Future Group to start “cloud kitchens” to supply hot meals


India’s largest listed retailer is now planning to deliver food directly to consumers that are prepared at the company’s facilities. Future Group will soon start “cloud kitchens” to supply hot meals to consumers in the coming month, said Kishore Biyani, CEO of Future Group said.

The venture will be rolled out in Bangalore and is looking at supplying rice-based meals at a price point of Rs 40 to start with.

A cloud kitchen is a takeaway concept that involves no seating arrangements but only functions as a production facility to deliver foods to the consumers who order through online or through phone calls.

Future Group which is India’s biggest brick-and-mortar retailer, is looking at increasing the revenue contribution of food business from 50 percent to 55 percent in near future.

We want to be a part of food in whichever way Indian consumer consumes it, said Biyani talking to reporters at the inauguration of its distribution centre in Shambhu Kalan in Punjab. The distribution centre is set up on 2 lakh square feet of built up area and will cater to distribution of consumer products for up to 300 stores in the region.

Future Group owns a company by the name Galaxy Entertainment Corporation which supplies to a dozen commissaries and supplies to live kitchens in Big Bazaars. The company may look at expanding it.

Future supply chain

Future Supply Chain Solutions will invest Rs 1,000 crore to create India Food Grid, a network of 38 integrated food distribution centres, that will provide pan-India reach.

It has identified 38 locations across the country, which will be developed into large food and FMCG distribution centres with envisaged investment to the tune of Rs 1,000 crore, the company added.

It is looking at supplying consumer products within the radius of 250 kms from the integrated supply chain.

“India Food Grid is an ambitious project by us that connects the entire country through a single, multi-layer network. Any supplier, small or big, can join this grid anywhere for further distribution across India. India Food Grid will ensure timely and efficient food, grocery and FMCG distribution,” Biyani said.