Presentation Title
The Future Of Future Group
Parag Khachane Future GroupThis is my Store Line for Future
Group***** Presenting as business analysis for general group to
understand about future group.
Future group 10 years Journey.2001, First step of future group
with Mr. Kishore Biyani.What is Big, Bigger, Biggest ?What is the
business Format ?2007, over ambition expansion plan based on riding
on Initial Success ?What went wrong on growth strategies for future
group?Nightmares of inventory management in future groups
strategy.Damage control measure taken by future group to get on
track.Recovery phase of losses & current strategy.
Future GroupWhere is the future groups after 10 years, after
starting at 2001. Over 12,000 crore empire.Spread over a sprawling
15.5 million sq. ft.Expand business in Retail, Finance &
Service. 550+ Retail store across India.Measly Rs. 144 crore
profit.
Future Group2001, First step of future Group with Mr. Kishore
Biyani.Mr. Kishor Biyani B. Com graduate started first multistory
retail shop on 1st September, 2001 VIP Road in Kolkata.BigBazzar,
claim to fame was bazaar-like environment in a modern store.Punch
line Sabse Sasta Sabse Accha BigBazzar store provide each &
every variety of product required for middle class family. Success
- BigBazzar was award wining startup in 2001-2002.
Future GroupWhat is Big, Bigger, Biggest?RETAIL (75%)Pantaloons
RetailPantaloons Retail StandaloneFuture Value Retail
FINANACE (18%)Future General Life InsuranceFuture Capital
HoldingsFuture Ventures
The Future Group and its SubsidiariesSERVICES (7%)Future Supply
ChainsFuture Media
Future GroupWhat is the business format of Future group? Invest
in new store to capture the market.Expand business by 10% every
year.80% merchandise in store is private brands.Bye products from
vendor & sale on profit.Expand business in different vertical
to capture the market price & venture.
Future Group2007, over ambition expansion plan based on riding
on Initial Success and popularity ? Turnover Reach to 1900 crore
for setup 1000 crore.Profit was only 64 crore.New 40 BigBazzar
StoreNew 20 Pantaloon Store.Opted in for non-core business like
finance, services and media.Launch Home Tome, e-zone and Furniture
Bazzar.Added 4 million sq. ft retail area every year.
Future GroupWhat went wrong on growth strategies for future
group?Debt reached 1000% (700 crore to 7650 crore)Slow down of
2008.Register First loss of Rs 7 crore.Debt-equity ration stood at
uncomfortable 1:3Several failure of new Format as aLL, Fashion
Station and Blue SkyeZone is biggest cash guzzler.Future
Convergence for mobile retail failure.HomeTown sales growth was
-4.5%.
Future GroupNightmares of inventory management in future groups
strategy. 28% Y-O-Y rise in inventory cost per sq. ft.Raising 4%
every quarter.Increase cost because of new stores & making
loss.Excessive inventory for aggressive expansion Strategy.Ideal
inventory (ex. Private label air-conditioners 40K unsold units)More
than double Average inventory turn around time. i.e 100 days.Only
60% product reach to the store on time.
Future GroupDamage control measure taken by future group to get
on track. 90% product reach to store by lunching future supply
chain in 2007. 40% cost is reduce in supply chain management.Time
to reach store is reduce by 60%. Exiting from Unprofitable
business.Trying to get new investor in retail stores like
carefour.Reduce debt. Lots of store are returning investment &
making profit.
Future GroupFuture Group Recovery plan of losses & current
strategy for future growth.Focus on only doing well business like
pantaloons, BigBazzar, Central and KBs Fair Price.Expand Feather
350 more BigBazzar, 900 KBs Fair PriceBigBazzar Family Center in
Metro city will substantially offer more variety. Revamp KBs Fair
Price model by adding more SKUs Premium gourmet food space with
food Mall
Future GroupQuestions
Future Group?
