Future Group targets: 30-40% growth

Friday, 22 April 2011

As one of one of India’s leading business houses, Kishore Biyani led Future Group is looking at a high turnovers while targeting a revenue growth of around 30-40 per cent by fiscal year 2012. With presence in capital, consumer finance, insurance, brand development, retail real estate development and logistics, the Group is planning to raise ticket sizes as it has posted double-digit growth. The company has seen good growth in store sales which is driven by current economic growth and its debt equity ratio is around 1:1.1 while average maturity of debt is three and half years. Biyani says consumers are maturing and the proportion of products, at the entry point, is still 25 per cent of sales.

He feels that the high inflationary pressure will not affect the company much as it has worked out strategies to handle input cost pressures. As part of their expansion plans, Future Group will be re-launching a more modern way of shopping by July this year. It’s currently in talks with strategic investors for the same.

With the momentum to allow foreign players into multi-brand retailing building up, it is being speculated that Wal-Mart may be looking to invest in a joint venture with Future Group, raising the possibility of an alliance between India's largest retailer and the world's largest retailer. The US-based retailer already operates in India through Bharti Wal-Mart, a JV between India's Bharti Enterprises and Wal-Mart. It has wholesale outlets in India but can't directly sell to the public because of the restrictions put on foreign investment in multi-brand retail in the country. This joint venture might help Future Group to build an even stronger brand presence along with its already popular retail formats of Pantaloons, Big Bazaar, Central, Food Bazaar, Brand Factory and Home Town that that now cater to almost the entire consumption basket.

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