Thomas Cook weighs rejig post LKP merger

Thomas Cook India will rationalise its operations after its merger with LKP Forex.

"There could be rationalisation of operation, poorly performing branches and surplus employees. Similarly, new branches will be added in the current year," sources close to Thomas Cook India said. Thomas Cook officials, however, declined to comment.

After the merger, Thomas Cook India will have 145 branches, Rs 200 crore in revenue and 1,800 employees. The company, at present, has 65 branches and its revenues stand at Rs 160 crore.

The company also has six branches in Mauritius and four in Sri Lanka, where it handles forex, inbound holiday business, ground handling at the airports, and ticketing.

LKP Forex's current revenues stand at Rs 40 crore and has 80 branches. In 2004-05, LKP Forex recorded a net profit of Rs 2.5 crore.

Thomas Cook is aggressively eyeing overseas and domestic acquisitions in segments like holiday packages, foreign exchange, travel, and travel insurance. The is keen on acquisitions and branch expansion in West Asia in particular, as it aims to grow quickly through the inorganic route.

Thomas Cook India is looking to grow faster after it was taken over by Dubai Financial LLC from the parent Thomas Cook AG of Germany in 2005. The Dubai firm acquired 60 per cent stake in the company for an estimated consideration of Rs 423 crore ($92 million).