Future Group, India’s largest retailer, will set up a food park, spread over 100 acres, in Bangalore.
Construction on the park, land for which has already been acquired, will be completed within two years, said Damodar Mall, Future Group, integrated food strategy head.
“We have entered into a special purpose vehicle (SPV) to create infrastructure for the park, where vendors will be able to set up their base,” he said. The park, is being set up as an expansion of Future Group’s retail business, will see a spot of about 20 per cent held captive for the group, while the rest will remain open to vendors. The total value of manufacturing from the park would be Rs 3,000 crore.
Mall said while the food business currently contributes a third of Future’s overall sales portfolio, the idea is to increase this to 50 per cent.
“Aimed at expanding the food business portfolio, we will introduce bakery and home meal food items, which will increase the current floor-space occupied by food products from 20 to 50 per cent,” he said.
A timeline to achieve the target would be tough given the relative run of success where other segments like apparel are concerned, he said.
“Keeping in mind the achievement of this aim, another 7,500 stock keeping units (SKUs) will be added in the next financial year. This will aid the diversification of the food business, besides increasing options for the consumer,” he said.
Most of these measures are part of the overall strategy-building measure for the retail giant, whose flagship store, Pantaloons, has over 50 outlets spanning Tier-I and Tier-II cities across the country. In November 2010, the company had announced that in three to four years, the group would double the number of its Pantaloon stores across India.
