Thomas Cook India (TCIL) will undertake a corporate restructuring, subject to regulatory approvals, that is aimed at streamlining its businesses into four key verticals.
The verticals include, travel (outbound, domestic, business travel and MICE), foreign exchange, destination management services and portfolio investments such as Sterling Holiday Resorts.
The restructuring also involves the consolidating of the human resource services business into Quess Corp.
Madhavan Menon, chairman and managing director, TCIL, said in a statement: “This proposed restructuring with the realignment of the travel businesses of TCIL and consolidation of the human resource services business into Quess Corp will simplify the group structure, enabling both TCIL and Quess to grow independently and consolidate their positions in their segments with far greater clarity of focus from an industry and growth/opportunity point of view – for investors, management and teams.”
In its current structure, TCIL along with its subsidiaries and associate companies such as SOTC, TCI, TC Travel and Sterling Holidays are engaged in various travel and travel related financial services, vacation ownership and resorts.
Meanwhile, Quess Corp is engaged in human resource and business related services such as industrial asset management, integrated facility management, human resource services and technology solutions.
The TCIL Group’s many travel and non travel-related acquisitions in recent years, including Kuoni Hong Kong and Kuoni’s multiple destination management services entities across 21 countries, among others, as well as Quess’ several acquisitions both in India and overseas had created complex structures both at the Quess as well as the group level.
In the wake of the proposed restructuring, TCIL will be a travel-focused company, while Quess will continue its growth trajectory in the high growth opportunity space of human capital and allied services, the release said.
“We believe that the proposed restructuring will give our individual lines of business the advantages of flexibility and the integration of size, scale and financial strength to take us to the next level of growth,” added Menon.