GMR to quit Hyderabad duty-free business
Hyderabad Duty Free Retail Ltd (HDFRL), a GMR Group company that owns and manages duty-free outlets at the International airport in Hyderabad, is up for sale, according to a senior official of GMR Group.business Updated: Feb 19, 2012 23:32 IST
Hyderabad Duty Free Retail Ltd (HDFRL), a GMR Group company that owns and manages duty-free outlets at the International airport in Hyderabad, is up for sale, according to a senior official of GMR Group.
The GMR Hyderabad International Airport Ltd (GHIAL), which manages the airport, is mulling to divest 100% equity in HDFRL and is on the lookout for a suitable buyer, the official said.
HDFRL came into being after the Nuance Group (India), a joint venture company between Switzerland-based Nuance Group AG and Shoppers' Stop Ltd, severed 7-year contract with GMR Group to run the outlets at Hyderabad Airport, citing poor sales in 2010."We are looking at the 100% divestment in HDFRL for the following reasons. We would like to bring in a specialist player in the Duty Free space.
"We want to give our travellers an even more enhanced retail experience and the third reason is we have many exciting investments lined up at Hyderabad airport and the proceeds of this divestment will gives us the necessary capital for that," the official said.
According to GMR, the Airport has three retail stores in the International Terminal, covering an area of 2,500 sq mts.
"We are willing to offer even 50% equity if the bidder has good technical experience and ability to manage and does not want to take 100%," another official of GMR said.