INDIA. GMR Group-led Hyderabad Rajiv Gandhi International Airport has invited Expressions of Interest (EOI) from companies to manage the food & beverage business across the airport estate.
The target of the EOI is to pre-qualify interested parties for a subsequent Request for Proposals (RFP) stage, during which details of the draft F&B Concession Agreement as well as spaces under the contact will be shared. The airport company plans to select one successful bidder to manage and operate all F&B areas.
The airport specified that consortia are not allowed to apply for the proposed concession. Only those groups operating a minimum of 40 outlets or more at a single airport with more than 20 million passengers a year can participate in the Expressions of Interest phase. The conditions also disallow entities having any interest such as equity in any domestic or international airline.
To qualify for this initial phase, companies should have minimum turnover of Rs.100 Crores (US$12 million) in the Financial Year 2019-20. Also, the company should have positive net worth as on 31 March 2020 as defined in the documents.
The final date for submissions of interest is 23 February 2023.
GMR Hyderabad International Airport (GHIAL), which was one of the first greenfield airports in India when it opened in 2008, recorded passenger traffic of 21.58 million in FY2019-20.
The S. Shriram View: This Expression of Interest and subsequent Request for Proposals is a process we will track closely, and throws up several key talking points. Requiring qualified bidders to operate 40 outlets within a mid-size airport (20 million+ passenger a year) is unusual and likely to restrict the field of potential bidders. The turnover requirement is also high, given relatively modest passenger spends in F&B across Indian airports.
Power players SSP/TFS and HMSHost International (incumbent at Hyderabad Airport) look well placed to compete if they choose to take part. Whether this EOI will draw potential partners among domestic or other major international players remains to be seen.
*As reported, experienced travel retail and airport commercial executive S. Shriram has joined The Moodie Davitt Report in line with our desire to boost coverage of one of the world’s most exciting and fastest-growing aviation and travel retail markets. He will help develop The Moodie Davitt Report’s coverage across airport and aviation development, travel retail and food & beverage and other travel-related commercial revenues, providing commentary where relevant on key projects and the wider market.
**Note: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport or other travel-related infrastructure revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.
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