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Nov 23, 2012, 03.36 PM IST | Source: CNBC-TV18

Aim to deliver double digit growth this quarter: Pantaloon

Rakesh Biyani, joint managing director, Pantaloon Retail in an interview to CNBC-TV 18 speaks about consolidating their various lifestyle brand business together under the umbrella, Future Lifestyle Fashion. He says Future Fashion is expected to have significant synergies that will allow the company to grow business even faster.

In the last board meeting, we announced the final restructuring in terms of consolidating our lifestyle brand businesses together, under one umbrella- Future Lifestyle Fashion

Rakesh Biyani

Joint MD

Pantaloon Retail

Rakesh Biyani, joint managing director, Pantaloon Retail in an interview to CNBC-TV 18 speaks about consolidating their various lifestyle brand business together under the umbrella, Future Lifestyle Fashion. He says Future Fashion is expected to have significant synergies that will allow the company to grow business even faster.

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He also says that the company's performance has been inline with their expectations. "Diwali sales have been very good and inline with the expectations that we had created. I would specifically say that in the categories that we have been refocusing ourselves to drive higher growth, we have been able to achieve our objectives," he adds. On expectations of this quarter's earning, he says he is confident of a double digit growth.

Below is the edited transcript of Biyani’s interview to CNBC-TV18.

Q: Give us an update on where things stand with your restructuring plans now in terms of partial stake sales in various businesses that you were pursuing?

A: On the restructuring side, Pantaloon’s transaction is in process. The next set of events related to that, is happening now and on the Future capital, that transaction has got concluded. In the other transactions, the work is in progress. In the last board meeting, we announced the final restructuring in terms of consolidating our lifestyle brand businesses together, under one umbrella- Future Lifestyle Fashion. That is a significant move on our side trying to bring together the brand as well as the distribution business under one roof. It helps in bringing significant amount of synergies to allow us to grow that business even faster.

Q: How soon can one expect a listing for Future’s fashion entity? Can you give us a sense of what the combined financials may look like both in terms of the topline and what the total debt will come to?

A: The total debt transfer is assumed to be about Rs 1,400 crore into that business overall and the combined topline is going to be about Rs 3,500 crore at the beginning level. The idea is to grow it up to a billion dollar or about more than Rs 5,000 crore in about two years from now. We are trying to bring in together, all the fashion brands that we have,  which is within Pantaloon Retail India Limited, Future Ventures and the distribution business or the retailing business of central and brand factory, which is largely brand oriented. We want to combine all of them together to create a network of large format departmental stores and standalone brand stores. This should also give us an opportunity to look at any other opportunities, in terms of putting these brands under an umbrella of maybe casual wear segment or in formal wear segment.

So that is what it is going to do for us. In terms of consolidated profit and loss accounts or the profit side, there is a synergy in terms of bringing it together and we can see easily a three to four percent margin improvement in this particular business.

More to come.

Future Retail stock price

On August 22, 2014, Future Retail closed at Rs 122.55, up Rs 0.75, or 0.62 percent. The 52-week high of the share was Rs 147.85 and the 52-week low was Rs 63.30.


The company's trailing 12-month (TTM) EPS was at Rs 3.23 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 37.94. The latest book value of the company is Rs 131.65 per share. At current value, the price-to-book value of the company is 0.93.

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