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Future Supply Chain to distribute goods worth Rs 2 lakh crore via distribution centers, says Kishore Biyani

Future Supply Chain to distribute goods worth Rs 2 lakh crore via distribution centers, says Kishore Biyani
Future Supply Chain, the logistics arm of Future Group, is ramping up its distribution ambitions in terms of the goods it will manage and the number of units across India as it looks to become a major supply chain player in the country.
Future Supply Chain will manage goods worth Rs 2,00,000 crore via distribution centres and invest Rs 1,000 crore to set up about 38 distribution centers, founder Kishore Biyani told CNBC-TV18. The new distribution centers in India will cater to food and fast moving consumer goods (FMCG) under its 'India Food Grid' project and these plans are in line with the group’s retail 3.0 strategy, he said.
“I believe the businesses which we will be able to give to Future Supply Chain in terms of distribution will be to the tune of around Rs 70,000 crore and another Rs 75,000-100,000 crore – they will be managing our other brands. So overall Future Supply Chain will distribute goods nearly close to Rs 2,00,000 crore from here,” said Biyani.
Biyani said that out of the 38 distribution, the company has already opened five and within the next three to four years, it will have all the centres operational.
“Out of 38 distribution centres, we have opened the fifth one and within the next three-four years, all 38 would be operational. Anybody can enter the grid anywhere, any part, whichever is the nearest to the factories and the goods can be delivered to our entire chains. By that time, we should be having 10,000 small stores, 15,000 Aadhaar stores and multiple Big Bazaars,” Biyani said.
While Future Group will continue to be an anchor customer for Future Supply Chain, it will also manage supply chain for companies like Tilda, McVities, Jyothy Labs, ITC, Mondelez and McCain. This large scale distribution network could lead to incremental revenues of Rs 6,000-8,000 crore for Future Supply Chain over the next 4-5 years.
On the recent changes in the FDI policy on e-commerce, Biyani said, "Nothing significant has changed with the FDI policy on e-commerce … it’s just a clarification that's come in. Believe it will be business as usual, policy should be followed in the right letter and spirit."
Without commenting on the Amazon deal with Future Retail, Biyani said, "Regulations already existed so foreign investors should not be surprised. We have big plans and believe investments are always welcome ... we don't have any immediate need for financial investment but I believe collaborative partnerships are the way forward."
Future group is also embarking on its new venture called 'cloud kitchens' to supply hot meals to consumers. The company has set up cloud kitchens in Bangalore, Hyderabad, Mumbai and is working on a project to offer a rice dishes at Rs 40.
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