Future Group Future Retail
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About Future Group
source: wekipedia
Future Group, is an Indian conglomerate company founded by Kishore Biyani, headquartered in Mumbai, Maharashtra, India. The company is known for having a significant prominence in Indian retail and fashion sectors, with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand Factory, Central, etc. The group also has a notable presence in integrated foods and FMCG manufacturing sectors. Future Retail Limited and Future Lifestyle Fashions Limited, two operating companies of Future Group, are among the top retail companies listed in BSE with respect to assets, and in NSE with respect to market capitalisation.
Future Group is a corporate group and nearly all of its businesses are managed through its various operating companies based on the target sectors. For e.g., retail supermarket/hypermarket chains Big Bazaar, FBB, Food Bazaar, Food Hall, Hometown, etc. are operated by its retail division, Future Retail Limited, while its fashion and clothing outlets Brand Factory, Central, and Planet Sports are operated via another of its subsidiaries, Future Lifestyle Fashions Limited. Furniture is retailed through HomeTown stores in major cities and online. With these many fashion outlets and supermarkets, the group also promotes its fashion and sports brands like Indigo Nation, Spalding, Lombard, Bare, etc., and FMCGs like Tasty Treat, Fresh & Pure, Clean Mate, Ektaa, Premium Harvest, Sach, etc. It also has operating companies to cater specifically to internal financial matters and consulting within its group of companies.
Future Group’s operating companies sorted by targeted markets
Retail
- Future Retail Ltd
- Future Lifestyle Fashion Ltd
- Future Consumer Limited
- Future Enterprises Limited
- Swathi Tiffin Shop
- Foodhall
Financial services
- Future Capital Holdings (for internal financial services)
- Future Generali Life Insurance
- Future Generali General Insurance
- Future Ventures
- Future Group Fixed Depoit
Other services
- Future Innoversity
- Future Supply Chains
- Future Brands
Future Retail Ltd.
- HomeTown, furniture retailer
- Koryo (Chinese Re-branding)
- Food Bazaar
- Fashion Big Bazaar (FBB)
- Aadhaar Wholesale
- HomeTown
- E Zone
- Foodhall
- Easyday
- Big Bazaar
- Nilgiris 1905
- Heritage Fresh
- HyperCity
Future Lifestyle Fashion Ltd
- Central
- Brand Factory
- Planet Sports
- I AM in
Fashion and lifestyle
- Indigo Nation
- Scullers
- John Millers
- All
- Rig
- Coverstory
- DJ&C
- Buffalo
- Hey
- Converse
- Bare
- Clarks
- Holii
- UMM
- Urban Yoga
- Jealous 21
Integrated foods and FMCG
- NILGIRIS
- Tasty Treat
- Fresh & Pure
- Ektaa
- Premium Harvest
- Mera Swad
- Pratha
- Punya
- Sach
- Kosh
- Sunkist
- Kara
- TS
- Clean mate
- Care mate
- Swiss tempelle
- Baker street
- Golden Harvest
- Prim
- Desi Atta Company
- Sangi’s Kitchen
- Voom
- Dreamery
- Sensible Portions
- MYSST
- Puretta
- Veg Affaire
- Terra
- Mother Earth
- Karmiq
Joint venture partnerships
Amazon-Future Retail
[Amazon-Future Retail] Biyani company valued at ₹43,000 crore: Amazon gets coupons to invest in Future Retail. … MUMBAI: Amazon has agreed to acquire an indirect minority stake in Future Retail, the operator of Big Bazaar and EasyDay chains, ahead of an option to buy all or part of the promoters’ holding in the company after three years. Rajan Malhotra the President – Retail Strategy at Future Group resigned in Nov 2019.
Generali Group
Generali is an Italian insurance company, having business in India through a joint venture with Future Group under the brand name Future Generali Insurance. Future Generali operates in India having through two primary legal entities namely Generali India Life Insurance Co. Ltd. (Life Insurance) and Generali India Insurance Co. Ltd. (Non-Life Insurance). Since 2013, Future Generali held talks of a possible merger with Larsen & Toubro Ltd. to form a general insurance company but a year later, on 22 April, Future Group backed out of merger leading to premature closure of the talks.
Staples Inc
Staples Inc., a United States-based office supply retailer, has a presence of over nine cities in India under the joint venture with Future Group. As of April 2013, Future Group has 60% stake in the partnership.
Skechers
Skechers entered India through a JV with Future Group in 2012. Sketchers ends joint venture with Future group in February 2019 by buying 49% stakes.
Celio
French fashion Celio entered Indian markets in 2008 through a 50:50 joint venture with Future Group’s then retail hand, Pantaloons Retail India Ltd (now Future Retail Ltd). On November 2013, Celio hiked its stake in the joint venture to 65%.
Clark
C&J Clark International Ltd. is a UK-based footwear and accessories retailer. The Future Group has entered into a 50:50 joint venture (JV) to form ‘Clarks Future Footwear Ltd’. The JV launched its first (1,600 sq ft.) stand-alone store in Connaught Place, Delhi on 19 April 2011. The brand seeks to gain a share of the premium segment in this category.
Future Group Debt Crisis
- High cost fund from private equities, 80% borrowing. Because of low collateral it has high interest.
- Promoters shares are pledged and invoked.
- So Share price are falling rapidly
But Promoters Kishore Biyani are selling stakes and right to keep up the company debt burden low.
Debt of about Rs 12,000 crore and about 90% promoters shares are pledged.
Future group was not able to repay pay payment, so IDBI Trusteeship Services on 27 March, 2020 have invoke pledge on NCD and this is reason for huge dip and stock price.
But now court have ordered IDBI not sell any stake, due to COVID-19 pandemic company is not able to repay in current situation.
To lower down group is trying to sell Insurance business, but no update on sell yet. Future group Insurance business was also put on sell in 2013 to L&T but deal did not mature.
But Group is capable enough and have good intention to run business and experience to sell business. In 2012, Biyani’s Future Group sold Pantaloon to Aditya Birla Group for Rs 1,600 crore. This gave company relief from debt of about Rs 7,850 crore at the time.
Total raised Rs 4,600 crore
Sold Future Lifestyle Fashion Limited 6% stake too Blackstone for Rs. 1,750 crore.
Amazon bought 51% stake in Future Coupons Pvt. Ltd.
Future Group spent Rs 1,440 crore on Future Retail to repay debt and other payments.
| Acquirer / Disposer Name | Type of security | No. of securities acquired / disposed | Value of securities acquired / disposed | Transaction type | Broadcast Date/Time |
|---|
| FUTURE COUPONS PRIVATE LIMITED (f/k/a FUTURE COUPONS LIMITED) | Equity Shares | 1,48,03,960 | 7,47,59,99,800.00 | Buy | 21-May-2020 19:47 |
Planned Fund raising
Future Retail to raise Rs 200 crore via NCD.
Future Consumer to raise Rs 300 crore via rights issue.
Future Group Good Side:
- Huge Total Sale.
- Great Profits.
- Promoters intentions are good for companies future.
Final Conclusion
Company is in debt but I think it is a great stock if compare to DMART as a group Future is bigger than DMART and DMART has Market Capital of over Rs 1,50,000 crore, whereas Future group have about Rs 10,000 – 15,000 crore Market Capital if we combine all 6 publicly listed Future Group companies.
I think company can overcome debt problems and such big brand don;t die, ownership may change in few brands but stock price is undervalued with a reason.
So it is huge opportunity to buy stock and gain exponential return.
Stock is Multi bagger but with a risk.
Buy Call on Future Group stock, specially on:
- Future Retail
- Future Lifestyle Fashion
- Future Consumer
Disclaimer: This is for educational purpose only. Make your investment decision with help of your financial adviser and not based on the about information.