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Future group to enter logistics, invest Rs400 crore

Future group to enter logistics, invest Rs400 crore
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First Published: Wed, Dec 19 2007. 04 18 PM IST
Updated: Wed, Dec 19 2007. 04 18 PM IST
PTI
Mumbai: Enthused by its success in retail, Kishore Biyani’s $2 billion Future Group will soon enter the logistics business, investing more than Rs400 crore by 2010.
“We will be investing Rs 400 crore through strategic investors or private equity,” Future Group’s CEO Kishore Biyani told PTI.
The group plans to increase its 2 million sq ft of warehousing space to 5 million sq ft by 2010 and has plans to acquire a fleet of trucks.
“We plan to have a fleet of 1,400 specially designed trucks for the transportation of goods of which 800 trucks would be for intra-city movement,” he said.
To start with, the company will operate intra-city fleets in eight cities — Mumbai, Delhi, Chennai, Hyderabad, Bangalore, Kolkata, Ahmedabad and Pune — and the larger inter-city trucks will be used to cart goods procured from suppliers from Tiruppur and the likes to these eight cities.
The fleet will be specially designed for carrying garments in hangers and transporting furniture and other articles requiring careful handling, Biyani said.
On upgrading technology for the retail business, Biyani said Wipro and Cisco are developing Radio Frequency Identification Device (RFID) technology for the group.
“We are planning to develop the RFID technology according to our requirements. Wipro and Cisco are developing it for us,” he added.
The logistics business would be conducted under the aegis of Future Logistics Solutions Ltd (FLSL) and the company is targeting a topline of Rs800 crore by 2010.
FLSL plans to operate about seven new mega-merchandising hubs ranging from 70,000-100,000 sq ft and 30 smaller warehouses in cities nation-wide over the next three years. It would offer its services to non-group companies as well.
FLSL is in talks with companies, especially in the apparel sector, for its services.
Currently, the company is identifying and evaluating sites and requirements for its hubs and it is understood that its first mega hub will be completed in early-2009 in the western region.
FLSL’s strategy seems to be to focus on the consumer logistics segment dealing in products related to foods, fashion, general merchandise and home solutions.
The company expects 50% of its revenues to come from outside the group by 2010-11.
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First Published: Wed, Dec 19 2007. 04 18 PM IST