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Wednesday, 06 November, 2019, 16 : 45 PM [IST]

Thomas Cook India clarifies no correlation with its UK counterpart except brand name

Putting all speculations and rumours to rest, Thomas Cook India has said that except the brand name, the company has no correlation with Thomas Cook UK Plc that filed for bankruptcy on October 21, 2019. Mahesh Iyer, Executive Director & CEO, Thomas Cook India, said, “Thomas Cook India is operating as an independent company since 2012 when the Fairfax acquired a stake of 77%, and till date they continue to be the primary promoters. The only similarity that we have with Thomas Cook UK Plc is the brand name governed by a brand licence agreement which allows us the usage of the brand name until November 2024.”

Commenting on the change in brand architecture, Iyer said, “We have a few years to mull over the change the brand name despite issues concerning Thomas Cook UK. However, Thomas Cook is a 140-year-old brand and we will milk it as much as possible and we are paying a small amount for brand royalty. There is good brand equity and we would like to use it.”

Moreover, China-based Fosun has acquired Thomas Cook UK Plc, which excludes the geographies of India, Sri Lanka and Mauritius, Iyer sated.

Talking about the financial status of Thomas Cook India, Iyer said that they are completely debt free. “We make profit of INR 100 crore every year and generate more than INR 250 crore of free cash annually. Our cash position till June 30, 2019 is INR 1,390 crore, which truly indicates that we have a strong balance sheet.”
 
When the last ditch effort by Thomas Cook UK Plc of seeking bail out from the government failed, the market was abuzz with news about problems at Thomas Cook India.
 
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