future group
TRANSCRIPT
Name: Shivangi jain Course: B.COM(H) 1ST YR
Roll no.:5144
YEAR 2009
Future group India tomorrow
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INDEXINDEXTABLE OF CONTENTSINTRODUCTION …………………………………………………………………………………………………………………..4
OUR BOARD OF DIRECTORS ………………………………………………………………………………………………………………………4
OUR COMPANIES…………………………………………………………………………………………………………………………………….6
OUR PARTNERSHIPS………………………………………………………………………………………………………………………11
OUR MISSION…………………………………………………………………………………………………………………………….12
OUR ACHIVEMENTS…………………………………………………………………………………………………………………12
FUTURE GROUP IN DIFFERENT FIELDS…………………………………………………………………………………………14
FUTURE RETAIL……………………………………………………………………………………………………………………………………………14
CAPITAL……………………………………………………………………………………………………………………………………………..15
CONSUMER FINANCE………………………………………………………………………………………………………………………15
INSUARANCE………………………………………………………………………………………………………………………………..16
LEISURE & ENTERTAINMENT…………………………………………………………………………………………………….16
LEARNING & DEVELOPMENT…………………………………………………………………………………………………17
FUTURE BRANDS………………………………………………………………………………………………………………..17
FUTURE MEDIA……………………………………………………………………………………………………………….18
FUTURE LOGISTICS………………………………………………………………………………………………………..18
FUTURE KNOWLEDGE SERVICES…………………………………………………………………………………19
FUTURE VENTURES…………………………………………………………………………………………………….19
FUTURE E-TAILING…………………………………………………………………………………………………..19
FUTURE TWO PRONGED STRATEGIES…………………………………………………………………………………………………………………………20
FUTURE GROUP VALUES……………………………………………………………………………………………………………………………………………20
BUSINESS OVERVIEWS………………………………………………………………………………………………………………………………………………21
CITY WISE DOMINATION…………………………………………………………………………………………………………………………………………..22
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SIZE LEDS TO IMPROVED RETURNS………………………………………………………………………………………………………………..............23
SUPPLY CHAIN & LOGISTICS………………………………………………………………………………………………………………………………………25
LEAVERAGING HOUSE SYSTEM………………………………………………………………………………………………………………………………….26
BUSINESS HIGHLIGHTS: 2008-2009……………………………………………………………………………………………………………………………27
OPERATIONAL OVERVIEW……………………………………………………………………………………………………………………………….27
FINANCIAL HIGHLIGHTS: 2008-2009…………………………………………………………………………………………………………………………..28
MARKET PRICE DURING THIS PERIOD………………………………………………………………………………………………………….28
CONSOLIDATED BALANCE SHEET………………………………………………………………………………………………………………29
CONSOLIDATED PROFIT & LOSS ACCOUNT……………………………………………………………………………………………..30
CONSOLIDATED CASH FLOW STATEMENT………………………………………………………………………………………….31
STOCK MARKET PRICE ON 11 DECEMBER 2009……………………………………………………………………………………………………….31
CONCLUSION……………………………………………………………………………………………………………………………………………………………32
REFRENCES………………………………………………………………………………………………………………………………………………………………33
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IntroductiIntroduction on
Future Group India was established in 1994 with a vision to provide diverse services in Indian and Global markets. The business areas of Future Group cover BPO (Business Process Outsourcing), New Media, Security Management, and Construction. Through their strategic investment and services, the future of Future Group shows a rising star in the business sky of India. Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand development, retail real estate development, retail media and logistics.
OUR BOARDS OF DIRECTORS:-OUR BOARDS OF DIRECTORS:-
Kishore Biyani, 47, is the Chairman of the Company. He is a commerce graduate with a post-graduate diploma in marketing management. He has over 25 years of experience in the field of manufacturing and retailing. He is the Managing Director of Pantaloon Retail (India) Limited. He has received several awards including the 'CEO of the Year - 2001', 'the most Admired Retailer of the Year – 2004', the 'Retail Face of the Year - Images Retail Awards 2005' and the 'E&Y Entrepreneur of the Year – Services – 2006'. He has been on the Board of our Company since September 5, 2006
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Sameer Sain, 37, is the Managing Director and Chief Executive Officer of the Company. He is a graduate in commerce from University of Bombay and has a Bachelors degree in Business Administration from the University of Massachusetts at Amherst. He also holds a masters degree in Business Administration from Cornell University. He was formerly a Managing Director at Goldman Sachs International and was the head of Institutional Wealth Management and Special Investments Group (International). He has over 11 years of experience with Goldman Sachs in New York and London
Dhanpal Jhaveri, 39, has over 15 years experience in corporate finance and strategy. He was earlier the director of Corporate Strategy with Vedanta Resources and was responsible for the strategic development of the Vedanta Group. His previous experiences have been in investment banking and corporate finance where he held positions of head of Investment Banking and M&A advisory at ICICI Securities and was an Executive Director with KPMG Corporate Finance. He is a Bachelor of Commerce from the University of Mumbai and a Masters of Business Administration from Babson College, Graduate School of Business in the US
Ghyanendra Nath Bajpai, 65, has had a distinguished career in the Indian financial sector for over 40 years. Mr. Bajpai has also been the Chairman of SEBI, LIC and the Corporate Governance Task Force of International Organisation of Securities Commission and the Chairperson of the Insurance Institute of India. He is a member of RBI's Standing Technical Committee on Financial Regulation, Board of Advisors of Indian Army Group Insurance Fund and the Board of Governors of the Indian Institute of Management (Lucknow).Mr. Bajpai has written three books and was recently awarded the “Outstanding Contribution to the Development of Finance”.
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OUR COMPANIES:-OUR COMPANIES:-
Pantaloon Retail (India) Limited Pantaloon Retail (India) Limited
Pantaloon Retail (India) Limited (PRIL), is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer marker. Headquartered in Mumbai, the company operates 10 million square feet of retail space, has over 1,000 outlets (including shop-in-shops) across 61 cities in India and employs over 30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, and Central, a chain of
Shailesh Haribhakti, 51, is a chartered accountant, cost accountant, and a certified internal auditor. He has around 30 years of experience as a chartered accountant. He is the deputy managing partner of Haribhakti & Co., Chartered Accountants. He is the chairman of the Banking, Finance and Insurance Committee of the Indian Merchant's Chamber and a member of the Adhoc Advisory Committee for Master's Degree in Management Studies, University of Mumbai.
Alok Oberoi, 44, is the founding partner of ACP Partners LLP, a company engaged in investments and trading. Prior to the establishment of ACP Partners, he was a partner at Goldman Sachs in London. He has over two decades of extensive experience in the field of investments, including advising on various investment strategies as well as structuring international joint venture and transactions
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seamless destination malls. Some of its other formats include Depot, Brand Factory, Blue Sky, Star and Sitara.
Pantaloon Retail is part of the Future Group which has presence in multiple businesses in the consumption space including consumer finance, capital, insurance, retail media, mall development, logistics and brand development.
Home Solutions Retail (India) Limited
Future Group’s business offers complete retailing solutions for all products and services related to home building and home improvement. The key product categories are CDE (Consumer Durable & Electronics), Furniture, Home Furnishing & Decor, Home Improvement and Home Services. HSRIL operates retail format Collection i, Furniture Bazaar, Electronics Bazaar, Home Town and eZone.
Future Brands Limited
Future Brands Limited (FBL) has been incorporated on November, 2006 and is involved in the business of creating, developing, managing, acquiring and dealing in consumer-related brands and IPRs (Intellectual Property Rights).
Future Media (India) LimitedFuture Media (India) Limited (FMIL) was incorporated as the Group’s media venture, aimed at creation of media properties in the ambience of consumption and thus offers active engagement to brands and consumers. FMIL offers relevant engagement through its media properties like Visual Spaces, Print, Radio, Television and Activation.
Future Logistic Solutions Limited
Future Logistic Solutions Limited (FLSL) has been incorporated as a separate entity and is involved in the business of providing logistics, transportation and warehousing services for all group companies and third-parties.
Convergem Communication (India) Limited
Convergem Communication (India) Limited (CCIL) (formerly known as Convergem Retail (India) Limited) was incorporated to set up a chain of retail outlets for dealing in areas of communication, data & voice storage and other related products. The company operates mBazaar, mPort and GenM, among other retail formats.
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Pantaloon Food Product (India) Limited
Pantaloon Food Product (India) Limited (PFPIL) was incorporated with the object of sourcing and backward integration of food business of the company. PFPIL has sourcing and distribution bases at all key cities across the country.
Future Knowledge Services Limited
Future Knowledge Services Limited (FKSL) was incorporated on January, 2007 and is engaged in the business of business process outsourcing and knowledge process outsourcing.
Future Capital Holdings Limited
Future Capital Holdings Limited (FCH) was formed to manage the financial services business of Pantaloon Retail (India) Limited and other group entities. FCH is one of the fastest growing financial services company in India, with presence in Asset Advisory, Retail Financial Services and Proprietary Research. The company operates a consumer finance retail format, Future Money and manages assets worth over US$ 1 Billion through its various funds including Indivision, Kshitij, Horizon and Future Hospitality. FCH subsidiary companies include Kshitij Investment Advisory Company Ltd., Ambit Investment Advisory Company Ltd., and Indivision Investment Advisors Ltd.
Future Generali India Insurance Company Limited
Future Generali India Insurance Company Limited (FGIICL) was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for carrying on General Insurance Business has been received from the Insurance Regulatory and Development Authority of India (IRDA) on September 4, 2007.
Future Generali India Life Insurance Company Limited
Future Generali India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. The approval for carrying on Life Insurance Business has been received from the IRDA in September, 2007.
Futurebazaar India Limited
Futurebazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future Group for providing on-line shopping experience. Futurebazaar.com was launched on January 2, 2007, and has emerged as one of the most popular online shopping portals in India. It was awarded with the “Best Indian Website” award, in the shopping category, by the PC World Indian Website Awards.
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Weavette Texstyles Limited
Weavette Texstyles Limited was incorporated on December 8, 1994 and is involved in the business of designing, manufacturing, buying and selling, importing, exporting, spinning etc of various types of textile fabrics.
Winner Sports Private Limited
Winner Sports Pvt. Limited caters to the Sports and Lifestyle consumer space. Winner Sports is the exclusive India Licensee for retailing and marketing leading international brands including Converse, Speedo, Wilson, Prince, Spalding and Callaway. It has over 57 stores across 23 locations.
The company operates:
Multi-brand sports specialty stores - Planet Sports
Value-based sports lifestyle format - Sports Warehouse
Mono brand stores - Adidas, Converse, Puma
The company's flagship format, Planet Sports, is a leading name in multi-brand sports and lifestyle speciality retail space. It has one of the largest collection of international sports and lifestyle brands and has an extensive offering for sportswear and equipment across all categories including running, training, fitness, swimming, tennis, golf, basketball, soccer as well as other lifestyle products across categories like footwear, apparel, accessories and sports equipments.
The company aims to be among the most admired sports player in a multi-sports, multi-product format and to augment India’s sports culture. Winner Sports strives to provide integrated, reliable and cost efficient sports offerings to Indian consumers.
Staples Future Office Products Private Limited
Staples Future Office Products Private Limited (SFOPPL) was incorporated on January, 2007 and is involved in the business of dealing in all kinds of office supplies, office equipments and products. SFOPPL is a joint venture between the Company and Staples Asia Investment Limited (a subsidiary of Staples Inc USA). The company’s first retail outlet opened in Bengaluru in December, 2007.
Talwalkars Pantaloon Fitness Private Limited
Talwalkars Pantaloon Fitness Private Limited (TPFPL) was incorporated on December 19, 2006 and is involved in the business of setting up gymnasiums and dealing in fitness equipments and other
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health products. TPFPL is a 50:50 joint venture between the Company and Talwalkars Better Value Fitness Private Limited.
ConvergeM
The company has entered into a 50:50 joint venture with Axiom Telecom LLC, UAE on July 20, 2007 to do sourcing and wholesale distribution of mobile handsets, accessories and setting up service centres and authorized after sales service centres for mobile handsets in India.
Indus League Clothing
A subsidiary company, Indus League Clothing owns and manages the brands Indigo Nation, Scullers, Urban Yoga, Urbana and their retail formats.
Galaxy Entertainment Corporation Ltd
It is a group company that operates leisure and entertainment chains, The Bowling Company, The Brew Bar, The Sports Bar, Sportsbar Express and Chamosa.
Future Consumer Products Limited
FCPL is a subsidiary company of Pantaloon Retail India Limited, incorporated in September 2007. The company has two brands under itsumbrella - SACH & S Drive, inspired by Sachin Tendulkar. These brandsoperate in categories such as foods, apparels, personal care and generalmerchandize among others, and are available through Future Group formats. SACH launched with an apparels range for boys between the ages of 9-16across Big Bazaars in June 2008.
Future Ventures India Limited
Future Ventures seeks to promote and participate in innovative and emerging business ventures in India. The group intends to play a role in powering entrepreneurship, by promoting or participating in diverse business activities, primarily in consumption-led sectors in the country, which will be determined primarily by the growing purchasing power of Indian consumers and their changing tastes, lifestyle and spending habits.
FootMart Retail India Ltd’
FootMart Retail is a joint venture between Liberty Shoes and the group and operates the Shoe Factory format.
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OUR PARTNERSHIPS:-OUR PARTNERSHIPS:-Celio
Founded in 1978, by Marc and Laurent Grossman, today Celio is a market leader in men's ready to wear clothing in France. Its flag ship store, located in Paris’s Champs Elysee, is spread over three levels.In addition it also has a presence in Europe, Russia, UAE, Singapore and now in India through a joint venture with the Future Group.
Staples Inc. USA
Staples, a Fortune 500 company is the world’s largest office products company and is committed to making it easy for customers to buy a wide range of office products, including supplies, technology, furniture, and business services. With over 2000 stores across the globe and $27 billion in sales, Staples serves businesses of all sizes and consumers in 27 countries. Staples invented the office superstore concept in 1986 and is headquartered outside Boston.
Staples Future Office Products Pvt. Ltd. was formed in May ’07 with an aim to make it easy for Indian customers to run their offices by providing over 7000 products covering the entire gamut of technology, stationery and office furniture.
Future Generali India Insurance Company Limited
Future Generali India Insurance Company Limited (FGIICL) was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for carrying on General Insurance Business has been received from the Insurance Regulatory and Development Authority of India (IRDA) on September 4, 2007.
Future Generali India Life Insurance Company Limited
Future Generali India Life Insurance Company Limited (FGILICL) was incorporated on October 30, 2006 to establish and conduct the business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc. The approval for carrying on Life Insurance Business has been received from the IRDA in September, 2007.
Axiom Telecom LLC, UAE
Axiom Telecom is the largest and leading, authorized distributor and retailer for international brands such as Nokia, Sony Ericsson, Samsung, Motorola, Thuraya and i-mate in Middle East and Europe.
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Lee Cooper
Founded in 1908, Lee Cooper is the oldest jeans company in Europe having a large and enviable collection for men and women, which combines classics with quality.
0UR MISSION:-0UR MISSION:-We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in the consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall be efficient, cost- conscious and committed to quality in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
OUR ACHIEVEMENTS:-OUR ACHIEVEMENTS:-CNBC Awaaz Consumer Awards 2009
Most Preferred Multi Product Chain - Big Bazaar
Most Preferred Multi Brand Food & Beverage Chain - Big Bazaar
Images Fashion Forum 2009
Most Admired Fashion Group Of The Year - Future Group
Most Admired Private Label - Pantaloons, the lifestyle format
Critics Choice For Pioneering Effort In Retail Concept Creational - Central
Coca-Cola Golden Spoon Awards 2009
Most Admired Food & Grocery Retailer Of The Year
Most Admired Food Court
Most Admired Food Professional
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Indian Retail Forum Awards 2008
Most Admired Retail Company of the year - Future Group
Retail Face of the Year - Kishore Biyani
Best Retailer Of The Year ( Hypermarket) - Big Bazaar
Future Group was awarded the Most Admired Retail Company of the year by the Indian Retail Forum at a glittering ceremony organised in Mumbai. Mr Kishore Biyani also won Retail Face of the Year.
India Retail Forum (IRF) is a platform for intellectual insights and information exchange for the retail business in the Indian subcontinent. The forum presents the business of retail in the region to a global audience, with the express aim of facilitating understanding about and encouraging investment in this massive marketplace.
Big Bazaar, the value format of Future Group bagged the Best Retailer Of The Year ( Hypermarket )
The INDIASTAR Award 2008
Food Bazaar: Best Packaging Innovation
Food Bazaar bagged the INDIASTAR Award for Best Packaging Innovation in India, for its private label brand Fresh And Pure Chakki Atta.
INDIASTAR Award is a biennial event which aims to promote and encourage excellence in packaging design, innovation and technology. The contest was established in 1972 and is considered as the most popular and premier event for India’s packaging fraternity. This year there were around 357 entries and the participants had to submit a sample of their designs for selection.
With this award, Pantaloon Retail (India) Limited becomes the first Indian Retailer to win the prestigious INDIASTAR Award.
Retail Asia Pacific 500 Top Awards 2008
Gold Winner - Top Retailer 2008 Asia Pacific
Retail Asia Publishing Pte, the institutor of these awards, aims to set a platform that appraise, raises and recognizes the development and growth of retailing throughout the Asia Pacific region.
Coca-Cola Golden Spoon Awards 2008
Most Admired Food & Grocery Retail Visionary of the Year: Kishore Biyani.
Most Admired Food & Grocery Retailer of the Year – Supermarkets: Food Bazaar.
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Most Admired Food & Grocery Retailer of the Year - Hypermarkets: Big Bazaar.
Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group
Most Admired Retailer of the Year - Dynamic Growth in Network Expansion across Food, Beverages & Grocery: Future Group.
Most Admired Food & Grocery Retailer of the Year - Consumer's Choice: Big Bazaar.
The Coca-Cola Golden Spoon Awards 2008, were given away for the first time as a culmination of the ‘Food Forum India 2008’ - a two day convention which saw the participation of leading brands, retailers & retail support organizations from across the globe. The awards were presented to honour enterprise, innovation and achievement in the food retailing business as a benchmark of excellence.
FUTURE GROUP IN DIFFERENT FUTURE GROUP IN DIFFERENT FIELDS:-FIELDS:-Future. retail:-
Retail forms the core business activity at Future Group and most of its businesses in the consumption space are built around retail. Future Group’s retail network touches the lives of more than 200 million Indians in 71 cities and 65 rural locations across the country. The group currently operates around 1,000 stores spread over 12 million square feet of retail space. Present in the value and lifestyle segments, the group’s retail formats cater to almost the entire consumption expenditure of a wide cross-section of Indian consumers.
Led by Pantaloon Retail, the group’s flagship company, the group manages some of India’s most popular retail chains like Pantaloons -- a chain of fashion destinations, Big Bazaar - a uniquely Indian hypermarket chain-- a supermarket chain that blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central -- a chain of seamless destination malls. Some of its other formats include Brand Factory, Planet Sports, aLL, Top 10,and Star and Sitara. The group also operates India’s most popular online shopping portal, futurebazaar.com.
Retailing of products and services related to home building and home improvement is led through the group’s formats, Home Town, a large-format home solutions store, along with specialized formats for home furniture and home furnishing through, Collection and Furniture Bazaar and consumer electronics through e Zone and Electronics Bazaar.
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The group also operates India’s leading rural retailing chain, Aadhaar that is present in over 65 locations in rural India. Aadhaar, an agri-service cum rural retail initiative, provides a complete solution provider for the Indian farmer.
Capital -
Future Capital Holdings Limited (FCH) is the financial services arm of the Future Group and has three primary lines of business; investment advisory services, retail financial services and research.
services to onshore and offshore clients. These investment advisory services include investment analysis, research and recommendations.
FCH acts as the investment advisor to the Rs. 350 Crore (approximately US$ 89 Million) Kshitij Venture Capital Fund, an onshore SEBI-registered venture capital fund, whose main focus is developing retail malls in India. It also acts as the investment advisor to three offshore investment managers namely:
Indivision Capital Management, the offshore investment manager of the US$ 425 Million offshore private equity fund, Indivision India Partners.
Horizon Development Management, the offshore investment manager of the US$ 350 Million offshore real estate fund, Horizon Realty Fund, LLC.
FHL Developments Company LLC, the offshore investment manager of the US$ 200 Million offshore hotel fund, Indus Hotel Ventures, LLC.
Future Capital Research, our research business, conducts and publishes economic research on India with the objective of enhancing value creation across our other businesses.
Consumer finance:-
A business division of Future Capital Holdings (FCH), Future Money aims to set a new standard in the organized retailing for financial services and products by creating a differentiated retail brand that will make retail finance ‘Simple, Easy and Convenient’. These ‘financial supermarkets’ provide a range of innovative financial products and services Future Money proposes to leverage its reach and captive customer base to offer a one-stop solution for financial products and services. Key product and service lines include consumer durable loans, personal loans, home equity loans, credit cards, life and non-life insurance, mutual funds, foreign exchange and money transfer
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The group has also launched Future Card, a unique credit card cum loyalty card that offers loyalty benefits to card holders in over 24 Future Group retail chains as well as other retail outlets.
Insurance:- Future Group’s foray into life and non life insurance services and products is led through Future Generali India Life Insurance Company & Future Generali India Insurance Company, respectively.
Future Group’s partner, Generali Group was established in 1831 in Italy and is now amongst the three largest insurance companies in Europe and is ranked 30th on the Fortune 500 list. It has more than 3,50,000 shareholders, 70,000 employees and is present in 40 countries across the globe.
The joint venture company - between Pantaloon Retail and Generali Group - Future Generali brings in a new wave of innovation in the insurance space. Apart from retailing insurance products in the exciting environment of shopping malls and consumption centres the companies are also setting up a robust pan-India footprint in over 100 cities and towns across the country.
Leisure & entertainment:-
The company’s presence in the fast growing leisure and entertainment space is established through its affiliate company, Galaxy Entertainment Corporation Ltd and its partnership with Mumbai-based Blue Foods.
Galaxy Entertainment Corporation LtdGECL operates Leisure Brands including The Bowling Company, The Sports Bar and The Brew Bar. F123 is the company’s kids gaming and entertainment zone while it operates Sportsbar Express under its The Sports Bar concept.
Future Consumer Products LimitedFCPL is a subsidiary company of Pantaloon Retail India Limited, incorporated in September 2007. The company has two brands under itsumbrella - SACH & S Drive, inspired by Sachin Tendulkar. These brandsoperate in categories such as foods, apparels, personal care and generalmerchandize among others, and are available through Future Group formats.
Shopping malls:-
Future Group currently operates six shopping malls: Orchid City Centre and Milan Mall in Mumbai; Cosmos and Lido Malls in Bengaluru; Ahmedabad City Centre in Ahmedabad and Cosmos Mall in Siliguri.
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In addition the group is engaged in setting up of over two dozen shopping malls and consumption centres, all of which will be operational by 2011.
Learning & development:-
Future Learning & Development Ltd. (FLDL), a Future Group company, was incorporated in 2008 with the unique charter to undertake all the Talent acquisition, Talent management, Talent retention and Career Progression training. The learning & development at FLDL is unique, in the manner that it is rooted in Indian ideology, and aims at providing a relevant and contextual learning experience. Fuelled by its deep belief in the infinite potential of a person, the company has already introduced more than 25,000 Future Group employees to its basic tenets, and is geared towards helping more than 40,000 people realize their potential by the year 2010.
Since its inception, FLDL has also branched off into domain specific (retail & allied services) training, certification, advisory and consultancy. FLDL also recognises that they can contribute in the development and grooming of current and future talent across various businesses in areas such as:
Product and service training Soft skills training SOP creation and train the trainer Training efficiency audits and reports Extending use of FLDL training facility Customised training and content generation Other people development related services
Through these associations, FLDL will not only be involved with the design, development and delivery of the programs, but also offer a value proposition that takes into account the business’s needs both in terms of costs and benefits.
With FLDL, Future Group has created a centre of higher learning, which provides the learner an opportunity to build self and thereby a career through completely Indian references and methodology, at their three Learning Centers based in Ahmedabad, Bangalore and Kolkata. FLDL employs a large number of Learning Specialists across locations.
Future brands:-
The Future Group has built a strong portfolio of some of the fastest growing consumer brands in India. This activity is led through Future Brands India Limited, a specialized subsidiary company that was set up to create and build powerful brands that address the aspirations of the new Indian consumer.
Some of the key brands in this portfolio include, John Miller, Lombard, Bare, DJ&C, Buffalo and RIG
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in the fashion and apparel space. Dreamline,present in the home segment, offers a wide range of products in kitchenware, bed & bath linen, and Home Décor categories.
In the food and home care segment brands include Tasty Treat, Premium Harvest, Fresh & Pure, Care Mate and Clean Mate.
In consumer durables and electronics space, the group’s brands include Koryo and Sensei.
Future media:-
Future Media India Limited, aims to create media properties in the ambience of consumption, and aid consumer-brand engagement, converting footfalls into eyeballs, creating trends and thereby, the desire to change. The company was incorporated on March 8, 2006 and its operations commenced from January 1, 2007. The company offers relevant engagement through its media properties like Future Visual Spaces, Future Activation, Future Print, Future Radio, Future TV, Future Fuel and Future Theatre.
Visual spaces in the shopping environment include shopping trolleys, carry-bags, elevator doors, standees, danglers, trial rooms, counters, in-store signage, product displays and facades.
Amongst print properties, Future Media offers My World, a monthly magazine for Future Group customers. Future Media has also launched Future TV, the first retailer-owned channel in India that aims to provide a completely unique audio-visual experience within an in-store environment.
Future FUEL is the TV network at BPCL petrol stations, while Future Theatre has acquired on-screen media rights for all Inox properties.
Future logistics:-
Logistics forms a critical business activity across Future Group’s businesses. Future Logistics Solutions Limited (FLSL), a specialized subsidiary, offers strategic, focused and consolidated approach to meet the group’s large supply chain requirements as well as those of select supply and business partners.
The Future Logistics team currently oversees the operations of an existing fleet of over 600 dedicated trucks, contracted from established regional and national transport carriers, most of which are now equipped with GPS sets. In addition it provides integrated end-to-end SCM, warehousing and distribution, multi-modal transportation and container freight station. The total consolidated warehouse space that the company intends to have operational by 2010-11 is nearly 7.50 Million square feet.
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Future knowledge services:-
Future Knowledge Services is a retail technology service provider for high quality, low cost services model catering to the entire retail value chain. Future Knowledge Services will provide consolidated Technology Support, Business Process Management and Contact Centre for all group companies and partners. Its key partners include Wipro, SAP and Cisco.
The pillars on which the deliverables of Future Knowledge Services are based include IT-based applications and implementation modules; Design, Built and Run to enable businesses to function smoothly and accurately.
SAP as the backbone provider, ensures connectivity throughout the group’s retail formats, warehouses, vendor partners and allied businesses. In addition VPN and Business Intelligence and Data Warehousing tools have also been incorporated as a robust decision making enabler. Further, cutting edge technology advancements at the store level for better operational efficiencies and transaction enhancements are underway.
future ventures:-
Future Ventures, seeks to promote and participate in innovative and emerging business ventures in India. The company intends to play a role in powering entrepreneurship, by promoting or participating in diverse business activities, primarily in “consumption-led” sectors in the country, which it defines as sectors whose growth and development will be determined primarily by the growing purchasing power of Indian consumers and their changing tastes, lifestyle and spending habits.
The company will also participate in businesses where it exercises control or influence, and can add value as active shareholders, by utilizing the experience and knowledge of the Future Group, and specifically its parent, Pantaloon Retail.
Future e-tailing:-
Futurebazaar.com is the group’s foray into the consumer e-commerce business in India. The website is owned and operated by Future Bazaar India Limited, a subsidiary of Pantaloon Retail (India) Limited.
The company through its website, www.futurebazaar.com, provides customers with a streamlined, efficient and world class personalized shopping experience, which is supported with the best technology platform.
Popular Indian computer magazine PC World named Future Bazaar as the Best Indian Website 2007 in the Shopping category.
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FUTURE GROUP TWO FUTURE GROUP TWO PRONGED STRATEGY :-PRONGED STRATEGY :-
FUTURE GROUP VALUES:-FUTURE GROUP VALUES:-Indianness: confidence in ourselves.Leadership: to be a leader, both in thought and business.Respect & Humility: to respect every individual and be humble in our conduct.Introspection: leading to purposeful thinking.Openness: to be open and receptive to new ideas, knowledge and information.Valuing and Nurturing Relationships: to build long term relationships.Simplicity & Positivity: Simplicity and positivity in our thought, business and action.
Leadership Thought Leadership
Leadership in Design
Brand Leadership Leadership in People Management Leadership in Empowering & Nurturing Entrepreneurship
DominanceMind share Dominance Through Dominance in Brands, Media, Customer Engagement & Community Involvement
Market share DominanceThrough Dominance in Concept & Category
Geographical Dominance Through Physical Space and Physical Reach
Supply Chain Dominance Through Dominance in Network Design
Wallet Share Dominance Through Fueling Purchasing Power
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Adaptability: to be flexible and adaptable, to meet challenges.Flow: to respect and understand the universal laws of nature.
BUSINESS OVERVIEWS:-BUSINESS OVERVIEWS:-
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CITY WISE DOMINATION:-CITY WISE DOMINATION:-
Unprecedented Rollout –Globally the fastest to achieve the first 100 Hypermarket Stores Expansion through Organic Growth
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SIZE LEDS TO IMPROVED SIZE LEDS TO IMPROVED RETURNS:-RETURNS:-
Manufacturers Real Estate Developers Talent Media
Some Store Sales Breakeven Even Point Inc ROIC
SCALE DEFINES EVERYTHING IN RETAIL AND INCREASES THE VELOCITY OF THE VIRTIOUS CIRCLE
Pricing Promotions Offering
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Techonology initiatives driving efficiencies:-
RETAIL BUSINESS
PLAN MAKE BUY MOVE SELL SERVICE SUPPORT
TECHONOLOGY DELIVERY TO RETAIL
Business benefited targets
COSTS / INVESTMENT
CONTROLS CONSUMER EXPERIENCE / REVENUES
SCALE
Key Retail Business and Technology Projects & Services
•Merchandise and Assortment Planning
•Perpetual Inventory Management
•Finance & Accounting Services
•Space Optimisation Services
•Business Intelligence
•Consumer Loyalty Programs
•Warehouse Management
•Store Management
•Data Centre and Network Optimisation & Upgrade
•Open Source Business & Technology Platforms
INHOUSE CAPABILITIES
BUSINESS
CONSULTING
TECHONOLOG-Y DESIGN
APPLICATION
DEVELOPMEN-T
MAINTAINANCE
TECHONOLOGY
INFRASTRUCTURE
MANAGEMENT
PROGRAM MANAGEME-NT
BUSINESS SERVICES
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SUPPLYCHAIN AND LOGISTICS:-SUPPLYCHAIN AND LOGISTICS:-
FLSL BUSINESS VERTICALS FLSL BUSINESS VERTICALS
Consolidation of warehouse space
WMS(Warehouse Management System)
Mechanization and automation ensuring timely and accurate replenishment to the retail stores
ARS(Automatic Replenishment System)
Ensures timely product availability of all major fast moving items at stores
Lower obsolescence and lower markdown
Facilitate Stock Aging analysis
Significantly reduced ‘Time-to-Market’
Improved Order Fulfillment and Accuracy
Economies of scale
Shared warehouse capex and overheads
Reduced inventory holding costs
CONSUMPTION-
FASHION-FOOD -
GM-HOME
8 CITY STRAT
EGY
CUSTOMER
DELIVERY STRATEGY
EXTERNAL
FACTORS
SOURCING
SUPPLY CHAIN
REQUIREMENTS
OPERATIONAL
STRATEGY
Retail influences
Supply chain influences
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LEVERAGING HOUSE SYSTEM:-LEVERAGING HOUSE SYSTEM:-
Strong in house capabilities developed in areas which are Strong in house capabilities developed in areas which are typically bottlenecks for retailer -logistics, human resource typically bottlenecks for retailer -logistics, human resource development, private brand development, media, etc. development, private brand development, media, etc. Capabilities could be monetized through third party sales
Sq.
ft a
rea
in m
illio
ns
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BUSINESS BUSINESS HIGHLIGHTS : 2008-HIGHLIGHTS : 2008-20092009OPERATIONAL OVERVIEW:OPERATIONAL OVERVIEW:
PRIL no. of store by format PRIL retail spaces by format
2007 2008 20090
50
100
150
200
250
300
other formats
central
big bazaar
panta-loons
2007 2008 2009
0
2
4
6
8
10
12
other formatcentralbig bazaarpantaloons
NO
. OF S
TO
RE
S
S
Q. F
EE
T A
RE
A I
N M
ILL
ION
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FINANCIAL HIGHLIGHTSFINANCIAL HIGHLIGHTS : 2008-2009: 2008-2009MKT PRICE DURING THIS PERIOD:
MONTH BSE
NSE
HIGH LOW HIGH LOW
APRIL 2008 685.45 550.00 675.00 550.00MAY 2008 652.00 456.00 652.00 477.00
JUNE 2008 499.00 310.00 500.00 309.30
JULY 2008 396.00 258.90 388.75 257.60
AUGUST 2008 404.00 331.25 388.50 333.00
SEPTEMBER 2008 428.00 256.00 427.00 256.00
OCTOBER 2008 283.00 142.10 284.00 141.00
NOVEMBER 2008 212.00 132.10 209.95 133.00
DECEMBER 2008 195.90 125.00 194.25 124.05
JANUARY 2009 216.75 135.30 216.80 136.00
FEBRUARY 2009 152.70 119.00 152.05 119.00
MARCH 2009 120.95 92.90 120.90 92.10
CONSOLODATED BALANCE SHEET AS AT MARCH 31CONSOLODATED BALANCE SHEET AS AT MARCH 31STST 2009 2009
Amount in rupees
PARTICULARS AS AT 31ST MARCH 2009
AS AT 31ST MARCH 2008
SOURCES OF FUNDSShareholder’s fundshare capital 635,279,840 632,279,840
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Reserves and surplus 6,656,157,452 6,537,006,1767,291,437,292 7,169,286,016
Minority interest - 629,330,137Loan fundsSecured loans 3,305,482,845 1,284,221,241Unsecured loans 1,426,004,873 797,715,000
4,731,487,718 2,081,936,241Deferred tax liabilities(net) - 2,692,635
Total 12,022,925,010 9,883,245,029
APPLICATION OF FUNDSGoodwill on consolidation 85,403,976 453,254,732Fixed assetsGross block 1,058,042,918 1,114,772,960Less: accumulated depreciation/ amortisation 108,331,703 64,052,651Net block 949,711,215 1,050,720,309Capital work-in-progress(including capital advances) 3,488,665 14,667,642
953,199,880 1,065,387,951Investments 5,469,654,512 5,020,259,812
Deferred tax assets (net) 11,693,189 -
Current assets, loans and advances Inventories - 173,573,419Sundry debtors 148,107,365 414,515,143Cash and bank balances 62,014,471 1,100,738,331Other current assets 99,791,486 82,788,637Loans and advances 5,421,455,642 2,716,092,827 (A) 5,731,368,964 4,487,708,357
Less: current liabilities and provisionsCurrent liabilities 810,478,172 1,402,963,188Provisions 32,996,327 12,261,148 (B) 843,474,499 1,415,224,336
Net current assets (A-B) 4,887,894,465 3,072,484,021
Profit and loss account 615,078,988 271,858,513
Total 12,022,925,010 9,883,245,029
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ENDED 31STST MARCH, 2009 MARCH, 2009
Amount in rupees
PARTICULARS AS AT
31ST MARCH 2009
AS AT
31ST MARCH 2008
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INCOME Income from operations 1,798,640,705 984,769,561Other income 68,581,440 8,305,508Total 1,867,222,145 993,075,069
EXPENDITUREPersonnel expenses 884,438,190 559,097,309Administration and other expenses 852,187,199 582,638,544Financial expenses 346,729,877 78,231,131Depreciation/amortization 66,878,749 35,060,295Preliminary expenses written off 79,544 722,561Total 2,150,313,559 1,255,749,840
Loss before tax and before prior period items (283,091,414) (262,674,771)
Add/less : prior period items(net) 1,824,615 -Loss before tax and after prior period items (281,266,799) (262,674,771)
Provision for tax:-current liabilities 31,694,934 18,737,649Less: MAT credit entitlement (57,000) --deferred tax(net)[(including share in deferred tax of joint ventures Rs.(2,945,048);Previous year Rs.(11,802)]
566,959 (4,030,834)
-Fringe benefit tax[(including share in fringe benefit tax of joint ventures Rs.220,000;Previous year Rs.200,482)]
7,632,354 5,066,520
39,837,247 19,773,335
Loss after tax and before minority interest (321,104,046) (282,448,106)
Less: minority interest - (2,237,368)Less: minority interest in respect of acquisition of further shares inSubsidiary adjusted from goodwill
- (2,858,133)
Loss after tax and minority interest (321,104,046) (287,543,607)
Balance brought forward from previous year (271,858,513) 33,856,702Less: adjustment on account of subsidiary excluded from consolidation 2,237,368 -Less: adjustment on account of liability in respect of employee benefits as on April 1 2007(net of deferred tax)
- 270,015
Loss available for appropriation (595,199,927) (253,956,920)
Appropriations:Transfer to reserve under sec 45(1c)of the Reserve Bank Of India, Act 1934
19,879,061 17,901,593
Deficit carried forward to consolidated balance sheet (615,078,988) (271,858,513)
Earnings per share:-basic [nominal value of shares Rs.10(previous year: Rs 10)] (5.06) (5.38)-diluted[nominal value of shares Rs.10(previous year: Rs 10)] (5.04) (5.34
CONSOLIDATED CASH FLOW STATEMENT AS ON 31CONSOLIDATED CASH FLOW STATEMENT AS ON 31STST MARCH MARCH 2009:-2009:-
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Amount in rupees
PARTICULARS AS AT
31ST MARCH 2009
AS AT 31ST MARCH 2008
A. CASH FLOW FROM OPERATING ACTIVITIESProfit/loss before tax and after minority interest (281,266,799) (267,770,272)Adjustment for:Financial expenses 346,729,877 78,231,131Depreciation/amortization 66,878,749 35,060,295Preliminary expenses written off 79,544 722,561Bad debts 150,462,532 1,810,563Provision for doubtful debts 17,173,313 1,108,760Loss on sale of fixed assets 3,367,390 479,490Profit on sale of investments (28,448,820) (9,258,190)Write back of provision (31,601,140) -Provision for gratuity 4,528,424 3,042,817Provision for leave encashment (58,471) 5,374,002Leave encashment –transitional adjustments as per AS-15 (Revised) - (270,015)Sundry balances written off - -Exchange fluctuations 937,500 360,000
530,048,898 116,661,414Operating profit before working capital changes 248,782,099 (151,108,858)Adjustment for changes in working capital:Increase/(decrease) in inventories - (173,573,419)
(increase)/decrease in sundry debtors 33,658,608 (270,180,374)
(increase)/decrease in loan and advances (3,103,070,523) (2,622,362,055)
Increase/(decrease) in current liabilities (155,450,418) 960,671,368
Share of minority interest - 611,651,427
Cash generated from operations (2,976,080,234)
(1,644,901,911)
Preliminary expenses paid (79,544) -Taxes paid/tax deducted as source(including fringe benefit tax) (163,361,045) (9,371,786)Net cash used in operating activities (3,139,520,82
3)(1,654,273,697)
B. CASH FLOW FROM INVESTING ACTIVITIESPurchase of fixed assets(including capital advance) (92,419,782) (295,921,168)Goodwill (1,856,383) (377,789,848)Sale of assets 4,074,918 1,716,361Sale of investments 16,780,456,456 898,583,204Purchase of investment (16,773,239,58
5)(3,080,456,770)
Net cash used in investing activities (82,984,376) (2,853,868,221)
C. CASH FLOW FROM FINANCING ACTIVITIESProceeds from issue of equity shares 3,000,000 77,379,850Proceeds from securities premium on issue of equity share capital 109,635,000 6,331,235,389
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Payment of share issue expenses (10,540,574) (244,968,635)Financial expenses (346,729,877) (78,231,131)Proceeds from borrowings 7,951,228,648 3,658,130,703Repayment of borrowings (4,773,793,677) (2,130,850,000)Net cash flow from financing activities 2,932,799,520 7,612,696,176
Net increase in cash & cash equivalents during the year(A+B+C) (289,705,679) 3,104,554,258Cash and cash equivalent s at the beginning of the year 3,504,762,264 400,208,006Less: balance of subsidiary excluded from consolidation ((128,882,186) -
3,375,880,078 3400,208,006
Cash and cash equivalent at the end of the year 3,086,174,399 3,504,762,264
Cash & cash equivalent comprises of: As at March 31st 2009
As at March 31st 2008
Cheques on hand 1,205,170 24,015,443Cash in hand 4,141,553 32,584,898Balance with banks* 52,366,968 789,919,606Short term investments in liquid schemes of mutual funds 3,026,626,854 2,654,276,742Share in jointly controlled entity 1,833,854 3,965,575Total 3,086,174,399 3,504,762,264
*Excludes balance of Rs. 2,466,926 (Previous year : Rs. 250,252,809) with a bank for which refund instruments have been issued to the investors butyet to be encashed by the investors.
STOCK MARKET PRICE ON DECEMBER 11 STOCK MARKET PRICE ON DECEMBER 11 2009:-2009:-
NSE BSE
Last price : 224.45 Last price : 225
Opening : 231.6 Opening : 230.9
Closing : 228.9 Closing : 228.2
CONCLUSION:CONCLUSION:Future Group was conceived as a force to drive domestic consumption and capture every addressable consumption expenditure. Driven by creativity and innovation, Future Group is among the youngest business groups in India. A multi-format and largest retail network present in 72 cities
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and 66 rural locations and dominates over 12 million square feet at present. Future Group drives
consumption that leads to development for India Tomorrow.
Once INDIA was known as the
Sone ki chidiya (the golden bird)
A land and people held in awe
For her prosperity
For her intellect
For her culture
Today the world looks towards india again
And it is in our hands
To make the sone ki chidiya
(the golden bird) soar again
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REFERENCES:-REFERENCES:-FROM GOOGLE:-FROM GOOGLE:-
FUTURE BRANDS
FROM WIKIPEDIA:-FROM WIKIPEDIA:-
CITY WISE DOMINATION
FROM SITES:-FROM SITES:-
HTTP://WWW.FUTUREGROUP.IN/FLDL.ASPHTTP://WWW.FUTUREGROUP.IN/FLDL.ASP HTTP://WWW.FCH.IN/HTTP://WWW.FCH.IN/ HTTP://WWW.FCH.IN/PDF/HTTP://WWW.FCH.IN/PDF/
FCH_ANNUAL_REPORT_2008-09.PDFFCH_ANNUAL_REPORT_2008-09.PDF http://www.pantaloon.com/
Annual_Results_Conference_Call_26th_September_2009.pdf
FROM MAGAZINE:-FROM MAGAZINE:-“MARKET PRICE OF FUTURE GROUP”-INDIA TODAY
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