2 months ago
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The Union government’s decision to privatise many more airports is attracting integrated facility management (IFM) services companies to foray into airport services to scale up business.
Krystal Integrated Services Ltd., one of the integrated facilities management services (IFMS) companies expanding in this space, is planning to raise capital from the market.
It intends to raise fresh capital of about ₹175 crore for fueling its future growth.
“Major factors driving the demand for Airport Management Services Market in India are growth in air travel, government initiatives for infrastructure development, and sustainability among others,” said Sanjay Dighe, CEO, Krystal Integrated Services Ltd.
Promoted by Prasad Lad and family and backed by professional management, Krystal is already handing two airports, four railway stations and 10 metro stations along with catering services on certain trans/train routes.
The market for Airport Management Services is valued at ₹3,700 crore for FY2023. Growing at CAGR of 8.5% from FY2023 – FY2028, it is expected to reach ₹5,563 crore, according to Frost & Sullivan (F&S).
The market for Airport Ground Handling services is estimated to be ₹ 2,940 crore in FY23 and it is expected to grow at a CAGR of 12.7% from FY23 to FY28 to reach ₹ 5,358 crore, according to this market research firm.
Privatisation of Airports in India is a major factor driving the demand for private sector. Most of the major international airports such as Indira Gandhi International Airport – Delhi, Manohar International Airport – Goa, Mangalore International Airport – Mangalore, and others in Bengaluru, Cochin, Kannur, Hyderabad, Noida, Lucknow are all privatised and hence the market is dominated by private sector.
Major companies operating in this space are BVG, Quess Corp, Sodexo, Krystal, ISS, OCS Group, S.S. Enterprises, Tenaga Parking and Traffic Solutions Co.
Ground handling is a critical activity at an airport and includes baggage and cargo loading and unloading, passenger movement, aircraft clean-ups, in-flight meals loading and unloading, aircraft marshalling and ancillary support services to aircrafts (ground power units, ground air conditioning units), among others.
