Betting big on food and consumer, Kishore Biyani-led Future Group’s Future Consumeris aiming to earn Rs 20,000 crore in revenue by 2022, according to its Managing Director Ashni Biyani.
The company reported a revenue of Rs 3,005/1,851.73 crore in FY18/H1 FY19, respectively.
According to Moneycontrol analysis: If we annualise the H1 FY19 sales, the company will end the fiscal with a revenue of Rs 3,703.46 crore. To achieve its ambitious target of Rs 20,000 crore by FY22-end, it will have to grow its topline at a compounded annual growth rate (CAGR) of a whopping 75 percent during the three-year period (FY19 to FY22).
In a freewheeling chat with Moneycontrol, Ashni Biyani said the company aims to drive revenue growth through a slew of launches in coming years.
She is also upbeat about the recently announced FDI policy on e-commerce and said it will provide a level playing field to retailers like theirs.
Future Consumer operates in the food and FMCG space, with 27 brands in over 65 categories. Its food brands include Karmiq, Golden Harvest, Desi Atta, Fresh & Pure, Premium Harvest, Ektaa and Tasty Treat.
The company has over 350 SKUs (stock keeping units) across its food and non-food brands.
Another vision for Future Consumer is to achieve 70 percent of its revenue from products sold under their own brand. Currently, their own brands contribute 30-35 percent to the company’s total revenue.
A: There are many launches lined up this year. We have also launched many disruptive ideas and are ready to take on large FMCG categories. We had overwhelming response in our mainstay category. We feel confident that we will be able to win in many such mainstream categories.
One can expect a bigger rollout from us in the whole snacking category such as namkeens, finger snacking, beverages etc. We are also going to introduce a wide range of sauces for the Indian palette. In personal care, one can see us in many mainstay categories. One can expect something from us in fabric care soon.Q: What is your revenue target over the next 2-3 years?
A: Our ambition is to be a Rs 20,000 crore-revenue company. We are on that journey and by 2022 we should be able to achieve it. We also have an additional vision that 70 percent of total Future Group sales must be our own brand. We believe revenue will come from our new products.Q: Future Consumer has seen robust growth in the last few years, will the growth momentum continue?
A: Yes, we are expanding our rural distribution reach through our digital distribution network. We have recently launched our Aadhar distribution digital network. It’s a complete FMCG 2.0 strategy for us. (According to Future Group, FMCG 2.0 is the Fast Moving Consumer Generation. A whole new way of looking at an age-old industry that has unfortunately not kept pace with the times). We have seen an overwhelming response in Gujarat.
We will be expanding this model to five other states this year. Our membership portfolio is growing, small stores are going to continue to see expansion and that gives us room for improvisation.Q: Tell us about the body wash with braille packaging that you recently launched?
A: Braille packaged body washes will be available at Big Bazaar, Big Bazaar Gen Nxt, Nilgiris, Heritage and EasyDay stores. This will cater to 20,000 differently enabled members within the Future Group universe. We aim to price the body wash at par with soap.
We will launch more braille friendly products in categories like spices, sauces and multiple home care products. There should be around 8-9 categories braille friendly products in six months to further cater to our differently enabled consumers. We will also be introducing talking packs and tech-enabled packs.Q: FDI policy in e-commerce is out. As a retailer, how are you looking at it?A: The government’s move to tighten FDI norms was a game changer for physical retailers like us. There is a level playing field for us. Consumers can now compare apples to apples.