ITDC, Aldeasa form joint venture

State-owned India Tourism Development Corporation (ITDC) is forging a 50:50 joint venture with Spanish company Aldeasa for setting up a duty-free retail chain at airports in India and overseas. The move follows similar tie-ups by Pantaloon Retail and Shoppers' Stop.

The proposed joint venture will be initially capitalised with Rs 31.5 crore. The proposal has been submitted to the Union Cabinet and the Foreign Investment Promotion Board for approval. "We expect the approvals to be given shortly. We will then move full steam ahead on the project," ITDC officials said.

Official sources said the proposed ITDC-Aldeasa JV will bid for duty-free retail opportunities in India select business opportunities outside India especially in the Saarc region and countries where there is a large Indian presence, besides souvenir shops at Indian heritage sites and museums.

"Despite being the largest duty-free shopping operator in India, ITDC faces strong challenge to its market position. The company can potentially garner a significant share of the market, if it can re-invent itself and bring in international expertise and branding," an official source said.