DFS agrees 10-year Myanmar supply deal

By Doug Newhouse |

UPDATED. DFS Group and the Singapore Windsor Holdings company have agreed an exclusive 10-year supply agreement in Myanmar to supply the existing duty free operation at Naypyitaw International Airport, plus additional new duty free arrivals and departure outlets at Yangon International Airport.

 

Naypyitaw International Airport is located some 16km south east of Naypyidaw – the capital of Myanmar. Yangon International Airport is located 15km north of downtown Yangon and is the third largest airport in the country after Mandalay and Naypyitaw.

 

Singapore Windsor Holdings disclosed the new agreement with DFS in a financial company notice filing and press statement on the Singapore Exchange (SGX) dated 27 May, where it confirmed it has secured an exclusive a 10-year agreement with DFS Group to develop duty free retail outlets at Yangon International Airport and Naypyitaw International Airport’.

 

Yangon International Airport.

 

DFS PIONEERS MORE ‘NEW’ TERRITORY

Singapore Windsor Holdings (SWH) adds that by the end of 2015 the total operation will consist of almost 2,000sq m of duty free retail space at both key airports.

 

It adds: “In line with the strong market trend of inbound flights to Myanmar, the number of international travellers for leisure and business is forecast to grow rapidly. The new international terminal at Yangon is expected to handle three times the current passenger traffic volume of the existing terminal.

 

“By combining its considerable local operating capabilities and excellent knowledge of Myanmar with DFS’ world-leading industry expertise, Singapore Windsor is setting its sights on raising the airport retail experience in Myanmar to the highest standards of international duty free retail.”

 

The original report filed by Singapore Windsor Holdings (SWH) more than a week ago clearly stated – and still states – that DFS would be operating some of the retail facilities in Myanmar, but DFS clarified today that the arrangement is limited to a supply agreement only.

 

DFS CLARIFIES BUSINESS RELATIONSHIP…

DFS Group’s Vice President, Corporate Communications Consumer Marketing & Branding Jay Frame said: “Unfortunately some media reports are misleading. To clarify, we are not operating stores in Myanmar. DFS has entered into a supply-only agreement with SWH to supply duty free merchandise to SWH in Singapore, which will be on-supplied by SWH from Singapore to Myanmar for sale in Yangon International Airport and Naypyitaw International Airport.

 

“In contrast with other locations such as Singapore’s Changi Airport, we neither operate stores in Myanmar, nor do we employ any people, or have any form of legal presence.”

 

Meanwhile, SWH says that for its part, this exclusive agreement enhances Singapore Windsor’s on-going strategy of developing businesses with high growth potential in Myanmar and ‘augments the group’s growing portfolio of consumer-related and business-related services with strong cash flows’.

 

SWH says it specialises in identifying underlying growth trends within Myanmar, having ventured into telecom infrastructure construction, duty free operations, trading, distribution and retail, serviced offices and the car hire and rental services businesses to date.

 

The original announcement of Singapore Windsor Holdings’ new ‘supply’ arrangement can be found at the following link dated 27 May 2015, under the heading ‘Announcement Title’ and General Announcement: Press release: http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements

 

To reach the more detailed information, the fields of information must be completed exactly as shown above and then the second reference down to 27 May 2015 must be selected.

 

 

 

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