DFS wins duty-free retail deal at Mumbai airport

Mumbai: Mumbai International Airport (MIAL), has terminated its contract for duty-free retail with the IPCL-Aldeasa combine and awarded it to DFS, a LVMH Möet Hennessy Louis Vuitton group company.
DFS, one of the largest airport retailers in the world, has won the deal paying a minimum guarantee of Rs 260 crore, about 60% lower than the original bidders, the ITDC-Aldeasa consortium.
Apart from the guaranteed amount, DFS also has a revenue share deal with MIAL, that is triggered if turnover crosses a certain amount, sources close to the deal said.DFS will be responsible for designing and building the shopping environment, sourcing a wide range of international luxury brands and developing a promotion strategy for duty free shopping at the Chhatrapati Shivaji International Airport (CSIA).
With the new agreement in place, duty-free operations, in India’s largest international airport, are now expected to start from January 2008. They have been held up since June, as the earlier consortium failed to formalise the joint venture.
29/11/07 Economic Times

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Categories: Airports Nov 2007, Foreign Nov 2007, New Nov 2007