Adani Group is set to expand its airport retail business to over 270 stores, aiming to boost non-aeronautical revenues. The group plans to enter various retail categories, including electronics, beauty, chocolates, alcohol, lifestyle products, and food services.
Beyond Airports – Highways and Malls
The company plans to extend its retail operations beyond airports to highways and malls, positioning itself as a competitor to Tata, Reliance, and global brands like Domino’s and Yum Brands.
Growth Strategy
Currently, Adani Airport Holdings Ltd generates less than half of its revenue from non-aero businesses. The goal is to push this to three-fourths by taking control of airport retail and food services as existing concessions expire.
Expanding Store Count
Adani aims to increase its retail footprint from 50 stores to 310 by next year, including 270 retail outlets and 40 F&B locations. It is also developing city-side projects around airports, incorporating hospitality, retail, hospitals, offices, and entertainment spaces.
Financial Impact
Adani Airports recorded ₹3,681 crore in non-aero income in FY24, with duty-free sales contributing 30%. The group expects revenue from in-house and franchise retail operations to reach ₹600 crore in FY26.
Competing with Major Brands
The expansion will place Adani in direct competition with Tata and Reliance, which operate brands like Starbucks, Croma, and Marks & Spencer in airports. Adani has already acquired brands like Le Marche and Cococart, which have a presence beyond airports.
Brand Registrations
Adani has registered 15 retail brands, including Toyshire (bookstore), Sweet Cart (Indian sweets), House of Elixir (liquor), and On365 (convenience stores). It is also developing new brands for QSR formats focused on tea, juice, pizza, rolls, and global cuisine.
Market Outlook
According to CAPA, optimizing non-aero revenue streams can significantly boost airport profitability. Adani’s strategy of owning and operating retail spaces allows deeper consumer insights, leading to better-targeted offerings. However, execution will be key to success.
