New Delhi: Kishore Biyani-promoted Future Group launched its home decor chain ‘HomeTown’ on 6 April, with the first store at Noida offering homemakers everything they need to dress up the house.
The store, launched by Future Group’s Home Solutions Ltd at an investment of Rs20 crore, is the first of nine such outlets planned by the company in cities like Ahmedabad, Bangalore, Gurgaon, Hyderabad, Kolkata and Lucknow.
Each of these speciality stores, aimed at luring Indians to spend a portion of their rising incomes in home decor, would yield an annual revenue of Rs200-300 crore, said Future Group CEO Kishore Biyani.
He told reporters here that the remaining eight ‘HomeTown’ stores would be operational in the next 15 months.
The stores offer everything from stainless steel to silver cutlery and curtains to furniture at affordable rates, with a view to encouraging middle-class spending in home decor that was hitherto the preserve of the elite.
For items that may steal the heart but hurt the pocket, Future Money, the group’s in-house lending arm, would extend credit to customers for various purchases.
”Through Future Money, we would offer credit facilities to consumers making purchases of Rs7,000 or more. Our rate of interest will depend on the product, and could vary from 11-20%. Credit would be offered instantly to consumers after going through the routine process of verification,“ Biyani said.
The launch of HomeTown marks the entry of Future Group in the services sector. In addition to retailing, the format would also provide electrical, plumbing and interior decoration services.
HomeTown has already received orders from the Prestige Group in Bangalore and the Unitech Group to furnish flats being constructed by them.
“The Prestige Group has placed an order worth Rs130 crore with HomeTown to supply wardrobe and modular kitchens for the 3,100 flats being developed by it. We have received a Rs150-crore order from Unitech as well, to furnish a number of their flats,” Biyani said.
The Group also has presence in other segments of organised retail through stores like Big Bazar.