Future Consumer hikes stake in food park business to around 74%

By Bhawna Gupta

  • 09 Feb 2015

Future Consumer Enterprise Ltd (FCEL), the food and FMCG arm of Kishore Biyani-led Future Group, has increased its stake in Integrated Food Park Pvt Ltd (IFPPL) to 73.89 per cent by acquiring an additional 28.86 per cent stake for an undisclosed amount, as per a stock market disclosure.

It did not say if it acquired the stake from any of the existing investors or through fresh investment into the company.

IFPPL is a Public Private Partnership (PPP) project to set up Mega Food Park (MFP) in Karnataka with Future Group flagship Future Retail, Capital Foods (a previous portfolio firm of Future Consumer) and Bangalore-based Salarpuria Group’s real estate firm Sattva as its promoters.

FCEL signed the agreement to acquire a majority stake in the firm in May last year.

The move is part of the group's strategy to sell more of its own products instead of being a retailer for others.

FCEL (formerly known as Future Ventures) is a part of Future Group that operates modern retail networks in 102 cities and 60 rural locations though its various retail brands.

Shares of FCEL were trading at Rs 13.38 each, down 1.11 per cent on BSE in a weak Mumbai market on Monday at 12.16 PM.

(Edited by Joby Puthuparampil Johnson)