INDIA. Delhi International Airport Limited (DIAL) has issued Letters of Intent to award four food & beverage packages at the new Terminal 3 at Indira Gandhi International Airport (IGIA) in Delhi.
Following an open tender, the successful bidders will set up separate joint-venture companies with DIAL to develop, operate, maintain and manage food & beverage outlets at T3. The concessions each run for ten years.
The winners were as follows:
Package A (Landside & International Security Hold Area) – Travel Food Services (Delhi) Private Limited
Package B (Landside & International Security Hold Area) – Devyani International Limited
Package C (Domestic Security Hold Area) – SSP Catering India Private Limited [in partnership with local company IDFS -Ed];
Package D (Domestic Security Hold Area) – Travel Food Services (Delhi) Private Limited.
DIAL will be taking a 40% stake in the joint venture companies to be formed with the respective successful bidders. “Strong synergies are expected in the partnership between DIAL and the selected bidders,” the airport company said.
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DIAL added: “Passengers can look forward to an extensive range of food & beverage outlets featuring a multitude of well-known Indian and International brands. These options would include take-away kiosks, food courts, sit-down restaurants and bars.”
In response to the tender floated by DIAL, 15 proposals from six bidders were received for the four licence packages. The bidders were a consortium led by Travel Food Services (Delhi) Private Limited, Devyani International Limited (DIL), SSP Catering India Private Limited, HMS Host Inc, a consortium led by Nirulas Corner House and Lite Bite Foods Private Limited.
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Sunil Kapur’s Travel Food Services has scored a major coup in Delhi by taking two of the F&B packages |
In a statement, DIAL Chief Commercial Officer Gavin Mckechnie said: “It is a pleasant surprise for us to see such strong interest from both international and local players in such an uncertain period. This shows that we may have hit the right note to attract the best industry players to help us create a world-class airport dining experience in Indira Gandhi International Airport Terminal 3.”
Mckechnie told The Moodie Report:”The quality of bids was very good. We received some excellent technical bids with a very wide range of financial offers.
“The winning bidders have proven track records and can grow the market for us. SSP are already doing that for us at Terminal 2, where they are doing very well. Travel Food Services have a proven background in their own businesses and they have attracted some big brands. Theirs was a very high quality bid. Devyani International have been operating in our new domestic terminal and are also doing really well.”
Construction work is under way for IGI Airport’s Terminal 3, which is scheduled to be in operation before the 2010 Commonwealth Games to be held in Delhi.
T3 will be among the largest passenger terminals in the world, covering more than 5 million sq feet. The integrated terminal will handle both domestic and international departure and arrivals. T3 is part of Phase 1 of IGI Airport’s Master Plan development having a total project outlay exceeding US$2 billion and would increase the airport’s capacity to handle more than 60 million passengers a year.
COMMENT: As with its choice of duty free partner (Aer Rianta International and Indian company IDFS), Delhi International Airport Limited has opted for a powerful combination of international and local names to run its F&B operations at T3.
The results represent a major early triumph for new F&B company Travel Food Services, which has also secured a big presence at India’s other major airport, Chhatrapati Shivaji International Airport in Mumbai. In the space of just a few weeks, Travel Food Services, which celebrated its launch last month in Mumbai, has emerged as an important new force in India’s airport commercial revenues sector.
SSP will be delighted to have boosted its presence in a market that it has earmarked for special attention. And local names Devyani International and IDFS (SSP’s partner) are both strong, credible local companies with acute insight into local tastes and aspirations. But the result is a second disappointment for Autogrill, whose subsidiary HMSHost missed out, as had sister company Aldeasa in the duty free bid.
The joint venture model is particularly interesting to those who have studied the strengths and weaknesses of the airport tender system in recent years. By marrying that model to four long-term contracts, DIAL believes that it will get a better financial and qualitative return for its stakeholders and its passengers. India’s fledgling airport F&B market suddenly has an exciting new flavour.
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About Travel Food Services (Delhi) Private Limited (TFS): TFS is a wholly-owned subsidiary of the Deluxe Caterers Private Limited (popularly known for brands like Copper Chimney), which has been in the food & beverage business for the last 36 years. The group has a network of over 200 restaurants across India and around the globe and it promises to bring multiple brands and unique offerings to T3.
About Devyani International Limited (DIL): Incorporated in 1991, DIL is well known for its chain of Costa Coffee cafes, Pizza Hut & KFC restaurants in India. Currently, DIL is operating a cafe and food court in Terminal 1A and the new Terminal 1 D of IGIA.
About SSP Catering India Private Limited: SSP Catering, part of the SSP Group of Companies, was incorporated locally in 2008. SSP has been operating F&B outlets in airports/railways for the last 60 years in more than 30 countries. SSP is the leading dedicated operator for food & beverage brands in travel & leisure locations in Europe and Asia and enjoys a growing presence in North America. It is currently operating food & beverage concepts in IGIA T2.
Click on the arrow in the video screen to view a detailed walkthrough of Delhi T3 |
About DIAL: Delhi International Airport (P) Ltd (DIAL) is a joint venture company; comprising the Bangalore headquartered global infrastructure major GMR Group with a significant pan-India and International presence, Airports Authority of India, Fraport, Malaysian Airport and India Development Fund. DIAL is working towards the modernization and restructuring of the Indira Gandhi International Airport, Delhi. The project being developed by DIAL under Public Private Partnership has been given the mandate to finance, design, build, operate and maintain the IGI Airport for 30 years with an option to extend it by another 30 years.
MORE STORIES ON THE TERMINAL 3 TENDERS
Aer Rianta International and Indian partner IDFS win Delhi joint venture duty free tender – 03/06/09
Five bidders line up for Delhi Terminal 3 joint-venture duty free concession – 15/05/09
Platinum sponsor GMR applauds Trinity Forum principles; event website launched – 30/03/09
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