ValuePickr Forum

Future Consumer Enterprises Ltd

I think they are basically coming from retail background and not a hard-core FMCG background and thus are keen to increase the size of private labels & improve their margins. They haven’t taken a pan-India effort to build their brands in grocery/convenience stores, which requires significant investment in creating pull for the brand i.e. marketing & deep commitment to building a distribution channel. They may have a couple of brands , which could be power brands like HUL but the retail mentality & lack of deep marketing/distribution/innovation capability & average leadership of Ashni Biyani (instead of a competent leader from hardcore FMCG) will limit the growth of Future Consumer to their captive channel i.e. Future Retail

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Do you have any supporting data for this, Today share price increased by 7%.
Today, I read the last quarter results, document looks so much attractive, Please can someone suggest drawbacks of this company.

Quarter results

Disc: As FMCG sector, Invested here, Looking for more investment here. Also invested in ITC LTD

Amazon’s Future Retail deal goes beyond tackling Flipkart

The articles clearly states thats amazon wants its presence in offline market in future.

I wanted understand if FCL has the potential to get acquired in future? Will the acquisition of Future retail have any impact on the sales of FCL products ?

Thanks.
Disc: Planning to Invested here.

Looking at their product portfolio it seems they are keen on making Tasty Treat as their flagship product in the Category.

Q3 FY19 result seems to be mixed…moderate growth and moving towards profitability.Can experts please provide your analysis…

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this is 5 month old news …

All one hears is what Future is aiming for, trying for and looking for.

Aspiring is good when one has a track record of performance. Future consumer has none.

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Exactly my sentiments.

Sales has been growing . So they have acceptance in market. It takes a lot to counter hul, Nestlé & ITC. They are integrated play with retail access. Strategy seems right it is market share to decide where it goes.

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Accept. But 20000 crore revenue by 2022 is an impossible feat … which almost more than 70% CAGR - YOY … The share holders will have trust in the company only when they give meaningful forecast and march towards it … Future consumer’s forecast is still only on papers …It is a great feat if they achieve half of the target itself … But, management has to openly say what they can achieve …

Disc: Invested.

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If it can ride the amazon bandwagon it is uphill way.

Hello boarders
Future consumer can be a interesting bet but biyani has mostly over promised and under delivered . He has lot of plans for lot of things at the same time with little effort on execution. Just imagine he owns all of big Bazaar , easyday , nilgiris , central , brand factory and centrals of the world. But the market is willing to give dmart a higher valuation.
2. Future consumer also looks confused in terms of strategy and execution. Too many products and less focus on brand building. And I also find that they are not realistic about their goals either. Ambitious targets but mostly end up not being delivered. They can’t understand a simple thing that it reflects poorly on the management both in terms of governance and competence.
3. They are not able to provide a road map as how will they be able to turn profitable , what and how is their profit and loss statement going to change.
4. But the business itself is lucrative with quite visible moats… good distribution network along with assured market space along with decent expansion. This coupled with rapid urbanisation and changing consumer behavior does provide tailwinds.
5. They also talk about when the per capita income of a country reaches around 2000 dollars which according to them is a inflection point from where the sales catapult to 2x to 3x… is that quoted correctly.
Disc :: tracking the counter but not invested.
Need to watch how and when they turn profitable and execution of core business.
Regards
Divyansh

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Well said !! … Though the Moat is getting built, unrealistic targets affects the trustworthiness of the Management … which I think is more important …