GMR plans $2B expansion at Delhi and Hyderabad airports
What's the story
GMR Airports, a leading player in India's aviation sector, has announced plans to invest nearly $2 billion (approximately ₹19,400 crore) in the expansion of its New Delhi and Hyderabad airports. The investment will be spread over the next five to seven years and is aimed at increasing capacity and modernizing infrastructure. This comes amid a surge in demand for air travel in India, which is now the world's third-largest domestic aviation market after the US and China.
Expansion details
Major investment in Hyderabad airport
Saurabh Chawla, the Executive Director of Finance and Strategy at GMR Airports, revealed that the company will invest around ₹13,800 crore in Rajiv Gandhi International Airport in Hyderabad and up to ₹5,600 crore in New Delhi's airport.
The investments will be financed through a combination of debt and equity by individual airport ventures.
Once completed, the upgraded Hyderabad airport will be able to handle around 80 million passengers annually, more than double its current annual volume of 34 million fliers.
Market standing
Competition with Adani Group
GMR Airports is the largest airport operator in India by annual passenger numbers, while its rival Adani Airport Holdings Ltd. has the most airports under its belt.
The Adani Group plans to invest $15 billion over five years to increase passenger capacity at its aviation facilities.
Chawla said that the expansions in New Delhi and Hyderabad could be just the start of a modernization drive at GMR Airports, which already operates six airports in India.
Strategic focus
Plans for domestic airport projects
GMR Airports, which is 26.5% owned by France's Aeroports de Paris SA, will concentrate on bidding for domestic airport projects that the Indian government plans to sell.
However, no talks are underway for the redevelopment of overseas airports.
Despite India's consideration of a policy change allowing airport operators to run airlines, Chawla said GMR Group isn't interested in entering the airline business and wants to focus on its core airport business and related operations.