Aditya Birla Group mulls airport foray

After the turn of the Tatas and Ambanis, the Birla Group has taken up the lucrative job.

After retail, the Aditya Birla Group is now considering airport development. Sources close to the development said the group will shortly take a decision on the business, which has seen interest from large houses like the Tatas and the Ambanis.

The group was expected to enter the business of developing non-metro airports. In that case, it would not need a foreign partner, as was the case with the Tatas and the Ambani brothers, who have bid for the Navi-Mumbai airport but have not finalised tie-ups.

When contacted, an Aditya Birla Group spokesperson said, "We do not comment on market speculation."

For metro and greenfield projects, the winner of bids will have to take up development of both the aeronautical part and the civil facilities. That is why the Tatas and the Ambanis are jointly bidding with foreign partners for these projects.

These joint ventures involve getting the foreign companies to supply the technical knowhow for the aeronautical part of the projects.

However, the Airports Authority of India will develop the aeronautical aspects of the 35 non-metro airports, which will be modernised in seven blocks. The civil aviation ministry will invite private companies for the development of the non-aeronautical aspects of the projects.

Sources said the ministry would offer these 35 airports in seven blocks in order to maintain balance between the "lucrative" and the commercially less viable airports. The government has appointed consultants for the first 10 airports.

The Airports Authority of India (AAI) had earlier identified 35 non-metro airports for modernisation.

Industry experts said companies with retail businesses will be able to derive synergy from airport development projects if they manage to bag them. "I will not be surprised to see many more companies with linkages to these sectors throwing their hats into the business," said an expert.

The Tatas run Trent and West End, the Mukesh Ambani group has Reliance Fresh and the Anil Ambani Group runs a retail operation through Reliance Communications. The Aditya Birla Group recently launched More, a supermarket chain.

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