Future Group for stake in fashion & food retail cos
It recently picked up a minority stake in Sankalp Retail Value Stores, the Indian franchisee of the US-based 'My DollarStore'. Most expensive malls in the country
By Writankar Mukherjee, TNN |
KOLKATA: The Biyanis of the Future Group are looking at fresh acquisitions to grow the retail business. The group is in advanced talks to pick up strategic stakes in companies in the fashion and food retail space. It has already identified potential targets and may shortly dip into a Rs 2,000-crore war chest to kick off such strategic acquisitions.
The Future group is likely to acquire stakes through group company, Future Ventures. Future Group CEO Kishore Biyani told ET: “We are negotiating to pick up stakes in several retail firms that are mainly in the apparel and food segment. Some of these deals are in fairly advanced stages of negotiation.”
But as a strategy, the Future group has no plans to acquire a majority stake in any deal. It plans to expand its investment basket. “We will not pick up more than 50% in any of the chains. We are eyeing both national and regional retail chains,” Mr Biyani added.
The Future group is likely to acquire stakes through group company, Future Ventures. Future Group CEO Kishore Biyani told ET: “We are negotiating to pick up stakes in several retail firms that are mainly in the apparel and food segment. Some of these deals are in fairly advanced stages of negotiation.”
But as a strategy, the Future group has no plans to acquire a majority stake in any deal. It plans to expand its investment basket. “We will not pick up more than 50% in any of the chains. We are eyeing both national and regional retail chains,” Mr Biyani added.
It may be noted that Future Group had recently picked up a minority stake in Sankalp Retail Value Stores, the Indian master franchisee of the US-based discount retail format ‘My DollarStore’. These stores have pioneered the concept of retailing global products at a fixed price point of Rs 99. There are more than 40 such stores which sell brands like Mars, Pringle’s, VO5 shampoo and Ferrero Rocher chocolates.
Incidentally, the Future Group has till now grown its retail business through the organic route. It has rolled out multiple formats across several categories, primarily through two companies — Pantaloon Retail and its subsidiary Home Solutions Retail. The group has set a $7-billion turnover target by 2010 and expects the retail business alone to generate revenue of $4 billion by 2009.
There has been a trend of consolidation in the organised retailing sector such as Aditya Birla group’s acquisition of southern chain Trinethra and Reliance Retail’s takeover of Adani Retail in Gujarat. Analysts believe this trend will further gain momentum as players are now looking to rapidly increase their network and gain a critical mass.
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