Dear stakeholders,
We are pleased to share with you the annual report for the financial year 2018-19. Your
company posted a total income on consolidated basis of Rs. 6,064.96 crore, a growth of
14.7% and a net profit of Rs. 175.44 crore at the end of this financial year. Your company
owns and operates through its subsidiaries and associated businesses, some of the
fundamental blocks that help run the extensive consumption ecosystem of future group.
Among the key businesses housed within your company are critical functions like design,
sourcing and manufacturing of its apparel business, creation and maintenance of the retail
infrastructure network and the supply chain, warehousing, fulfilment network for the
entire retail business of future group through its step down subsidiary, future supply
chain solutions limited. In addition, the company owns substantial stakes in an office
supplies business, various other group companies and two insurance joint ventures in life
and general insurance space along with italy's generali group. Extensive managerial
skills, strategic acumen and prudent resource allocation are crucial aspects of the
business. The core business of the company is engaged in owning, investing, operating and
maintenance of the retail infrastructure that runs some of india's most popular retail
brands such as big bazaar, b, foodhall, easyday club, among others. In addition, the
company operates two textile mills in joint venture with national textile corporation and
also handles the design sourcing and manufacturing of millions of units of garments that
are sold through these retail networks. The company has been investing in these activities
to keep them in line with the rapid rise in future group's retail businesses.
Future supply chain solutions limited (fsc) is a leading third-party supply chain
solutions specialist and logistics service provider that caters to future group as well as
a large number of blue-chip companies engaged in the consumption space. The business
showed strong momentum with the addition of 12 new client acquisitions during the year
including companies like benetton, wrogn, voltbek home appliances (a voltas jv), jk helene
curtis and tilda. Warehouse space managed by fsc increased by 3.08 million sq. Ft. To 7.66
million sq. Ft. During the year and the business posted revenues of Rs. 1,112.8 crore and
net profit of Rs. 65.2 crore, a growth of 113% year on year. Technology continued to
remain at the forefront of its operations with the ethos of agility, authenticity and
customer centricity at the heart of the business.
During the year fsc launched ‘india food grid' project that will eventually have
38 integrated food distribution centres connected with a seamless network. Fmcg and food
brands can now enter the grid from anywhere in the country and benefit from improved
supply chain efficiencies, reduced wastages and better inventory management.
In the life insurance business, gross written premium crossed the Rs. 1,000 crores mark
for the first time in a fiscal year, ending at Rs. 1,243 crores. The company now covers
793,070 lives. The general insurance business distributed over 1.8 million policies
through the year. The general insurance business introduced a number of new policies such
as future varistha bima, a tailor made product for senior citizens, future vector care - a
benefit product which insures against vector - borne diseases and shubh yatra group - a
travel insurance policy that covers even daily commuters. Both the general and life
insurance companies pioneered a whatsapp based policy delivery platform - making them
among the first in the country.
Digital technology is now at the heart of every business and your company is making new
investments in complimenting its play in physical infrastructure with digital networks
that help grow the consumption ecosystem of future group. The scale and scope of the
consumption play in india is vast and the company will continue to prudently invest
resources in building a stronger role in the sector. We thank you for being part of this
journey and look forward to your continued support and encouragement.
Rewrite rules, retain values.
Kishore biyani