NEW DELHI: He says that his plans have been delayed by up to 24 months due to slowdown, yet Future Group Chief Kishore Biyani said that his retail chain would grow two and half times to Rs 25,000 crores within four years.
The growth would entail a retail carpet area of 30 million square feet at an investment of about Rs 4,000 crores and the group would have an operating profit margin of up to ten per cent, he said.
“We will be a very dominant player in the consumption business with around Rs 25,000 crores of sales in next 3-4 years. That is quite meaningful and impactful,” Biyani told PTI, adding that the group would clock a turnover of Rs 10,000 crores this fiscal.
Asked about the bottom line post expansion, Biyani said “We will have earnings before interest depreciation taxes and amortization (EBIDTA) margin of eight to ten per cent of the Rs 25,000 crores turnover. You can calculate how our profitability will be.”
Resources would not be a constraint for the expansion as the group with a debt equity ratio of 1:1.2. “We can leverage substantially,” he said, adding that group would look at different options, including selling of non-core assets.
Biyani said the group will require an investment of Rs 3,000-4,000 crores for achieving the sales target, and more than doubling the retail space in the next 3-4 years from the current 12 million sq ft.
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