HK’s Li & Fung takes 26 per cent of Biyani’s Future Logistics

The Hong Kong-based Li & Fung Group, a global supply chain manager, on Monday picked up more than 26 per cent stake in Future Group's logistics arm Future Logistics Solutions for around $30 million.

The investment was in the form of a private equity placement. Future Group chief executive Kishore Biyani and Future Logistics Solutions chief executive Anshuman Singh signed an investment contract with Fung Capital, the private equity investment arm of the families of Victor Fung and William Fung that controls Li & Fung, in Hong Kong.

Li & Fung manages the entire sourcing and distribution from Asia for many multinationals including Wal-Mart, Tesco, Nike and Tommy Hilfiger. It even holds a minority stake in Tommy Hilfiger.

The proceeds raised through the deal will be used to part-fund the company's expansion plans that include setting up warehouses across the country and building a nation-wide transportation network. ''We want to capture a dominant share in this segment as a third party logistics service provider,'' Biyani said.

Biyani also said the company was "quite far" from listing the entity.

The logistics firm currently services over 1,100 retail outlets across the country through a warehousing network spread over three million sq ft in 30 centres, 2.6 million stock keeping units and a fleet of more than 500 vehicles. The company is estimated to close the current financial year with a turnover of Rs300 crore.