Mauritius Duty Free Paradise (MDFP) is to embark on a major transformation which will involve a review of business processes and extensive focus on certain departments.

Currently, the retailer, which is supplied by Gebr. Heinemann operates one main departures store at Sir Seewoosagur Ramgoolam International Airport and two smaller arrivals shops.

It also operates fashion stores in departures featuring brands such as Tommy Hilfiger and Calvin Klein. These are separate from the main duty free shop which sells liquor, perfumes, cosmetics, skincare products, tobacco, confectionery, local products, jewellery and watches and consumer electronics.

In addition, MDFP is present at Sir Gaëtan Duval Airport, located on the island of Rodrigues which is part of Mauritius. The retailer runs around 250sq m of space at the airport, which handles non-stop flights to and from Mauritius Island and Reunion Island.

EFFICIENCY GOAL

Anoop Kumar Nilamber, CEO, Mauritius Duty Free Paradise, who assumed the role in October 2018 told TRBusiness: “My main objective is to transform the company in the sense we need to become more efficient.

“At the moment, for example, we are working on IT and digital upgrades and investing a lot in digital and marketing tools.”

MDFP is also reviewing its organisation structure, according to Nilamber. “We need to have new roles in areas focusing more on the business side such as business development, strategy and expansion.

“While wanting to develop ourselves, we also want to better manage the risk within the company. We are, therefore, reviewing the infrastructure on the human resources side.”

He added: “These are the first steps we have to think about before considering expansion.”

Last year, MDFP generated turnover of €57m ($64m) and is expecting growth of around 4% to €61m for the year ended June 2019.

“This would represent a reasonable performance because tourism growth is more or less flat compared to last year. Once we transform the organisation, the company will be better positioned to target growth of at least 5%.”

EXPANSION PLAN

Looking ahead, The Indian Ocean and East Africa appear possible areas for expansion, indicated Kumar. “Clearly, one of our main objectives, let’s say in the medium term, is to have an additional presence in the Indian Ocean in somewhere such as Madagascar.

“We are completely open in terms of expansion and could even win a concessionaire in East Africa as MDFP or in partnership with someone else. Discussions are ongoing with potential partners, but nothing is finalised. It is all about being ready.”

At present, MDFP’s main markets are Europe and France in particular. Any possible expansion would, therefore, be a step into the unknown. “It is important to know your customer first and adapt the product offer accordingly.

“We are currently developing new markets such as China, India, Dubai and Saudi Arabia.”

Expanding further afield may be on the agenda, but there is plenty to think about close to home. “Our stores were recently renovated, but there is also the ongoing expansion of Sir Seewoosagur Ramgoolam International Airport which should be completed in the next two or three years.

“As far as the airport expansion is concerned the master-plan is ready. We will have a new walkthrough and more space, but this is in the medium-term. In order to be ready for this kind of space and configuration, we need to be ready internally in terms of business processes.”

External challenges, which must not be neglected include competition from downtown retailers which shows no sign of waning. “Increased competition from downtown is impacting our business. When there are shops which sell products at cheaper prices than duty free it is always a major challenge.”

He concluded: “The business model is changing so it is important to invest more in digital and find new ways to attract customers.”