The duty free shop operated by Cochin International Airport Ltd has registered a 30 per cent growth in its sales turnover to Rs 97 crore for FY 12. The turnover for the previous financial year was Rs 73.36 crore.
Mr V.J. Kurian, managing director, CIAL, said the improved performance has come on the back of keen focus maintained in enhancing non-aeronautic revenue of the airport.
The company has from the beginning focused on non-aeronautic revenue and has initiated a slew of measures to drive growth through sources such as duty free shop, lease for shopping space inside and outside the terminals, convention centre, MRO services, he said.
Around 2.59 million international passengers (arriving and departing) travelled through CIAL during the last financial year. The growth in international passengers was around 10 per cent compared with the previous year, he added.
The growth in duty free sales points to the fact that expatriates from Kerala have started spending more on duty free merchandise, Mr R. Venkiteswaran, executive director (finance), CIAL, said. Cochin Duty Free offers products of international quality at lesser prices compared with other duty free shops.
Online biz model
The CIAL Duty Free is also working on an ‘online business model' to be implemented in the near future. Customers abroad would be able to place pre-orders through the web and can take delivery of merchandise on their arrival at the Airport from the duty free enabling them to save a lot of time.
As part of the Integrated Airport Management System, the specialised software for duty free business is under installation at CIAL and is expected to ‘go live' soon.
Anticipating further growth in the duty free segment over the coming years, CIAL has commenced the construction of a large warehouse spread over 50,000 sq ft at an estimated cost of around Rs 8 crore.