Home / Industry / Retail /  Biyani ties up with Star Bazaar for distribution of private label brands

Mumbai: To widen the reach of its consumer packaged goods (CPG) brands like Sunkist, Tasty Treat, Clean Mate and Care Mate, Kishore Biyani-led Future Consumer Enterprise Ltd (FCEL) has tied up with Trent Hypermarket Ltd, a joint venture between Tata Sons’ Trent and Tesco Plc, to retail at its Star Bazaar stores.

About two weeks ago, Biyani appointed a distributor in Varanasi to pilot the company’s foray into general trade under the Tasty Treat brand—which has products like tomato ketchup and cornflakes.

This is the first time that the brands will be retailed outside Biyani’s retail chains like Big Bazaar, Easyday, KB’s, Nilgiris, Aadhaar and Big Apple.

“We will be among the top 3 fast moving consumer goods (FMCG) companies in the country by 2021," said Biyani at a press conference in Mumbai on Thursday while sharing that FCEL will close financial year 2017 with revenues of 4,000 crore and will be a 20,000 crore company by financial year 2021. For the quarter-ended December, FCEL had a net loss of 11.66 crore on net sales of 407.53 crore.

“To reach a turnover of 20,000 crore in CPG, general trade will be important. As modern trade will still be under 20% of the overall retail trade in India in the next five years," said Pankaj Gupta, practice head, consumer and retail, Tata Strategic Management Group.

Biyani has been a pioneer in private labels, having launched some of the brands over a decade ago and taking on multinational corporations in categories like cornflakes. “These brands have the potential to be 8-10% of the retailer’s revenues," said Biyani and added that they will also give the retailer better margins than other CPG brands.

In the next 18-24 months, Biyani plans to have a national presence in general trade and also in other modern retail chains.

“Our understanding is that these brands really represent the taste and preference of the Indian consumer," said Jamshed Daboo, managing director, Trent Hypermarket Ltd.

Star Bazaar aims to introduce close to 148 stock-keeping units across 10 FCEL brands like Sunkist, Tasty Treat, Karmiq, Fresh & Pure, Think Skin, Clean Mate and Care Mate. The range will be made available across large format hypermarkets of Star Bazaar in its initial phase and in the smaller stores in the next two months.

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