Draws up big plans to grow its Future Consumer Enterprise five-fold in next five years.
Food is the next frontier for Kishore Biyani of the Future Group, after having cemented his position in the retail sector.
Biyani now wants to grow its Future Consumer Enterprise, which includes the retail and distribution network of the business, five-fold in the next five years.
“We will be able to reach a turnover of Rs 2,000 by 2015 and want to grow it to Rs 10,000 crore in the next five years,” said Biyani.
In a bid to step up, Biyani will be launching Sunkist, a California-based beverage brand, in India.
The group has entered a licensing agreement with the parent company and will be introducing sparkling beverages and juices in the citrus category in the next 6-8 months. With this, the company will also be taking on players like Dabur and PepsiCo and other imported brands.
Though Biyani did not give out details about pricing, he said it will be priced at a premium to Real (Dabur) and Tropicana (PepsiCo). He is confident that “by the second year of operations, the brand will be able to clock in Rs 100 crore”.
Sunkist also features other items like confectionery, dry fruits etc in the portfolio. Going ahead, its likely that even these other products will be brought to India, added officials.
Biyani also indicated that he is likely to roll out other international brands in spices and staples categories, too. In order to expand the company’s reach, Future group has already started rolling out some of its products in general trade and plans to expand the same.
Future consumer Enterprise currently includes KB’s FairPrice, Aadhaar and Big Apple on the distribution side. And on the products and brands side, it reels off Tasty Treat, Ektaa, sach and the like. The group has also built its first Food Park in Karnataka, which is likely to be operational by April-May 2014 and will focus on processing and manufacturing, too.
...offloads stake in Capital Foods
Kishore Biyani’s Future Consumer Enterprise has shaved off its 46% stake in Capital Foods, which has brands such as Top Ramen, Ching’s Secret and Smith &Jones under its portfolio. It has been sold to an undisclosed French PE firm for Rs 180 crore. “Future Consumer Enterprise has no debt on its books. We have Rs 200 in cash on our books as of now,” added Biyani.
Last month, he also sold off its stake from Biba, an apparel firm, for Rs 300 crore. This apart, the group is looking at selling stake in other brands such as Turtle, AND and Clarks.
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