UAE. MMI has reached an agreement with Ports, Customs and Free Zone Corporation (PCFC) to acquire 100% of the shares of the privatized Duty Free Dubai Ports (DFDP), according to local media reports.
DFDP operates duty free stores in Jebel Ali Port, Port Rashid and the Dubai Cruise Terminal at Port Rashid, as well as a regional wholesale duty free business, supplying gold, cosmetics, perfumes, liquor, electronics and tobacco to inbound visitors. Reports said that MMI will manage the privatized DFDP operation, which currently employs 20 staff.
The acquisition is said to be part of MMI’s strategy of “˜downstream diversification’, i.e. moving the business focus closer to end consumers in the consumer markets of the region, especially Dubai. It also complements MMI’s existing regional duty free, ship chandling and inbound tourism businesses.
Kerem Camcigil, CEO of MMI said: “Duty Free Dubai Ports has been operating for four years as a non-core privatized business of PCFC and has achieved year on year sales growth, partly driven by the expansion of Dubai’s ports. There is a very good business fit with MMI because of our existing regional duty free business, the complementary nature of DFDP’s suppliers, as well as the opportunities we can create for our own ship chandling and inbound travel and tourism operations.
“We intend to enhance the growth of DFDP through our own rapidly-developing business infrastructure and purchasing power.”
Contacted by The Moodie Report, an MMI spokesman declined to comment further at this stage “as there is a detailed process of staff and supplier communications underway”.
Background: MMI is a subsidiary of the Emirates Group. A marketing services company, it provides marketing and distribution support to the leisure, corporate and consumer retail markets of the UAE and Oman. The company claims to create, build and deliver to the region world class consumer and leisure brands. It is the franchise holder for Costa Coffee in the UAE.
The company’s key interests lie in the leisure industry. Besides Costa Coffee they include Seasons restaurants, MMI Travel, Gulf Ventures, event management, and an extensive liquor portfolio that includes Bacardi and Heineken. Its consumer goods division represents global and local brands including Fererro, Glaxo SmithKline, McVities, Moet & Chandon, Budweiser and Oman United Dairies.
The firm, originally Gray Mackenzie & Co, before becoming Maritime & Mercantile International (MMI) in 1982, was acquired by Emirates in 2000.
