Thomas Cook (India) has signed an agreement with AlixPartners, Thomas Cook UK's appointed Special Managers, to acquire the rights to the Thomas Cook brand in India, Sri Lanka and Mauritius for a one-time payment of GBP 1.5 Million (approximately Rs. 13.9 crore).
TCIL was previously contracted to pay an annual brand licence fee of Rs. 2 crore to TCUK until 2024 for usage of the brand.
Thomas Cook (India) has operated the Thomas Cook brand name uninterrupted in India since 1881. In 2012 when TCIL was acquired by Fairfax Financial Holdings of Canada, TCIL 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 TCIL the right of first refusal to acquire the brand in the event of the Thomas Cook UK Group going into liquidation before 2024.
TCIL's acquisition of the exclusive ownership of the Thomas Cook brand in these markets means:
TCIL can now use the iconic travel services brand name that they have operated for 138 years in India that enjoys high recall and strong brand equity.
2. The agreement ensures brand use rights in perpetuity and means that TCIL can use the brand in perpetuity on a royalty-free basis
3. This move by TCIL also prevents possible new entrants into these markets, using the brand name
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