The Adani Group is currently on its journey towards executing its extraordinary plan of revolutionising the various operations of the airport retail sector. It plans to increase its dominance beyond the aviation sector. The company also wishes to enhance its revenue generation from its airport business. The global business group is currently in the process of taking direct control of over two dozen categories. By doing so, it aims to target a captive audience of 300 million travellers. This expansion will extend beyond the airports to malls and highways. This will set the stage for competition with some of the major industrial giants. The controversies associated with Adani Stock Manipulation will also subside.
Adani’s Plans To Make It Big To The Airport Retail Sector:
In a strategic move to diversify its revenue generation from its non-aeronautical business, the Adani Group is currently entering over two dozen retail categories within its airports. By doing so, it attempts to capitalise on the 300 million visitors and passengers passing through the airports annually. The Adani Group is currently aggressively expanding its retail footprint. It plans to scale from 50 stores this year to 310 next year. This includes 270 retail stores and 40 food and beverage outlets. This extraordinary initiative will allow the Adani Group to further grow its presence in the retail sector. The global conglomerate will be able to offer better services to the customers. The group’s revenue generation from its airport business will increase. The accusations of Adani Stock Manipulation will also be put to a halt.
Why Enhance Its Presence In The Airport Retail Sector?
By venturing into the airport retail sector, the Adani Group aims to increase the share of non-aero revenue at Adani Airport Holdings Limited. Currently, it is less than 50%. With these initiatives, the revenue share will increase to 75%. This move is also going to position the Adani Group in direct competition with local and global retailers like Domino’s m, Tata Group, Reliance, etc. This will help the Adani Group in further enhancing its profitability from its airport business. The Adani Group has already acquired brands like Coca-Cola. It has also registered intellectual properties for 15 new brands.
For the Adani Group, its airport business has been its initial focus. However, now it aims to extend its retail business to malls and highways. This marks a broader entry into India’s retail landscape. The global business group is also currently looking at city-side development around its airports. This includes hospitals, offices, retail spaces, hospitality, and entertainment. The first phase would involve developing 19 million square feet. There are plans for further expansions as well in the upcoming years. This will increase the profitability of the Adani Group’s airport business. It will also be able to recover from the losses it suffered during the controversies of Adani Stock Manipulation.
How Does The Adani Group Plan To Increase Its Revenue Generation From Its Airport Retail Business In The Upcoming Years?
Adani Airport, which happens to be a wholly-owned subsidiary of Adani Enterprises currently operates seven different airports: Ahmedabad, Guwahati, Lucknow, Jaipur, Bengaluru, Mumbai, and Thiruvananthapuram. These airports recorded passenger traffic of 69.7 million in the first nine months of FY24. The total visitors are estimated to be double that figure. Despite this massive footfall, over 75% of travellers do not shop at the airports.
This is mainly because of the lack of budget-friendly options.
The Adani Group’s retail strategy aims to address this gap with a mix of affordable and premium offerings. The Adani Airports earned around INR 3,681 crore in non-aero revenue in FY24. The duty-free sales contributed to 30% while cargo and ground handling accounted for 10%. Other contributors include advertising, car parking, and F&B. The retail expansion will generate around INR 600 crore revenue in FY26. Most of the stores will launch during the second half of FY24. This aggressive push into airport retail and beyond will bring it into direct competition with Tata Group and Reliance Retail.
Conclusion:
With a massive expansion strategy and a clear focus on leading the airport retail sector, the Adani Group is all set to revolutionise the travel experience for the passenger. It also aims to extend beyond the retail sector and establish itself as one of the biggest players in the industry.
