MIDDLE EAST & AFRICA: MAURITIUS DUTY FREE
Mauritius Duty Free targets improved efficiency ahead of possible expansion
Airports of Mauritius Limited subsidiary, Mauritius Duty Free Paradise is prioritising internal improvement over potential expansion as it looks to move to the next level. Andrew Pentol reports on the ongoing transformation.
M
auritius Duty Free Paradise, is undertaking a review of business
processes with an extensive focus on certain departments. MDFP, which is supplied by
Gebr. Heinemann, operates one main departures store at Sir Seewoosagur
Ramgoolam
International Airport (MRU) and two smaller arrivals shops. It also operates fashion stores in
departures featuring brands such as Tommy Hilfiger and Calvin Klein. These are separate from the main duty free shop which sells liquor, perfumes, cosmetics, skincare, tobacco, confectionery,
local
products, jewellery and watches and consumer electronics. Additionally, the retailer runs a
250sq m space at Sir Gaëtan Duval Airport, located on the island of Rodrigues which is part of Mauritius.
The need for efficiency The internal transformation appears to be in full flow, with former MDFP CEO, Anoop Kumar Nilamber assuming the role of Airports of Mauritius Limited CEO in August. Airports of Mauritius Limited
manages MRU, which has been operational since 1 April 1999. It also controls the duty free subsidiary. Speaking to TRBusiness, prior to his
new appointment, Nilamber said: “The main objective is to transform the company in the sense it needs to become more efficient. “At the moment, for example,
work is taking place on IT and digital upgrades and investment is being made in digital and marketing tools.” MDFP is also reviewing its
organisational structure, according to Nilamber. “We need to have new roles in areas focusing more on the business side such as business development, strategy and expansion.
OCTOBER 2019
“While wanting to develop, we also want to better manage the risk within the company. “We are, therefore, reviewing
the infrastructure on the human resources side.” “These are the first steps we
have to think about before considering expansion.” Last year, MDFP generated
turnover of €57m ($64m) and is expecting growth of around 4% to €61m for the year ended June 2019. “This would represent a reasonable
performance because tourism growth is more or less flat compared to last year,” added Nilamber. “Once we transform the organisation, the company will be better positioned to target growth of at least 5%.” Looking ahead, Nilamber sees
potential for expansion around The Indian Ocean and East Africa. “Clearly, one of our main objectives, let’s say in the medium-term, is to have an additional presence in the Indian Ocean in somewhere such as Madagascar. It is all about being ready.” At present, MDFP’s main
customers are Europeans and French in particular. Any possible expansion would,
therefore, be a step into the unknown. “It is important to know
your customer first and adapt the product offer accordingly,” he said. “We are currently developing new
markets such as China, India, Dubai and Saudi Arabia.” Expanding further afield may be
on the agenda, but there is plenty to think about close to home. “Our
recently
stores were renovated,
but
there is also the ongoing expansion of Sir Seewoosagur Ramgoolam International Airport which should be completed in the next
two or
three years,” said Nilamber. “As far as the airport expansion is
concerned the master-plan is ready. We will have a new walkthrough and more space, but this is in the medium- term. In order to be ready for this kind of space and configuration, we need to be ready internally in terms of business processes.” «
“At the moment, for example, work is taking place on IT and digital upgrades and investment is being made in digital and marketing tools.”
Anoop Kumar Nilamber, CEO, Airports of Mauritius Limited
TRBUSINESS 63
Above: Mauritius Duty Free Paradise operates one main departures store at Sir Seewoosagur Ramgoolam International Airport and two smaller arrivals shops.
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