International air travellers flying from Delhi and Mumbai will soon have more shopping options.
The Irish duty-free major Aer Rianta International and South African duty-free company Tourvest Holding have made proposals before the Foreign Investment Promotion Board to set up duty-free shops.
Analysts feel that with the new players getting into the nascent airport retailing business and existing ones looking to add more brands and categories, the shopping experience will become even better for travellers.
South African firm Tourvest Holding has proposed to form a joint venture and invest Rs 18 crore to set up duty-free shops while Aer Rianta International, Ireland, along with its subsidiary Cardose Ltd, is keen to set up a 50:50 joint venture company Buddy Duty Free Service. Both these firms are eyeing the duty-free business opportunity in Mumbai airport.
In September 2012, Tourvest, through its wholly-owned subsidiary African Tourism Holding, had entered into an MoU with Bombay Swadeshi Stores (Bombay Stores) to form a consortium to bid for setting up duty-free shops at Mumbai airport. Aer Rianta International is looking to invest Rs 2.85 crore in the venture.
Arvind Singhal, Chairman, Technopak, a retail consulting firm, said duty-free shops in Indialargely target arriving passengers rather than the departing ones. “The new entrants will increase options for the customers. In many global destinations, duty-free shops are like upscale malls. But in India, it is yet to take that shape. However, new players will spruce up competition. There will be a race for the customers’ time and wallet”.
According to various estimates, the non-aeronautical revenue at major Indian airports has been growing significantly. The global duty-free market was around $23 billion in 2010, while duty-free sales in India amounted to only $215 million in 2011.
Delhi Duty Free Services, which has the concession to manage duty-free shops at the Terminal 3 of the national capital’s Indira Gandhi International Airport, is also expanding its canvas. The company is a joint venture between Delhi International Airport Ltd, Indian Duty Free Services and Aer Rianta International.
Arun Barathi, COO, Delhi Duty Free, recently said the company was focusing on liquor, confectionery, souvenirs, electronics, apparel and cosmetics. Asked if the shop still catered largely to arriving passengers, Barathi said that this segment contributed about 60 per cent to its sales with the largest chunk coming from liquor.
bindu.menon@thehindu.co.in