New Delhi: From lingerie to breakfast cereals, the Kishore Biyani-promoted Future Group is pushing private labels aggressively to expand their share to 30% in the its total sales within two years.
"We will increase the average contribution of private labels from 25% to 30% in the next two years," Future Group head (Private Label) Devendra Chawla said.
The group's subsidiary, Future Brands, is entering new private label segments that offer higher profit margins.
"Just this week, we launched our breakfast cereals under the 'Tasty Treat' label. Last month, our toothbrush label 'Sach' was introduced in the market," Chawla said.
Next month, it will start selling the 'Mohena' range of lingerie and nightwear in 20 of its stores.
Chawla said the group is looking at diverse segments to grow, including food items, home, personal care and so on.
"We are evaluating a number of segments for new forays or expansion, and something will be decided soon. However, at this moment, I would not like to comment any further," Chawla said.
Private labels are brands owned by retailers and their production is usually outsourced.
Future Brands Ltd (FBL), which was incorporated in 2006 is involved in the business of creating, developing, managing, acquiring and dealing in consumer-related brands and IPR (Intellectual Property Rights) and currently operates around 20 private labels.
In 2008-'09, Future Group reported Rs660 crore in sales from its trademark private labels, and this year it is aiming to touch Rs750 crore.
The focus on private labels comes at a time when Future Group is aiming to become a Rs25,000-crore conglomerate in 3-4 years, with a total retail space of 30 million square feet.
It has a turnover of Rs10,000 crore, and Biyani has earlier said it is looking to grow by two-and-a-half times.


