INDIA. Delhi Duty Free Services (DDFS) is pushing to open an off-airport (downtown) duty free store in Delhi, according to a well-sourced report in The Hindu Business Line – subseqently confirmed by The Moodie Report (see below).
DDFS is a joint venture between GMR Airports division Delhi International Airport Pte Ltd and Aer Rianta International. It operates shops at Indira Gandhi International Airport Terminal 3.
The report said that the proposed store would be limited to “overseas travellers, embassy officials and expatriates, among others”.
Off-airport shopping has also been explored in the past by other Indian travel retailers, notably Flemingo.
 |
How The Hindu Business Line reported the story |
The report noted that state-owned India Tourism Development Corp once opened a downtown store but was forced to close it due to poor performance and regulatory issues.
DDFS Chief Operating Officer Arun Barathi told The Hindu Business Line: “The downtown duty free concept is an idea whose time has come in India. Our data shows that on several occasions, customers may be keen to shop but are unable to do so because of various reasons. This concept will allow them to shop within a specified time period at the duty-free shops present within the city limits.”
Barathi also said that the company was pushing to remove the restriction on use of the Indian Rupee for shopping at the airport. In both India and Sri Lanka, travellers cannot purchase in local currency, a long-time barrier to sales growth.
Update & reaction
Barathi later told The Moodie Report: “We are still in the exploratory stages on the downtown duty free shops. We continue to discuss with relevant stakeholders the possibilities of rolling this out most likely from the next financial year. Customs and Central Excise is a key stakeholder [and there is] no firm decision as yet. Success, subject to stakeholder approvals, will depend on the operational model delivering an easy and smooth shopping experience for our customers.”
He added that he saw no reason why a downtown duty free business “should be limited to non-Indian international travellers” and said that “we will explore an all-inclusive approach”.
On the questIon of possible Rupee purchases, he noted that this could “make a significant difference to our Departures business. We have represented the case well and we hope to hear something positive soon from the authorities.”
