InvestorQ : How does the Future group of Mr. Biyani propose to handle their debt problem?
shrinidhi Rajan made post

How does the Future group of Mr. Biyani propose to handle their debt problem?

Answer
user profile image
Riya Dwivedi answered.
3 months ago


The Future group has been under financial stress for quite some time now. It now plans to sell some of its in-house brands to reduce debt. The group is essentially a retail player and the ban on malls has led to a situation where these companies are facing tremendous pressure on the cash flow front even as fixed costs continue to haunt them. One such popular in-house brand of the Future group is Tasty Treat under its snacks unit Future Consumer Ltd. Some of the in-house brands not only have a strong brand recall but also generate a chunk of the group sales. Hence brand value could be one source of monetizing its hidden value. Even on the stores front, Future Group is planning to migrate from fixed rental model to a revenue sharing model. This could also help ease cash flows. In addition, the Future group is also scouting for buyers for its insurance joint venture.