Wednesday, January 6, 2010

Future group mulls listing value retail entity

Kishore Biyani-led Future Group, which recently hived off its value segments —Big Bazaar and Food Bazaar— into a separate entity called Future Value retail, is now looking to list this company independently. Future Group director & CEO-retail Rakesh Biyani said this was one of the options the company would seriously consider for funding its growth.

"With the subsidiarisation of the value retail business, one option is to list it independently. If there is a listing, it should happen this year," Mr Biyani told ET.

Earlier this week, Kishore Biyani-led Pantaloon Retail (India) in a filing on the BSE had said that it had transfered its value retail business — both Big Bazaar and Food Bazaar — to its wholly-owned subsidiary Future Value Retail (FVRL).

The transfer of the two chains to the value subsidiary came into effect on January 1, along with all its assets, rights and obligations and employees.

Mr Biyani was in town on Tuesday for the launch of Wilson’s new range of tennis rackets, in tie-up with Winner Sports, a subsidiary of Pantaloon Retail India which has exclusive rights to distribute the product in India.

On the source of funds, Mr Biyani said that the group has a total requirement of Rs 1,800 crore, of which Rs 750 crore has been raised so far. "Listing the value retail business is one of the options we are looking at to fund our growth."

On the impact of food price inflation and whether there will be a price hike of any of its private label products, Mr Biyani said they were trying to sustain prices as low as possible. "There are good indications that inflation might come down so we will hold onto prices even at the expense of margin. We will take a call in the next 4-6 weeks on prices."


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