The largest retailer in the country, Future Group, will enter the competitive food delivery sector by launching cloud kitchens. In a conversation with Business Standard, Kishore Biyani, CEO of Future Group, said the plan was to be present at every meal, including breakfast, lunch, snacks and lunch. having dinner. "Whatever the mode of food consumption in India, we want to be part of this activity," he said.

While Biyani refused to spell out details, particularly the timing of the launch and the cities he was aiming for, analysts expect the company to launch smooth service in cities like Mumbai, Delhi and Bengaluru. A gap between cities may occur later, depending on the reaction to the company.

Biyani could also integrate its food distribution business with its Future Pay mobile application to improve penetration. Financial accessibility could be the main route of marketing, he said, with meals for lunch and dinner at a price as low as 40 Rs, while snacks could cost 10 Rs. he stated when asked what his vision of the company was.

According to industry estimates, ordering and delivering food online is a growing market in India, estimated at Rs 50,000 crores. The main players are Zomato, Swiggy, UberEats and Foodpanda. Cloud kitchen start-ups such as Faasos, Freshmenu, Holachef and Box8 also provide food products to consumers.

RedSeer Consulting, based in Bengaluru, estimates the growth rate of orders and deliveries of online food products in India at 15% per quarter, which is expected to increase in the future. Already, the monthly processing rate of orders for key brands such as Zomato and Swiggy is set at 21-22 million, and the two are fighting a tough battle to improve this figure.

Biyani is also striving to improve bottom-up operations to achieve its goal of becoming the largest food retailer in the country. The establishment of intelligent distribution centers is part of this process – the fifth center of this type was launched Friday in Patiala (Punjab). The group's "India Food Grid" project, a network of 38 large warehouses, aims to improve the efficiency of the scale. The project would be the backbone of the Group's next phase of growth as it would add 70,000 crore of goods per year to the system, said Biyani.

The future is spending Rs. 1 trillion on the project, while consumer and consumer goods (FMCG) are emerging as a category of growth in the years to come.

If fashion and clothing were the cornerstone of Future Group's retail strategy, it is food and consumer products that are expected to bring in close to 60% of sales, he said. Biyani.

Future Group is betting big on the food delivery sector, to invest 1,000 Rs crore

Future Consumer, the group's food and consumer products business, has achieved a compound annual growth rate of 32% over the last three years, reaching Rs. 3,000 crores during the 2017-2018 fiscal year. The company made EBITDA (earnings before interest, taxes, depreciation and amortization) positive in fiscal 2017 (at Rs 20.7 crore), with FY18 EBITDA at Crore 66.4. It is expected that it will become profitable after tax by the year 2010.

The group has also set an ambitious goal: to open approximately 15,000 small format stores (under the Aadhar brand) over five years using franchised and owned models. These stores, presented as modified kiranas, are intended for cities with less than 50,000 inhabitants, said Biyani. In addition, the group's EasyDay network of outlets, targeting cities with more than 50,000 inhabitants, will reach 10,000 out of 1,000 people in five years.

The future is spending Rs. 1 trillion on the project, while consumer and consumer goods (FMCG) are emerging as a category of growth in the years to come.

If fashion and clothing were the cornerstone of Future Group's retail strategy, it is food and consumer products that are expected to bring in close to 60% of sales, he said. Biyani.

Future Consumer, the group's food and consumer products group, has achieved a compound annual growth rate of 32% over the last three years in terms of turnover, reaching Rs. 3,000 crore in the last three years. during the 2017-2018 fiscal year.

The company made EBITDA (earnings before interest, taxes, depreciation and amortization) positive in FY 2017 (at Rs 20.7 crore), with FY18 EBITDA at 66.4 crores. The company is expected to become profitable after tax by the year 2010.

The group has also set an ambitious goal: to open approximately 15,000 small format stores (under the Aadhar brand) over five years using franchised and owned models. These stores, presented as modified kiranas, are intended for cities with less than 50,000 inhabitants, said Biyani. In addition, the group's EasyDay network of outlets, targeting cities with more than 50,000 inhabitants, will reach 10,000 out of 1,000 people in five years.