INDIA. CIAL Dutyfree and Retail Services Ltd (CDRSL) is today launching the first stage of its global Request for Proposals to develop, operate and run duty free stores at Cochin International Airport’s new Terminal 3.
To view the Notice Inviting Tender, click here.
Bids will close on 28 April and an award is expected by the end of May.
CDRSL is a wholly owned subsidiary of Cochin International Airport Ltd (CIAL).
As revealed last week, The Moodie Davitt Report is providing exclusive global coverage of the open tender in one of India’s best-performing airports for retail, featuring one of the country’s most successful airport authorities.
The new Terminal 3 is expected to be operational in March. The 1.5 million square feet facility will include an extensive retail and food & beverage offer. The duty free proposition will feature both arrivals and departures stores. As reported, the arrivals business is particularly important at Cochin, accounting for around 90% of existing sales.
The duty free business at the airport is currently operated by CDRSL under a Management and Procurement contract. The incumbent Management and Procurement contract partners are World Duty Free Group, Kreol (Mr. A.S. Lal) and Alpha Kreol India Ltd.
Here are the key details on the tender:
*COCHIN DUTY FREE BACKGROUND
CIAL started its duty free operations by launching Cochin Duty Free in 2002. In 2016, as part of its evolving business strategy, it incorporated a wholly owned public limited subsidiary company, CIAL DutyFree and Retail Services Limited (CDRSL). On 1 June 2016 CDRSL took charge of the airport’s duty free and retail businesses.
The existing shop in T2 occupies 10,000sq ft in arrivals and 4,000sq ft in departures. However, in the new T3 that space is being expanded to around 25,000sq ft in arrivals and some 8,000sq ft in departures.
SELECTION PROCESS
CDRSL has adopted a single-stage selection process for evaluating the proposals, based on a combination of technical and financial offers. After proposals are received, an evaluation of the technical offers will take place. Based on this assessment, a short-list of qualified bidders will be identified. Thereafter, the financial proposals will be evaluated and ranked for final selection.
Eligibility Criteria:
Bidders may be a single entity or consortiums.
Each bidder must have:
– operating experience (India or abroad) of at least five continuous years in duty free business.
– presence (via the bidder or its associates) in three international airports (India or abroad), of which two should have individually handled at least five million international passengers in any year during the previous three years.
– Turnover (via the bidder or its associates) of not less than INR 5,000,000,000 (around US$74.5 million) in any three preceding financial years from operating duty free business in India or overseas.
Further details on the criteria can be found in the RFP.
Financial details:
– Bidders must quote a percentage of turnover for revenue share as the financial bid.
– The concession fee for a particular month shall be the Minimum Monthly Guarantee (MMG) or the quoted percentage for revenue share of monthly net sales, whichever is higher.
Minimum Annual Guarantee (MAG)
For the first year of the concession, the MAG is USD 13,188,745. For subsequent years, one hundred and ten percent (110%) of the MAG from the immediate preceding concession year is applicable. The MMG means the absolute amount on a monthly basis, computed by dividing the MAG for a concession year by 12.
Contact details.
Mr. Jacob T Abraham
Assistant General Manager (Retail Business)
Cochin International Airport Ltd.
Mobile: +91 9539701535
Telephone: +91 (0)484 2610275
Email: jacob@cial.aero
ABOUT COCHIN INTERNATIONAL AIRPORT
Cochin International is the first greenfield airport in India to be designed and built on a Public Private Partnership (PPP) model. It has been hailed as one of the most successful infrastructure ventures in India’s civil aviation history. That success spurred the subsequent development of several Metro airports, both brownfield and greenfield, in India.
Cochin International is India’s fourth-busiest airport in terms of international passenger traffic. In the 2015-16 financial year it handled 7.77 million passengers, 4.64 million of them international, and 57,762 air traffic movements.
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