News: Shopper's Stop in duty-free JV with Italy's Nuance

(RTR 09/06/2006) Mumbai - Shopper's Stop Ltd. said on Friday it had signed an agreement with Italy's Nuance group for a joint venture to set up duty-free stores in Indian airports.

The equal joint venture will distribute international brands, as well as operate food and beverage concessions, a statement from Shopper's Stop said.

No financial details were disclosed.

"India is currently one of the most promising markets as far as development in airports is concerned," the statement said.

"This process is further accelerated by the upcoming privatisation of several major airports as well as the fast expansion of various airlines," it said.

India's cabinet on Thursday approved a proposal mandating the state-run airport operator to modernise 35 airports in second-tier cities within the next two years at an estimated cost of about 70-80 billion rupees.

An estimated four million foreign tourists visited India in the year to March 2006, and India is the fastest-growing market for international tourist spending in the Asia-Pacific region, a recent study by credit card company Visa showed.

India's domestic aviation market -- which saw nearly 25 million passengers in the year to March -- is forecast to expand at more than 20 percent a year over the next five years.

A plan to privatise the country's biggest airports, in Mumbai and New Delhi, was approved earlier this year.

Shopper's Stop operates a chain of 20 department stores.

The Nuance Group -- owned by Italy's Gecos/Gruppo PAM and Stefanel SpA -- is the world's top airport retailer, operating 330 outlets at 59 airports, the statement said.