Future Group to invest Rs 400 crore by 2014

MUMBAI: Future Group will invest Rs 400 crore in the next four years to scale up the supply chain efficiency of its retail formats such as Big Bazaar, Pantaloon, Central and e-Zone, says a senior official. Kishore Biyani-controlled group will invest the money in its supply chain vehicle— Future Supply Chains (FSC). It has already put in Rs 150 crore in the past 18 months and will invest Rs 100 crore each year till 2014, said Anshuman Singh, MD & CEO, FSC.

“An efficient warehouse management helps a retailer to reduce logistic cost, save the inventory size and increase shelve availability,” he added. FSC has eight integrated distribution centres across the country with 2,00,000 sq ft area each. A May report by Sastha Gudalore, equity analyst at Alchemy Securities, said the warehouse management system has had a positive impact on Pantaloon Retail India.

“It has increased the order filling rate from 70% to 90%, thus, clearly increasing the throughput and reducing the revenue loss.”