Thomas Cook has obtained shareholders' approval for the foray at its extraordinary general meeting on Monday and has made a formal application to the Reserve Bank of India. Approval is expected by the month-end. The company will be in place by January, 1999.

The move is part of Thomas Cook's expansion plans for the next five years. The programme focuses on launch of new products, opening branches here and abroad and growth through mergers and acquisitions, said Madhavji.

The holding company in Mauritius will have an equity base of over Rs 7.50 crore, of which the initial investment will be Rs 4.50 crore, said chief executive officer and managing director AM Kakkar. It will work towards the consolidation of the parent company's business in internationalmarkets through strategic alliances and mergers

The company has also decided to introduce products like credit cards. It has also plans to enter the merchant paper business. Some new products launched recently, include the Moneygram and VTM. Thomas Cook also plans to get into related business activities like insurance, where investment will be decided after the government announces its policy for the sector.

"In spite of the general slowdown in the economy and other stumbling blocks such as poor infrastructure, there is potential for growth," said Madhavji. Development of tourism will help the country enormously, he said.

Thomas Cook, which operates in 13 cities through its 40 branches, also plans to open new offices in other parts of the country. The company has reported a growth of 36.7 per cent in its turnover for the first half of the current calendar to Rs 34.82 crore from Rs 25.47 crore. Gross profit was Rs 14.03 crore and net profit Rs 8.10 crore as against Rs 11.74 and 5.25 crore during the sameperiod last year.