Zurich Airport enters strategic alliance in India
Zurich Airport enters into a strategic alliance with GVK Power & Infrastructure Ltd. (GVKPIL) for its international airport activities in the Indian subcontinent. The strategic alliance with GVKPIL will strengthen Zurich Airport's strategic business objective of expanding its airport activities in South Asia and will promote its presence in India. At the same time GVKPIL will acquire the 12% of the share capital in Bangalore International Airport Ltd. (BIAL) from Zurich Airport.
Zurich Airport is strongly committed to the Indian aviation market. Zurich Airport will remain the operator of Bengaluru International Airport and will retain 5% of the share capital of BIAL, including its board representation. One of the challenges facing the fast paced economic development in India is to create world-class infrastructure which will further boost economic growth and provide people with a better quality of life. Impending airport developments on the Indian subcontinent pose a serious challenge. Therefore, a synergy between a locally well-positioned and professional developer like GVKPIL and the expertise of a well-reputed and experienced international airport operator is highly advantageous. The strategic alliance with GVKPIL will boost Zurich Airport's strategic business objective of expanding its airport activities in South Asia and will enhance its presence in India.
GVKPIL, named after its founder, chairman and managing director, Dr. G.V. Krishna Reddy, is a diversified business entity with a predominant focus on infrastructure but also holds a significant presence in the hotel, services and manufacturing sector in India. GVKPIL has responded to the challenge by taking a lead in developing projects of national importance in diverse areas ranging from power, mining to airports and roads. GVKPIL already operates the country’s largest airport, Chhatrapati Shivaji International Airport in Mumbai, under a concession agreement for 60 years. With their strategic alliance, GVKPIL and Zurich Airport form the biggest current private player in the Indian airport sector. The convincing strategic alliance with GVKPIL will assure Zurich Airport's position in the Indian market and pave the way for future growth.