Future Group to launch cloud kitchens, eyes US$141m in online sales

INDIA – India’s leading consumer goods company, Future Group is planning to launch cloud kitchens to deliver food from its own kitchens directly to consumers who want convenience.

According to the company Chief Executive, Kishore Biyani, the venture will be rolled out in Bangalore and is looking at supplying rice-based meals at a price point US$0.57 to start with. 

Consumers will be able to order their favorite meals online or through phone calls then delivered with them at their offices or homes.

As part of its retail strategy, Future group is looking to increase the revenue contribution of food business from 50% to 55% in near future.

The company has inaugurated a distribution center in Shambhu Kalan in Punjab, set up on 200,000 square feet land and will cater to distribution of consumer products for up to 300 stores in the region.

Future Group already operates in the consumer delivery business through its own company, Galaxy Entertainment Corporation, which supplies to a dozen commissaries and supplies to live kitchens in Big Bazaars.

Supply chain investment

The company’s Future Supply Chain Solutions will invest US$141.31 million (Rs 1,000 crore) to create India Food Grid, a network of 38 integrated food distribution centres, that will provide Pan-India reach.

In regard to this, it has identified 38 locations across the country, which will be developed into large food and FMCG distribution centres with envisaged investment to the tune of US$141.31 million.

According to the company, it is looking at supplying consumer products within the radius of 250 kilometres from the integrated supply chain.

“India Food Grid is an ambitious project by us that connects the entire country through a single, multi-layer network.

Any supplier, small or big, can join this grid anywhere for further distribution across India. India Food Grid will ensure timely and efficient food, grocery and FMCG distribution,” said Biyani.

The company is expecting online sales of around US$144 million this financial year.

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