Global journey retailer Dufry will function the duty-free outlets at South India’s busiest airport beneath a newly agreed three way partnership that’s scheduled to start out on April 1, subsequent 12 months. The deal was struck after the operator of Bengaluru Airport—the gateway to India’s technology hub—issued an open tender in November 2021 which Dufry gained.

The Switzerland-based retailer will associate with the operator, Bangalore International Airport Limited (BIAL), in a 50:50 three way partnership with a 15-year contract to function and handle duty-free shops within the airport’s new Terminal 2.

Dufry, which has seen strong growth in Q3, already runs duty-free outlets at Bengaluru Airport—the total identify is Kempegowda International Airport—and has executed so since 2008 by its subsidiary Nuance. The new deal secured the retailer’s place on the new T2 the place works are supposed to end by the tip of the primary quarter in 2023. A Dufry spokesperson advised Forbes.com: “All international flights will be migrated to this new terminal.”

BIAL describes the brand new T2 as a ‘terminal in a garden’ due to the greenery of the advanced which incorporates planted partitions, hanging gardens, synthetic waterfalls, and out of doors gardens surrounding a lagoon. The constructing—which might be formally inaugurated by India’s prime minister Narendra Modi on November 11—will increase Bengaluru Airport’s passenger capability by 25 million yearly, within the first section of the mission. An further 20 million might be added within the second section.

From a retail perspective, the capability increase guarantees a gentle enhance in passengers within the coming years. In the 12 months to March 2022, Kempegowda International was the third busiest airport in India dealing with 16.3 million passengers, and between April and October this 12 months, it processed nearly 17 million of which two million had been worldwide.

A JV to spur luxurious, trend, and wonder

Dufry’s contract covers nearly 40,000 sq. ft of retail house unfold throughout worldwide departures and arrivals within the new terminal. The three way partnership shouldn’t be restricted to core duty-free outlets and permits the chance for Dufry to have a look at introducing luxurious boutiques and different codecs. A spokesperson stated: “Further developments and extension of the contract within the JV are possible.”

Given that each BIAL, the airport operator, and Dufry are sharing the dangers and rewards, it ought to be simpler for the Swiss retailer to maneuver ahead with new retail ideas as long as they’re commercially viable.

In an announcement, Dufry’s chief working officer for the Mediterranean, Eastern Europe, and Middle East areas, Alberto Iglesias, stated: “We are committed to providing passengers with an enhanced shopping experience and featuring a considerably extended product assortment.”

For its half, BIAL appears pleased to deepen its longstanding relationship with Dufry in a brand new terminal that’s anticipated to wow Indian vacationers. The airport’s chief business officer, Kenneth Guldbjerg, stated: “We will benefit from Dufry’s expertise to take the airport’s shopping experience to an entirely new level. He added that, through the JV, the airport was looking to up its game across several categories “especially in luxury fashion, beauty, and confectionery.”

This shouldn’t be Dufry’s first airport JV. The journey retailer works in comparable partnerships in Milan Linate Airport, Sharjah within the UAE
UAE
, and throughout a number of U.S. airports the place ACDBE cooperation is usually a authorized requirement. Airport homeowners have more and more been transferring in the direction of joint ventures with retailers through the years to pocket extra income. Other examples embrace Heinemann and Fraport at Frankfurt Airport; and Lagardère Travel Retail at Paris Charles de Gaulle and Paris Orly airports.