“We are looking at various possibilities to hive off Big Bazaar and the decision would be taken very soon. The proposal is at a very initial stage and board has to consider it,” Kishore Biyani, CEO, Future Group, said in a statement.
This move, according to Biyani, is in sync with the group’s plans to generate additional revenues for Big Bazaar.
“For the current financial year, we expect the group’s revenue to be around two billion dollars, and by 2011 we’ll touch the eight billion dollars mark, said Biyani.
The floor area of the stores, according to Biyani, would reach 30 million square feet against 10-11 million square feet at present.
The company is also looking at fresh acquisitions, and is in talks with fashion and food retail companies.
“We are in advanced stages of negotiation with several retail firms that are mainly in the apparel and food segment.”
Elaborating on strategy, Biyani informed, “We will not pick up more than 50 per cent in any company. We are eyeing both national and regional retail chains.”
Future Group had recently picked up a minority stake in Sankalp Retail Value Stores, the Indian franchisee of the US-based discount retail format My DollarStore.
The IPO of the Future Capital, the financial services arm of the Future Group, has been oversubscribed by over three times on January 11, the first day of its opening.
The company had floated an initial public offering of Rs 490 crore with the fixed price of Rs 700-765 per share. The issue will close on January 16.