Future Retail is making a habit of taking over regional retail brands to strengthen its store network in India and to expand its grocery retail footprint in the country.
Last year, it acquired Heritage Fresh’s retail stores. The two companies signed a definitive agreement, under which all existing 124 retail stores of Heritage in Hyderabad, Bengaluru and Chennai became part of Future Retail network.
Heritage Foods, which was headed by Chandrababu Naidu’s wife, N Bhuwaneswari, has a presence in retail, bakery, agri, dairy, veterinary care and renewable energy. Under the agreement, retail, bakery and agri businesses of Heritage became a part of Future Retail.
Kishore Biyani’s Future Group also acquired retail group chain Sangam Direct from Wadhawan Holding, a company owned by the promoters of Dewan Housing Finance Corp Ltd.
The year before that, it acquired Easy Day after a merger with Bharti Retail in May 2015 – an all-stock deal worth Rs 750 crore to create one of the biggest supermarket chains with Rs 15,000 crore turnover.
Future Retail has also bought over Big Apple in north India.
In the south, the company acquired Nilgiris in 2015.
In a regulatory filing earlier last month, Future Retail had stated its intent to buy HyperCity: “All discussions at this stage (about acquiring with Hypercity) are exploratory in nature. The company keeps on evaluating various possible business associations or transaction at any given time. However, at present, there is neither any legally binding agreement nor any business collaboration or association.”
About Future Group
Kishore Biyani-led Future Group is a diversified conglomerate with significant prominence in Indian retail, fashion, financial services, logistics and media sectors. Its retail businesses focus on developing and operating modern retail, brands and distribution networks in India.
Built over two decades, the group’s flagship companies are involved in three distinct businesses – hypermarkets venture operated by Future Retail Limited; an integrated lifestyle fashion business under Future Lifestyle Fashion Limited; and food-led FMCG business operated by Future Consumer Enterprise Limited.
Future is credited with creating some of India’s most popular retail chains viz. Big Bazaar, Food Bazaar, Central, Planet Sports, Home Town, KB’s Fair Price and Foodhall. Through these formats, Future Group operates around 16 million lakh sq. ft. of retail area and has countrywide store network in 98 plus cities. Collectively, these chains draw over 25 million customers every month, translating into about 300 million footfalls in a year.
FUTURE RETAIL LIMITED
Future Retail operates national hypermarket chain, Big Bazaar and supermarket chain, Food Bazaar. It also operates home retailing format Home Town, consumer durables chain, eZone and gourmet chain, Foodhall, covering 10.4 million sq ft area in 98 cities.
The 168-store hypermarket chain, Big Bazaar (BB) is ranked among the top 4 service brands in India by The Nielsen Company. Its USP lies in its value for money proposition for Indian customers. BB offers 1.6-lakh mass market product ranges that are sought by a majority of Indian consumers besides a host of value added services. Of late, BB has been focusing to re-position itself as a more modern and trendy chain by revamping its stores and adding new categories. In March 2014, Future Group unveiled ` 100-crore 52 weeks marketing campaign with a new tagline “Making India Beautiful”.
Food Bazaar (FB) is a chain of large supermarkets that sport unique ambience which is a blend of a typical Indian bazaar and international supermarket ambiance. The stores offer western values of convenience, cleanliness and hygiene through pre-packed commodities while the Indian values of ‘see-touch-feel’ are offered through bazaar-like atmosphere created by displaying staples out in the open. Presently, there are over 185 FB outlets pan India.
A unique one stop shop for complete home-making solutions, HomeTown is the fi rst of its kind retail format in India. It provides consumers all that goes into building a house and everything to make it a ‘Home’, all under one roof. Offering an array of home products and the services of skilled technicians, HomeTown offers an experience that is democratic, hassle-free and convenient. All this comes with service and product warranties at great prices.
eZone is a lifestyle electronics specialty store from Future group’s stable which operates as stand-alone stores across India in malls, high Streets and within other group format stores as in HomeTown and Central. The stores offer best of national and international electronics brands across categories like audio, accessories, communications, computing, home entertainment, home and kitchen appliances, imaging, personal entertainment and gaming.
Launched in 2011, Foodhall is a premium lifestyle food store by Future Group which caters to urban Indian consumers having exposure to global food traditions. Currently, it has six stores across Mumbai, Bengaluru, New Delhi, Pune and Gurgaon. Foodhall outlets stock a variety of local and international foods from fresh produce, dairy and packaged foods, poultry, frozen foods and delis categories. Majority of their stock is imported. Offering a complete food experience to customers, these stores also deal in kitchen tools and accessories showcasing over 300 unique gadgets and products. The chain is looking at revenue of `125 crore to `200 crore for FY15.
fbb is a value retail offering in the fashion space offering exclusive merchandise under own private labels. fbb sections are present across all Big Bazaar stores and 30 standalone outlets across metros, mini metros and some tier II cities. Reportedly, the company is mulling to set up neighbourhood outlets for more modular consumption of the brand. The group has already done some pilots in cities and expects to soon roll out such stores.
FUTURE LIFESTYLE FASHIONS
A part of Future Group, Future Lifestyle Fashions (FLF) is an integrated fashion company operating over 4.4 million sq. ft. of retail area. It is backed by over two dozen national and global fashion brands which as well have their independent distribution network. Moreover, FLF has significant minority stakes in rapidly growing fashion labels viz. Tresmode, Mineral, Turtle, Mother Earth et al.
Central, a hypermarket chain by Future Group, came into being in 2004 with its first location opened in Bengaluru. The stores showcase over 1000 known brands across categories including apparels, cosmetics, fragrances, eyewear, watches, accessories, sportswear, toys, mobiles, electronics, home and lot more for whole family. The chain has 25 Centrals in cities like Bengaluru, Hyderabad, Vishakapatnam, Vadodara, Mumbai, Pune, Ahmedabad, Indore, Jaipur, Raipur, Surat, Gurgaon, Nagpur, Kochi etc.
Brand Factory is Future Group’s fashion value retail format launched in 2006 at Marathalli in Bengaluru. The concept has steadily maintained its unique core proposition of providing leading brands at 20% to 50% discount, 365 days of the year, since its inception. The stores stock assortment of lifestyle products as in apparel, accessories, cosmetics, footwear, home linen and luggage from leading domestic and international labels. Lately, the retailer roped in Staples, Globus, Dollar Store, Planet M and Big Bazaar ethnic wear to present their products under Brand Factory roof.
Planet Sports, a Future Group subsidiary, is a multibrand sports and lifestyle speciality retail chain, offering extensive range of sportswear and equipment and other lifestyle products. Its brand portfolio includes leading sports brands like Converse, Speedo, Callaway, Airwalk, Adidas, Puma, Nike, Reebok, Umbro, Manchester United, Spalding and Champion. Presently, the chain operates 45 stores nationwide long with 28 shop-n-shops in Central, the Future Group-owned mall. It is said that Future Group aims to double its income from sports goods and equipment business to Rs 1,000 crore in the next three years.
FUTURE CONSUMER ENTERPRISE
Future Consumer Enterprise (FCEL) by Future Group is a food-led FMCG company operating agro-sourcing business; an extensive brand portfolio; an integrated food park; an urban convenience chain; and a rural wholesale and distribution network.
Aadhaar is a rural retailing and distribution chain operating under a joint venture between Future Group and Godrej Agrovet. Currently present in Gujarat and Punjab, Aadhaar stores sells food and groceries, catering to rural and semi urban customers.
KB’S Fair Price
KB’S Fair Price (KBFP) is a modern, self-service neighbourhood convenience store chain with store network of 200 stores in Delhi, Mumbai and Bengaluru. These stores are located in areas within the city that are densely populated large urban markets and offer all essential needs of a household under one roof.