Thomas Cook: Granddaddy Of Travel Planners

In 10 years, the storied Thomas Cook name will cease to exist in India’s travel industry. Here’s how the granddaddy of travel planners is preparing for that future.

- Kaavya Chandrasekaran

When India-born billionaire investor Prem Watsa bought a 77% stake in Thomas Cook India Ltd. (TCIL) in May 2012, speculation was rife and the future unclear. Not many India units of storied multinationals get sold twice by parent companies in spite of making profits. But TCIL, set up in 1881 as a branch of its British parent Thomas Cook & Son, had to go through just that.

In early 2006, it was sold to Dubai Financial LLC, part of the Dubai Investment Group, only to be bought back in 2008. Then came the $150 million (Rs 947.5 crore at current rates) deal with Fairbridge Capital (Mauritius), a wholly owned subsidiary of Fairfax Financial Holdings promoted by Canada based Watsa. “Thomas Cook [Britain] made a series of acquisitions between 2009 and 2012 that did not do well,” says Debasis Nandy, chief financial officer and president (commercial) of TCIL. “Banks recalled loans, which forced the company to sell off some of its assets. Thomas Cook was desperate to raise money, and it was only to salvage the parent that the offspring was sold.”

Headquartered in a heritage building in South Mumbai’s Fort area, the country’s largest integrated foreign exchange and travel services company now shares nothing more with the iconic Thomas Cook Group barring the name—which too it is allowed to use only till 2025.