Future Group’s arm to enter wholesale distribution business
Kishore Biyani’s Future Group is planning a foray into the wholesale distribution business, to tap huge opportunities in the sector.
Future Logistics, the logistics arm of the group, will distribute products in food, apparel, luggage, grocery and other categories to organized retail chains in the country.
According to official sources, the company is in the final stages of talks with a foreign player. However, the officials declined to name the companies they are in talks with.
Future Logistics, which is expected to start operations by January 2009, is eyeing revenue of Rs 1,000 crore from the business in the next three years.
Apart from this, the company is also rationalizing the number of its warehouses from the current 50 to 20-30 in the next two years for better implementation of IT systems, automation and merchandising. The company has nearly 3.5 million sq ft of leased warehouse space currently and plans to have a total 7.5 million sq ft of space by 2011.
Future Logistics had registered revenues worth Rs 150 crore in FY08. The firm intends to do a business of Rs 2,000 crore from warehousing, transportation, international logistics, reverse logistics and distribution.