Delhi -Coming SoonARI - in partnership with a local company Indian Duty Free Services (IDFS) - has been chosen as the selected bidder for the main Duty Free concession in the new Terminal 3 at Indira Gandhi International Airport which opens in 2010. The partnership will form a joint venture with DIAL Delhi International Airport Limited.
The tender is for a period of 15 years and grants exclusive rights to sell Liquor and Tobacco and near exclusive rights for Perfume and Cosmetics. Confectionery is also part of the package, but not on an exclusive basis, as well as Delicatessen products.
The tender is widely viewed as the biggest commercial opportunity in Indian airport history and
ARI Director General Eamon Foley is understandably excited about this latest tender success for ARI. “We’re extremely pleased. India is a new market for us but one that we’ve been watching carefully for the past few years.
“We think we have got the timing right and we’re confident we can make this bid work,” he said. “The opportunity is particularly interesting in Delhi because it’s in a new terminal with new facilities and that will make a big difference.
“The designs in Delhi have been done to maximise commercial revenues, which means from a travel retail point of view we have attractive and adequate space, which is very exciting.”
Foley said the contract represented a significant long-term investment by ARI. “India is a market with great potential, though its travel retail sector is in the early stages of development. A 15-year contract represents a rare and major opportunity in our industry and we have always been a company that looks at a market in a long-term way.
Delhi Airport
India’s capital, Delhi has a population of 15.3m and is the sixth most populous city in the world. Delhi is the largest airport in India, and is currently constructing a major new terminal (Terminal 3) that will accommodate international and domestic flights from the capital. The terminal will open in 2010 (for the Commonwealth Games (October 3rd - October 14th) and has a capacity of 34 million passengers.
Terminal 3 will handle 100% of international and 50% of domestic traffic when opened. It will have a floor space of 480,000m², of which 4,000sqm will be duty free.
The airport is managed by Delhi International Airport Ltd (DIAL) which is a consortium led by Indian developers, GMR Group, and includes Fraport and Airports Authority of India. The GMR group also operates Hyderabad airport in southern India.
7.7m international passengers used the airport in 2008 and there are both arrivals and departures duty free shopping in India.
Incredible India!
Although not immune to the current downturn, India’s economy has been one of the stars of global economics in recent years, growing by 6.7% in 2008, 9.2% in 2007 and 9.6% in 2006. With growth forecast to continue over the next few years, Delhi represents a tremendous opportunity for ARI develop its business interests in this buoyant market. |
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