The Hindu Business Line : ITDC plans joint venture with Aldeasa of Spain

Snapshot
To set up 50:50 joint venture company with initial paid-up capital of $7 million
Venture would also operate warehouses and procure goods domestically as well as through imports.

New Delhi April 22 There could soon be more choice for people arriving at Indian airports from abroad in terms of buying duty-free items before they step into the country.

Indian Tourism Development Corporation (ITDC) has finalised plans to set up a joint venture company with Spain-based Aldeasa SA for operating setting up duty-free shops at airports and seaports across India.

FIPB nod sought

Permission has been sought from the Foreign Investment Promotion Board (FIPB) to set up a 50:50 joint venture company with an initial paid-up capital of $7 million in which both the partners would chip in $3.50 million each.

Aldeasa operates one of the largest chains of duty-free shops across airports around the world. According to the application filed with the FIPB, at the end of 2006, the company was managing 139 airport shops in Spain alone and another 39 in different countries that include North America, Latin America, Canada, Kuwait and other West Asian countries.

According to the application filed with the board, the joint venture company expects to generate approximately $330 million sales turnover during the first three years of operations of which around 50 per cent would be in dollars.

First shop at Delhi

The company proposes to open its first shop in the Delhi airport where it is planning to have staff strength of around 300 people, the application states. Since the new joint venture would also operate warehouses and procure goods domestically as well as through imports, more employment opportunities are likely to be created, the company has informed the board in its application.

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