P&G is looking to form Walmart-like agreement with Future Group in India

World’s biggest consumer company Procter & Gamble (P&G) is looking to form an agreement with Kishore Biyani-led Future Group. P&G already has a tie-up with Walmart in the US.

A string of meetings has taken place between top executives of P&G and Future Group. "It could be a similar partnership that P&G has with Walmart in the US where they share data on consumer behaviour, plan product launches and even lean on each other for supply-chain initiatives,” one of the officials told ET.

P&G has less than $2 billion revenue in India, less than 3% of its overall global sales.

Future Group has the widest network in the country with around 13 million square feet of retail space in 221 cities through a 700-odd store network of supermarket brands such as Big Bazaar, EasyDay and Nilgiris.

"It is standard practice for us to engage with our partners across the retail landscape, including all our partners in modern retail, e-commerce and traditional retail, to develop unique plans that create superior value for the shopper,” a P&G spokeswoman told ET.

In the past three years, P&G has pumped more than Rs 2,000 crore in India. At present, it has seven manufacturing facilities in six states, accounting for more than 90% of its products sold in the subcontinent.

"As modern trade grows, P&G would want a significant share similar to what it has in developed markets. So, rather than just a distributor-led model, it is a smart step to align its needs with that of a retailer. Critical issues such as lower product availability on shelves could also be addressed,” Devangshu Dutta, CEO at Third Eyesight, a retail and consumer goods consulting company, told ET.