He says that his plans have been delayed by up to 24 months due to slowdown, yet Future Group Chief Kishore Biyani today said that his retail chain would grow two and half times to Rs 25,000 crore within four years.
The growth would entail a retail carpet area of 30 million square feet at an investment of about Rs 4,000 crore and the group would have an operating profit margin of up to 10 per cent, he said.
"We will be a very dominant player in the consumption business with around Rs 25,000 crore of sales in next 3-4 years. That is quite meaningful and impactful," Biyani said, adding that the group would clock a turnover of Rs 10,000 crore this fiscal.
Asked about the bottom line post expansion, Biyani said, "We will have earnings before interest depreciation taxes and ammortatisation (EBIDTA) margin of eight to 10 per cent of the Rs 25,000 crore turnover. You can calculate how our profitability will be."
Resources would not be a constraint for the expansion as the group with a debt equity ratio of 1:1.2. "We can leverage substantially," he said, adding that group would look at different options, including selling of non-core assets.
Biyani said the group will require an investment of Rs 3,000-4,000 crore for achieving the sales target, and more than doubling the retail space in the next 3-4 years from the current 12 million sq ft.
Biyani rued that some of his growth plans had been delayed not only because of slowdown but also for other reasons.
"Regarding our expansion, may be it has got a little bit delayed. It might be delayed by 12 to 24 months on various things we wanted to do on particular dates," he said.
Future Group was looking at 30 million square feet of retail space by 2011-12, he said, but "now I think we will achieve 30 million square feet of retail space by 2013-14."
Asked about the impact of the economic downturn, he said: "We are smarter and more efficient than we were before the downturn. Without the downturn also there would have been a delay ... We won't take decision in a haste and there's no hurry now anymore."
On the company's fund raising programme, Biyani said that this fiscal, the group will sell some of its non-core businesses in areas of technology, brands and logistics.
Asked how much funds the company plans to raise in the current fiscal, Biyani said: "Close to Rs 1,000 crore, but without going for IPO or without going for QIP."
