Future Group to exit non-core business
Retail chain Future Group on Friday said it would consider exiting non-core business to lower debt and fund its growth plans.business Updated: Sep 16, 2011 21:03 IST
Retail chain Future Group on Friday said it would consider exiting non-core business to lower debt and fund its growth plans.
The company will divest its stake in Future Capital Holdings in the next six months.
"We have many other businesses such as textiles and media which we can exit and become a zero debt company," Kishore Biyani, group chief executive officer, Future Group told reporters after signing a pact with the Himachal Pradesh government to promote the state's products across the country.
"We are looking to divest Pantaloon's take in Future Capital Holdings and the process is on. It will take about 4-6 months," he added. However he did not divulge as to how much stake will be sold off.
Biyani's announcement comes even as the government is mulling a proposal to allow foreign direct investment in multi-brand retail .
Biyani also said that the divestment will not only reduce debt but also enable the company to make acquisitions and expand their existing core retail business.
Under the agreement that the company signed with the Himachal Pradesh government, it would promote brand -- Himachal -- under which they will provide direct market linkages to the agriculture and horticulture produce of the state.
This initiative will benefit the farmers at large who will be able to showcase their products in Big Bazaar stores in 85 cities and 60 rural locations across the country.
"We were encouraging farmers of the state to compete in the international markets dominated by China at present," said Himachal Pradesh chief minister Prem Kumar Dhumal.
Future Group operates some of India's retail chains like Big Bazaar, Food Bazaar, Pantaloons, Central, eZone and Home Town, apart from other businesses.