Future Consumer gains after entering into arrangement

Future Consumer rose 2.18% to Rs 44.60 at 11:06 IST on BSE after the company said it is entering into an arrangement with the Middle East's leading chain of retail supermarkets, T Choithrams & Sons.

The announcement was made after market hours yesterday, 18 February 2019.

Meanwhile, the S&P BSE Sensex was up 161.07 points, or 0.45% to 35,659.51

On the BSE, 64,000 shares were traded in the counter so far compared with average daily volumes of 1.74 lakh shares in the past two weeks. The stock had hit a high of Rs 45.05 and a low of Rs 44.25 so far during the day.

Future Consumer (FCL) said the company is entering into an arrangement with the Middle East's leading chain of retail supermarkets, T Choithrams & Sons. FCL and Choithrams have identified an opportunity to strategically partner across the UAE, Bahrain and Qatar to bring FCL's portfolio of leading brands to consumers across the Middle East. With a network of more than 60 supermarkets across UAE, Bahrain and Qatar, Choithrams will, under this arrangement, market, distribute and retail FCL brand products for sale through its own stores, as well as distribute FCL brands to other retail stores.

In terms of this arrangement, FCL will be leveraging Choithrams' reach to export and distribute its core brands under various product categories, comprising initially the - Tasty Treat, Sangi's Kitchen, Desi Atta Company, Golden Harvest and Mother Earth.

On a consolidated basis, Future Consumer reported net loss of Rs 5.23 crore in Q3 December 2018 as against net loss of Rs 4.70 crore in Q3 December 2017. Net sales rose 26.33% to Rs 991.23 crore in Q3 December 2018 over Q3 December 2017.

Future Consumer is India's first sourcing-to-supermarket food company by Future Group.

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