March 25, 2013: Future Group in order to cater to the needs of its own retailing arm and other retailers and FMCG players is setting up national distribution centres all over India. The group would be investing Rs.130 crore and would be setting up these distribution centres in Chennai, Ahmedabad, Pune, Kolkata, Delhi, Bangalore, Mumbai and Hyderabad.
The company is consolidating its warehousing needs of Big Bazaar as well with the help of the new distribution centre which it opened in Napur. Cost reduction for the group is the major objective with which the state of the art warehouse has been opened in the Special Economic Zone in Nagpur. Future Group expects processing to getter faster and better inventory management through this distribution centre.
Kishore Biyani promoted Future Group is strategically locating these distribution centres so as to face the new good and service tax system which will allow the companies not to set up warehouses in each state. The company has entered into a strategic alliance with developers for developing logistics facilities in these distribution centres and Future Supply Chain, the supply chain wing of Future Group has entered into a joint venture with Hong Kong based trading firm, Li & Fung for global sourcing. Future Group on its own has plans to get into wholesale business and for that it is likely to start its first store in Bangalore.