Kishore Biyani aims to fashion a $1bn biz in 2 years

21 Nov,2012

By Samidha Sharma


Kishore Biyani plans to re-build his fashion retail play into a $1-billion business in the next two years. The retail magnate who just unveiled a restructuring – de-merging of fashion , foods and FMCG, hypermarkets and supermarkets into three separate entities – hopes to list the retailer’s fashion arm, which is now named Future Fashion.


Future Group founder Mr Biyani began his retail play with fashion but lost a big chunk of it when he sold department store chain Pantaloons to Aditya Birla earlier this year. Future Fashion will consolidate his other lifestyle retail assets, including Brand Factory, Central and a portfolio of 20 fashion brands, in a renewed push.


The group’s core fashion business is estimated at Rs 2,800 crore post the sale of Pantaloons stores, in which he continues to be a minority investor.


Mr Biyani’s FMCG brands and KB’s Fair Price will be housed under Future Ventures. Big Bazaar, Food Bazaar and gourmet retailer Foodhall will be parked under the erstwhile holding company Pantaloon Retail India, which is being renamed. Future Ventures and the Pantaloon Retail will remain listed on the bourses.


“Over the last 6-8 years, Pantaloons and Big Bazaar became the overarching businesses for the group and the fashion brands were hidden behind these two mega brands. After the sale of Pantaloon Retail, we wanted to simplify the business and give it the push it deserves. The fashion play will enter a new phase of growth going forward ,” Mr Biyani said. He said the recent restructuring will help the group push its portfolio of fashion brands into e-commerce and also take some of these businesses international.


“We have plans to take brands like Biba, Holii and Urban Yoga to neighbouring countries as they have reached a considerable size,” he said. There will be a separate strategy for each of the brands on the e-commerce front as well and some of the private labels will get standalone stores going forward.


Mr Biyani’s other notable lifestyle brands include Scullers, Indigo Nation, Bare and John Miller. He also operates foreign brands Lee Cooper, Celio, Clarks and Manchester United apparel.


“It is like going back to where he started. His core competency has been fashion and he understands how to build brands. There is a huge opportunity in the branded apparel space across all categories , so there is no reason he should not be able to scale this up,” said Arvind Singhal, chairman, Technopak Advisors , a retail consultancy.


Source:The Economic Times

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