Delhi duty-free shop firm eyes robust sales

The Delhi Duty Free Services (DDFS), which operates duty-free retail stores and kiosks at T3 terminal at Delhi’s IGI airport, is eyeing a turnover of $50 million (R230 crore) over the next 12 months. DDFS is betting big on increasing passenger traffic at the IGI terminal and expects to lure customers away from the duty-free shops at Dubai, Singapore and other international airports.

The Delhi Duty Free Services (DDFS), which operates duty-free retail stores and kiosks at T3 terminal at Delhi’s IGI airport, is eyeing a turnover of $50 million (R230 crore) over the next 12 months. DDFS is betting big on increasing passenger traffic at the IGI terminal and expects to lure customers away from the duty-free shops at Dubai, Singapore and other international airports.

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“We are benchmarking our prices against those at Singapore and Dubai as these two markets are our nearest competitors,” said Nicholas Goddard-Palmer, CEO of Delhi Duty Free Services. He said its barely a month since the company commenced its operations and it already has achieved customer sales conversion of around 14 per cent. “Over the next few months we will aim to have a conversion of around 18 per cent,” said Goddard-Palmer.

Passengers arriving at T3 terminal account for 60 per cent of the company’s sales while the remaining 40 per cent come through outgoing passengers.

DDFS is a joint venture between Delhi International Airport Ltd (DIAL), Indian Duty Free Services (IDFS) and Aer Rianta International (ARI). DIAL owns 49 per cent stake in DDFS, ARI owns 33.5 per cent and the remaining 17.5 per cent is owned by IDFS. It offers international branded liquor, chocolates, perfumes, cigarette and cigars and operates around 45,000 sq ft space on a revenue share model.

The duty-free retail business at Delhi’s IGI airport is a small fraction of other international airports across the globe. For instance, the sales turnover at Dubai’s international airport is around $1 billion.