Major brands make beeline for new terminal at Delhi airport

Major retail and food and beverage (F&B) brands like Swarovski, Croma, Satya Paul, Fresco and Haldiram’s are lining up to set up shop at the new domestic departure terminal at the Delhi airport.

These would add to the already existing big names like Pizza Hut, KFC, Cream Bell, osta Coffee, Fab India, Hidesign and Odyssey that have already opened shop at the terminal.

However, while most companies are positive about business at the terminal, called T1D, there are others who find the revenue-sharing model on their outlets unviable.

According to information from the GMR-led Delhi International Airport Limited (DIAL), the consortium operating and modernising the Delhi airport, a total of 12 F&B and retail outlets are already operating at the terminal, while 10 more are going to set up shop in a span of 2-3 weeks. Barring the new terminal, the total number of F&B and retail outlets in all the other four domestic and international terminals is less than 15. Out of a total area of 35,000 square metres in T1D, the total commercial area would be 1,800 square metres. The existing departure terminal has an area of 650 square metres out of a total of 18,000 square metres allotted to the commercial segment.

Dilip Kapur, CEO of fashion accessory major Hidesign whose outlets are present at the Hyderabad and Bangalore airports, said that he was expecting the highest turnover from the Delhi airport.

“The way GMR and the advisors for the retail space, TechnoPak, have handled the whole arrangement, is fantastic. Out of all the airports, we are expecting the highest turnover from this airport,” said Kapur. Hidesign is expecting a monthly turnover of Rs 10 lakh from its business in Delhi.

Other companies, however, have a problem with the terms at which the space is being offered to them at the airport. Unlike in older terminals wherein the companies had to give DIAL a share of there revenues, as well as a monthly space rental, the deal in T1D entails a minimum guarantee amount as well as around 10 per cent share of the revenue, sources said.

“For one, the minimum annual guarantee is very high. Also, our footfalls (number of customers) would depend on the traffic at the airport. Given the slowdown, we do not expect a large growth in passengers anyway.

Sharing a huge chunk of that is not viable,” said an executive of one of the F&B companies which is about to open shop at the airport terminal.