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| Future Group may miss revenue target |
| BS Reporter / Mumbai Nov 21, 2008, 00:45 IST |
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Kishore Biyani's Future Group may miss its three-year revenue target as the Indian economy is expected to grow at a slower pace, leaving less money in the hands of consumers.
The group, which owns Pantaloon Retail, Big Bazaar and other retail store chains, may miss the revenue target of Rs 30,000 crore by as much as six months, Biyani said in an interview without giving more details.
In a bid to ramp up sales, Future Group on Thursday announced plans to become a Rs 10,000-crore consumer products major in the next four years by launching new brands in the fast moving consumer goods (FMCG), consumer durables, electronics and apparel space in anticipation of down-trading as the economic growth slows and also to take advantage of a slump in commodity prices.
The group expects to earn at least 30 per cent of its revenues from its private labels in the next four years, according to Kishore Biyani, chief executive of Future Group.
"We want to become a consumer company,'' Biyani said.
"Currently, we are not into quite a few categories, hence we will launch new products soon," he said.
Biyani's strategy to expand the range of private labels is aimed at expanding the company's margin. "At the group level, we are expecting 10 per cent additional margin from our own brands that will help us to earn at least Rs 1,000 crore," he said.
As part of the plan, Future Brands, the group's wholly-owned subsidiary, plans to launch sportswear, lingerie and beauty products in the next 3-4 months along with FMCG products such as toothpaste, soaps and detergents among others.
"Raw material prices are trading at the lowest levels. It is the right time to get into new products now," Biyani said. Future group has brands such as John Miller, Bare, DJ&C, Indigo Nation in apparels and Tasty Treat, Fresh n Pure in the FMCG category and Dreamline in general merchandise, Sensei and Koryo in consumer durables and electronics category among others.
The company also has brands such as Sach and Dreamline, which revolve around celebrities such as Sachin Tendulkar and Hema Malini. The group is expected to spend around Rs 200 crore by 2012 on marketing of its brands, said Santosh Desai, managing director of Future Brands.
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