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Adani Group has unveiled plans to diversify its airport business and boost the retail business at airports. It also plans to open retail stores at highways and malls in a phased manner. The conglomerate aims to expand its current retail network from approximately 50 stores to nearly 310 by next year. The group seeks to enhance non-aeronautical revenue, targeting three-fourths of total earnings for Adani Airport Holdings. With an annual passenger base exceeding 270 million, Adani intends to capitalise on various consumer segments. The expansion will place Adani Group in direct competition with FMCG giants such as Tata Group's ITC, Reliance, Dabur, and Hindustan Unilever.
Adani Group has outlined plans to diversify its airport business and gradually extend its retail footprint beyond airports to highways and malls. The conglomerate intends to expand its retail network from approximately 50 stores this year to nearly 310 next year, as reported by the Economic Times. This would include 270 retail stores and 40 food and beverage outlets. Advertisement
Adani Group aims to transform its airport business by increasing the share of non-aeronautical revenue to 75% of total earnings for Adani Airport Holdings, compared to the current level of less than 50%. With an annual captive audience of over 270 million passengers, the Group plans to tap into various consumer segments, including electronics, beauty and lifestyle products, chocolates, alcoholic beverages, coffee, and food and beverages.
Gaurav Singh, the chief executive of Adani Airport and Ospree, mentioned to the Economic Times that the company's objective in the domestic sector is to take over the entire airport business and independently manage retail operations as the concessions of existing players expire.
With this aggressive expansion, the port-to-power conglomerate will enter into direct competition with established FMCG giants such as Tata Group's ITC, Reliance, Dabur, and Hindustan Unilever, which are already dominant players in the food and beverage sector.
Beyond airport retail, Adani Group has also planned to extend its retail footprint to highways and malls, thereby broadening its market presence and competing directly with both local and international retailers operating in these sectors.
This expansion comes at a time when India's aviation infrastructure is experiencing significant growth, with 43 new airports expected to be added by 2025 and nearly 200 more in the pipeline for the next two decades. Adani Airport currently manages eight airports, with seven operational ones, including Ahmedabad, Mangaluru, Lucknow, Jaipur, Guwahati, Thiruvananthapuram, and Mumbai International Airport. In the nine months leading to December, Adani Airports recorded passenger traffic of 69.7 million, a figure that is anticipated to rise significantly with the development of new terminals and infrastructure upgrades.
This strategic expansion not only strengthens Adani Group's position within the aviation sector but also establishes it as a key competitor in India's retail and food and beverage markets. With its focus on an innovative approach, Adani Group could bring a transformation to airport retail in the country.
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