Future Group bets high on it's pact with Videocon

Mumbai, Dec 27 (UNI) As the Centre clears the decks for retailing giant Wal Mart to enter the country by permitting Foreign Direct Investments (FDI) into the retailing sector, the Future Group, which operates through six verticals in the country, has entered into a pact with electronics major Videocon in a determined bid to beat the competition.

As per the Memorandum of Understanding (MoU) between the duo, Videocon will continue to manufacture it's existing electronics appliances under the brand name of Sensei and Koryo. But on the other hand, the Future Group will be marketing all Videocon products through it's retail outlets, 'Big Bazaar', all across the length and breath of the country.

Talking to UNI on the sidelines of the signing of the MoU, the CEO of Future Group, Mr Kishore Biyani was upbeat about the future.

''We are looking at achieving revenue targets of Rs 600 crore through the sale of consumer electronics goods by next year and Rs 1000 crore the year after,'' he said.

Also, he hoped that 25-30 per cent of their share of the profits would be generated from the electronics appliance segment alone.

However, he clarified that this pact with Videocon will be restricted to back-end support only.

Mr Biyanin was also bullish regarding the stiff competition that will be witnessed in the retail sector with the arrival of foreign players like Wal Mart.

''We will continue to provide quality products to our customers and increase their consistency,'' he asserted.

However, he cautioned, ''It should not be at the cost of small retailers in the country.'' Regarding the group's contract farming venture he said, ''We've already started it in Indore.'' UNI KKD WD AW1420