Observations Assessments

❑ Governments fiscal ➢ Deductions in profits for the

incentives purpose of Income tax.
❑ Focus on Public Private ➢ Investment made by public
Partnerships sector to be increased in
Airport construction under
PPP Mode.
❑ Effect of political stability ➢ Stable state governments
plays critical role in policy
making and regulations in
India.
❑ Effect of endemic ➢ Corruption slows down the
corruption construction.
Observations Assessments
❑ Planned capital expenditure ➢ Investment estimated
of ₹200 Billion by AAI between 2019-2023 is ₹450
between 2018-2021. Billion. Gap in funding to be
met by heavy participation
of domestic and foreign
players in PPP model.
❑ Move from revenue-share to ➢ New model is transparent
revenue per passenger and the metrics are easier
agreements to track. There is less
uncertainty in bidding
❑ Budget allocation of ₹45 ➢ New entrants and
Billion to revive 50 companies other than GMR
underserved airports. and GVK will utilize smaller
projects to enter the sector
or to build expertise
❑ Aggressive pricing ➢ New entrants are utilising
strategies for new aggressive pricing
Observations Assessments
❑ Expanding Requirements ➢ Airports are evolving to
transport and business
hubs
❑ Population demographics ➢ UDAN scheme, Construction
of airports in tier II cities.
New entrants bid on these
projects aggressively
❑ Access to remote areas ➢ Provides access to remote
areas where other transport
modes are limited, thus
opening them up to contact
with other communities,
and providing a means for
the delivery of essential
supplies
Observations Assessments
❑ Slip formwork ➢ Speedy construction,
reduction in time and
therefore higher
revenues
❑ Self healing concrete ➢ Contributes to a longer
service life of concrete
structures
❑ Green airport ➢ More eco-friendly,
sustainable and energy
efficient
❑ Tag-less baggage ➢ Can handle large
tracking system amount of passenger
traffic in efficient
manner
❑ Biometrics ➢ Secure and faster
operations
Observations Assessments
❑ AERA mandated tariff charge ➢ Tariff slashing has adversely
slashing for DIAL and MIAL in effected the recovery period of
the concession period of 2019- existing projects and resulted
2024 in uncertainties in CapEx for
future projects
❑ AERA Bill 2019 reduces number ➢ Tariff at airports not classified
of airports under AERAs as major airports will be fixed
purview for tariff regulation to by MoCA. More flexibility for
15 smaller companies operating
such airports
❑ NCAP Introduced in 2016 to ➢ The sector is more organized
make flying affordable and pave and structured and there are
for significant growth in less risks and uncertainties
aviation sector

❑ Liberalized AAI land ➢ Huge potential for entrenched

development policy was players like GMR and GVK to
extended to existing operators monetize airport land for
commercial use
Observations Assessments
❑ Airport construction and ➢ This affects existing players
operation should comply as upgradation is more
with air, water, land and difficult than new
noise pollution control construction
norms
❑ Environmental Clearance ➢ Time Frame for
environmental clearance is
set by Ministry of
Environment and Forests for
faster execution
Resources/ Value Rarity Inimitability Organisation
Capabilities
❑ Pricing ➢ Yes ➢ No ➢ No Ownership
Strategies and
collaboratio
n
❑ Reputatio ➢ Yes ➢ Yes ➢ Yes Flagships
n Projects
❑ Local and ➢ Yes ➢ No ➢ No SPV with
Global global
Presence players
❑ Expertise ➢ Yes ➢ No ➢ Yes Over a
decade of
experience
❑ EPC ➢ Yes ➢ No ➢ No Strong
Capabiliti Engineering
Resources/ Value Rarity Inimitability Organisation
Capabilities
❑ PPP Model ➢ Yes ➢ No ➢ No PPP Veteran
Experience
❑ Compliment ➢ Yes ➢ Yes ➢ No Diversified
ary
Industries
❑ Past Project ➢ Yes ➢ No ➢ Yes Flagship
Experience Projects
❑ Debt ➢ Yes ➢ No ➢ Yes Monetising
Restructurin Airport land
g
❑ Degree of ➢ Yes ➢ Yes ➢ Yes Largely
Control Family
Owned
Marketing for Infrastructure and Sustainability

PESTLE and VRIO Analysis

Sector: Airports
Company: GVK

Presented by:
Akshay Pai Economical and VRIO
Piyusha Nikam Legal
Pratik Kumar Political
Shrushank Shinde Socio-environmental
Sujay Yeole Technological
References included in notes in individual slides