Kishore Biyani has finally decided to test international waters. The Future Group has signed a JV with Khimji Ramdas Group of Oman to retail jointly in the fashion and food categories in the UAE.
The new established JV company will be called KR Future Fashions LLC.
“For the first time we were thinking of spreading our wings in the international market, a market which is physically close to India and we thought of Khimji Ramdas from Oman. Today, Future Group is retailing close to 30 crore garments. We have identified a huge space and opportunity in the fashion space. Our ambition is to sell close to 100 crore garments into the next two or three years. Oman is the market which we have identified for our brand fbb. We will start by opening four or five fbb stores and go up 17-18 and evaluate further expansion,” Future Group CEO, Kishore Biyani said at a press conference held in Mumbai to announce the JV.
“This strategic partnership is a step towards making fbb a global brand. Within less than a decade, we have successfully established fbb as India’s fashion hub. We are optimistic that the combination of our fashion know how and KR’s local in-market expertise will get us closer to our goal of getting fbb to the helm of the top 10 preferred international fashion brands. We also plan to extend our partnership to food and FMCG brands,” he added.
Director, Khimji Ramdas LLC, Nailesh Khimji, added, “Oman will be the test market for this partnership. If we are successful, we will venture further abroad, expand to Gulf countries. We are strong as far as distribution goes and Future Group is strong in retailing. Together, this will be a winning formula. This strategic partnership will bring together the domain expertise of Future Group and the local knowledge and infrastructural strength of Khimji Ramdas.”
“Our part of the world has a large segment of millennials, which presents an opportunity in the accessible fashion market for us to jointly pursue with fbb. Oman will be the perfect sppringboard for moving into GCC and the wider region. Moreover, the two groups have synergies to draw upon even in the food and FMCG sectors. I think there is a lot we can venture into together as partners,” Khimji further stated.
The JV is a commitment of initially investing Rs 75 crore each into the business and the first fbb store in Oman will be operational by the first quarter of next year. The first store will be opened in Muscat and will be between 15,000-20,000 sq. ft.
Future Group is eyeing a turnover of Rs 11,000-12,000 crore for its apparel business by FY18.
The strategic partnership is part of Future Group’s broader plan of expanding the group’s food and FMCG brands to the international market. Through this partnership, Future Group plans to commence export and distribution of popular Future Consumer brands including Tasty Treat, Desi Atta and Sangi’s Kitchen in the Middle East.
Additionally, Future Group will source high quality dates from Oman, which witnesses high demand and sales in India.
All You Need to Know About The Khimji Ramdas Group
Headquartered in Muscat, The Khimji Ramdas Group (KR) is an established business conglomerate in the Sultanate of Oman.
Trusted and respected for more than a century (147 years, established in 1870), KR has consistently maintained its leadership position in the Consumer, Infrastructure and Industrial arenas. KR has diversified businesses in four strategic groups: consumer products, infrastructure, lifestyle, projects and logistics.
KR is also well known for its sound consumer engagement. It has the largest supermarket chain, premium luxury and lifestyle showrooms, home and office furniture, restaurants and cafes, education and training, telecommunications and IT, end-to-end building and construction related services and supply, shipping, defense, logistics and travel solutions spread across more than 100 retail outlets.
The group – which boasts a loyal and committed workforce of over 5,000 people – has a strategic market expansion plan. it has international operations across India and the UAE, with the Indian operation specializing in the distribution of consumer products.
It’s annual turnover is more than US $1 billion.
(With inputs from Gurbir Singh Gulati)