GMR Airports, India

Delhi & Hyderabad - Airport Cities

The India Opportunity

• India, one of the most under penetrated but one of the fastest growing

aviation market. Currently ranks ninth but is expected to become the third

largest after US and China by 2020.

According to IATA, India's domestic air travel market would grow at 13.1%

Indian airport system is poised to handle 336 Mn domestic and 85 Mn

international passengers by 2020 (total 421 Mn)

Currently handling 121 Mn domestic and 41 Mn international passengers

(total 162 Mn)

About 400 aircraft are currently operational in the country and by 2020 the

number is expected to reach 1,000 aircrafts

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India to be among the fastest growing aviation market globally

Note: India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US & Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum).

• India plans to build 200 low-cost airports in the next 20 years to connect tier-II

and tier-III cities

• The 12th five-year plan (2012-2017) envisages investment of USD 12.1 Bn in

airports, of which USD 9.3 Bn expected to come from the private sector

• Non-metro airports in India presently accounts for only about 30% of the total

air traffic, but is expected to rise to 45% in the next few years

• Govt plans to construct 15 additional airports in the country under the

Greenfield Airport Policy, by identifying a low cost viable model

Growth to be primarily driven by regional connectivity on account new private airports in Tier-II & III cities

Private Airport Developers have to play a significant role in bring investment, best practices, new development models to realise this growth potential

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• Expansion opportunities / Privatization of new airports

• New connectivity/routes to the Airport

• Increase in traffic (both O-D and transfer) – due to availability of alternate to

train/bus connectivity for the target segment

• Increased catchment / demand for the developments being planned as part of

Airport City developments

• Government support/incentives to promote regional connectivity

Growth in regional connectivity will drive traffic and Airport City development at existing Metro airports

Existing Metro airports like Delhi & Hyderabad with its large land bank,

excellent infrastructure & air connectivity are best positioned to emerge as

regional hubs and develop as global Airport Cities

How the Airport Developers can view the emerging opportunities in the sector….

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The Government has been proactive in foreseeing the Airport City trend while privatizing Metro Airports

Granted long-term concessions for both brownfield & greenfield airports

Allotted land in excess of Airport/Airside requirement has been allocated

With a larger Vision of socio-economic growth of the Region and the State, the Government…

Provided enablers such as fiscal support, external infrastructure and easy approvals

Adopted International Competitive Bidding route

Also contributing as Shareholder in the Airport Company

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GMR - Airport Cities

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GMR group with its portfolio of Airports is well positioned to capitalise on the Airport City opportunity

World’s 4th largest private airport

company in terms of passenger volume.

– Invested USD 4.2 bn in 3 operating

airports at Delhi, Hyderabad and

Istanbul

Handles over 60 million passenger and

over 700,000 MT of Air Cargo

Airport capacity of 100 million

passengers

Handles nearly 30% of India’s passenger

and 29% of Cargo traffic

Airport Cities being developed both at

Hyderabad & Delhi

Currently, GMR is developing two Airport Cities - Delhi & Hyderabad

Delhi & Hyderabad has its own set of Unique Challenges & Opportunities, and our Development Strategy has accordingly been customized…

Both the Airport Cities discussed in detail in subsequent slides – as Case Studies

Delhi Aero City

• India’s Capital

• Huge Demand

• Premium Pricing

• Less Land

• Bidding for Land Development

• Dense high-value property

development

Hyderabad Airport City

• State Capital

• Moderate Demand

• Significantly Lower Pricing

• Large Land Bank

• Diverse Approach to Land

Development

• Similar to Greenfield City

Development

Theme-based Anchor Led Development Bid-out Land Parcels in Phases

(aligned to Master Plan) 8

Both Delhi & Hyderabad developments provide unmatched USP/benefits to tenants & investors

Unique aspects of GMR Airport

Cities

Excellent/Reliable Physical infrastructure

Facilitation in Approvals

Green Technologies /Renewable Energy

Flexibility in Master Plan

Invest in Anchor assets

Global/Reputed brands – aligned to

development strategy

Ability to control adjacencies

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Our Experience in Delhi Aero City

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Key features

• Concession Period : 30+30 yrs

• Only airport in India with 3 runways

• India‟s longest Runway : 4,430 mtrs

• High speed rail link to City Center

• Car park for 4,300 cars

• Terminal 3 – International Scale

‒ 168 check-in counters

‒ 92 walkalators, 31 escalators

‒ 30 security channels

‒ 78 Aero bridges

‒ 12 baggage reclaim belts

• Handled 36 mn in FY‟12 and 34.4 mn

passengers for FY‟13

• 5100 acres of land

• 250 Acres of Property Development

• „Gold‟ rating from LEED

Delhi International Airport Ltd (DIAL) – “A global marvel”

Rated World‟s “2nd Best Airport” & “Most Improved Airport for Airport Service

Quality (ASQ)” in the 25 to 40 Mn. category

The T3 terminal with an area spanning 502,000 sq mt. was built in a record time of 37 months

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Indira Gandhi International Airport, New Delhi

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DIAL has received over 40 awards across project excellence, infrastructure & service quality

CNBC Aawaz - Best

Managed Airport Award

(2011, 2012 and 2013)

Golden Chariot Award, 2011 for

Best Airport, from the Transport

Ministry of the Russian Federation

Stat Times Award for the

International Cargo Airport of

the Year (Region-India) 2012

Washrooms & Beyond Honours

2011 for Intelligent Washroom

Design in the Airports Category

Operation, Management &

Development of the new integrated

passenger terminal building T3

1st airport in the world to be

certified for Energy Management

System (ISO 50001:2011) by BSI

2nd best airport in the 25-40

mn passenger size; ASQ

(2011, 2012 and 2013)

SkyTrax award for the “Most Improved

Airport”; Rated as the “Best Indian

airport” in SkyTrax survey

Best Airport (India),

2011 award for T3

BCIA Award for

Terminal 3

Airport Carbon

Accredited

„Optimization‟ Award

by ACI

Clean Development

Mechanism (CDM)

project for T3, by

UNFCCC

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The Delhi Airport Master Plan includes 230 acres of land for commercial development

Commercial land

Delhi Airport Master Plan [2006]

Master Plan of Delhi Airport has been approved by Airport Authority of India

Delhi airport has 230 acres of land available for commercial property development

Commercial developments are away from the airport – minimum

interference with airport operations close to National Highway – easy access

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We plan to undertake phased development of remaining land

45 acres (0ver 6 Mn Sq ft)

230 acres (over 30 Mn Sq Ft)

Phasing based on

Real Estate Demand

Airport Master Planning & infrastructure

availability - For ex. connecting roads

Hospitality District

Expected phasing of Aerocity development at Delhi Airport

Others include convention / exhibition centers, warehouses, culture gully, hospitals, education centers, etc.

2010 2015 2018 2024

Additional Hospitality

Formats

Aviation Related offices

Passenger related

retail

Others*

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Hospitality District – the first Aerocity development in India – has emerged as a Unique destination…

1st Aerocity in India – unique concept in the city, country and the region at large

13 assets under development – mix of Hotels (luxury, upscale and mid-scale) and

commercial development

1.5 Mn Sq Ft of commercial development; 6 Mn Sq Ft of total built-up area

5,400 hotel rooms

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Hotel Brands in DIAL Aero City

Brands at Hospitality District

Dense 45 acres development with a total built-up area of over 6 Mn sq ft

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2 hotel assets already operational, & others expected to commence operations in next 6 months

Successfully operational assets

Expected to be commissioned in next 6 months

J W Marriott

Red Fox & Lemon Tree

Ibis

Holiday Inn

Operational assets are enjoying room & occupancy rates that are significantly higher than competition in the city

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Aerocity to provide an unmatched experience to pax while providing business opportunity to developers

230 Acres of commercial land

Clean land title

Mixed development - Opportunity for

offices, retail and hotels

Well-planned & controlled development

Excellent infrastructure – Road, Metro,

Air

Common infrastructure by DIAL

Excellent travel experience

Retail opportunities

Hotels

Restaurants & food outlets

Other infrastructure like exhibition &

convention centers

A destination in itself !!

Developer benefits Passenger benefits

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Our Experience in Hyderabad Airport City

• Concession Period : 30+30 yrs

• 5495 acres of land

• India‟s 2nd longest runway : 4260 m

• 42 Aircraft parking stands

• 146 check-in counters & 46 immigration counters

• Car park for 3,000 cars

• „Silver‟ rating from LEED

• Airport City planned in 1,500 acres and includes 2 SEZs

• Excellent highway/expressway connectivity to City Centre

• Handled 8.4 mn pax and 84,000 MT of cargo in FY‟13

Hyderabad International Airport Ltd. – It is the first Greenfield PPP Airport of India

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The Greenfield Airport along with terminal (117,000 sq mt.) was built in a record time of 31 months

Hyderabad is centrally located in India

Within 5 Hours time

Abu Dhabi Bangkok

Dammam Kuala Lumpur

Doha Penang

Dubai Phuket

Kuwait Singapore

Muscat Mauritius

Riyadh

Sharjah

Most of India

Kathmandu Male

Colombo Dhaka

Within 2 Hours time

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The duty free and retail provides a world-class experience to the passengers

Hyderabad is the among the most awarded airports in India and the Region

Voted India‟s “Best Cargo Airport”

and “Best Air Cargo Terminal” by

ACAAI 2012 & 2013

“Best Airport Award” Skytrax

World Airports Awards, 2010,

2012 & 2013

„Silver‟ Rating on LEED from

US GBC

Ranked in (5-15mn Cat) World‟s

#2 Airport 2012 & 2013, World‟s

#3 Airport 2011, & World‟s #1

Airport in 2009 and 2010 by ACI

National Tourism Award by

Ministry of Tourism in 2010,

2011, 2012 & 2013

1st Airport in the World to

receive 5- Star Certification

from British Safety Council.

Recently awarded the

prestigious „Sword of

Honour

1st Airport in India to get

Level 3 Accreditation by

ACI on Airport Carbon

Emission

“Best Airport Marketing Award”

2013 by CAPA

Recent: STAT TIMES highly acclaimed ‘Best Emerging Cargo Airport of the Year (2013)”, FICCI-CSR Award

2012-13, ASSOCHAM-CSR Excellence Award, Excellence in Airport Operation & Management by SAP Media

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The Vision of Hyderabad Airport City

Our vision is to develop a world class airport city

(Aerotropolis), which apart from contributing directly

to the airport business will become the engine of

economic growth in the entire region

Key components/activity centres being developed in the Airport City

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Aerospace Park

Logistics & Warehousing Zone

Hospitality & Retail

Exhibition & Convention Zone

Fun Port (Leisure & Entertainment)

International Financial Services Centre (IFSC)

Office Port

Edu Port & Health Port

Airport City Master Plan

Office Port Fun Port

Exhibition Centre

Existing

Retail

Future

/ Future Runway

(FOR RAIL SIDING)

(Multi-product)

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Existing Terminal

Building

Legend for Key Existing Assets

United Technologies Corp.

India Pvt. Ltd

Tenants in Aerospace Park

MAS-GMR Aero Technic

Ltd.

CFM Engine Training Centre Indian Rotorcraft Ltd.

• GMR has set up a JV with Malaysia

Airlines for developing an Airframe

MRO at the Aero Park

• The facility has the capability up to „D‟

checks on B737, A320 and up to “C”

checks on B777 and A330

• The Aero Park houses CFM

International‟s Regional Engine

Training Centre

• The facility has the capacity to train

500 engine maintenance engineers.

• The Aero Park has the IRL‟s final

assembly and testing centre for

Agusta Westland‟s AW119 Ke

Turbo Jet Engines Pvt. Ltd

• Pratt & Whitney Engine Training

Center.

• A Facility for Repair and Calibration

services of Fixed & Rotary Wings

aircraft parts

SAS Applied Research &

Lab Materials

• Facility shall carry out value added

services, packaging and distribution

of rare chemicals for Indian &

Overseas Markets

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MRO FACILITY IN AERO SEZ IS FULLY OPERATIONAL

The Airport has a well-developed cargo ecosystem, “Cargo Village”

Cargo Village

Pharma Zone

Integrated Cargo

Terminal

Road Feeder Service

On-site Regulators

Free Trade Zone

Cargo Satellite Building

Traditionall

y Airports

blamed for

being PAX-

centric

RGIA Bucks

Trend with

Focus on

Both Cargo &

PAX

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Decathlon store opened recently

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Existing 5 Star Hotel

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Existing GMR Aero Towers

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EXHIBITION & CONVENTION CENTRE (ECC) ZONE

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The 100 acres ECC zone, which is a mixed-use development of Exhibition Centre along with Hotels, Offices & Retail components will form the Central Core of the Airport City development

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With significant progress in the initial projects, Airport City is now in the growth/execution phase

Industrial / Aerospace Park (Special Economic Zone)

Multi-services based Special Economic Zone

Office Campus Development

Exhibition Centre / 100 acre Mixed-use Commercial

Retail development (big-box, high street)

Entertainment & Media – Amusement / Theme Park

Utilities Provisioning & City Services

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Opportunity Areas Indicative Engagement Models

As Tenant

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As Strategic Partner for a Project /

Asset

As Co-developer for a Zone / Port

As Financial Investor

As 3rd Party Service Providers (for

infrastructure / utilities)

Hyderabad Airport City presents a plethora of attractive investment / partnership opportunities

THANK YOU