MAURITIUS. Mauritius Duty Free Paradise Co is weighing up various options after a recent tender for its distribution contract. The company runs its own airport stores at SSR International Airport and on Rodrigues Island (as Rodrigues Duty Free).
Gebr Heinemann holds the contract but after the tender Mauritius Duty Free Paradise Co issued a letter of intent to award the business to French retailer Aelia in October. Aelia was one of four companies to bid out of ten contacted – the others were The Nuance Group, incumbent Gebr Heinemann and an alliance between Flemingo International and Alpha.
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Mohinder Shakeel Dyall: “This year we are talking €38 million [in sales] … and we are also talking about an increase of +10-15% a year for the next five years” |
However, that potential deal has not progressed, according to Mauritius Duty Free Paradise Co Chief Executive Mohinder Shakeel Dyall. As a result, the company is reviewing its position.
He said the business offers significant upside to the right partner. “We did €35 million of turnover [at retail – Ed] in our last financial year,” he told The Moodie Report. “This year we are talking €38 million and I think we will hit that. We are also talking about an increase of +10-15% a year for the next five years.” Additionally a new terminal is being built in Mauritius, which will boost the business significantly, he said.
The retailer’s current Departures store in Mauritius is 1,000sq m – this will almost double in the new terminal, where Arrivals space is also set to be boosted from around 350-400sq m to 800sq m. Currently Arrivals shopping represents 25% of the fix but it has grown by +30-32% year-on-year during 2007.
“There is a rapid growth in passenger numbers. We are expecting 2 million tourist arrivals by 2015 whereas today we are around 900,000.”
Gebr Heinemann’s contract, which expired earlier this year, has been extended until 31 March, 2008.
Mohinder Shakeel Dyall said the company has four broad options: to award to Aelia if the French company responds positively; to continue with Gebr Heinemann if it doesn’t; to go direct to suppliers; or to look for a logistics partner only while buying direct. He commented: “We’ve been thinking seriously about going direct and we don’t see any problems with the top five [in each category] but we see issues with smaller suppliers and we do need them.”
ABOUT MAURITIUS DUTY FREE PARADISE COMPANY
The Mauritius Duty Free Paradise Company Limited is owned 80% by Airports of Mauritius Limited and 20% by the State Investment Corporation. It was created in March 2002 to take over the activities formerly run by UK company World Duty Free. It has a Departures shop, an Arrivals store and a Made In Mauritius outlet.
