With the local aviation sector taking wings, Menzies Aviation, a global provider of passenger, ramp and cargo services, has set its eyes on picking up concessions at most metro airports in the country for providing services.
Firm plans to invest up to Rs 300 crore at Hyderabad and Bangalore
HYDERABAD: With the local aviation sector taking wings, Menzies Aviation, a global provider of passenger, ramp and cargo services, has set its eyes on picking up concessions at most metro airports in the country for providing services.
A full subsidiary of the $2.5 billion John Menzies Plc, the company has set up three joint ventures, one with the GMR group for cargo services at Hyderabad International Airport and two with the Bobba Aviation Group for cargo and ground handling at Bangalore and Hyderabad, respectively.
The group is set to invest close to Rs 300 crore at the two locations for setting up state-of-the-art infrastructure. Prospects for ground handling and cargo services providers are huge considering the passenger base in the country has grown at 23% per annum over the past three years, while the fleet size is projected to grow at 27% annually over the next five years. This is against a projected growth rate of 9.5% for the rest of Asia.
The group will, however, be pitted against other international services providers like Singapore Airlines subsidiary SATS, which has tied up with Air India and Indian Airlines for a pie of the huge potential business.
“We are confident of bagging at least a 50% share of the ground handling business at the airport where we will operate,” VS Bobba, managing director, Menzies Bobba Aviation told DNA Money. “We are keen on bidding for concessions at other southern airports like Chennai and Trivandrum, apart from Delhi, which is likely to open up to private participation anytime now.”
Cargo in Bangalore alone has seen a 15-16% growth over the past few years while Hyderabad is on the verge of virtual explosion with new infrastructure coming up. Menzies is setting up a 2 lakh sq ft cargo warehouse to handle 1.5 lakh tonnes of throughput in Phase I of the project, Kamesh Peri, director - India, Menzies Aviation added. The investment in Bangalore is expected to reach Rs 120 crore.
In Hyderabad, Menzies is in partnership with the GMR group, which will build the cargo infrastructure with a capacity to handle 1 lakh tonnes per annum. Currently, the existing Hyderabad airport is handling a throughput of 45,000 tonnes per year, but it could go up to 75,000 tonnes immediately after the new airport opens up, Kamesh said. As for ground handling,
including cargo from the ramp side, and passenger terminal management, Menzies Bobba will invest Rs 75 crore to set up state-of-the-art IT and other infrastructure.
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