Thomas Cook (India) has clarified that media updates on Thomas Cook UK have no correlation. Hence, there is no impact on Thomas Cook India.
British tour operator Thomas Cook has collapsed and this is making the travel industry nervous even in Asia.
But, there is a company that is having a different sort of trouble due to Thomas Cook UK’s fall. It is its namesake company in India - Thomas Cook (India) – that is currently putting all its effort to clarify that the two companies are not related.
The Indian travel firm in a statement said that Thomas Cook India Group is a completely different entity since August 2012. It was acquired by Fairfax Financial Holdings (Fairfax), a Canada-based multinational via a 77 percent stake in 2012.
"Post transfer of its entire stake in Thomas Cook (India) Limited to Fairfax, Thomas Cook UK ceased to be the promoter of Thomas Cook (India) Limited from the said date and since then, Thomas Cook UK has had no stake in Thomas Cook (India) Limited," the statement said.
“The media updates on Thomas Cook UK have no correlation. This is why there is no impact on Thomas Cook India,” the statement added.
“The last seven years have been fruitful as we continue to grow and build our legacy as an independent entity,” said Madhavan Menon, Chairman and Managing Director – Thomas Cook (India) Ltd.
He further said, “It is important that we clarify for the record that Thomas Cook (India) Limited is financially strong, profitable and maintains a positive outlook in the travel and tourism sector and continues to witness strong growth.”
The Thomas Cook India Group’s cash and bank deposits balances stand at Rs 1,389 crore (Rs 13,890 million) as of June 30.
On a standalone basis, Thomas Cook India is debt free upon the pre-payment of Rs 67 crore (670 million) debenture obligations ahead of schedule.The group generates an average annual free cash flow of around Rs 250 crore (Rs 2,500 million).