Kishore Biyani, CEO of the Future Group, which brought modern retailing into India, is inspired by the rapid growth of Patanjali and wants to become as big as the herbal-products major in the FMCG space.
He said the target is to expand the segment by 70-80% in FY19, whereby revenue will be just shy of the billion dollar milestone. The long-term goal is to make it an Rs 20,000-crore business by 2021-22.
The Tasty Treat brand in itself is poised to become more than Rs 1,000 crore by March 2019, said Biyani.
Biyani said the company has managed to grab a good share in packaged tea and has also just launched biscuits with a wide portfolio of Marie, Digestive and cream cookies under the Tasty Treat brand.
According to a recent report by Motilal Oswal, Future Consumer’s distribution network is spread across other organised retail chains and neighbourhood groceries, covering 80,000 stores.
The group has also decided to increase the proportion of Future Consumer brands in Future Retail stores to 60% from 20% now, said the report.
“The group’s focus on retail expansion is part of its strategy to boost the sales of its growing brands portfolio.
Importantly, placing the interests of Future Consumer on a par with Future Retail will not only enable quick ramp-up of group revenue, but also ensure higher profitability and RoCEs (return on capital employed), aiding cash flows,” the report said.