Kishore Biyani, CEO of Future Group, on Tuesday, said that the group companies' contribution to Future Supply will go below 50 percent from the current 60 percent in another one year as it adds new clients on business synergies with Nippon.
“Currently we might be in excess of 60-65 percent but we believe in a year’s time we will see it dropping to 50 percent and probably dropping further with a lot of new clients added up because of our business synergies which we are building with Nippon," said Biyani in an interview with CNBC-TV18.
“We are looking for a partnership and working with the Japanese company and build a very strong and stable business and enter into new areas which we were not into till now in our supply chain business," he added.
Talking about the festive season, Biyani said, “Diwali started little later; the business picked up from September and till today we are seeing good traction on Diwali."
Talking about fashion segment, Biyani said, “Last year also fashion was good for us. So we are finding a huge base of growth of 18-20 percent, but I believe fashion would have grown in double-digits for us.” He further said that non-fashion and food grew lower in Q2 than Q1.
On the Future Enterprises front, he said, “We were raising some funds in Future Retail and the new Indian Accounting Standards (Ind AS) principle make us realise the assets in a particular way. So the benefit of making it lighter doesn’t happen because we have to bring that asset and we also save an amount of Rs 600-650 crore on rental which is quite significant which can add up to the EBITDA of our company.”
During Tuesday's trading Future Enterprises climbed up to 18 percent, Future Consumer gained 4 percent and Future Supply was up 2.5 percent.