Kishore Biyani gets direct, launches new retail venture

Future Group Chairman Kishore Biyani is determined to prove to the world that life goes on even without foreign direct investment (FDI). The retail pioneer has announced his newest business initiative, Big Bazaar Direct, with a teaser campaign that says, "1 Lakh Outlets, Zero FDI. The Future of FDI is Coming Soon".

Biyani's plan is to take the Big Bazaar merchandise to places where his stores do not exist. He plans to do so through a network of one lakh franchisees, which would take down orders from consumers on their tablets and deliver products to their homes in three to seven days.

The new initiative is being test-marketed in Nagpur. Big Bazaar Direct not only caters to the city of Nagpur, which has a brick-and-mortar Big Bazaar store, but also to a number of adjoining towns.

While the retail chain is typically associated with grocery, Big Bazaar Direct is not going to be just a grocery retailer. The focus instead would be more on consumer durables, apparel and home-care products.

The franchisees could well be the neighbourhood kirana store owners, who could now sell LED TVs, bed sheets and apparel to consumers in addition to grocery. In fact, a Big Bazaar Direct franchisee in Nagpur is known to have sold as many as 30 LED TV sets in the past three weeks.

Biyani is currently on a business trip to London, but his group executives emphasise that the new initiative is being funded without any foreign investment.

It is widely known that Future Group was in advanced talks with UK-based retailer Carrefour and Lawson Inc of Japan for investing into the company. However, both retail majors have decided to hold back their investment plans due to India's perceived unfriendly retail norms.