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Future Consumer Enterprise has forged two MoUs with commodity companies LT Overseas and Cargill to manufacture edible oil and staples including rice.
“We have signed an MoU to set up a rice mill with LT Overseas (the makers of Daawat rice) and with Cargill. The MoU is for forging partnerships and to cooperate with each other to broaden the relationship in the future,” said Kishore Biyani, Group CEO, Future Group.
The integrated food and FMCG company had raised ₹300 crore recently from Black River, a fund supported by Cargill.
Cargill Chairman Siraj A Chaudhry said: “Since a Cargill-supported fund has invested in Future Consumer Enterprise, it makes us a preferred partner.”
With 27 private brands across 64 categories — which comprise food, home and personal care brands like Desi Atta and Kosh (oats) — the Future Group plans to take its products to both traditional and modern trade outlets.
“We have recently raised ₹300 crore from Black River and with this we will also reduce our debt of ₹200 crore and make the business debt free,” added Biyani.
Direct distribution Meanwhile, the company has decided to adopt the direct distribution route to supply its products to retailers.
“We do not want to have the traditional idea of distribution and are trying out direct supply to retailers in the suburbs of Mumbai for the next 45 days,” said Biyani.
It is also entering into unique distribution tie-ups with local dairy companies like Gopalji and Prabhat Dairy to take its Nilgiris brand of bakery dairy products to a wider market.
Claiming to have clocked a turnover of ₹1,000 crore in the foods business, the group is now targeting its largest selling private brands like Golden Harvest and Tasty Treat to make the highest revenue contribution, going forward.
“We have been building the FMCG business for the past four years.
“By 2021 some of our brands like Golden Treat should reach a turnover of ₹3,500 crore while the entire business should cross ₹20,000 crore,” Biyani added.
Franchise extension
In the home and personal care segment, it is extending the franchise of paper brands like Kara into new categories including nail polish remover and fairness wipes.
Besides, the Future Group is expected to use the services of its supply chain company Future Supply Chain Solutions to reach its products to its retailers.
Future Supply Chain caters to 20,000 points across 120 cities with 2,000 trucks.
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