THOMAS Cook (India) Ltd has signed a deal with AlixPartners, Thomas Cook UK’s appointed special managers, to acquire the rights to the Thomas Cook brand in India, Sri Lanka, and Mauritius.
The deal has been signed for a one-time payment of £1.5 million or Rs 139m.
Thomas Cook (India) Ltd is a travel and tour related financial services company operating from India.
Thomas Cook (India) Ltd was previously contracted to pay an annual brand licence fee of Rs 20m or £214730.74 to Thomas Cook UK until 2024 for the usage of the brand.
Thomas Cook (India) Limited has operated the Thomas Cook brand name uninterrupted in India since 1881.
In 2012, when Thomas Cook India was acquired by Fairfax Financial Holdings of Canada, the India-based business 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 Thomas Cook India the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
Thomas Cook India can now use the iconic travel services brand name that they have operated with for 138 years in India. It enjoys high recall and strong brand equity.
The agreement ensures brand use rights in perpetuity and means that the India-based firm can use the brand in perpetuity on a royalty-free basis.
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.
The Thomas Cook India Group is one of the largest travel service provider networks headquartered in the Asia-Pacific region – spanning 29 countries and five continents.
The group has a staff strength of over 9,700 and a combined revenue in excess of £721.36m for the financial year ended in March.
The Thomas Cook India Group continues to remain financially strong with cash and bank deposits balances of £116.85m as of September.
The latest 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), and others.