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TheMoodieReport.com: Alpha set to create joint venture with powerful Indian domestic retailer Pantaloon – 03/10/06
Source: ©The Moodie Report; The Moodie Report VIP News Alert
By Martin Moodie
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Pictured left to right: Alpha Asia Commercial Director Prasantha Fernando, Alpha Asia Managing Director Paul Topping, Future Group Director Rakesh Biyani and KK Rathi of Pantaloon Group
UK. Alpha Airports Group announced today that it has signed a Memorandum of Understanding to form a joint venture with powerful Indian domestic retailer Pantaloon Retail (India).

Pantaloon Retail is the largest retailer in India, generating over US$440 million in turnover last year. It is part of the Future Group of India. Both Alpha and Pantaloon figured recently on a star-studded shortlist for the main duty free, travel retail and food & beverage concessions at Bangalore International Airport announced by The Moodie Report. The airport is due to be operational by April 2008. Alpha bid on the international Departures retail and food & beverage packages while Pantaloon made its pitch for retail in the domestic Departures area.

Alpha said the alliance with Pantaloon is part of its strategy in investing in India to develop travel retail and food & beverage catering businesses at leading airports. Alpha and Pantaloon Retail are in discussions about the travel retailing and food & beverage opportunities which exist at Bangalore, Hyderabad and Delhi airports the company stated.


Gibson Vedamani: "Retailers like Pantaloon and Shoppers’ Stop might operate in a shrinked version called express formats within the airport premises"

Pantaloon is one of India's fastest-growing domestic market retailers with plans to grow by +100% for the next two years and a projected turnover of US$2 billion by 2010
Pantaloon's move into travel retail has been widely touted and Alpha appears to have pulled off a coup in securing the partnership. Earlier this year Retailers Association of India CEO Gibson Vedamani predicted the involvement of domestic retailers at airports, noting: "Retailers like Pantaloon and Shoppers’ Stop might operate in a shrinked version called express formats' within the airport premises."

Alpha Airports Group CEO Peter Williams stated: "India has the most exciting passenger growth and airport development worldwide and we are very pleased to have the largest retail group in India working with us in this partnership. This gives us a wonderful opportunity to leverage our strong position in the Indian Subcontinent."

Pantaloon Retail Director Rakesh Biyani said: "Opportunities at Indian Airports are endless and we are delighted to tie up with Alpha."

Alpha Asia Managing Director Paul Topping commented: "Alpha has a proven track record in Asia and we are delighted with what we have achieved in Cochin and Colombo. With two specialist companies coming together we are well positioned to bring the best of global retailing standards to Indian airports and travellers."

"There are a considerable number of opportunities within India for this new joint venture. Over 90% of India's total traffic is through its top 10 airports with international traffic growing at +15% and domestic traffic growing at +28% last year,” Alpha said.

Mumbai Airport is expected to issue its requests for proposals shortly. The government is also considering plans for the privatisation of Chennai and Kolkota airports.

Alpha has operated in India since 2002 with its duty free shops at Cochin International Airport. The company said its retail outlets at Cochin generate more than double the Indian average for spend per passenger.

Pantaloon's retail offerings encompass department stores (Central), hypermarkets (Big Bazaar) home (Home Town, Collection i), fashion (Pantaloons, Fashion Station), leisure (CO, F123), communications (m bazaar, Gen m), electronics (e-zone), food (food bazaar), and health & beauty (Start Sitara, Tulsi).