Alpha Group (100% owned by Autogrill) has reached an agreement with Indian retail operator Pantaloon Retail to acquire the latter’s 50% stake in Alpha Future Airport Retail.
Alpha Future Airport Retail is a 50-50 joint venture established in 2006 to operate duty free outlets at Indira Gandhi International Airport in New Delhi. Autogrill described the agreement with Pantaloon Retail, which was widely touted last month, as “friendly”, and said it was consistent with plans to integrate the business activities of Alpha Group, World Duty Free Europe and Aldeasa.
It said: “The reorganisation of Autogrill Group's presence in India, where it also runs food & beverage operations at Hyderabad and Bangalore airports, implies that the Group can pursue synergies at geographical level too, putting it in an ideal position to take advantage of development opportunities in the Indian marketplace.
“Delhi International Airport is the second-ranking Indian airport after Mumbai by passenger traffic (20 million passengers in 2007). A wide-ranging airport expansion programme is now under way, with the new T3 international terminal, containing 4,000 sq m of retail space, scheduled for completion in 2010, by which time passenger traffic is forecast to rise to more than 60 million annually."
The duty free tender for T3 in Delhi, expected soon, is certain to be one of the most hotly fought contests in Indian travel retail history
Autogrill Group presence in Asia
Autogrill also underlined its growing presence in Asia - a key platform for future growth. It made its regional debut through HMSHost at Kuala Lumpur Airport in Malaysia and over the past two years has maintained a strong focus on developing Asian markets, and India in particular.
In the period 2006-2008, HMSHost strengthened its presence in the area, winning food & beverage contracts at the new greenfield airports in Bangalore and Hyderabad, India, as well as at Singapore Changi Airport. To coordinate and manage business development in Asia, Autogrill opened the Singapore operating base of HMSHost Asia in spring 2007.
With the acquisition of Alpha Group in 2007, the Autogrill Group began operating at the airports of New Delhi and Cochin in India, Colombo in Sri Lanka, Malè in the Maldives and Kathmandu in Nepal. As previously reported, under the framework of Autogrill's business reorganisation, responsibility for Alpha Group's international retail units (Alpha Retail Asia and Alpha Retail US) has been assigned to Aldeasa (99.9% owned by Autogrill), one of the world's leading travel retailers.
As per Sep 08 share holding pattern, Rakesh jhunjhunwala is holding 2,330,895 shares of Pantaloon Retail in the name of Jhunjhunwala Rekha Rakesh