Kishore Biyani's Future Group, one of the largest organised retailers in India, has now set his sights on the international market. On Tuesday, Future Group inked a 50-50 joint venture agreement with Oman-based Khimji Ramdas Group to expand the fashion and apparel retail chain FBB to the Gulf region.
Future Group's retail business stretches across food and grocery supermarkets, consumer durable stores and department stores selling fashion and apparel. The plan is to open around four-five FBB stores initially in Oman through the JV with Khimji Ramdas and then scale it up to around 17-18 over the next few years.
Apart from opening FBB stores in Oman and subsequently in the other neighbouring Gulf countries, Future Group will also sell food and grocery products manufactured by arm Future Consumer Enterprise in Oman, in stores that Khimji Ramdas operates there, as well in other retail outlets.
“We see a huge scope in the apparel space. Next year we will be selling 30 crore garments. Our ambition is to sell 100 crore garments over the next 4-5 years and that can only happen if we spread our wings,” said Kishore Biyani, the CEO of Future Group.
Khimji Ramdas is a diversified conglomerate in Oman, with interests in logistics, distribution and retail. The company operates 75 outlets, comprising Spar hypermarkets and its own Khimji Marts and its lifestyle business also distributes luxury goods in Oman.
“We want to add to our strengths, which is distribution and logistics in Oman and get expertise of Future Group of clothing retail. Oman would be the test market and later we would look at expanding into the other Gulf countries,” said Nailesh Khimji, director, Khimji Ramdas LLC.
The two companies are investing Rs 75 crore each in the joint venture and the first of the FBB stores in Oman should be open by the January-March quarter of 2018.
While Oman in itself is not a very big market, for Future Group its a platform to test international waters, which will provide a stepping stone to expand into other neighbouring markets.
“Getting into the middle east is a huge opportunity. From that opportunity, we will be able to get into Africa. There are retailers who have come into India from that part of the world and I think its time for some one from here to go into that part of the region,” said Biyani.
For now though, the plan is to focus on growing in Oman and the neighbouring countries like UAE.
Future Group has a strong presence in the apparel segment through FBB, Central and Brand Factory outlets and has several private labels including Cover Story, aLL, Bare, John Miller among others.
Future Group hopes to clock sales of around Rs 11,000-12,000 crore across fashion and apparel business in the current financial year, Biyani added.
The Khimji Ramdas Group, on the other hand, is also expanding in India. It currently distributes Procter & Gamble's products in Gujarat and it may look to expand into other geographies.
