With annual revenues from airport retailing in India ? which includes duty-free sales ? set to cross $1 billion this year, two Miami-based firms, Duty Free Air and Ship Supply (DFASS) and In-flight Services Worldwide, have queued up before the government agencies seeking permission to operate in the country.

These firms have joined a long list of overseas operators who have come to India to offer duty-free services. These include Switzerland-based Dufry, Dubai-based Flemingo, Turkish firm Setur Sevis Turistik, Dublin-based Aer Rianta International, and Spanish firm Aldeasa, among others.

Experts say there are three reasons for overseas airport retailers flocking to India ? the healthy 20%-plus growth rate; the increase in retail space on some of the existing international airports; and increasing footfall and per passenger spend on airports.

?We expect 18-25% growth in the airport retail sector on an average air traffic growth of 14-15% y-o-y,? said KPMG India director (aviation) Amber Dubey. Industry sources said that Delhi International Airport (DIAL), the country’s largest airport operator by aircraft handled, is expected to clock $100 million revenue from airport retail in the current financial year, while other airports, like Mumbai and Bangalore, will do a business of $60-80 million each.

?Airport retailing has good margin, provided procurement is done at right pricing and the product mix is good,” an executive of a private airport said. More duty-free shops are expected to come up at Delhi, Mumbai, Bangalore, Kochi and Hyderabad international airports.

DFASS, one of the largest duty-free operators in the US with a turnover of $150 million, wants permission to set shop in India, while its rival In Flight Services Worldwide, wants permission to supply duty-free products on board Indian carriers operating in the international circuit.

Both these operators have now approached the foreign investment promotion board (FIPB) as investments in airport retail is not under the automatic route.

DFASS currently operates on Air Canada, Delta, Gulf Air, Silk Air, Singapore Airlines and Avianca, among others. Also, DFASS group operates more than 25 specialty stores in North America, Latin America and the Caribbean, including Dallas and Houston International airports, Pereira International airport, Colombia, and Sangster International Airport, Jamaica.