India’s leading conglomerate, the GVK Group, says that it has signed a contract with state airport operator Angkasa Pura to manage non-aeronautical commercial operations at Ngurah Rai International Airport in Bali.
“The scope includes both the existing terminals and the new international terminal, which is currently under construction and is expected to open in the third quarter of 2013 with a major makeover,” GVK said in a press release.
The firm, which has expertise in managing international airports in India, will focus on generating more revenue from retail, food and beverages, duty free shops and other services and operations at Ngurah Rai, the busiest airport in the nation after Soekarno-Hatta International Airport in Jakarta.
The statement did not specify the value of the contract.
The Hyderabad-based firm will operate Ngurah Rai Airport through its subsidiary GVK Power & Infrastructure Ltd (GVKPIL).
GVKPIL chairman GVK Reddy said in the statement that he would bring in his company’s expertise and experience to Indonesia. “This development is a true testament to GVK’s established track record in the operation and management of India’s leading airports in Mumbai and Bangalore.”
“We are happy to strengthen our relationship with the Indonesian government further with this association and we are committed to bring our expertise and experience in transforming [Ngurah Rai airpiort] in Bali as well,” Reddy said in the statement.
“We are very excited by the opportunity to provide passengers at the Denpasar airport in Bali a truly world-class shopping experience, across brands, product variety and price points.
This is also in line with our stated endeavor to take this airport to international standards and help Indonesia in realizing its growing potential as a key destination in the region.”
GVK is the main operator of India’s two busiest airports: Chhatrapati Shivaji International Airport in Mumbai and Bengaluru International Airport in Bangalore.
Indonesia is not a new market for GVK, a company that has operations in energy, mining, airports and transportation, hospitality, infrastructure and the life sciences.
It currently works on US$6.6 billion in investment projects in India and an additional $10 billion in projects abroad.
In January 2011, GVKPIL signed a memorandum of understanding (MoU) with Angkasa Pura to build a new international airport in Kulonprogo regency in Yogyakarta.
Construction on the Kulonprogo airport — which will be built as a green-field facility, i.e., on undeveloped land, as opposed to upgrading an existing facility – will commence in 2014, with operations projected to start in 2016.