Future Group courts cash-n-carry stores
Kishore Biyani-led Future Group is looking to enter the cash and carry format in India in the consumer goods space. The company is eyeing the roll out of smaller 300-500 sq ft shops for wholesale, the first of which will open in Bangalore next month. Rachit Vats reports.business Updated: Mar 11, 2013 02:03 IST
Kishore Biyani-led Future Group is looking to enter the cash and carry format in India in the consumer goods space. The company is eyeing the roll out of smaller 300-500 sq ft shops for wholesale, the first of which will open in Bangalore next month.
"We are building up wholesale stores which will be tested soon in a few cities, starting with Bangalore next month," said Kishore Biyani, founder and promoter, Future Group.
The non-food cash and carry format will see the firm expand its relationship with HK-headquartered supply chain management company Li & Fung.
The cash and carry format, which will operate in the brown goods space, will be rolled out from a separate company, Future Market Networks, a listed firm on the BSE and the NSE.
"Cash and carry will be rolled out nationally. This will be a part of another partnership with the Future Group," said Rajesh Ranavat, MD - mergers & acquisitions, Fung Management.
Fung Management is the private equity investment arm of the $20 billion Li & Fung group of companies run by the families of Victor Fung and William Fung. Their core businesses are in the area of trading, logistics, distribution and retailing.
"Future Group has been a great partner with both depth and width in business. Our partnership is to build infrastructure and add scale. Once scale comes, profits will follow," said Ranavat.
The firm did not disclose the project's investment figures.
First Published: Mar 10, 2013 21:54 IST