Kishore Biyani, the founder of India-based Future Group, and Hong Kong-based Fung Capital are planning to enter into a 50:50 joint venture for launching an import and wholesale chain.
“The news about wholesale joint venture with Hong Kong’s Fung Capital is true,” Mr. Vishnu Prasad, CEO of Central & Brand Factory, part of the Future Group, told fibre2fashion.
Fung Capital is the private equity investment arm of the families of Victor and William Fung.
It currently owns 26 percent share in Future Supply Chain Solutions Ltd., the logistics and supply chain unit of Future Group. The US$ 30 million investment was made in 2009.
Under the proposed venture, there are plans to import goods in bulk from China and other Asian nations and sell the same to Indian retailers.
At the launch of the distribution centre of FSC in Nagpur, Mr. Victor K Fung, said the Fung Group is eager to have a closer relationship with the Future Group, especially in wholesaling and cash & carry operations in India.
The Hong Kong-based Fung family also owns Li & Fung Ltd., a public company that sources, distributes and retails consumer products globally with over US$21 billion in revenues and 40,000 employees in over 40 economies worldwide.
With over 17 million sq ft of retail space, Future Group has presence in 93 cities and 60 rural locations across India.