West Asia duty free chain plans to offer discount prices

Duty free shopping which is a rage in many places like Dubai and Singapore is not very hot in India.

But Flemingo, a duty free shops chain promoted by some expatriate Indians based out of West Asia, wants to make it a part of the lives of international travellers.

Duty-free shopping has not been able to grow much in the country thanks to the government policies and multiple licensing and incidences of taxes that do not allow for competitive pricing, internationally.

"The present duty-free expenditure per passenger in India is among the lowest in the world," said Atoll Ahuja, director, Flemingo.

The liberalisation of duty-free allowance like enhancement of the limit to Rs 25,000, alcohol of 2 litres per passenger and free import of one laptop would go a long way in promoting the duty-free industry in India, he added.

The chain hopes to attract international passengers who shop abroad at the duty-free outlets which are being opened across the country at all the international airports, including Bangalore.

But, says Ahuja, "the red-tape and other procedural delays do not allow duty-free shopping to be such a pleasant experience." The paper work involved while shopping in duty-free outlets discourages people from shopping at these outlets, laments Ahuja.

ipods and some other gadgets, choice brands of alcohol and tobacco-based products are among the goods the chain is banking on. The group promises to sell goods at cheaper rates than prevailing in duty-free shops abroad.

"There would be a price difference of $2-3 on many of the goods compared to the price seen in Dubai or Singapore."

Flemingo, the only private duty-free chain in the country, has been awarded the license to operate and manage 25 duty free shops at 12 international airports. The $50 million chain operates in five countries "" Kenya, Tanzania, Sri Lanka, Dubai and India.