Logistics arm of Future Group to invest Rs400 cr

Logistics arm of Future Group to invest Rs400 cr
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First Published: Sun, Nov 25 2007. 12 50 PM IST
Updated: Sun, Nov 25 2007. 12 50 PM IST
PTI
New Delhi: Logistics arm of the Kishore Biyani-led Future Group, Future Logistics Solutions Limited (FLSL), will invest up to Rs400 crore in next three years to operate additional mega merchandizing hubs and warehouses as it aims to touch a topline of Rs800 crore by 2010.
Within three years, FLSL plans to operate about seven new mega merchandizing hubs ranging from 70,000-100,000 sq feet and 30 smaller warehouses in cities across India, which would extend service to non-group companies also.
According to sources, FLSL would invest to the tune of Rs400 crore to operate the new infrastructure as a part of its strategy to double turnover every year. FLSL expects to close 2007-08 fiscal with a topline of Rs200 crore.
When contacted, Future Logistics CEO Anshuman Singh told PTI that the firm has already started operating in five cities with an area of 25,0000 ft, but declined to comment on the company’s investment plans.
“Going further, in line with Future Retail’s growth, FLSL plans to operate additional seven hubs and 30 warehouses. These hubs will receive products from vendors and then feed the other smaller warehouses across the country,” Singh added.
“Currently, sites which meet our requirements are being identified and evaluated. While development of all hubs will happen simultaneously, we expect the first mega hub to be completed in early 2009 in Western India,” Singh said.
FLSL currently offers its services to the retail divisions of Future Group, but will start doing business with companies outside the group in the next two months for which it is talking to leading companies, especially in the apparel segment.
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First Published: Sun, Nov 25 2007. 12 50 PM IST