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“Baltona also enjoys a huge brand equity – the company is 60 years old and its reputation and consumer loyalty still lives on“ |
Atul Ahuja Co-Owner Flemingo |
POLAND. Ambitious Indian travel retail group Flemingo (through a representing company) today concluded the acquisition of a majority share in Polish travel retailer and shipchandler Baltona.
Baltona is Poland’s biggest airport retailer, running stores in eight airports, including all the international locations. Its operations include shops at Gdańsk, Katowice, Kraków, Poznań, Rzeszów, Warsaw and Wrocław airports; a duty paid border store on the German crossing; and a shipchandling business.
Flemingo Co-Owner and Director Atul Ahuja told The Moodie Report: “We today took hold of share certificates representing 59.94% of the equity in the company. We have also been selected by the State Treasury to sell us their 27%.”
The latter is a reference to the news earlier this year, revealed by The Moodie Report, that the Polish Ministry of State Treasury had invited bids for its 26.83% share in Baltona. The combined holdings will give Flemingo a stake of just under 87%.
The State, through Polish airport authorities, holds the balance in the company and Ahuja said: “We would be very happy with their continued involvement.”
Flemingo was advised by Bastion Capital.
Asked what led Flemingo, India’s leading travel retail company, and well established elsewhere in South Asia and Africa, to Poland, Ahuja replied: “I read about the sale in The Moodie Report when I was sitting at home in India and that started the process.
“Poland is a growing market with robust traffic and its economy is one of the more vibrant in Europe. Baltona also enjoys a huge brand equity – the company is 60 years old and in the communist days it was one of only two retailers where people could buy branded international goods. Its reputation and consumer loyalty still lives on.”
Though the price was undisclosed, Ahuja said both parties felt it was a reasonable agreement. “We’re happy and so are the sellers,” he said.
“This is our first success in Europe after spreading into 23 countries where we now operate. It’s a nice, good-sized acquisition.”
Baltona said: “Baltona sees this development as a major turning point in the 60-year company history and is very confident that this is a beginning of a long journey into Europe for Flemingo.
“To start with, Baltona shall restructure itself at the top management and procurement area levels to ensure the company improves its profitability.
“However, the company name and our entire hard-working team shall continue as before. And the company will adopt very aggressive business development plans to remain market leader in its core business.”
NOTE (1): The Moodie Report India, part of our dedicated regional news section on this website, contains all stories on India’s travel retail industry dating back to early 2003. You can access it via the dropdown menu on our home page under Regional News or by simply clicking here
NOTE (2): Airports Council International (ACI) and The Moodie Report are organising India’s biggest-ever airport commercial revenues Forum, to be hosted by GMR. “˜The Power of India – New Horizons for Airport Commercial Revenues’ will take place in New Delhi on 22-24 September at the Taj Palace Hotel. Marketing and registration will begin in May.
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