Future Group to tie-up with realty firms for 'Home Town'

Noida, Apr 6 (UNI) Home Solutions (India), a Future Group company, will tie-up with realty majors for sourcing goods and services from its home solution stores launched today and has bagged orders worth Rs 250 crore from real estate companies Unitech and Prestige on the first day.

The order from Unitech is worth Rs 150 crore while the company has secured another Rs 100 crore deal for providing modular kitchens and electronics for apartments designed by Bangalore-based builder Prestige in the electronic city, Future Group CEO Kishore Biyani told reporters.

''The orders are to be completed in the next 12-24 months. The company expects to clock revenues of Rs 300 crore from this store, Noida being the growing hub of retailing in north India,'' he said.

The company, which opened its first home solution retail format 'Home Town' over an area spanning 1,25,000 sq ft, will come up with nine such stores in Ahmedabad, Pune, Bangalore, Mumbai, Lucknow, Kolkata, Lucknow in the next 15 months at investments worth Rs 180 crore, which includes only the cost of setting up the store.

The upcoming stores will either be on a standalone basis or could be placed in a mall like the one launched at Unitech Mall here today.

Talking about the company's marketing strategy, Mr Biyani said, ''We are there, where people are there and are ready to spend. We are not looking at luxury goods. We want to cater to lower middle to upper middle class.'' He said the company will spend aggressively on advertising starting with an 8-page ad campaign in leading newspapers tomorrow.

In addition to retailing, 'Home Town' will have live displays of living rooms, bed rooms, kitchens and bathrooms besides providing services like carpentery, plumbing, interior decoration and vaastu.

The new venture, which marks Future Group's foray into the services business, will also provide for home loans under the company's credit product 'future money' and home electronics ranging from televisions to refrigerators, DVD players to washing machines.

The company which also owns Big Bazaar stores in India, will offer a one-year guarantee on the services and goods provided by Home Town. In case of any defect, consumers will have the option to exchange or refund the product.

The Future Group has a presence in food, fashion and footwear retailing across 36 cities in the country.

UNI