Future Group to invest Rs 180cr in new home retail venture

Noida, Uttar Pradesh, Apr 6 (UNI) Home Solutions India Ltd, a part of the Future Group, today launched a home improvement retail format ''Home Town'' and said will invest over Rs 180 crore for setting up nine such stores in the next 15 months.

The company expects revenues of over Rs 200 crore from each store, aggregating to about Rs 1,800 crore in financial year 2007-08.

The group has tied-up with construction major Unitech for the store launched here today and will partner with other real estate companies for space for the showrooms which could be on standalone basis or in malls.

The company also introduced its credit product 'future money' for providing easier and faster loans to its consumers. Future money will initially work on an independent basis but may also look at tying up with other financial bodies in the future.

People buying from 'Home Town' can avail loans and pay monthly installments for the products purchased besides choosing interiors from live displays of living rooms, bedrooms, dining room kitchens and bathrooms in the store.

On a poser to the spiralling interest rates, Future Group CEO Kishore Biyani said, ''Depending on the products, the rate of interest will be decided. It would vary from 11-20 per cent.'' Asked whether other companies of the group like Pantaloon and Big Bazaar will play any role in the new venture, Mr Biyani said, ''Big Bazaar is a value format while Home Town is a value lifestyle format. However, Big Bazaar products will be available here.'' Average size of a 'Home Town' store is between 90,000 sq ft and 100,000 sq ft. However, the first store here is spread across 1,25,000 sq ft and will be followed by such stores in cities like Ahmedabad, Pune, Bangalore, Mumbai, Lucknow, Kolkata, Lucknow in the next 15 months.

The company will fund the project through loans from ICICI and Kotak Mahindra Bank.

UNI