Pantaloon to set up FMCG, mobile equipment unit

New Delhi, Apr 28: Kishore Biyani-controlled Pantaloon Retail has said it will set up a subsidiary to deal in FMCG products with an initial investment of up to Rs 5 crore.

The new company, for which the Board has given its approval, will sell branded consumer goods associated with star cricketer Sachin Tendulkar.

The Future Group, which is on an expansion spree, will also incorporate two wholly-owned subsidiaries for sourcing and vendor management of various products for web and e-commerce, and for sourcing, selling mobile communication and accessories on wholesale and cash-and-carry basis at Rs 5 crore each.

For the January-March quarter, Pantaloon posted an increase of 15.2 per cent in net profit at Rs 18.71 crore compared with Rs 16.23 crore in the corresponding quarter a year ago.

The retailer's sales went up 89.23 per cent at Rs 861.04 crore from Rs 455.39 crore during the third quarter ending March 31, 2007.

''Increased spending on inventories and opening of new stores boosted the top line and increased the net profit marginally,'' the company said in a statement.

Pantaloon operates hypermarkets, malls, department stores and grocery stores in the country and last week announced plans to invest Rs 40,000 crore for expansion.

UNI