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Delhi Duty Free: GMR takes IDFS’s stake in the fast-growing business |
INDIA. GMR Airports Ltd, a subsidiary of GMR Infrastructure, has acquired the 17.03% equity stake in Delhi Duty Free Services Private Ltd that was owned by Indian Duty Free Services (IDFS). The purchase price was undisclosed.
GMR division Delhi International Airport Pte Ltd already owns 49.9% of the venture, with the remaining stake held by Aer Rianta International.
GMR Infrastructure made a statement to the Bombay Stock Exchange this morning, announcing the acquisition of its stake.
Delhi Duty Free Services operates, maintains and manages the duty free outlets at Indira Gandhi International Airport under a 15-year concession, agreed in 2009.
Delhi Duty Free was originally created as a joint venture between Delhi International Airport Limited (DIAL) and a partnership between ARI and local company IDFS, which between them had a 50.1% share of the business. IDFS is among the business ventures of Indian businessman Deepak Talwar, who is well known in the travel retail industry.
The operation has traded strongly since the new T3 opened at Delhi International in 2010. Through parent company DAA, ARI recently hailed the performance of the business in its annual results statement for 2012. It noted: “The company’s joint venture at Delhi International Airport in India continued to exceed expectations. Delhi Duty Free Services generated sales in excess of US$100 million last year and delivered operating profits and growth targets ahead of forecasts.”
In a brief statement today, ARI said: “ARI, which continues as lead operator in Delhi Duty Free Services, looks forward to a continued strong working relationship with GMR and to continued growth in Delhi, in the wake of this agreement.”
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The operation has turned in a strong trading performance in the past three years |
