Dufry has secured a 15-year contract to operate and manage duty-free outlets at the eagerly anticipated new Terminal 2 at Kempegowda International Airport Bengaluru (KIAB) in Bangalore.  

The retailer, which has operated duty free shops at KIAB since 2008 through its subsidiary Nuance, will be operating the new outlets in a 50:50 joint venture with airport operator Bangalore International Airport Limited (BIAL). 

“We are committed to supporting BIAL’s vision to develop Bengaluru’s Kempegowda International Airport as a preferred destination for shopping and dining,” said Alberto Iglesias, Chief Operating Officer, Mediterranean, Eastern Europe & Middle East, speaking on behalf of Dufry.

“We will honour the renewed trust from BIAL and build on our longstanding and valued relationship, by providing passengers with an enhanced shopping experience meeting the highest international standards and featuring a considerably extended product assortment.” 

The news follows a global-open tender issued by BIAL, which was launched in November 2021, as previously reported. 

The Dufy/BIAL contract covers more than 3,600 sqm of retail space spread across International Departures and Arrivals in the new terminal, which has been built to meet increasing passenger traffic at the hub in the years to come.

KIAB is the third-biggest airport in India handling over 33 million passengers each year (based on 2019 data).

BIAL will be a 50% shareholder in the duty free joint venture company, in line with its recently adapted commercial strategy based on ‘trust and collaboration, as well as sharing of risks and rewards’.

“We are excited to continue our longstanding relationship with Dufry,” said BIAL’s Chief Commercial Officer, Kenneth Guldbjerg.

“The company is one of the leading global travel retailers and we will benefit from Dufry’s expertise to take the airport’s shopping and brand experience to an entirely new level. 

“With this partnership, we aim to enhance our offering across categories, especially in luxury fashion, beauty, and confectionery.

“We are looking forward to working jointly with Dufry to deliver a world-class shopping design and experience, which is aligned with BIAL’s vision for becoming a leader in sustainable development, along with technology and innovation.”

The joint venture is not restricted to core duty free shops and will therefore enable Dufry to also explore opportunities for luxury retail and other formats.