Future Consumer forms JV with UK wholesaler Booker Group
- Govt proposes special courts to fast track criminal cases against politicians
- Siddaramaiah to begin 1-month Karnataka tour today with eye on 2018 assembly elections
- Crack found in bullet train in first ‘serious incident’ for Japan
- US has elevated its relationship with India, says Rex Tillerson
- Democrat Doug Jones wins Alabama Senate elections in stunning upset for Republicans
Mumbai: Future Consumer Ltd, the packaged consumer goods arm of Kishore Biyani’s Future Group, on Monday unveiled a equal joint venture with the UK’s largest wholesaler, Booker Group, to expand and develop the latter’s cash-and-carry business in India.
Future Consumer is investing Rs50 crore in Booker India Pvt. Ltd.
Booker Group entered India in 2009 and has six cash-and-carry stores in Maharashtra and Gujarat. The joint venture will now quickly scale operations to set up 60-70 stores in the next 3-4 years, said Biyani, vice-chairman, Future Consumer.
Each cash-and-carry store on average will have a distribution reach of 3,500 retailers and a business potential of Rs60-70 crore per store per annum.
“In terms of impact, this will be one of the largest impact deals for Future Consumer,” said Biyani, adding that the potential is huge for his company, which now manufactures everything from processed foods to spices, grains and personal care products.
“The joint venture also offers scope to distribute its goods in the UK,” he added.
The Booker Group has 200 branches in the UK and did business of £5 billion in 2015.
“Together, Booker and Future Group can scale up the business and reach out to a much larger number of retailers and customers in India,” said Charles Wilson, chief executive officer, Booker Group, in a statement.
“Cash-and-carry is one of the most exciting formats in India, with firms like Wal-Mart (Stores Inc), Metro and Reliance Retail doing well in it,” said Arvind Singhal, chairman, Technopak Advisors Pvt. Ltd, a retail consulting firm.
With this tie-up, Biyani will get to leverage Booker’s global retail know-how, and Booker can benefit from Future Consumer’s reach in India.
The joint venture will leverage Biyani’s real estate to expand, said Biyani.