Life & Leisure

Life & Leisure: "Hard and soft options

Ravi Teja Sharma / New Delhi October 17, 2006



RETAIL: ITDC wants private participation in turning its airport duty-free shops into world beaters.

India Tourism Development Corporation’s (ITDC) boring old duty-free shops have been around for ages. But can they jazz themselves up to move with global trends? The state-owned corporation certainly thinks so.

“ITDC is prepared to go into a joint venture with a private party,” says a senior ITDC official, adding though that “there is no question of selling a stake in our duty-free business.”

ITDC recently announced its half-yearly results in which the duty free division recorded a sharp turnaround. The first half of 2005-06 logged a loss of Rs 3.66 crore. The corresponding figure for 2006-07 shows a profit of Rs 2.64 crore.

So why go for a private sector joint venture? The 29 ITDC outlets across India need to get globally competitive, says the senior official, and for that, they need the sort of operational flexibility that a private partner can impart.

ITDC has shortlisted seven parties (five international and two Indian) for the JV, which, a source reveals, will conclude this month. IL&FS Infrastructure Development Corporation is ITDC’s transaction advisor in the selection of the strategic JV partner.

According to the expression-of-interest advertisement, ITDC would form a JV with the selected strategic partner to jointly bid for future duty-free business opportunities in the country and abroad. ITDC intends to have at least a 49-per cent equity stake in the proposed JV.

Are private players interested? Oh, yes. Atul Ahuja, director, Flemingo Int"