Future Group envisages Rs 1,000 cr investment for integrated food park

Looks to increase its branded offerings

 

Future Consumer Enterprises Limited, the publicly held company of Future Group, has said that it estimates that there will be investments of as much as Rs 1,000 crore over a 3-5 year period as its rolls out its development plans at its expansive 110 acres integrated food park near Tumkur, around 80 kms from Bangalore city.

The company, best known for Big Bazaar hypermarkets across India, has said that it has so far invested around Rs 250 crore over the past four years to develop the first phase of this food park which seeks to integrate the entire food value chain from farm to plate at a single location.

The India Food Park is among the first such integrated food park to be commissioned and has been developed with close partnership and support of the Ministry of Food Processing Industries, Government of India and the state Government of Karnataka.

Kishore Biyani, Group CEO of Future Group speaking to Business Standard said that they will encourage entrepreneurs to set up manufacturing units in this park and Future Consumer will look to support them through equity investments. "We already have supported three entities and over a period of time we will be initiating more such initiatives," he said.

On the project completion, the facility has been planned to have around 50 units for food processing and dedicated plants for the manufacture of Indian savories and snacks, frozen food products, chutneys, pasta, dry fruits and nuts, chocolates, and much more.

"India Food Park is an ambitious project which has the potential to aid thousands of farmers, directly employ 10,000 people and quadruple the value of the food products that enter through the gates. It is one giant Rasoi, where the golden harvest of Indian farmers will find new value in the hands of Indian consumers," Biyani said adding that a number of domestic and multinational companies are also setting up their manufacturing facilities at the location.

This food park is also expected a key part in Future Consumer's strategy to sell more of its own products rather than third party merchandise. "As much as 25% of our current sales across formats is from our brands and we want to increase this substantially to over 50% by 2018. This Food Park will substantially enhance our ability to drive innovation and product development in food products and create a captive production capacity for the company's brands. This integrated food park will help us reduce supply chain costs and wastage across the food value chain in India and improve quality and hygiene to create food products in India that compares favorably with the best in the world."

Products developed at the India Food Park will be retailed through Future Group's retail formats such as Big Bazaar, Food Bazaar, Foodhall, KB's Fairprice, Big Apple and Aadhaar as well as through general trade and other modern retailers. Biyani further noted that he anticipates that around 20-30% of the produce from this park will be exported and they are in discussions with a global players.