of the brand in India, Mauritius and Sri Lanka. The acquirement of this right is estimated to be 139 Million.
TCIL has been using the brand name in India since 1881. Later, TCIL was acquired by Fairfax Financial Holdings of Canada in 2012, after which it signed a Brand License Agreement with Thomas Cook UK to use its brand name across India, Sri Lanka, and Mauritius paying the fee of 20 Million. Also, the agreement gave TCIL the right of first refusal to acquire the brand in the event Thomas Cook UK going into liquidation before 2024.
This acquisition provides TCIL with access to ionic services that have strong brand equity in India. The agreement ensures brand use rights forever on a royalty-free basis. Also, this move avoids other competitors using this brand name.
The TCIL operates several leading B2C and B2B travel brands including SOTC, SITA, TCI, Asian Trails, Allied T Pro, Desert Adventures, Australian Tours Management, Lure Asia, TC Travel, Kuoni Hong Kong, Private Safaris East & South Africa, Digiphoto Entertainment Imaging and Sterling Holidays, with strategic investment in Ithaka by Travel Junkie Solutions.
Presently, TCIL continues to be financially strong with cash and bank deposits balances of 10,883 Million as of September 2019. Besides, its annual cash flow approximates to 2,000 Million.
"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,” states Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd.