Future group strengthens back-end to take on retail FDI | business | Hindustan Times
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Future group strengthens back-end to take on retail FDI

business Updated: Jun 10, 2011 20:35 IST
HT Correspondent

In a bid to strengthen its back-end supply chain Future Supply Chains, a specialised subsidiary of the Kishore Biyani-led Future Group, plans to invest Rs 400 crore per year over the next two years. To further strengthen its supply chain the company is planning to raise funds through an initial public offer (IPO) in 1-2 years. The big vision is to strengthen the company's back-end business and prepare for the opening up of the foreign direct investment (FDI).

The company plans to open 10 food and FMCG distribution chains (DCs) across the country, which will be used as warehouses to serve Future's back-end needs and at the same time provide end-to-end warehousing solutions to FMCG players. At present 30% of Future Supply Chains business comes from outside the Future Group.

"Once we are done with the expansion we expect an annual turnover to the tune of Rs 150 crore from all the verticals of Future Supply Chain," said Anshuman Singh, managing director and CEO, Future Supply Chains Solutions.

The company may need to raise Rs 1,000 crore. At present the supply chain major Lee and Fung holds 26% in the company.