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Future Group to exit specialty retail businesses

Reuters

Kishore Biyani-led Future Group is planning to exit its specialty retail businesses with a view to scale up its apparel and food segments.

The Economic Times reported citing Biyani that the Group plans to sell its HomeTown brand (home furnishings business) and shut down Planet Sports (sportswear arm). It is also going to merge its electronics chain Ezone with the Group’s hypermarket chain BigBazaar.

The retail major hopes that its fashion apparel and food products units will be the main growth drivers for the company and help it scale up revenues by up to four times by 2021.

The firm, which is particularly bullish on its food segment, is also expected to cut down prices of its FMCG and fashion items to attract more clients.

An email query sent to Future Group seeking more details on the development did not elicit any response till the time of filing this report.

As part of a larger strategy, the Group earlier this year reshuffled the portfolios of some top executives and hired a new marketing head to boost revenue growth at its consumer, supply chain and retail businesses.

The group appointed Devendra Chawla as chief executive of Future Consumer Ltd and PV Sheshadri as CEO of Future Supply Chain Solutions. The group also appointed Jishnu Sen as chief marketing officer of Future Retail Ltd.

Future Consumer Enterprise Ltd, the food and consumer goods arm of the Group, offers a range of products that include Tasty Treat (processed food), Nilgiris (dairy and bakery), Sunkist (beverages), Swiss Tempelle (personal care), Kara (beauty on the go) and CleanMate (home care). It distributes its products through retail chains such as Future Group’s Big Bazaar, EasyDay, Heritage and Nilgiris outlets as well as Metro Cash & Carry and Tesco Star Bazaar.

Future Group has sealed numerous merger and acquisition deals in the recent past to expand its operations. Last November, the group entered the wholesale business by tying up with the UK-based Booker Group.

In the same month, it acquired the retail and allied businesses of Hyderabad-based Heritage Foods Ltd.

Future Group, the second-biggest brick-and-mortar retailer after billionaire Mukesh Ambani-led Reliance Retail Ltd, had earlier acquired Big Apple and Bharti Retail. It had also purchased Nilgiris, a South India-based chain, in November 2014.

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Future Group (formerly known as Pantaloon Knowledge Group) is an industrial conglomerate with businesses focused on retail, supply chain, media, business technology, learning and development. It s retail segment owns and operates a chain of hypermarket, supermarket, sportswear chain, convenience store, department store, outlet store etc; its supplies chain segment engaged in providing services to large corporates in food and fast moving consumer goods, apparels, footwear and accessories, consumer electronics and hi- tech, automotive, pharma and light engineering domain; it s media segment offer magazine to future group customer; it s business technology segment engaged in providing information technology services to retail, logistic and other businesses; and it s learning and development segment offers organizational solutions (such as customized programmes in leadership, management, personal effectiveness, sales maximization, business processes and customer retention), higher education (such as graduate, postgraduate, diploma and certificate programmes) and skill development programmes to make below-poverty-line youth employable. The firm also offers life and non-life insurance services and products and mobile telephony services to the customers of Future Group’s retail stores. Future Group was founded in 1987 and is based in Mumbai, Maharashtra.

Reliance Retail (Formerly Reliance Petroleum Retail Pvt Ltd.) operates department stores. It offers foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as well as on educational products and services. Reliance Retail Ltd. was founded in 2006 and is based in Mumbai, Maharashtra. As on 1st April 2012 Reliance Retail Ltd. was amalgamated with Reliance Fresh Ltd.

Big Apple Real Estate Pvt. Ltd. is a real estate development company. The company was incorporated in 2007 and is based in Lucknow, Uttar Pradesh. Big Apple Real Estate Pvt. Ltd. operates as a subsidiary of Phoenix Mills Ltd.

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