With 6 airports in its kitty, Adani becomes 3rd largest private operator in single swoop

Agencies
March 1, 2019

Mumbai, Mar 1: The Adani group, which has just won the mandate to run all the six government-owned airports that were put up for privatisation recently, will become the third largest private operator in passenger volume after the GMR group and GVK group.

The diversified Adani group is marking its entry into the airports space after bagging a 50-year contract for operation, management and development of the Ahmedabad, Lucknow, Jaipur, Guwahati, Thiruvanathapuram and Mangalore airports after quoting revenue share in the range of Rs 115 to Rs 177 per passenger.

"With these six airports under concession, the Adanis will become the third largest private airport operator in terms of passengers handled, after the GMR group and GVK group," Icra said in the note Wednesday.

The six airports together handled 30 million passengers--23.6 million domestic and 6.4 million international—last fiscal year, a growth of 22 percent over the previous year, the report said.

The GMR group-run New Delhi airport handled 65.69 million passengers in fiscal 2018 while the GVK group-run Mumbai airport handled 48.5 million during the same period.

As per the Airports Authority, which currently operates these six airports, the Adanis offered Rs 177, Rs 174, Rs 171, Rs 168, Rs 115 and Rs 160 for Ahmedabad, Jaipur, Lucknow, Thiruvananthapuram, Mangaluru and Guwahati airports, respectively.

The wide range of bids received,such as from Rs 18 to Rs 160 per passenger offered in Guwahati, shows the challenges in bidding regarding estimation of variables like traffic, non-aeronautical revenues, real estate monetization and capex for such a long concession term of 50 years, Icra said.

A total of 32 technical bids were received from 10 companies to operate these six airports.

Last November, the government had cleared the privatisation of these six AAI-run airports on public-private partnership model.

The aviation ministry announced fixed concession fee per passenger as the bidding criteria for selecting bidders as against revenue sharing basis model adopted at the time of privatisation of Mumbai and Delhi airports way back in 2006.

"Healthy participation from investors, spanning across domestic and global players, validates the new model, which brings lower regulatory intervention and provides more autonomy to the concessionaire," said Harsh Jagnani, sector head and a vice-president at Icra.

These six airports have been growing at 17 percent annually in the past five years, Icra said, adding as per the winning bids, AAI would generate around Rs 600 crore (including administrative fee) in revenue in the first year.

Going forward, this is expected to jump with growth in traffic and inflation (as the concession fee and admin fee would be indexed to 50 percent of inflation), it said.

The per passenger fee criteria adopted draws from the new concession structure that fixes aeronautical revenue on per passenger basis apart from a maximum blended aeronautical yield model, a proportion of which is shared with the AAI.

Under the new fee structure, the base maximum blended aeronautical yield is proposed at Rs 400 per passenger, which will later be indexed to 50 percent of inflation annually.

If this were to be taken as a base, net aeronautical revenue (after AAI share) of the concessionaire from these six airports will be around Rs 650 crore in first year, Icra said.

For AAI airports, over the past five years, non-aeronautical revenue constituted around 55 percent of the aeronautical revenues.

These six airports enjoy benefits of long track record of operations, making them amenable to strong growth in non-aeronautical revenue and the concessionaire is expected to focus on this. Another key revenue stream for these airports is the real estate development.

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News Network
October 3,2024

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Bengaluru: The Karnataka Food Safety and Quality Department has issued an urgent warning following the discovery of potentially cancer-causing chemicals in cakes sold by certain bakeries across the state.

Recent tests conducted by the department revealed that some cake samples, particularly those with vibrant colors, contain harmful synthetic coloring agents such as Allura Red, a substance known to pose health risks. The findings have raised concerns about the use of artificial colors in bakery products, especially given their potential link to cancer and other serious health conditions.

"We routinely test various food products, and this time, our officials noticed unusually dark-colored cakes on the market," said Srinivas K, Commissioner of Food Safety for Karnataka. "Upon testing, we found that a few cakes contained Allura Red, a synthetic dye associated with health risks."

The use of artificial colors, especially in popular cakes like red velvet and pineapple varieties, is widespread as it attracts customers, particularly children. However, many bakers prefer using natural, safer alternatives, while some opt for synthetic dyes to enhance the cake's visual appeal.

"Most bakeries use permissible, natural colors that are safe for consumption. Unfortunately, a few are resorting to synthetic dyes just to make their cakes more attractive," said a bakery owner from Electronic City, speaking anonymously.

Medical experts are warning that consuming synthetic colors can lead to numerous health issues, including asthma and allergic reactions.

"Some of these artificial dyes are carcinogenic, and prolonged exposure could have serious consequences, especially for children and young adults," cautioned Dr. Vandana G, a private medical practitioner.

While the Food Safety and Standards Authority of India (FSSAI) confirms that only a limited number of samples tested positive for harmful colors, legal action is being taken against the violators.

"There is no need for widespread panic or halting production. We are closely monitoring the situation, and only a few bakeries were found to be non-compliant. Rest assured, appropriate legal measures are underway," assured an FSSAI official. 

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coastaldigest.com news network
October 8,2024

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Mangaluru, Oct 8: The city of Mangaluru mourns the loss of M Ahmed, a pioneering businessman, philanthropist, and the Founder Chairman of the AK Group. He passed away on Tuesday morning at the age of 76, leaving behind a legacy that spans decades of service, innovation, and community building.

M Ahmed, also fondly known as A K Ahmed, was a man of humble beginnings who grew into one of the most respected entrepreneurs in South India. He founded the AK Group in 1984, which has since flourished into a multi-faceted business empire. The company, which began as a small frame manufacturing unit, now encompasses a wide range of industries, including plywood, formaldehyde, particle boards, fire-rated products, and more. AK Group's growth extended beyond India, with manufacturing units established in Myanmar and Vietnam.

What began with 18 employees in 1984 has today expanded to provide employment to approximately 3,000 people in India and 400 abroad. M Ahmed’s dedication and vision were instrumental in transforming the company into a market leader, recognized for its high-quality products and innovation. AK Plywood is now one of India’s top plywood manufacturers, and the largest in South India. The company was Karnataka’s first plywood manufacturer to receive ISO certification and has garnered prestigious awards, including the Rising Stars Power Brands Award in London (2017) and the Best Manufacturer Award from MSME Karnataka (2018).

Ahmed’s business success was deeply rooted in values instilled in him during his early years. He worked alongside his father, the late Abdul Khader Moopa, loading sawn timber, and it was from these humble beginnings that he developed his work ethic, pioneering spirit, and respect for time—values that remained the cornerstone of his remarkable career.

His foresight was evident when he recognized the potential of timber from Perumbavoor, Kerala, for plywood and blockboards at a time when it was merely being used as firewood. This strategic move led to the establishment of one of the first frame manufacturing and peeling units there, and soon after, Ahmed launched his own company in Mangaluru, swiftly earning national and international recognition.

Beyond plywood, the AK Group has diversified into multiple industries, including marine food, pharmaceuticals, construction materials, hypermarkets in India and the UAE, and food industries in Indonesia. Under Ahmed’s leadership, the company’s reach expanded, ensuring its position as a formidable player in various sectors.

Ahmed was not only an extraordinary businessman but also a deeply compassionate individual, dedicated to social and religious causes. He served as the founding president of the managing committee of Ihsan Masjid in Mangaluru and established the Highland Educational and Cultural Centre. His philanthropic efforts were as vast as his business ventures, benefiting countless communities both in India and abroad.

His kindness, simplicity, and punctuality were hallmarks of his character. Those who knew him admired his unyielding commitment to excellence, as well as his warmth and generosity. M Ahmed is survived by his wife, three daughters, and four sons, who continue his legacy of philanthropy and social service.

As news of his passing spread, tributes poured in from all sectors of society. Social, religious, and political leaders in Mangaluru expressed their deep sorrow over the loss of a man who dedicated his life to improving the lives of others.

M Ahmed’s journey from humble beginnings to massive success will continue to inspire generations. His life serves as a testament to the power of vision, perseverance, and, above all, integrity.

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News Network
October 1,2024

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The BJP has selected Kishore Kumar Puttur as its candidate for the bypoll to Karnataka Legislative Council from Dakshina Kannada and Udupi Local Authorities’ Constituency. The by-election will be held on October 21.

Kishore Kumar is presently serving as the General Secretary of Dakshina Kannada BJP unit. He had served as vice president of State BJP Yuva Morcha from 2014 to 2016.

The by-election will be held to the seat vacated by Kota Srinivas Poojary of the BJP who has been elected as the Lok Sabha member from Udupi-Chikmagaluru Lok Sabha constituency. The vacancy was created on June 15, 2024 following Poojary’s resignation to the Council. His term in the council was till January, 2028.

In the last Council election held for the dual member constituency in December 2021, Poojary had secured 3,672 votes while the Congress candidate Manjunath Bhandary had secured 2079 votes. Poojary and Bhandary had secured required votes from the first preferential votes and had won the election.

There were several aspirants for the BJP ticket including former MP Nalin Kumar Kateel, DK BJP president Satish Kumpala, Mangaluru divisional in-charge Uday Kumar Shetty, former minister Pramod Madhwaraj and former Udupi district BJP president Kuilady Suresh Nayak.

The Congress is yet to announce its candidate for the election. KPCC working president Manjunath Bhandary in a recent press meet in Mangaluru had said that an opportunity will be given to congress leaders from Udupi district to contest by-election.

The Dakshina Kannada and Udupi Local Authorities’ Constituency has 6037 voters including 3551 from Dakshina Kannada comprising eight MLAs, one MP. The last date for filing nomination is October 3 and the last date for withdrawal of nomination is October 7. The counting will be held on October 24.

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