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FCEL buys southern convenience store chain Nilgiris, extends portfolio
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Monday, 24 November, 2014, 08 : 00 AM [IST]
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Our Bureau, Bengaluru
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fiogf49gjkf0d Future Consumer Enterprise Limited (FCEL) acquired the Nilgiris chain of convenience stores, which have a presence in the southern states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu. The chain, which dates back to 1905, operates on a franchisee model with 140 outlets in urban centres in the four states, and offers a wide range of products, including dairy, bakery, chocolates and staples. It operates manufacturing facilities in Bengaluru.
Selected products of the brand are also retailed through general trade and in-store bakeries in a few outlets. The company manages the back-end operations, including procurement, logistics and information technology for the outlets. It operates eight distribution centres and a fleet of vehicles, including refrigerated vehicles, that supply its own dairy, bakery and chocolate brands to its network of stores.
This acquisition by FCEL would lead to the geographical expansion of the convenience store network in southern India. The company’s existing footprint is primarily in the northern and western states. Nilgiris’ branded bakery and dairy products would be sold at Future Group’s stores (including Big Bazaar, Foodhall and Aadhaar) and other modern retailers.
Similarly, FCEL’s existing portfolio of brands, including Sunkist, Tasty Treat, Golden Harvest and Premium Harvest, would be channelised through Nilgiris’ store network. Additionally, its expertise in running a successful franchisee network would be leveraged to expand the existing footprint of the convenience store chain via a franchisee model.
Kishore Biyani, group chief executive officer, Future Group, said, “FCEL’s acquisition of Nilgiris, one of South India’s leading food and grocery convenience store chains (which has a host of food brands supported by its own manufacturing facilities for dairy and bakery products), is another step towards building a robust convenience store network in India.”
“This acquisition is synergistic, as it enables strengthening and expanding convenience stores through franchises in an asset-light model and brings in new manufacturing capabilities and brands within the company,” he added.
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