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Kishore Biyani-led Future Consumer Enterprise on Friday announced the acquisition of Nilgiris, the Bengaluru-based supermarket chain. Kishore Biyani tells Raghavendra Kamath the logic and the strategy behind buying the chain. Edited excerpts:
How does Nilgiris fit into your strategy?
We have convenience stores called KB's Fair Price. So, it (Nilgiris) will be a new extension for us in south India. For our fast moving consumer goods company, it will provide an efficient supply chain in dairy, bakery and chocolates.
What are your plans for Nilgiris?
We will have multiple strategies to leverage each other's strengths. We will launch new products in dairy. We will see how their spare capacities can be utilised and so on.
How do you plan to plan to apply learnings from Nilgiris to your convenience store business?
We are in the franchising business and plan to set up 5,000 convenience stores by 2020. We want to see how can we replicate efficiencies in the Nilgiris model in our convenience store business.
Will you rename Nilgiris as KB's Fair Price?
No. Not at all. We bought it for the Nilgiris brand.
How did you fund the deal?
It's an all-cash deal and funded by Future Consumer Enterprise's money.
Most retailers are focusing on hypermarkets. What is the logic behind focusing on convenience stores?
We have 188 Big Bazaars now. By March, 200. Now, we will focus on convenience stores.
Will you change anything in Nilgiris in terms of store sizes, merchandise mix and so on?
It's too early to say that.
