Future Group acquires Nilgiris convenience store chain

Future Consumer Enterprise Limited (FCEL), an integrated food and FMCG company acquired Nilgiris convenience store chain in the southern states of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu. Nilgiris operates a franchise convenience store chain with 140 stores in key urban centers in the four states.

This is a step taken by FCEL for geographical expansion of the convenience store network in Southern India. Kishore Biyani, Group Chief Executive Officer, Future Group says, “This acquisition is synergistic as it enables strengthening and expanding of convenience stores through franchise model in an asset light model. It brings in new manufacturing capabilities and brands within the company as well.” Nilgiris branded bakery and dairy products will be channelised across all the existing channels of Future Group and also extended to other modern retailers.

Similarly, existing portfolio of brands of FCEL including Sunkist, Tasty Treat, Golden Harvest, Premium Harvest, Sach Ektaa, CleanMate and CareMate, will be channelised through Niligiris store network. Additionally, Nilgiris’ expertise in running a successful franchise network will be leveraged to expand the existing footprint of convenience stores via franchise model.

With origins in 1905, Niligiris is a leading food and grocery retail chain of South India. Apart from offering a wide assortment of products through its convenience store chain, Nilgiris, also owns a portfolio of brands in dairy, bakery, chocolates and staples along with their manufacturing facilities in Bangalore. A select product range of the brand is also retailed through general trade along with in-store bakeries in few stores. The company manages the back end operations including procurement, logistics and IT for the stores.

It operates 8 distribution centers along with a fleet of vehicles, including refrigerated vehicles that cater to the supply of its own dairy, bakery and chocolate brands to its network of stores. FCEL is part of Future Group that operates modern retail networks in 102 cities and 40 rural locations through retail brands like Big Bazaar, Central, Foodhall, Brand Factory, among others as well as various consumer goods brands, logistics networks and infrastructure for the consumption sector in India.