Navigating Through Complexity

In a world remade by the pandemic and an ongoing digital revolution, there’s a unique challenge in leading a heritage brand. For Debasis Nandy, President & Group CFO, Thomas Cook India Group, it is about reconciling the weight of a 144-year-old legacy with the relentless pace of modern travel. In a candid conversation with IMA India, Mr. Nandy explains how the company isn’t just adapting but thriving. He lays out a titan’s roadmap that stretches far beyond the company’s roots in foreign exchange. Today, Thomas Cook India is a diversified leader in experiential travel and leisure hospitality, powered by technology for agility and built on a disciplined culture where cash is king.

What are the key lines of your business, customer segments and geographies?

Thomas Cook operates through four distinct segments. Traditionally, we have been in foreign exchange and travel services, which have been our foundation for over a century. We are not merely a moneychanger; we hold an Authorised Dealer (Category II) license, which places our operational scope close to that of banks. This allows us to offer our own prepaid cards, remittance services.

In travel, we are India’s largest integrated player, covering business travel, outbound and inbound travel, MICE (Meetings, Incentives, Conventions & Exhibitions) and destination management. Our global footprint spans 28 countries across 5 continents via our Destination Management Specialist companies. Beyond this core, we have a leisure hospitality segment, Sterling Resorts, which currently manages 62 resorts with a strategic plan to expand to 85. Finally, we operate a digital imaging business, headquartered in Dubai, which services theme parks and tourist attractions across 14 countries.

How would you characterise the prevailing trends and shifts in India’s travel and hospitality sector in the post-pandemic era?

We have witnessed a sea change. Travel has become deeply aspirational and there is a noticeable demographic shift. Approximately 35% of our customers are now under the age of 35, which is significant for a legacy brand like ours. Growth is increasingly fuelled by tier-two and tier-three cities, largely driven by social media and the pursuit of curated ‘Instagrammable’ experiences. It’s no longer about visiting a destination but gaining a unique and shareable experience.

At the same time, the infrastructure boom has been a total game-changer. The expansion of India’s airports from approximately 74 to 164, with a projection of over 350, has dramatically improved accessibility, opening new destinations such as the Northeast. Furthermore, the prevailing trend now favours multiple short-haul holidays to destinations like Vietnam or Dubai, as opposed to a single, extended annual trip. Announcements of visa-free entry for Indians/e-Visas coupled with direct air connectivity has seen new destinations like Central Asia appear on the radar. The sector’s resurgence has exceeded our initial expectations.

Travel is closely linked to macroeconomic and geopolitical shifts. What are the key trends shaping the industry today and how are you adapting financial strategy in response to these shifts?

Our experience during the Covid-19 pandemic served as the ultimate test, a period during which revenues nearly vanished. Our response was twofold. We implemented an extensive cost-reduction program while making strategic investments in technology. We closed unprofitable branches, consolidated offices and utilised the downtime to strengthen our digital infrastructure. For instance, 25% of our leisure travel business is now conducted online and we are the only entity in India offering foreign exchange transactions via WhatsApp, complete with delivery and video KYC. Besides, maintaining a cash-rich balance sheet was instrumental in weathering that storm. Now we have a clear understanding of where to enact cost-saving measures and how to swiftly enhance productivity when necessary.

How do you compete with tech-first travel platforms that dominate online bookings?

The market is sufficiently vast to accommodate multiple players; our combined market share with our brand SOTC remains under 5%. We do not compete on price for basic ticketing or standalone hotel bookings, where margins are notoriously thin. Instead, our focus is on experiential travel, including curated packages for domestic and international destinations. This is a specialised skill honed over years. Our primary asset is our people, particularly our tour managers, who are pivotal in shaping the customer experience. Our objective is to earn customer loyalty through superior pre- and post-sales service, rather than engaging in margin- eroding price wars.

Digital transformation is reshaping both, the consumer experience and internal operations. What role is technology playing in modernising your finance function?

Technology has been pivotal in improving productivity and resilience. We operate an automated shared service centre, utilising Robotic Process Automation (RPA) for handling reconciliations and invoicing. This frees our team to concentrate on more value-added, analytical tasks. We leverage advanced analytics for dynamic forecasting, which is essential in a volatile climate where a static annual budget becomes obsolete. We are also exploring AI ambitiously. We are developing a multilingual voice bot capable of not only suggesting an itinerary but also pricing and selling an entire travel package directly. The logical progression is to migrate from RPA to AI within the finance function itself.

Many new-age companies prioritise growth over profitability. How do you, as a traditional company, balance this?

Our owner, Fairfax, operates on a clear principle: profit and cash flow are the only metrics of true consequence. Top-line growth is vanity; the bottom line is sanity and cash is reality. We do not have a license to burn capital. It is a careful balancing act, investing for future growth while simultaneously managing quarterly profitability. Every investment is rigorously evaluated based on its expected return and timeframe. This culture of fiscal discipline was instilled in us by Fairfax and was solidified during the pandemic. It is now ingrained in our operating ethos.

As ESG becomes a growing priority across sectors, how is it being integrated into Thomas Cook’s financial planning?

On the environmental front, sustainability is gaining traction in India, driven largely by demands from our overseas B2B partners. We are proactively preparing by initiating measures to reduce plastic usage and measure our energy consumption. We have even developed proprietary software to provide customers with the carbon footprint of their ticket bookings. Socially, through the Fairfax Foundation, we are tackling diabetes by providing dialysis machines to government hospitals. We have installed over 1,400 machines with a target of 2,000. Regarding governance, as a listed company under Fairfax’s ownership, we pride ourselves on stringent processes in risk management, vendor relations and compliance.

How would you describe the evolution of the CFO's role and what do you see as its future trajectory within the corporate landscape?

Modern CFOs are no longer confined to the traditional aspects of the finance function. They have a rare, bird’s eye view of the entire business, making them a key strategic advisor to the CEO. Today’s CFO is less of a bean-counter and more of a business partner, central to the company’s continuous transformation, whether in automation, risk management or governance. The role is now fundamentally about being a decisive force in actively shaping the future trajectory of the business.

With close to 7% market share, Toyota Kirloskar Motor has now been in India for more than 25 years. Its first product launch, back in 2000, was the iconic Toyota Qualis. Last year the company sold over 300,000 . In a recent conversation with IMA India, the company’s Deputy Managing Director, Swapnesh R Maru,shared his perspective on consumer behaviour, rural and urban dynamics, premiumisation and the evolving multi-pathway approach to electrification, providing a sharp view of what could shape Indian mobility in the years ahead.

Could you outline Toyota Kirloskar’s presence in India in terms of your key product lines and current market position?

Toyota Kirloskar Motor is a joint venture between Toyota Motor Corporation of Japan, which holds an 89% stake and the Kirloskar group, with 11%. Our product portfolio is established with models in C & above segment such as Fortuner, Innova Crysta (ICE), & Innova Hycross (Strong Hybrid). We also locally produce Camry, Hilux and luxury model Lexus ES in our Bidadi plant. Additionally, we import several luxury vehicles such as Land Cruiser, Vellfire and a wide range of Lexus models as CBUs.

Through our partnership with Suzuki, we expanded our lineup to A & B segments with models like Glanza, Taisor, Rumion and Urban Cruiser Hyryder. With these products, we are now able to cater to the entire spectrum of Indian customer needs across various segments.

We have announced the setup of a Green Field Project spread over 800 acres at Chatrapati Sambhaji Nagar, Maharashtra.

On the powertrain front,we have always been associated with electrified technologies - niche models such as the Prius and Camry established our presence early. But the real breakthrough came with the Urban Cruiser Hyryder and Innova Hycross, which introduced hybrid powertrains at scale. These have effectively cemented electrified hybrid technology in the Indian mass market and positioned us as leaders in electrified mobility. Our lineup thus offers multiple powertrain options empowering customers choices.

You currently focus on the C-segment and above. How have consumer priorities evolved in recent years and do younger buyers value different things compared with older ones?

The Indian automobile market is at a fascinating point, shaped both by global energy transitions and India’s own economic journey. Unlike many countries where auto sales are skewed toward the upper end, India remains unique. Of the 4 million passenger cars sold annually, more than half cater to the A & B segments. This makes the market extremely price sensitive, even as regulations on safety, emissions and design get factored in. Features like 6 Airbags, pedestrian-safe designs and ADAS are critical in a country with high road accident rates and customers are slowly realising the importance of these advanced technology and safety measures in vehicles.

Another striking shift is in body types. A decade ago, hatchbacks dominated nearly half the market; today, they account for less than 20%. SUVs and MUVs have rapidly taken over, mirroring global trends but on a scale that is especially significant for India’s 4-million-unit market. This shift is not merely aesthetic; it is tied to road infrastructure, social status and customer aspiration, in line with global trends.

At the same time, Indian buyers, even in mass segments, aspire premium features. A customer purchasing a car worth Rs 500,000- 600,000 now mandates stylish design, comfort and technology previously reserved for higher categories. This ‘premiumisation’ extends further up the ladder and is increasingly linked to customisation, as consumers seek to express their identity and aspirations through their vehicles, fuelling both OEM and aftermarket personalisation. Urban India seeks sophistication and future tech, while Rural India focuses on ruggedness and functionality marking a distinct difference in consumption pattern. This leads Automakers to create tailored strategies to meet the unique body type and usage requirements of both markets.

Looking ahead, though India is rapidly moving towards electrification, it will follow multiple pathways where several technologies will co- exist such as CNG, Flex-Fuel, Biofuels, Hybrids, Plug-In Hybrids, Battery Electric and Hydrogen fuel cell along with ICE powertrains, considering customer affordability and diversity of the Indian market. This reflects the scale and depth of consumer demand, making India not only a fast-growing auto market but also a living example of how multiple technologies can coexist and contribute to national priorities.

Economists often use two-wheelers as a proxy for rural demand. Do you think that still holds true today?

With better road conditions and connectivity to towns and major cities, car demand is increasing in Rural India. While, ownership is concentrated in pockets of prosperity, buyers are willing to spend significantly, sometimes Rs 5-6 million or more, on SUVs like Fortuner and beyond, not only as a statement of aspiration but also for practical needs. Their preferences remain authentic to their needs while still signalling upward mobility. In this sense, rural India has moved well beyond two-wheelers as a symbol of aspiration, with SUVs and larger vehicles now more representative of consumer desire.

How are the preferences of younger buyers diverging from traditional car ownership norms?

Among younger consumers, the traditional aspiration of owning a house and car is no longer as absolute as it once was. Still, once individuals settle into their careers, typically between 25 and 30 years, the need for a car asserts itself, particularly to manage family and social mobility. Buying a car may not be the priority, but it continues to be a preferred choice for personal transportation.

What has shifted, however, are the priorities. Today’s youth are more selective, paying close attention to design, technology, riding comfort and connected features, while placing less emphasis on legacy brands.

A parallel trend is the growing preference for mobility solutions over outright ownership. Many young consumers, especially in urban centres, are open to choosing vehicles based on specific needs like commuting to work, weekend travel or social outings while avoiding the burdens of parking, maintenance and repairs. That said, this shift is still nascent and largely limited to a select segment of urban youth, often from families with some degree of financial security.

From your experience, how has the rise of digital platforms changed the car-buying journey for consumers?

There is a clear distinction between the pre and post-Covid era, with Covid acting as a strong catalyst for digitalisation. Car buying remains, at its core, a ‘touch and feel’ experience. Families still want to visit showrooms, sit in the cars and experience them physically before purchase. However, everything leading up to that moment has shifted online. Consumers now research models, explore digital showrooms, compare finance options and shortlist vehicles digitally. Buyers prefer to minimise time in the showroom, but when it comes to the final decision, the physical experience remains indispensable.

The auto sector has seen sharp swings in recent quarters; passenger vehicles and two-wheelers rising and falling in turn. You recently reported 33% growth in sales. Over the next 2-3 years, how do you see demand for passenger vehicles evolving and what’s your outlook on two-wheelers and commercial vehicles post the pandemic surge?

The auto sector is at a very interesting juncture. Before Covid, the industry was booming, though demand had stabilised prior to the pandemic. Covid then collapsed the market, but the post-Covid surge was remarkable. Consumers rushed to buy cars for personal safety, creating demand far above supply for nearly 18 months. That cycle ended last year and today the PC market growth rates have stabilised.

At the same time, regulation is now a key driver of what models automakers launch, at what price points and with what technologies. The future of mobility in India will clearly be electrified, but not in a single form. We’ll see a mix like CNG, hybrids, plug-in hybrids, flex-fuel engines running on ethanol blends, battery EVs and even synthetic fuels. These will arrive at varied price points, but consumer preference among them will only become clearer in the next 2-3 years.

Today, EVs account for about 3.8% of the market, with hybrids adding another 2%. ICE vehicles still dominate. Over the next few years, electrified options will continue to rise, but the pace will depend on consumer acceptance and affordability.

Looking ahead, growth will be steady but not exponential. We expect annual expansion in the range of 2-4.5%, with some years performing better and others slower. The bottom isn’t slipping. Instead, the market is entering a phase of exploratory, moderate growth as consumers upgrade and the industry transitions toward new technologies.

When it comes to EVs and hybrids, who is willing to pay the premium: older buyers upgrading or younger first- and second-time buyers?

Broadly, the typical electric car buyer tends to be younger, often purchasing it as a second vehicle for the household. Most are based in urban, tier-one cities, where their driving habits are largely confined to intra-city travel rather than long intercity journeys.

To what extent do tier-2 and tier-3 markets figure in your sales strategy and how do you balance positioning between rural and urban consumers?

We have been steadily enhancing our focus on the rural market. Take the Innova Crysta, for example, the ICE version of the Innova, where a significant share of customers come from rural areas, tier-2 and tier-3 towns or peri- urban regions around cities like Bangalore and Chennai.

Our strategy is to deepen rural penetration through both product offerings and an expanded network of dealerships and service touchpoints. Our partnership with Suzuki, particularly in the B-segment, further extends our reach. While some models are not produced by us, the strength of the Toyota badge allows us to deliver trusted offerings to rural buyers. This is a deliberate, planned approach that is bringing us closer to the rural customer base than ever before.

Looking ahead 3-5 years, which consumer trends do you see as most decisive for shaping auto demand?

Environmental and regulatory factors will play a decisive role in shaping consumer choices. Faster rollout of ethanol and fuelling infrastructure will accelerate adoption of flex- fuel vehicles, while the expansion of urban and highway charging ecosystems will be critical in driving EV uptake.

Equally important is the establishment of strong data security frameworks for connected cars, supported by clear regulation of telecom operators, hardware providers and system integrators. This will deepen consumer interaction with vehicles, enabling use cases beyond navigation and remote access, and has the potential to significantly reshape the mobility experience.