Future Retail to raise around Rs 1,500 cr for growth

Future Retail, in a BSE filing has announced its plans to raise around Rs 1,500 crores through issue of non-convertible debentures on private placement basis. “The funds would be utilised for certain general corporate purpose, including brand building and other marketing expenses, acquiring assets such as furniture and fixtures vehicles and spend on lease improvements, among others,” the company said in the filing.

The company, part of the Future Group, is looking forward to reporting rise in revenues by 25 percent over the next one year driven by not by rising in consumer spend and positive economy but because rivals shutting non-performing stores. However, Kishore Biyani, Chief Executive of the Future Group is not very buoyant about the rise in consumer spending, since he feels that there won’t be a magical jump in figures. And with the finance minister announcing rise in service tax from 12.3 percent to 14 percent, he feels, would further dampen the consumer sentiment.

Future Retail has stores under various formats, including food, fashion apparels, accessories and footwear, general merchandise, consumer durables to electronics. The firm has pan-India presence with over 320 stores across 100 cities.