The company is expanding its presence in the e-commerce space and plans to take its fashion discount retail chain Brand Factory online by March this year.
Retail giant Future Group expects the size of its online business to be around Rs 1,000 crore this financial year, its founder and CEO Kishore Biyani said.
“Online for us should be Rs 1,000 crore business for us this financial year,” Biyani was quoted as saying by PTI. He, however, didn’t disclose group’s online sales figure for the previous fiscal year.
Biyani, last November had announced taking its fashion retail chain Brand Factory online in February this year “which would be our biggest launch in e-commerce and online business,” PTI quoted Biyani.
Future Group currently operates brands like FBB and Future Lifestyle in the fashion vertical in online business.
Earlier this month, Biyani lauded changes in the e-commerce policy that stops online marketplaces with foreign investments from selling goods of the vendors and brands in which they have stakes.
“This brings an end to people doing retail business which was the intent of the policy for a long period of time. We are very happy that there is a level playing field. There is a policy clarity. Why cannot we build our own Indian Alibaba or Indian Amazon?” Biyani told ET Now.
The group, in its earlier major push towards online business, had acquired Rocket Internet-incubated online furniture startups FabFurnish in 2016 which was shut down in the following year as the acquisition reportedly didn’t work out for the group.
“We are investing in the online business and trying to understand the space again,” said Biyani.
However, apart from FabFurnish, Biyani had experimented with online commerce multiple times that didn’t fructify. The retail baron had launched retail arm of the group futurebazaar.com perhaps before Flipkart was founded.
In 2016, the group had also shuttered another online retail venture Big Bazaar Direct three years after its launch. As per media reports, Future Group suffered losses of Rs 300-350 crore in its online ventures including Rs 250 crore loss in futurebazaar.com
Biyani, on Friday at an event, said that the company will soon foray into food delivery business with the launch of cloud kitchens. It will allow customers to pay for the food via its digital wallet app Future Pay.
He expects the food business to contribute 55-60% of the group’s total sales in the long run and would control operations of the food delivery business end-to-end to overcome its low margin challenge.