Reliance Retail contributed over 63% of Future Consumer’s sales in FY22 – The New Indian Express

By PTI

NEW DELHI: Reliance Retail was the largest customer of Future Consumer Ltd (FCL) in FY22, contributing 63.06% of its sales, according to the annual report of the FMCG arm of Future Group headed by Kishore Biyani .

FCL is engaged in the sourcing, manufacturing, branding, marketing and distribution of food and processed foods and health and personal care (HPC) products.

In the annual report, the list of major customers who individually contribute more than 10% of FCL’s total turnover mentions only two companies – Reliance Retail and FRL – which together contributed Rs 854.22 crore to its total turnover of Rs 970.08 crore or so. 88 percent.

Reliance Retail contributed Rs 611.75 crore, according to the report, adding that the failure of the Rs 24,713 crore deal with Reliance Group in April this year had a significant impact on its business.

The Future Group’s flagship company, Future Retail (FRL), which is now subject to insolvency proceedings, contributed Rs 242.47 crore, or about 25%.

Reliance Retail is a subsidiary of Reliance Retail Ventures Ltd, the holding company for all retail businesses in the RIL Group.

A year earlier, Reliance Retail accounted for 26.81% of total sales of Rs 587 crore for the financial year ended March 31, 2021.

The FRL contributed about 55 percent. According to the company, its current liabilities exceeded its current assets by Rs 306.47 crore.

FCL had defaulted on repayment of its debentures of Rs 26.66 crore as of March 31, 2022, which was subsequently paid.

“During the current fiscal year 2022-23, the company is aggressively working on a debt reduction plan by monetizing few assets and investments/brands,” he said.

It plans to establish business through general/modern business channels and franchised operations of Aadhaar and Nilgiris.

READ ALSO | Gujarat HC rejects disputed PIL recognition granted to zoo being built by Reliance Industries Limited

Additionally, it will streamline labor and capacity utilization with third-party manufacturers to shape its business in the current fiscal year, he said.

In August 2020, Reliance announced a Rs 24,713 crore deal to acquire 19 Future Group companies operating in the retail, wholesale, logistics and warehousing segments.

FCL was among the businesses to be transferred to Reliance Retail as part of the deal.

However, the deal was canceled by billionaire Mukesh Ambani, Reliance Industries Ltd, in April after the Future group companies failed to get approval from lenders.

According to FCL, in FY22, it was primarily focused on expanding the portfolio and gaining market share.

Its business operations “with the Reliance Group through the supply of goods to Reliance stores and Seven Eleven stores have resulted in increased sales and capacity utilization.

“However, at the end of the reporting year, the failure of the Scheme of Arrangement with Reliance and the resulting impact on Future Retail stores had a significant impact on the business and insight into future performance” , he added.

To overcome this, FCL plans to shift gears by focusing on building a strong distribution network outside of Future Retail on the front-end, while optimizing costs on the back-end, creating synergies and conserving cash, the annual report says.

The company added that it “strongly” believes India’s medium to long-term consumer opportunities remain intact.

It also plans to continue growing its portfolio of food products and home and personal care products.

READ ALSO | Reliance Retail will make a foray into the rapidly changing consumer goods sector

“Key brands such as Golden Harvest, Tasty Treat, Karmiq, Desi Atta Company, Mother Earth, Voom, Cleanmate and Caremate are expected to drive the company’s volume and value growth,” he said.

NEW DELHI: Reliance Retail was the largest customer of Future Consumer Ltd (FCL) in FY22, contributing 63.06% of its sales, according to the annual report of the FMCG arm of Future Group headed by Kishore Biyani . FCL is engaged in the sourcing, manufacturing, branding, marketing and distribution of food and processed foods and health and personal care (HPC) products. In the annual report, the list of major customers who individually contribute more than 10% of FCL’s total turnover mentions only two companies – Reliance Retail and FRL – which together contributed Rs 854.22 crore to its total turnover of Rs 970.08 crore or so. 88 percent. Reliance Retail contributed Rs 611.75 crore, according to the report, adding that the failure of the Rs 24,713 crore deal with Reliance Group in April this year had a significant impact on its business. The Future Group’s flagship company, Future Retail (FRL), which is now subject to insolvency proceedings, contributed Rs 242.47 crore, or about 25%. Reliance Retail is a subsidiary of Reliance Retail Ventures Ltd, the holding company for all retail businesses in the RIL Group. A year earlier, Reliance Retail had accounted for 26.81% of total sales of Rs 587 crore for the financial year ended March 31, 2021. FRL had contributed about 55%. According to the company, its current liabilities exceeded its current assets by Rs 306.47 crore. FCL had defaulted on repayment of its debentures of Rs 26.66 crore as of March 31, 2022, which was subsequently paid. “During the current fiscal year 2022-23, the company is aggressively working on a debt reduction plan by monetizing few assets and investments/brands,” he said. It plans to establish business through general/modern business channels and franchised operations of Aadhaar and Nilgiris. READ ALSO | Gujarat HC rejects disputed PIL recognition given to zoo being built by Reliance Industries Limited. Additionally, it will streamline labor and capacity utilization with third-party manufacturers to shape its business in the current fiscal year, he said. In August 2020, Reliance announced a Rs 24,713 crore deal to acquire 19 Future Group companies operating in the retail, wholesale, logistics and warehousing segments. FCL was among the businesses to be transferred to Reliance Retail as part of the deal. However, the deal was canceled by billionaire Mukesh Ambani, Reliance Industries Ltd, in April after the Future group companies failed to get approval from lenders. According to FCL, in FY22, it was primarily focused on expanding the portfolio and gaining market share. Its business dealings “with the Reliance Group through the supply of goods to Reliance stores and Seven Eleven stores have provided the potential for increased sales and capacity utilization”. and the consequential impact on Future Retail stores had a significant impact on the business and insight into future performance,” he added. To overcome this, FCL plans to shift gears by focusing on building a strong distribution network outside of Future Retail on the front-end, while optimizing costs on the back-end, creating synergies and conserving cash, the annual report says. The company added that it “strongly” believes India’s medium to long-term consumer opportunities remain intact. It also plans to continue growing its portfolio of food products and home and personal care products. READ ALSO | Reliance Retail will foray into the rapidly changing consumer goods sector “Key brands such as Golden Harvest, Tasty Treat, Karmiq, Desi Atta Company, Mother Earth, Voom, Cleanmate and Caremate are expected to drive growth in volume and value to society,” he said.

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