Hyderabad International Airport being constructed by GMR Infrastructure (GHIAL).

The duty-free shops at the airport will be set up by the joint venture between the Swiss-Indo consortium and will be valid for seven years from March 2008.

The JV emerged the strongest bidder both on technical and financial grounds and the quantum of capital investment was one of the major criteria. However, GHIAL officials declined to disclose the capital investment proposed by the winning entity. The theme and concept proposed by the Nuance-Shopper’s Stop consortium was also a significant criterion for winning the bid. The JV partners are expecting to earn revenue of up to $240 million over the period of seven years.

As per the contract, the Nuance- Shopper’s Stop consortium will set up three retail stores at the international terminal, covering an area of 2,500 sq m. Of these, I 277 sq m of area will be at the arrival level while 1,189 sq meters at the departures and 34 sq m of last-minute shopping at the departure level.

Nuance of Switzerland will introduce innovative concepts in store formats and offering, product display and sampling. According to the company, the Hyderabad duly-free will compete with the likes of Singapore, Dubai and other well -established international airports. Retail area in the international airport will have both a contemporary duty-free and duty-paid shopping. The licence for duty-paid contract has, however been awarded to Shopper’s Stop alone.

GHIAL has already tied up with various partners or fuel farm operations, hotel and operational readiness and airport transfer (ORAT) for the new airports, which will come up at Shamshabad, near Hyderabad with an investment of Rs 2,283 crore.

Reliance Industries will operate the fuel farms in the airport while Singapore-based Accor Hotels and Resorts will set up a hotel in the premises of the airport.

Munich Airport International (MAI) a leading authority 0RAT will undertake the process of transfer of the airport from the existing Begumpet to Shamshabad. GMR has also entered into a 51:49 partnership with Netherlands-based Menzies Aviation for handling cargo at the international airport.