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Flemingo already operates its duty-free stores in 11 airports including Chennai, Pune and Kolkata, eight seaports, and one near the India-Pakistan border. It now plans to open stores where duties are paid by passengers and shoppers.
Amit Butani, vice-president, diplomatic division, Flemingo, said the company was looking at opening stores of travel bags and accessories, and coffee bars at the airports, where it had concession agreements.
“The idea is to cover the entire gamut of concession,” Butani said.
Flemingo’s diplomatic division is looking to tap 30-40 per cent of duty free market for the needs of the diplomatic staff in the country. Indian diplomatic supplies market is pegged at Rs 10 crore.
Under this business, Flemingo sells products at its duty-free shops to the staff of embassies, consulates and other transnational agencies that are eligible for duty-free shopping in those stores.
“There are 145 embassies and 119 consulates in the country. There is a huge demand from diplomatic missions here. We are already seeing good growth in the business,” said Butani.
The company is providing both online and offline formats to the diplomatic staff in the country, he said.
The firm looks to grow business by 20 per cent in the current financial year on the business of $300 million it made in the last financial year. Its target is to achieve $2 billion business in India by 2020.
Total passenger spend in airport stores is expected to reach $3.5 billion by FY21 from $215 million in FY11, according to a report by the Centre for Asia Pacific Aviation (Capa)
According to Capa, 70 per cent of this $3.5 billion is projected to be generated at the airports in Delhi, Mumbai, Bangalore, Hyderabad and Kochi. Butani said the airports at smaller cities, too, offer considerable amount of opportunity.
“We also are in partnership with DFS India for management and supply contract at Mumbai airport,” he said.
