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India: Future Group's arm plans 12 logistics parks

Future Supply Chain Solutions Ltd, part of Kishore Biyani-led Future Group, is planning to set up 12 large scale logistics parks across nine cities in the country in the next three to five years. Besides, it is expecting its recently-started modern distribution business to earn revenues of Rs 100 crore by 2012, said a senior executive from the company. Speaking to reporters on the sidelines of its tie up with Future Innoversity, an academic initiative under the Future Group, to initiate management courses in supply chain sector, Anshuman Singh, managing director and CEO, Future Supply Chain Solutions Ltd, said it plans large scale warehousing facilities in the future including 1 million sq ft warehousing facility in Tamil Nadu.

"We are planning 12 large logistic parks in nine cities and linking them with express transportation business to provide better supply chain management services for our clients", he said. At present, the company has around 5 million sq ft of warehousing capacity in around 50 small scale facility in various parts of the country. Plans are afoot to make logistic services to cater to industries including apparels, consumer durables and food and fast moving consumer goods (FMCG), through the facilities. However, he refused to divulge the investments for the expansion. At present, almost 30 per cent of the logistics business comes from clients other than the Future Group and the company expects it to rise to 50 per cent with completion of the warehousing facilities and transportation business. The plans for new logistic parks include development of 1 million sq ft of warehousing facility in Chennai.

The company also expects its modern distribution business in FMCG segment, distributing fast moving goods from manufacturer to organised retail outlets in various parts of the country, to grow towards Rs 100 crore by next year. Launched the service last year, currently it supplies around 30 brands to 3,000 stores of 11 organised retail chain companies. It completed a soft launch last year and the business has picked up this year, he added. The modern distribution business was built on the warehousing and transportation facilities the company set up in the last four to five years and does not had any major investment, said Singh. The logistic firm is expected to cross revenue of Rs 600 crore this year. Future Innoversity, in collaboration with Future Supply Chain Solutions, today rolled out MBA in Supply Chain management. It would accommodate 100 students in two campuses in Ahmedabad and Bangalore this year. The supply chain solutions company would issue letter of intent to all the students enrolling for the course.


Source: business-standard.com

Publication date: 6/20/2011


 


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