Fung Capital, a Hong Kong-based private equity firm, has acquired 26 per cent stakes in Future Supply Chain Solutions, the logistic arm of Future Group. It will invest $30 million in the firm to expand its supply chain network, besides strengthening its logistics infrastructure and technology platforms.

Kishore Biyani, the founder and CEO of Future Group, signed a deal with Li & Fung Group's private equity investment firm, Fung Capital, in Hong Kong.

Mr. Biyani said: "Fung Capital has agreed to invest $30 million in phases, of which $10 million will be injected immediately. They have taken up to 26 per cent stake."

Mr. Biyani further added that the deal will help improve supply chain efficiencies by arresting increasing costs. A joint statement by the companies said: "Future Group proposes to change the name of its subsidiary Future Logistics Solutions to Future Supply Chain Solutions."

The Indian logistics market worth $100 billion is likely to grow 25-30% over the next few years. Organized players account for just 6% of the total market, but their share may increase due to involvement of private equity investments.