Hi Nikhil
Good observation…It is also true that when scepticism is very high in a
stock, the potential of a big gain is high…That’s why FCL was quoting at
Rs 7 just 2 - 3 yrs back. Now it is at Rs 30, a 4.5X. When scepticism turns
into confidence and acceptance, the stock will be at 10X - 20X.
Disc: Believe Biyani this time, invested in FCL and FRL…Views are
definitely biased…
Have tried their sunkist fruit juices (3 flavours, some like cucumber juice was good, mojito is average, and orange one is terrible). Easyday is selling these with 1-for-1 offer. Overall I feel Biyani needs to do a lot to have high quality products, and build brand around them (he seems to have done that with Kara).
I have sort of fallen in love with Biyani 2.0. This time he is uttering the correct sort of words (like ROE, zero debt, brand building and so on), and based on his past experience of building retail franchise, I feel he can do that here. But, again Biyani being biyani, there is also associated risks. Many of his newly demerged cos are high-risk, high-reward bet for me. If they click (as in Biyani’s universe things click big, or dont click), can create massive wealth. And there is good probability of not clicking as well.
What I didn’t like about FCEL is they are trying to build up too many brands.
It takes lot of time money and effort to build brands.
Why not concentrate on few brands. In food segment alone he is having several brands.
What is the probability of the brands being successful.
Sunkist i believe in an international brand. Biyani is having several tie ups.
One can invest if he has lot of faith in Biyani.
There is another way to look at the “too many brand” approach of Biyani. He has an awesome retail network to begin with. What he has done with FCEL is that he has setup a back-end which can procure raw material/manufacture consumer goods, which can be sold as “FCEL sub-brand” label products (with added slight lower price than the existing brand) or where there is hardly any worthwhile brand (like dry masala, or dry fruits). He dont need any extra shops to sell his brands as of now as FRL itself is growing big way (with Big bazaar, easy day, heritage growing at a fast pace). So, he is basically trying to shoot 2 bird with a single shot, 1> Have backward integration and hence get max bang for the buck. 2> Build brands which can be used for selling these products outside the FRL shops in future.
If anyone has gone to reliance fresh shop, one can see the same “Reliance sub-brand” fast moving consumer goods as well. So what Biyani doing is fairly standard practice, but doing that using 2 different cos (with extra effort to build brand).
Apologies. The previous post on share pledge release was for Future Retail and not Future consumer. So deleting that post…
Is anyone through light howz the results.
Yes Securities old Initiating coverage report with Rs. 41 Target
Future-Consumer-Ltd-_IC__Retail_300317.pdf (1.0 MB)
Going by past records, I am willing to bet that he will be looking for new target in eCommerce space within a year.
Another piece of puzzle is why they are not investing in omni channels retailing? He has mentioned Shoppers Stop which is betting big on omni channel. Same goes for other retailers like lifestyle and max.
When will be get the 2017 Annual report will be available? I have been checking in BSE and company website but its not available?. Generally when will it be available in public domain.
Interesting article, Can not verify the veracity of the information but seems interesting. If FCEL can pass on their expansion expenses to franchise model they can focus more on their energies on the food park and brand building for their products.
Any comments or information in this regard.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/70ef3144-d25f-4168-af30-b81bdf6eb91a.pdf Results update
Hi All,
whats your view on the results and when you guyz think the profits will show up ? too many subsidiary and now JVs is it a focused company?
It’s true when I was checking Q’1 results I felt same thing…14 subsidiaries…Their portion of sales to total consolidated sales 26%.most of them making losses…
Not sure what are they and what will do. How do we get details of them. Also, the results are not in line with Mr Biyani’ s commentiary…He has guided 80%
growth…but with these numbers it’s not possible.
Also, any why idea their interest cost is going up in Q4 it was 7.43 cr and Q’1 it is 10.58 cr…
Why is this stock running from last one week. What shall be impact of hypercity purchase?
Any expert comments
HyperCity acquisition will certainly have a direct impact on Future Consumer. We have seen aggressive marketing from the Future Group in the recent times and now HyperCity takeover would certainly push this stock further. We can look at it like more stores for the Future Group to sell their grocery items.
P.S. Invested in recent times.
What could be rationale behind this acquisition?
HyperCITY is making loss despite being in operation for so many years.
In recent times, Biyani has closed home town and he has said that specialty retailers has no future, then why this acquisition?
`http://m.economictimes.com/industry/services/retail/biyani-sees-no-future-in-speciality-retail-formats/articleshow/57382503.cms`Hypercity is a food and grocery retail company. Future Retail is also in
the Food and grocery and it is perfect synergy for them…
Future consumer launches a new variant of Tasty Treat snack
Now Biyani doesn’t want to seen as retailer?
He sold Pantaloon and now he want to position big Bazaar as lifestyle departmental store?
Interesting to note that online grocery retailers like Amazon actually pick up grocery from modern retail like Big Bazaar for delivery to customer