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| Future Group bets big on pvt labels |
| Press Trust of India / New Delhi Jul 13, 2009, 19:46 IST |
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Future Brands, a subsidiary of the Kishore Biyani-promoted Future Group, will focus on the FMCG segment as part of a plan to increase the share of private labels in the company's retail formats.
The private labels as a category has been growing by 30-35 per cent year-on-year. Future Brands, which owns 18 trademarks in segments like apparel, FMCG and consumer electronics, is aiming to achieve a turnover of Rs 750 crore from the private trademarks this fiscal, up from the Rs 660 crore in 2008-09.
"This year we will give a greater thrust to the FMCG segment. We have four trademarks in the FMCG segment and our aim is to grow the product categories within the brands," Future Brands Chief Operating Officer Atulit Saxena said.
"Last fiscal, we clocked a turnover of Rs 660 crore from our trademark labels and this year our aim is to reach a figure of Rs 750 crore," he said.
Future Brands is also planning to add on more trademarks.
"We are working on a lingerie brands which will be launched soon in our Pantaloons outlets. This year will be one of consolidation wherein we will keep adding new categories," saxena added.
Saxena said as part of the strategy, the company will revamp product packaging and launch a special campaign on its snacks 'Tasty Treat'.
Private labels are brands owned not by a manufacturer or producer but by a retailer or supplier who gets its goods made by a contract manufacturer under its own label.
Future Group's trademark brands include 12 apparel, four FMCG and two household products labels. Private labels contributes around 30 per cent of its sales in FMCG and 25 per cent in personal care in the group's major formats including Pantaloons and Big Bazaar.
Private labels provide much bigger profit margins of up to 55 per cent, unlike other brands where the margins are less.
"Another area of focus will be on our multi-category brand Dreamline. This is our best-selling brand with a topline of Rs 75 crore last fiscal and this year we are looking to take it to Rs 100 crore," Saxena said.
Dreamline, promoted by Bollywood star Hema Malini, is the company's first cross-category home adornment brand with products from kitchen, bed, bath, decor and furniture segments.
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