Future Group?s supply chain vehicle, Future Supply Chains, is expecting to do a business of about Rs 400 crore by the end of 2010-11 fiscal. The revenue of the company stood at Rs 200 crore during 2009-10 fiscal.
The logistics arm of the Future Group is betting big on its new business divisions like express transportation, distribution and international logistics. ?There has been a substantial increase in business from our group as well as outside group companies. Since FY08, we have been investing in technology, infrastructure and automation. We will be investing around Rs 100 crore in our company and adding 3 million sq ft of warehouse space every year,? said Anshuman Singh, MD & CEO, Future Supply Chains.
This venture has already broken even in terms of Ebitda and net profit and is aiming to attain an Ebitda margin of 15% by FY13. Currently, warehousing and distribution comprise 40% of its total revenues. Future Supply Chains had raised $30 million (Rs 135 crore) through the private equity route last year and will be raising debt at a debt to equity ratio of 1 to fund its future expansion plans.