Biyani to serve it up big from ‘cloud kitchens’

The Hindu Business Line - - NEWS - PRIYANKA PANI

Fu­ture Group will soon be of­fer­ing food-on-de­mand at a price as low as ₹40.

The com­pany is plan­ning to build cloud kitchens across the coun­try and will start with a pi­lot in Ben­galuru in the next cou­ple of months.

Cloud kitchens

“Food is the am­bi­tious project in our port­fo­lio. Cur­rently, the seg­ment con­trib­utes about 50 per cent to our en­tire rev­enue and we ex­pect that to be about 55 soon. Be­sides, we are plan­ning to open cloud kitchens that will de­liver af­ford­able fresh meals,” said Kishore Biyani, Founder and Group CEO, with­out di­vulging fur­ther de­tails.

Cloud-kitchens don’t have a dine-in or take­away fa­cil­ity but only on­line de­liv­ery.

The com­pany is likely to use on­line de­liv­ery play­ers such as Swiggy and Dunzo for de­liv­ery ser­vices. To start with, Biyani said, the com­pany will of­fer rice-based meals. The com­pany will lev­er­age its sta­ples busi­ness to make af­ford­able meals.

Distri­bu­tion cen­tre

Fu­ture Group also owns a com­pany called Galaxy En­ter­tain­ment Cor­po­ra­tion that sup­plies to about 10-odd com­mis­saries and sup­plies to its live kitchens in Big Bazaars in Mum­bai. “We want to be a part of food in which­ever way the In­dian con­sumer con­sumes it,” Biyani said while talk­ing to re­porters at the Kishore Biyani, Founder and Group CEO, Fu­ture Group

in­au­gu­ra­tion of its distri­bu­tion cen­tre in Shambhu Kalan in Pun­jab.

Spread across eight acres, the distri­bu­tion cen­tre is about 2 lakh sq ft that will cater to about 300 stores in the re­gion.

The group’s sup­ply chain com­pany, Fu­ture Sup­ply So­lu­tions, plans to set up about 38 such cen­tres across the coun­try at an in­vest­ment of ₹1,000 crore. Called as In­dia Food Grid, the project will con­nect the en­tire coun­try through a sin­gle, multi-layer net­work.

“Any sup­plier, small or big, can join this grid any­where for fur­ther distri­bu­tion across In­dia. In­dia Food Grid will en­sure timely and ef­fi­cient food, gro­cery and FMCG distri­bu­tion,” Biyani said.

Ac­qui­si­tions

The com­pany had done some ac­qui­si­tions to strengthen its sup­ply chain and distri­bu­tion. It had ac­quired Brit­tle Foods, a tem­per­a­ture-con­trolled sup­ply chain com­pany and Vul­can Ex­press from Snapdeal.

The Mum­bai-based re­tail gi­ant gen­er­ates its big­gest chunk of rev­enue from food and gro­cery re­tail­ing at present with food be­ing about 50 per cent.

The group un­der its var­i­ous com­pa­nies — Fu­ture Con­sumer, Fu­ture Life­style and Fu­ture Re­tail — gen­er­ates a turnover of ₹25,000 crore and has ac­quired more than seven su­per­mar­ket store chains to put to­gether a to­tal re­tail space of 14.8 mil­lion sq ft across 340 cities, a na­tional foot­print that can only be matched by Mukesh Am­bani’s Re­liance Re­tail.

Be­sides, Biyani is also fo­cus­ing on e-com­merce busi­ness.

The com­pany will be launch­ing an on­line por­tal for its dis­counted fac­tory out­let BrandFac­tory in March.

With that, Biyani ex­pects ecom­merce to earn ₹1,000 crore in rev­enues by end of this year.

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