Now, Kishore Biyani to demerge furniture biz from Home Town, merge into FabFurnish

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Mumbai | Updated: May 5, 2016 7:47:10 AM

Future Group is considering hiving off its furniture business Home Town from Future Retail and create a separate entity by merging it with FabFurnish to unlock value, Kishore Biyani, chairman, Future Group said on Wednesday.

Kishore Biyani - FCEL“Our furniture business Home Town is highly undervalued and we are considering to hive it off from Future Retail and merge it with FabFurnish to create a seperate entity to unlock value for investors. By the end of FY17 Home Town will have revenue of R1,000 crore and EBITDA of around R50 to R60 crore,” Biyani told reporters at a press conference.(Photo: Reuters)

Future Group is considering hiving off its furniture business Home Town from Future Retail and create a separate entity by merging it with FabFurnish to unlock value, Kishore Biyani, chairman, Future Group said on Wednesday.

Marking its first buy out of an internet store, Future Group last month bought online furniture store, FabFurnish.com for around R15-20 crore in cash. FabFurnish’s business is not yet profit-making.

“Our furniture business Home Town is highly undervalued and we are considering to hive it off from Future Retail and merge it with FabFurnish to create a seperate entity to unlock value for investors. By the end of FY17 Home Town will have revenue of R1,000 crore and EBITDA of around R50 to R60 crore,” Biyani told reporters at a press conference.

Biyani said that he is very clear his company doesn’t want to drive topline at the cost of profitability. “We are in no hurry and we understand that there is costs associated with technology and the business. We don’t want to run our business on loss,” he said.

FabFurnish will be relaunched on Thursday and will have a lot of exciting offers on the its website. The company plans to focus on its omni-channel presence and will launch Big Bazaar.com and Oxigen Wallet in June.

Ashish Garg, co-founder, FabFurnish, said, that Fab Furnish would be profitable in the next three months. “While no other online players can dream of turning profitable in the near future, we will be profitable in the next three months.” FabFurnish reported losses worth R4.7 crore for the year ended March 31, 2015, according to a company filing.

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