After realigning businesses, Future Ventures gets re-listed

After selling majority stakes in Pantaloon and insurance

business among other to ease debt pressure, Future Ventures, part of Kishore Biyani’s Future Group, gets re-listed today as a food and fast moving consumer goods company (FMCG). However, subdued market conditions and low consumer sentiment still remain a cause of worry.

The change in the business saw the company hive off 14 brands such as Biba and Lee Cooper to the newly formed Future Lifestyle Fashions, which is expected to be listed later this month. On June 24, shareholders of Future Ventures were issued one share of Future Lifestyle Fashions for every 31 held. The re-listing is a part of the restructuring at Future Retail (formerly Pantaloon Retail India) that’s been under way over the past year.

The re-listed Future Ventures will have eight food brands, including Tasty Treat, Fresh n Pure and Premium Harvest, besides a distribution network. This comprises the KB’s Fairprice and Big Apple retail chains and the Aadhaar Rural Wholesale distribution network besides an upcoming integrated food park. But with the profitable fashion business getting separated, Future Ventures is now left with the private labels business that hardly makes any margins.

Apart from simplifying the business structure, according to industry analysts, Biyani’s move to restructure his businesses also indicates his interest in attracting FDI that has been allowed in multi-brand retail. And global retailers will be interested in the food and grocery retailing business and not fashion. Recently, Future Retail is said to have sought Foreign Investment Promotion Board's approval to increase foreign institutional investor holding in the firm to 49 percent from existing 24 percent.