Future Group’s supply chain arm to cater to other retailers

Bindu Menon New Delhi | Updated on March 23, 2013 Published on March 23, 2013

To invest Rs 130 crore for 9 distribution centres

Future Group’s supply chain arm plans to invest Rs 130 crore to set up nine national distribution centres.

Besides catering to its own warehousing needs, these new centres will also service the requirements of other retailers and FMCG players.

Also, a newly opened distribution centre in Nagpur will consolidate the warehousing needs of Big Bazaar, Future Supply Chain Solutions, Managing Director Anshuman Singh said.

“We are consolidating the warehouse operations in Nagpur as it is equidistant from eight major consumption and production centres. The state-of-the-art warehouse facility at the Multi-Modal International Hub Airport in Nagpur (Mihan) Special Economic Zone, will ensure faster processing, better inventory and cost reduction for the group,” he added.

Distribution centres

Singh said the company was also looking to establish nine other distribution centres in Mumbai, Chennai, Hyderabad, Ahmedabad, Pune, Delhi, Kolkata and Bangalore.

“We are getting ready to face the good and services tax (GST) regime, which is likely to eliminate the need for companies to have a warehouse in each State. Warehouses can be positioned strategically, based on production and consumption dynamics,” he added.

Singh said Future Supply Chain had set up four lines of businesses, including contract logistics, express transportation, international logistics and brand distribution, to tap other retailers and fast-moving consumer goods firms. The company said it had also entered into long-term strategic alliances with various developers for the land and for developing logistic facilities at these eight locations.

Future Supply Chain, is a joint venture between Hong Kong-based trading firm, Li & Fung and the Future Group. The Hong Kong-based entity owns 26 per cent stake.

Asked if the $21 billion entity Li & Fung will aid in fuelling Future Group’s cash and carry operations, Singh said the company may help in global sourcing.

Wholesale business

Earlier, Kishore Biyani, Group CEO, had said the company would be foraying into the wholesale business. The first store is likely to be set up in Bangalore.


Published on March 23, 2013
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