The Future Group is targeting close to Rs45crore from its Brand Factory store in one year.
The company, which restructured its Big Bazaar store on Lee Road in Kolkata to convert it into a Brand Factory, is looking at a one-year break-even period for its Brand Factory outlet.
The company has deliberately targeted the festive season for its first Brand Factory launch in Kolkata. The Group is also looking at re-doing another two to three of its existing stores, to accommodate formats that are not yet available in the city.
For one, the company is looking at launching its central format in Kolkata, which is a lifestyle brand. While each Central requires an investment of close to Rs20-30 crore, Brand Factory requires Rs6-10 crore per store.
Brand Factory is typically a format where all branded products are available, but at a 20-50% discounted price throughout the year.
Among other plans, the Future Group would add another 4 lakh sq ft in the East, for Big Bazaar, to its existing 10 lakh sq ft; Pantaloon would add another 40-50,000 sq ft in the next four months, to its existing 4 lakh sq ft in the East.
The Future Group currently commands 2 million sq ft in the East, with all its formats put together. Nationally, the Group is planning to invest close to Rs400 crore in setting up 30 new Brand Factory and six new Central formats in India, over the next two years.
We maintain a neutral rating on Pantaloon Retail.