Kishore Biyani, Hong Kong-based billionaire shelve JV plans

Industry:    2016-02-26

The $25-billion Fung Group, promoted by Hong Kong-based billionaire Victor K Fung, and the Kishore Biyani-led Future Group have shelved a plan for a 50:50 joint venture (JV) for imports and wholesaling. The JV was planned outside Future’s listed entities and was to be part of Fung’s family investment vehicle. The plan was for the venture to operate large wholesale markets, on the lines of the YIWU market in China and Dragon Mart in Dubai. And, to import products from China and other Asian countries and sell to Indian retail chains and smaller retailers. “The plans were shelved because we concluded there was insufficient interest by Chinese wholesalers/exporters to participate in such a trading model,” said Geoff Bilbrough, senior vice-president at Fleishman Hillard, a public relations agency of Fung Group, in an e-mailed response. Kishore Biyani could not be reached. Future and Fung Group also have a partnership with Bengaluru-based Salarpuria Sattva Properties to develop a wholesale market in that city. A second one was expected to come up in Mumbai. However, at the moment, we don’t have any plans to activate this initiative,” said Bilbrough. “The first phase of the construction (of the building) is complete. We are exploring alternative uses for the building and the adjacent vacant land.” The 1.5 million sq ft wholesale market in Bengaluru was to have a wholesale store run by the Future-Fung combine, with the rest of the space leased to multiple wholesalers. Depending on the success, the partners were looking to roll it out in other parts of the country. A senior Salarpuria Sattva group executive said: “We cancelled a couple of bookings for stores and dropped the project.” Bilbrough said as for any large and growing market, Fung Group was looking at India and would invest at the appropriate time. Li & Fung Ltd, a publicly listed entity of Fung Group in Hong Kong, has 26 per cent stake in Future Supply Chain Solutions, owned by Future Group. Li & Fung is into trading, distribution and logistics. It does business in 40 countries. Fung Holdings (1937) Ltd, privately owned entity of the families of Victor Fung and William Fung, is a major shareholder. Fung Group employs 46,000 people across 40 countries, with a revenue in 2014 of $24.65 billion.

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