Future Group CEO Kishore Biyani in talks to raise Rs 300 crore for FMCG business

Kishore Biyani, India's leading retailer and founder of Future Group, is in negotiations to raise over Rs 300 crore from family offices for the FMCG business - Future Consumer Enterprise, two people directly involved in the matter said.

Biyani, known to have introduced organised retail in India, is now aggressively focusing on growing the FMCG business to drive the group's revenue and profits. The company counts two family offices — Belgium's family-owned consumer-sector focused investment company Verlinvest and Arisaig — as its investors. Verlinvest and Arisaig each own about 10% stake in Future Consumer Holdings.

The group's FMCG business drives on the back of extensive manufacturing and sourcing facilities and its own convenience store chain, Nilgiris and KB's.

The company reported revenues of Rs 447 crore for the quarter ended September 2016, a growth of 52% over the same quarter last year. The annual sales for FCE is estimated at about Rs 2,500 crore.

The company's flagship brands include Sunkist for beverages and jams, Tasty Treat for snacks, ketchups and savouries, Nilgiris for dairy and bakery products, and Golden Harvest offering staples and spices.

The company has also launched a number of new brands including Desi Atta Company that offers flourbased mixes; Karmiq, a brand for olive, canola and rice bran oils; Veg Affair, offering frozen vegetables and fruits; and Kara for personal care and wipes. Over the next few months, the company will launch the Nilgiris' diary range in the northern markets. It will also introduce a range of dips, sauces and chutneys through the brand Sangi's Kitchen and launch a range of personal care products in joint venture with Mibelle, Switzerland's largest personal care company. Early this year in May, Future Consumer acquired consumer business of Grasim Industries, an Aditya Birla Group company, on a slump sale basis.

Indian family offices have become active investors in the recent past, with most such offices now investing either in companies through venture capital and private equity fund or by being angel and seed investors.

Partnering directly with promoters is also another way of growing the family wealth for most of these high networth individuals. Some of the noteworthy family offices with active investments in companies include Azim Premji's PremjiInvest and Narayan Murthy's Catamaran Investments.

(Image credit: Economic Times)