Shares of Future Retail advanced over 11% on Wednesday after the Future Group Chief Kishore Biyani unveiled his mega plan of Rs 1.5 lakh crore opportunity by the year 2022.
Shares of Future Retail advanced over 11% on Wednesday after the Future Group Chief Kishore Biyani unveiled his mega plan of Rs 1.5 lakh crore opportunity by the year 2022. Following the news, the shares of Future Retail were in a heavy demand since the morning trade today. The stock of Future Retail jumped as much as 11.5% to hit the day’s high of Rs 572.85 on BSE and interestingly this helped the company to gain over Rs 2,000 crore in the market capitalisation in a single day.
Future Retail shares opened little higher at Rs 522.1 up 1.62% from its yesterday’s closing price of Rs 513.75. At the day’s high price, the company Future Retail added nearly Rs 3,000 crore to the market capitalisation. The market capitalisation of Future Retail jumped to Rs 28,058.87 crore after adding Rs 2,894.79 crore from Rs 25,164.08 crore while it was Rs 2,096.39 crore higher at Rs 27,260.47 crore at the current market price of Rs 556.55. Amid the heavy trading volumes, more than 14.2 lakh shares exchanged hands on both BSE and NSE.
Offline retail giant Future Group on Tuesday announced the launch of Retail 3.0, a business model called Tathaastu which blends technology with modern retail, and will enable customers to place orders using WhatsApp and voice calls. “We will have 10,000 member-only stores by 2022, and assuming certain spends, this will be a Rs 1.5 trillion business opportunity for the group,” Kishore Biyani said. By the end of the financial year 2018, the group will have 1,100 Easyday stores from the present 750, Kishore Biyani added.
Every such store will have an opening investment of around Rs 15 lakh and the company will charge Rs 999 from each member as an annual membership fee, for which the member will get 10% discount on all purchases and free home delivery, Kishore Biyani further added.“The company is exploring the use of technology in every sphere and focusing on data mining to drive sales,” Kishore Biyani.
“We will be taking the help of Google to look at property sourcing only through technology,” said Kishore Biyani. Explaining what exactly Retail 3.0 would entail, Biyani said, “It’s going to be a brick store, you can walk in to shop, you can WhatsApp, you can make a voice-ordering, and you can use the application. At present, the Future Group’s businesses include Big Bazaar, Food Bazaar, lifestyle stores like Brand Factory, and Central.