FUTURE UNCERTAIN
Business Today|August 09, 2020
KISHORE IS STARING AT A MAJOR DEBT CRISIS. HERE IS WHY THE OPTIONS GROUP CHAIRMAN ARE LIMITED
AJITH SHASHIDHAR & NEVIN JOHN
FUTURE UNCERTAIN
Scale has always fascinated Future Group Chairman Kishore Biyani. The bigger, the better. In 2017, when he unveiled his ambitious Retail 3.0 strategy, he articulated his dream of creating a $1 trillion business by 2047. At that time, the world’s biggest retailer Walmart generated $485 billion in revenue, a little less than half of Biyani’s ambition. But Biyani was banking on a modest year-on-year growth of 20 per cent per annum for his then ₹20,000 crore empire.

His recipe for greater scale: service every possible consumer. First with 70,000-1,00,000 sq.ft. big-box retail stores, Big Bazaar. Second, in local areas through 2,000 sq.ft. small-format neighbourhood stores, EasyDay (he targeted 10,000 tech-enabled EasyDay stores by 2020). And third, create an online marketplace where these stores could access Future Group’s entire retail inventory. Alongside, he wanted a consumer play as well. His excitement about the group’s fledgling FMCG business, Future Consumer, was particularly infectious. He dreamt of scaling up the ₹2,000 crore business to ₹20,000 crore by 2021.

Three years down the road, those dreams lie shattered. With profits dipping 11.24 per cent to ₹619 crore in the first nine months of FY20 (it is yet to declare full-year results), the group’s woes came out into the open in the last quarter of FY20. Slowdown and an uncertain future amid lockdowns have crippled his ability to service loans, drowning him in ₹13,000 crore of debt. Biyani is staring at sure-shot bankruptcy.

This story is from the August 09, 2020 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the August 09, 2020 edition of Business Today.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BUSINESS TODAYView All
Picking Up The Paytm Pieces
Business Today India

Picking Up The Paytm Pieces

Paytm Founder Vijay Shekhar Sharma Is Back In The Trenches After Rbi's Recent Action Left Him Without A Banking Platform. There Are Still Some Opportunities, But He Will Have To Move Swiftly To Grab Them

time-read
10+ mins  |
April 28, 2024
PMS Vs MF The Big Fight
Business Today India

PMS Vs MF The Big Fight

How do mutual funds and portfolio management services match up? Know the score on structure, rules, entry fees, charges, and tax perks to pick the right path for your financial journey

time-read
5 mins  |
April 28, 2024
Four Levers Of Enterprise AI Strategy
Business Today India

Four Levers Of Enterprise AI Strategy

Wide-scale private sector AI deployment and new AI-based business opportunities and ecosystems can truly supercharge the Indian economy

time-read
4 mins  |
April 28, 2024
"Don't let a unique chance slip by"
Business Today India

"Don't let a unique chance slip by"

JEFF MAGGIONCALDA | CHIEF EXECUTIVE OFFICER | COURSERA

time-read
1 min  |
April 28, 2024
THE INCOMING DISRUPTION
Business Today India

THE INCOMING DISRUPTION

The disruption in the industrial sector is still unknown, but inevitable. Companies need to wake up

time-read
2 mins  |
April 28, 2024
THE WHEEL WHISPERER
Business Today India

THE WHEEL WHISPERER

For Manan Shah, Managing Director of MICL Group, luxury cars are not about showcasing one's wealth or status. It is about personal well-being

time-read
2 mins  |
April 28, 2024
TRIPPING WITH TECH
Business Today India

TRIPPING WITH TECH

A road trip is an adventure like no other. While you take in the experience, get some peace of mind with these nifty gadgets

time-read
2 mins  |
April 28, 2024
Transforming Spaces
Business Today India

Transforming Spaces

WHETHER YOU WANT TO REDECORATE YOUR BEDROOM OR HALLWAY, A GORGEOUS WALLPAPER ADDS FLAIR TO YOUR HOME AND ALLOWS YOU TO STAMP YOUR STYLE IN YOUR NEW ABODE

time-read
3 mins  |
April 28, 2024
ALPHATALE
Business Today India

ALPHATALE

MONEY MANAGERS TO THE AFFLUENT DELIVERED ROBUST RETURNS TO INVESTORS IN THE PAST YEAR, THANKS TO THE BUOYANCY IN THE MARKETS. BUSINESS TODAY DECODES THEIR STRATEGY

time-read
8 mins  |
April 28, 2024
"THE ALTERNATIVES SPACE CAN GROW 3X IN FIVE YEARS"
Business Today India

"THE ALTERNATIVES SPACE CAN GROW 3X IN FIVE YEARS"

Vikaas M. Sachdeva, MD of Sundaram Alternates, talks about where India's alternative investment industry is headed

time-read
3 mins  |
April 28, 2024