Flemingo International has praised Mumbai Duty Free’s latest fashion contract victory at Chhatrapati Shivaji International Airport (CSIA) as the springboard for continued double-digit growth gains across the retailer’s Indian subcontinent business.

Speaking exclusively to TRBusiness following an official press event during last week’s TFWA Asia Pacific Exhibition & Conference, Flemingo International Group Chief Executive Officer Atul Ahuja cited growth of +7.5% year-on-year through its Mumbai Duty Free brand.

“It’s a great time for India and the right time to expand and have a substantial part of the market share. Our average contract length in the Indian subcontinent is nine years, which is a good position to be in.”

Ahuja confirmed that Flemingo International’s India business has also witnessed a CAGR of +26% year-on-year for the past three years, with the retailer looking at that figure for the next four to five years.

‘IT’S OUR TIME IN INDIA’

Addressing press during the event, Paul Topping, Director/Board Member, Flemingo International said the New Year’s contract coups at Mumbai and Sri Lanka, [Flemingo emerged victorious in a tender to operate the expanded core duty free concession at Bandaranaike International Airport (BIA) effective 15 march – Ed] indicates that it is “our time in India”.

The new contract in Sri Lanka offers Flemingo International the opportunity to move into a prime location at both the arrivals and departure lounge, with the latter space increasing by 65% (6,050sq ft). The arrivals hall is also set to be reconfigured, but the space remains the same.

New facilities, including an expansion of product ranges such as perfumes and cosmetics, are expected to open in July with Flemingo International continuing to operate from its current space until then.

BIA handled 9.47m international passengers last year, registering a tourist growth of +14% as Chinese travellers emerged as the second largest passenger group after Indian passengers.

Flemingo Sri Lanka is forecasting growth of 40%-50% this year, the retailer said in a statement.

CONFECTIONARY PREMIUMISATION

In March, DFS India Private Ltd [which recently entered into a separate supplier-only agreement with Mumbai Duty Free at CSIA arrivals and departures locations in other merchandise categories  – Ed] revealed to TRBusiness plans to increase its space and assortment at CSIA Terminal 2 Arrivals, which includes an expanded heath and wellbeing supplements section offering premium bateel dates and mass consumption items such as soaps, shampoos and hand wash at targeted duty free prices.

In the general confectionery category, Anjan Kumar, Category Manager, DFS India PVT Ltd. tells TRBusiness that the strategy in arrivals is to select products not readily available in the domestic market.

“There is a good demand, but it’s usually as a ‘change product’ – with our arrivals being a larger market it’s about increasing the transaction size,” he commented. “Last year we did a lot of premiumisation with our arrivals business.”

In the Indian subcontinent, Flemingo International has a presence in 13 international airports, including running fashion stores at Delhi Duty Free.

The Flemingo Group operates in more than 30 countries with airport, sea port, cruise, diplomatic service and inflight duty free points of sales with over 200 shops worldwide.

For coverage of Flemingo International’s eight-year contract to operate 13 fashion stores at CSIA, click here.

To view detailed coverage of the developments, see the May issue of TRBusiness, available now.

Watch out for the June print issue confectionery report for further comment from DFS India PVT.