Future Group's Kishore Biyani expects 33% growth in retail business in FY19

Kishore Biyani's Future Group is expecting Rs 400 billion revenue from its retail business in 2018-19.

Expansion of the store network under various formats and product launches would fuel the growth from around Rs 300 billion in this financial year, said Biyani, group chief executive.

The group has four listed retail entities -- Future Retail, Future Lifestyle Fashion, Future Consumer and Future Enterprises. Their combined revenue was Rs 286 bn in 2016-17. Biyani expects the retail businesses to show 33 per cent growth in FY19, as compared to five per cent this financial year.

Adding South India's staple, rice, to its food product basket, Future Consumer launched Sona Masoori, a fine rice variety, under its Rs 120 billion Golden Harvest brand on Wednesday in Hyderabad, the biggest grossing city for the group across segments. The company also introduced a subscription model, like door delivery of milk, for rice delivery.

"We have launched most of our retail formats and products from Hyderabad, known as the Punjab of South India in terms of consumption. This city is going to contribute 10 per cent of our retail revenue or Rs 40 bn during the next financial year," he said.

Biyani announced Sona Masoori would also be sold in North India by Future Consumer under brand name Shubra, positioning this product against Basmati rice. The group has invested close to Rs 800 million on a processing and packaging plant, using Swiss technology. The rice is being procured from Telangana, Andhra and Karnataka, the three states where this variety is grown.