India-based retail giants Future Group has joined hands with Britain-based cash and carry conglomerate Booker Group so as to provide such similar kind of facility in the domestic platform. Future Group led Big Bazaar is one such retail chain where consumers can walk-in with major facilities but cash and carry being first-of-its-kind in India will be a tough competition to WalMart and Metro in major or Tier I cities.
The recently held Joint Venture deal between two conglomerates plan to expand their market by opening 60 to 70 stores in 4 to 5 States in the next 3 years eventually selling to local general stores, catering firms, hotels, etc. The following announcement was made during the BSE filing, today, in Mumbai. However, UK’s retail giants Booker Group entered the Indian market in 2009 henceforth establishing a network of 6 stores which are engaged in supplying food, FMCG products, and another kind of merchandises to small retailers and enterprises in Maharashtra and Gujarat. The cities included were Mumbai, Pune and Surat.
Now with the recent event of Mergers between Future Group and Booker Group, products range sold under the Future Consumer Ltd. such as Clean Mate (home & personal), Nilgiris (dairy & bakery), Tasty Treat (processed food), Sunkist (beverages) and so on will be distributed and mnaufactured under the name of Booker India network. On Monday, the net sales ncreased by 27% thus closing at Rs. 438 crores during Q3 with recorded net loss of Rs. 4 lakhs.
Accroding to Kishore Biyani, Vice-Chairman, Future Retail Ltd., Booker India has developed one of the lowest cost distribution networks for FMCG products through its cash and carry network in India. We will leverage their expertise in engaging with small, neighborhood retailers and reach out to them with the FMCG brands and products being developed by our organization.
The retail chain across the country currently operates in 13 million square foot of retail space, Future Group plans to reach Rs. 20,000 crores in-sale through its in-house brands by 2021. It further plans to expand its business further from the existing 800-odd stores spread across the nation with daily consumer dealing upto 290 million. At present, the retail giant manufactures its in-house brands in other chains such as Star Bazaar, Metro, Annapurna Bhandaar, and so on.
Apart from joining hand with Booker Group for cash and carry facilitation in India, Future Retail Ltd. has joined hands with other firms like Switzerland-based Migro Groups, Sri Lanka-based Aussie Oats, US-based Sukist Growers.