Future Group looks to triple revenues by 2020

Future Lifestyle Fashions (FLF) clocked in sales worth Rs 803 crores during the June quarter. FLF runs Central, Brand Factory and more than a dozen brands including Indigo Nation and Lee Cooper. For FY-16, FLF posted net sales of Rs 3,300 crores. While the company has added nearly 1.5 million square feet retail space in the past three years, growth is mainly driven by strong same-stores sales growing at about 10 percent for both Central and Brand Factory. FLF has 366 stores covering 5 million square feet across formats.

Despite high sales, the company’s market cap is very low. While FLF has divested its stake in Biba, AND and Celio over the past few years, FLF still owns significant shares in brands such as Clarks, Tresmode, Giovani, Holi and could divest some of these to raise capital. FLF's standalone business does not include over a dozen brands such as Clarks, Giovani, Mother Earth, Turtle, among others, that add a further annual top line of over Rs 850 crores. By 2021 Future Group is looking to more than triple its revenues to one lakh crore rupees from Rs 22,000 crores last year. Unlike food and grocery retailing that operates on wafer-thin margins, apparel retailing is a lucrative business with 30 percent margins and FLF hopes to cross Rs 12,000 crores in sales and double its retail coverage to 10 million square feet by then.